Publi lic S Service Co Commissi ssion o of f South h Car Carolina BON ONDS DS 1
• PERFORM RMANCE CE B BOND NDS • APPE PPELLATE B BON ONDS Public Service Commission of South Carolina 2
Wat ater er and W and Was astewater Performanc ance B e Bonds ds Public Service Commission of South Carolina 3
S.C S.C. C . Cod ode Ann. . §58 58-5-720 Wat ater and r and Was astewat ater B r Bond nds Co Cons nstruction, n, O Ope perat ation, n, Mai Maint ntenanc ance, Acquisition, E Exp xpansion, or , or Imp Improvement of of Any y Fac acili lity o y or r System: • $1 $100, 00,000 000 - $350, $350,000 000 B Bon ond wit ith S Sufficient Surety P Payable le t to The Commission on • $1 $100, 00,000 000 - $350, $350,000 000 Cer ertificate of of Dep eposi sit with E h Endorseme ment nts Public Service Commission of South Carolina 4
S.C S.C. C . Cod ode Ann. . §58 58-5-720 Forfe feiture o of Wat ater and r and Was astewat ater B r Bond nds All ll or A Any Part o of W f Wat ater a and Wastewater Bo Bonds o or CD CDs Ca s Can Be F e Forfeit eited ed • For a an Unrea easo sonable L e Len ength o of Tim ime, U e, Util ilit ity y Fail iled ed to P Provid vide S e Ser ervice vice wit ithout Just Ca Cause o se or E Excuse se • Notic ice a e and Hea earin ing Public Service Commission of South Carolina 5
S.C S.C. C . Cod ode Ann. . §58 58-5-710 710 a and §58 58-5-720 Wat ater and r and Was astewat ater B r Bond nds Fai ailure re t to Provide S Service in n Accordanc ance wit ith C Commis ission Orde der • Forfe feit t the he Bond nd o or r CD CD an and Paym yment t to the he Co Commissi ssion o n of f Fine ne o or r pe penalt nalty (Gene neral F al Fund nd - §58 58-5-71 710) ne ≥ • A Co Cond ndition n of t f the he Bond nd: Pe Penalt alty y or F r Fine or ≤ $1 $100 $1 00/D /Day or $1,00 ,000/D /Day Public Service Commission of South Carolina 6
Regulat lations 1 s 103-512.3 .3.1 a and 103-712.3.1 Wat ater and r and Was astewat ater B r Bond nds Bond A Bo Amo moun unt Bas Based o on Expe penses for T Twelve M Months: • Oper eration a and Mainten enance E e Expen enses es • Gener eral and A Administrative E e Expen enses es • Taxes es Other er than n Incom ome T e Taxes • Incom ome T e Taxes es • Debt Service e Including g Inter eres est Expen enses Public Service Commission of South Carolina 7
Regulat lations 1 s 103-512.3 .3.1 a and 103-712.3.1 Wat ater and r and Was astewat ater B r Bond nds Annu nual Ce al Certifi ficat ation o of f Bond nds The Utility must file a certification that the face amount of the bond on • file with the Commission complies with the Regulation. Certification included with the utility’s Annual Report • ORS reviews the Annual Reports and Certifications to determine • whether the amount of the bond accurately reflects the expenses of the utility. ORS can make recommendations to increase or reduce the amount of • the bond. Public Service Commission of South Carolina 8
Regulat lations 1 s 103-512.3 .3.2 a and103-712.3.2 .2 Sureties • Surety y Ma May y Be Any D y Dul uly Li y License nsed Bond nding or r Insu nsuranc ance Co Compan pany D Doing ng B Busi sine ness ss in n South Car h Carolina • Ma May y Be an an Ind ndividual, al, e e.g., S Sole O Owne ner o r or r Stockho holder ( r (Net Worth Must Be e Twice t e the e Fac ace Amount nt o of f Bond nd) Public Service Commission of South Carolina 9
Regulat lations 1 s 103-512.3 .3.3 a and 103-712.3.3 .3 Financ nancial S l Stat atement f for r Ind ndividual S l Sur urety • Individual A l Acts s as as Surety: • File a a Verifi fied A Annual nnual F Financ nancial al Stat atement S Sho howing ng t the he I Ind ndividual ual Surety ty’s P Personal As Assets ts, L Lia iabilit ities, and and Net W Worth Public Service Commission of South Carolina 10
Telecommunic unicat atio ions ns Performanc ance B e Bonds ds Public Service Commission of South Carolina 11
Regulat lation 1 103-607 07 Bo Bonds ds f for Retail R Reside identia ial L Loca cal Telecommu munications Ut Utilities • Five Mi Milli lion D n Dollar I llar Investment nt – No B o Bon ond • Co Commissi ssion Ma May U y Use se A Any y Co Commerciall ally y Reaso asonab nable, A Acceptab able le Me Metho hod f for r Determi mining A Amou mount of of Bon ond, E , Etc., ., Including N Number o r of f Cu Customers, s, Retai ail l Price f for r Service, and and Financ nancial R l Reso sources s of Car f Carrier Public ic S Servic vice C Commis issio ion o of Sout uth C Carolin ina 12
Regulat lation 1 103-607 07 Bo Bonds ds f for Retail R Reside identia ial L Loca cal Telecommu munications Ut Utilities Type ypes o s of Pe f Perform rman ance Bond nds • Pe Performan ance B Bond nd - ≥ $100,000 • Irrevoca cable L Lett tter of Credit dit - ≥$100,000 • Ce Certifi ficat ate o of f Depo posi sit - ≥ $50,000 Forfe feiture of B f Bond nd, etc. for A r Aban andonm nment nt Public ic S Servic vice C Commis issio ion o of Sout uth C Carolin ina 13
Commissio ion O Orde der No. 2 2012-17 175 Bo Bonds ds f for Retail R Reside identia ial L Loca cal Telecommu munications Ut Utilities • February 29, 29, 20 2012 2 –Or Order Gr Granting P Partial Wai aiver o r of f Regulat lation 1 103-607 07 • For ormu mula for or B Bon ond A Amou mount: • Averag age Mo Monthl hly Char y Charge Pe Per r Cu Customer x Number o r of f South Car h Caroli lina Cu na Customers s x 2 2 Mo Mont nths hs Public ic S Servic vice C Commis issio ion o of Sout uth C Carolin ina 14
Prepai paid Lo Long ng D Distanc ance Cal Calling Car Cards • Commissio ion O Orde ders • $5,00 $5,000 Su Surety B Bon ond or or Certificate of of Depo posi sit f for r Offe ffering ng P Prepai paid Cal Calli ling ng Car Cards Public ic S Servic vice C Commis issio ion o of Sout uth C Carolin ina 15
Appe ppellate Bonds onds Public Service Commission of South Carolina 16
APPELLATE B APPE BON ONDS ( S (§58 58-5-24 240 a 0 and §58 58-27-87 870) Commiss ssion I Issu ssues R Rate C Case se Order a and Uti Utility ty F Files s Petit itio ion f for Recon onsideration on Utility M May P Put Req equested Rates i s into to E Effe ffect d t during Appe ppeal Rates in in Effect ct u unde der B Bond nd Not Approved & d & Refunde unded d Bea ear In Inter erest a at 12% Commission O Order ers R Refund, If D f Due Public Service Commission of South Carolina 17
APPELLATE B BONDS DS Example les: Bon ond A Amou ount: $78 $787,867 867.00 00 - Docket N No. 2014- 346 346-WS – Order No. 2 2016-15 156 Bon ond A Amou ount: $50 $501,133 33.00 00 - Docket N No. 201 1 1 1- 47-WS – Order N No. 2 2012 012-31 31 Public Service Commission of South Carolina 18
Th Than ank Y k You. Public ic S Servic vice C Commis issio ion o of Sout uth C Carolin ina 19
Wat ater and r and Was astewat ater U r Utili lities • TOTAL AL NUMBER BER OF F WATER ER AN AND D WASTEWATE TER C COMPANIE NIES: S: 38 • WASTEWATE TER: 13 • WATE TER: R: 13 • WATE TER/ R/WASTE TEWATER: : 12 Public Service Commission of South Carolina 20
Telecommu munications Ut Utilities • TOTAL AL NUMBER BER O OF F TEL ELEP EPHONE COM OMPANIES: : 278 78 • Incumbent l local e al exchang hange c car arrier: 25 • Co Compe petitive l local e l exchang hange car arrier: 134 • Intere rexchan hange c car arrier: 92 • Paypho yphone se service pr provider: 27 Public Service Commission of South Carolina 21
Electric Ut Utilities Public Service Commission of South Carolina 22
Gas U Utiliti ties Public Service Commission of South Carolina 23
Other S Sour urce ces • Oi Oil P Pol ollution A Act of of 1990 990 • Oil S Spi pill F ll Financ nancial R l Respo sponsi nsibility f y for r Off ffsho shore F Fac acilities • Stat ate o of f Alask aska F a Financ ancial R l Respo sponsi nsibility y for O Oil il Dis Discharges Public ic S Servic vice C Commis issio ion o of Sout uth C Carolin ina 24
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