State licenses are required for energy services because of the state’s interest in tracking energy providers, monitoring local energy markets, and regulating the sale of electricity and natural gas.
These energy industry license applications often include extensive educational and experience background information on all owners of the business entity. Proof of financial fitness must often be provided through a surety bond, current financial statement, and forecasted financial outlook of the business.
Many times energy broker license applications automatically become a matter of public record once submitted. Applicants must file a motion of protective order to request the application remain confidential.
I need an energy broker license in a couple states in the north. What states do you have experience in? Also what is the cost per state to file for a license? What is your fee?
Energy brokers licenses are required in about a third of U.S. states. The renewal dates and application fees vary as does the length of the application process. Different states require copies of various documents pertaining to your organization and in some states you are required to obtain a surety bond.
Certain states might not require an energy broker license but could require you to obtain a basic business license to do any type of business in the state. You might need to apply for sales and use tax and if you have employees, you will need to set up withholding tax and possibly unemployment insurance.
We license in all 50 states and can help you determine if you need an energy broker's license in a particular state. First, we would send you a questionnaire to identify which states you will be conducting business. We will then do the license research to determine exactly what you need in each jurisdiction you identified. Our license experts will compile all of the applications for you and provide detailed instructions on how to apply and the fees associated with each application. Should you not want to deal with the hassle of submitting applications to multiple jurisdictions CT Corporation can complete all the applications for you and streamline the process.
The pricing for our services varies depending on the extent of services you wish CT Corporation to perform. You can get a quote by contacting CT Corporation.
Can U.S. energy brokers operate in Canada?
Canadian energy is regulated by the National Energy Board. The NEB is generally responsible for inter-provincial and international matters such as imports and exports of natural gas and oil, inter-provincial pipelines and power lines, and offshore drilling and energy exploration. Domestic production and distribution of energy are left in the hands of the individual provinces, who decide which laws and regulations will ultimately govern their energy sectors. Within each province, energy is regulated by provincial energy boards; however, regulation varies from province to province. Alberta has largely privatized its energy sector, while in Ontario the process is still ongoing, with unregulated prices for large customers and regulated prices for small customers. Other provinces like Manitoba and Quebec regulate energy distribution more strictly, with some provinces choosing to produce and distribute energy entirely on the provincial level through providers referred to as Crown Corporations.
Becoming an energy broker can be a quick process or a complex one, depending on the province where you want to operate. Most provincial energy boards require an application complete with personal financial statements, a security bond, and copies of marketing materials and contracts that your corporation will use. Application fees can range from $800 to $3000. Once you have submitted the appropriate application materials and fees, the licensing board will review your submission and will typically hold a hearing to approve or disapprove your request. The review process can take 90 days or more.
CT Corporation will help your business determine the licenses that are needed and obtain all of the licenses and registrations required, minimizing time-consuming and costly delays. Please contact CT Corporation to obtain a free quote.