MI gas utilities bonds.
From $100. Enter your amount.
Michigan requires a person selling natural gas at unregulated retail rates — an alternative gas supplier (AGS) in the state’s Gas Customer Choice program — to hold a license from the Michigan Public Service Commission (MPSC) under 2002 PA 634 (MCL 460.9 et seq.), and Commission Staff conditions that license on a bond or letter of credit for an applicant who can’t otherwise show demonstrated financial capability. Premiums cost 2% of the bond amount, $100 minimum, and the application collects no credit information.
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Apply to filed in one sitting.
No long underwriting queue for the standard AGS financial-guarantee bond — enter your amount, pay, and file with the MPSC. Here is the whole thing:
Apply online
Your company details, the bond amount your MPSC license application specifies, and the effective date — that is the entire application.
Issued
The application collects no credit information, and most applications approve instantly. Because these bonds can run six figures, larger amounts may get a brief underwriter review — if a check ever runs, it is a soft pull that will not touch your score — usually within 48 hours.
File with the MPSC
Submit the executed bond with your alternative gas supplier license application or renewal filing. Wet-ink originals mailed whenever the Commission insists.
What it is and who needs it.
What the gas utilities bond actually covers
Michigan’s Gas Customer Choice program lets natural gas customers buy their commodity supply from a licensed alternative gas supplier (AGS) instead of their local utility, while the utility still delivers the gas. 2002 PA 634, codified at MCL 460.9 et seq., requires anyone doing this business in Michigan to hold a license from the Michigan Public Service Commission and directs the Commission to assure that a licensed AGS has the necessary financial, managerial, and technical capability to serve customers.
As part of that financial-capability review, MPSC Staff’s licensing process has conditioned a license on a bond or letter of credit for an applicant who cannot otherwise demonstrate financial capability — the same mechanism the Commission uses for alternative electric suppliers under a parallel statute. It is a three-party arrangement: you (the principal), the surety carrier, and the MPSC (the obligee) standing behind your performance of the license’s financial-responsibility conditions on behalf of Michigan gas customers.
The amount is set on a case-by-case basis as part of your license application, not a single statutory figure — enter the amount your MPSC filing specifies and your premium is priced from a $100 minimum, with no credit section in the application.
You need this bond if you are
One application, then a quick review.
Submit the application with your required bond amount. Because these can run six figures, larger amounts may get a brief underwriter review — usually within 48 hours.
Start the application →Common questions.
Other Michigan bonds.
AGS license waiting on one filing.
Premiums from $100, no credit fields in the application. Enter your required amount and file with the MPSC.