Michigan gas utilities bonds.
From $100.
Michigan requires an alternative gas supplier to hold a license from the Michigan Public Service Commission under 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 financial capability. Premiums cost 2% of the bond amount, $100 minimum.
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How much does a Michigan gas utilities bond cost?
2% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. 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 application.
Issued
No credit check up to $15,000, and most applications approve instantly. Because these bonds can run six figures, larger amounts may get a brief underwriter review.
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 check up to $15,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
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 sets the price
The premium is 2% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $15,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, no credit check up to $15,000.
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.
Price and requirements checked on the carrier’s application, . Page updated .
AGS license waiting on one filing.
Premiums from $100, no credit check up to $15,000 in the application. Enter your required amount and file with the MPSC.