Energy Supplier Licensing Guide

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Guide Contents
Overview

Electricity Supplier Licensing

Businesses that provide electricity supplier services are generally required to register with the state public utilities commission. There are currently 18 states that have licensing requirements.

Electricity suppliers must register with the secretary of state prior to applying for a license. Along with the license application, suppliers should register with the public utilities located in the supplier’s service area. Additional steps are often needed to apply for a license, but these requirements vary by state. A dedicated compliance expert can help you keep track of varying jurisdiction requirements and updated laws.

Firms that provide electric supply services in a competitive energy state are generally required to hold a license before offering their services. The term electric supplier broadly includes firms acting as electric brokers, aggregators, and marketers.

Electric suppliers are typically regulated by state level public utility commissions and federally by the Federal Energy Regulatory Commission (FERC). Application requirements vary by state, but common requirements include:

  • Charter and incorporation documents
  • Partner and officer information
  • Bonding requirements
  • Financial statements
  • List of other states where licensed to operate
  • Proof of experience

States often require foreign entities to submit a certificate of good standing from their home state and state of application. Electric marketers may also be required to comply with certain FERC regulations before applying for a state-level license.

In addition to state utility commission requirements, suppliers are usually required to register with the electric utility that generates electricity in the supplier’s proposed area of service. Depending on where a supplier wants to provide service, multiple utility company registrations may be needed.

There are also ongoing compliance considerations for electric suppliers. Almost all states require electric supplier licenses to be renewed annually. Arizona does not require renewal, while New Hampshire has a biennial renewal period. In some cases, suppliers must also provide disclosures to consumers and report to the public utility commission periodically.

Overview By State

Looking for electricity supplier licensing requirements in a particular jurisdiction? The following table summarizes firm licensing requirements across the United States.

Alabama

Not Required

Electricity Supplier licensure is not required on the State level in Alabama

Alabama does not allow for competitive electricity supply.

Alaska

Not Required

Electricity Supplier licensure is not required on the State level in Alaska

Alaska does not allow for competitive electricity supply.

Arizona

Not Required

Electricity Supplier licensure is not required on the State level in Arizona

Arkansas

Not Required

Electricity Supplier licensure is not required on the State level in Arkansas

California

Agency

California Public Utilities Commission

Initial Application

License Renewal

Fee:

There is no fee for the annual update, however, ESPs are assessed an annual fee of $1,000 every year in September.

Form:

Application Update Form

Due:

Annually in the fall, typically October.

Colorado

Not Required

Electricity Supplier licensure is not required on the State level in Colorado

Connecticut

Agency

Connecticut Department of Energy & Environmental Protection - Public Utilities Regulatory Authority

Initial Application

License Renewal

Fee:

$250

Form:

Electric Supplier Review Application

Due:

At least 45 days prior to the 5 year anniversary of the issuance or last review of the license. 

Delaware

Agency

Delaware Public Service Commission

Initial Application

License Renewal

District of Columbia

Agency

District of Columbia Public Service Commission

License Renewal

Fee:

$0

Due:

Every 5 years by the date of issuance or last renewal.

Florida

Not Required

Electricity Supplier licensure is not required on the State level in Florida

Florida does not currently allow for competitive electricity supply.

Georgia

Not Required

Electricity Supplier licensure is not required on the State level in Georgia

Georgia limits competitive electric supply to commercial and industrial customers, but does not issue licenses for those suppliers.

Hawaii

Not Required

Electricity Supplier licensure is not required on the State level in Hawaii

Hawaii does not currently allow for competitive electricity supply.

Idaho

Not Required

Electricity Supplier licensure is not required on the State level in Idaho

Idaho does not currently allow for competitive electricity supply.

Illinois

Agency

Illinois Commerce Commission

Initial Application

License Renewal

License Name:Annual RecertificationFee:

$0

Form:

ARES Annual Report Form

Due:

Annually by March 31.

Indiana

Not Required

Electricity Supplier licensure is not required on the State level in Indiana

Iowa

Not Required

Electricity Supplier licensure is not required on the State level in Iowa

Kansas

Not Required

Electricity Supplier licensure is not required on the State level in Kansas

Kentucky

Not Required

Electricity Supplier licensure is not required on the State level in Kentucky

Louisiana

Not Required

Electricity Supplier licensure is not required on the State level in Louisiana

Maine

Agency

Maine Public Utilities Commission

Initial Application

License Renewal

Maryland

Agency

Maryland Public Service Commission

License Renewal

Massachusetts

Agency

Massachusetts Department of Public Utilities (DPU)

License Renewal

Michigan

Agency

Michigan Department of Licensing and Regulatory Affairs (LARA) - Public Service Commission

Initial Application

Fee:

$0

Filing Method:

Online

License Renewal

Minnesota

Not Required

Electricity Supplier licensure is not required on the State level in Minnesota

Mississippi

Not Required

Electricity Supplier licensure is not required on the State level in Mississippi

Missouri

Not Required

Electricity Supplier licensure is not required on the State level in Missouri

Montana

Not Required

Electricity Supplier licensure is not required on the State level in Montana

Nebraska

Not Required

Electricity Supplier licensure is not required on the State level in Nebraska

Nevada

Not Required

Electricity Supplier licensure is not required on the State level in Nevada

New Hampshire

Agency

New Hampshire Public Utilities Commission

Initial Application

License Renewal

New Jersey

Agency

New Jersey Board of Public Utilities

Initial Application

Fee:

$1,000 license fee + $250 application fee

Form:

Electric Power Supplier Initial Application

License Renewal

Fee:

$500

Form:

Electric Power Supplier Renewal Application

Due:

Licenses expire annually by the date of issuance, but registrants must apply for renewal no later than 30 days before the expiration date.

New Mexico

Not Required

Electricity Supplier licensure is not required on the State level in New Mexico

New York

Agency

New York State Department of Public Service

Initial Application

License Renewal

Fee:

$0

Filing Method:

Online

Due:

Annually by January 31.

North Carolina

Not Required

Electricity Supplier licensure is not required on the State level in North Carolina

North Dakota

Not Required

Electricity Supplier licensure is not required on the State level in North Dakota

Ohio

Agency

Public Utilities Commission of Ohio

License Renewal

Fee:

$0

Form:

Renewal Application for Retail Generation Providers and Power Marketers

Due:

Biennially not less than 30 days prior to the expiration date listed on the certificate.

Oklahoma

Not Required

Electricity Supplier licensure is not required on the State level in Oklahoma

Oregon

Agency

Oregon Public Utility Commission

Initial Application

License Renewal

Pennsylvania

Agency

Pennsylvania Public Utility Commission

Initial Application

License Renewal

Fee:

$350

Due:

Annually

Rhode Island

Agency

Rhode Island Division of Public Utilities and Carriers

Initial Application

Fee:

$100

License Renewal

Fee:

$100

Due:

Annually by December 31.

South Carolina

Not Required

Electricity Supplier licensure is not required on the State level in South Carolina

South Dakota

Not Required

Electricity Supplier licensure is not required on the State level in South Dakota

South Dakota does not allow for competitive electricity supply.

Tennessee

Not Required

Electricity Supplier licensure is not required on the State level in Tennessee

Tennessee does not currently allow the competitive supply of electricity.

Texas

Agency

Public Utility Commission of Texas

Initial Application

Fee:

$0

License Renewal


Agency

Public Utility Commission of Texas

Initial Application

License Name:Retail Electric Provider CertificationFee:

$0

Form:

Retail Electric Provider Certification - Application and Amendment Form

License Renewal

Not required

Retail electric provider certifications do not expire, but reports must be made to the commission periodically.

Utah

Not Required

Electricity Supplier licensure is not required on the State level in Utah

Vermont

Not Required

Electricity Supplier licensure is not required on the State level in Vermont

Virginia

Agency

Virginia State Corporation Commission - Division of Public Utility Regulation

Initial Application

Fee:

$250

License Renewal

Not required

License is valid until suspended or revoked by the SCC.

Washington

Not Required

Electricity Supplier licensure is not required on the State level in Washington

West Virginia

Not Required

Electricity Supplier licensure is not required on the State level in West Virginia

West Virginia does not allow for competitive electricity supply.

Wisconsin

Not Required

Electricity Supplier licensure is not required on the State level in Wisconsin

Wisconsin does not allow for competitive electricity supply.

Wyoming

Not Required

Electricity Supplier licensure is not required on the State level in Wyoming

Aggregator - Agents acting as brokers on behalf of a group or groups of customers.

Broker - An agent acting as a middleman between energy suppliers and customers. Brokers can be affiliated with a single energy supplier or may have several supplier affiliations.

Competitive Energy States - States that allow consumers to choose the supplier of their energy source.

Energy Supplier - Narrowly defined, a supplier is a company that owns rights to a supply of energy or owns means of producing energy and then sells that energy to customers. The broad definition of energy supplier also includes aggregators, brokers, and marketers.

Franchise Agreement - A contract between municipal governments and utility companies that sets a franchise fee and conditions for the use of public rights of way.

Power Marketer - Act as intermediary between utilities and customers. Marketers do not own any assets related to power generation, they simply find price discrepancies between utility companies and offer savings to customers.

ACCES: American Coalition of Competitive Energy Suppliers
Consumer outreach organization that educates the public on energy choice.

FERC: Federal Energy Regulatory Commission
Independent agency charged with oversight of electric, oil, natural gas, and hydropower transmissions.

RESA: Retail Energy Supply Association
National association of energy suppliers that encourages competition in energy markets.

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