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ESP Bond Sample

This language is provided in response to questions from ESPs and bond issuers. Other forms are acceptable provided they include the substantive language from this sample. 

SAMPLE BOND

KNOW ALL BY THESE PRESENTS that we [INSERT NAME OF ESP], as principal, and [INSERT NAME OF SURETY], a corporation organized and existing under the laws of the State of _________ and authorized to transact business in the State of California, as surety, are held and firmly bound unto the Public Utilities Commission of the State of California, as Obligee, in the penal sum of $25,000, good and lawful money of the United States of America, for the payment of which well and truly to be made we bind ourselves, our heirs, administrators, executors, successors and assigns, jointly and severally, firmly by these presents.

WHEREAS the principal has made application to the Obligee for Registration as an Electric Service Provider under the provisions of the Public Utilities Code and applicable Public Utilities Commission decisions; and

WHEREAS the principal is required to post security in accordance with the provisions of the Public Utilities Code and applicable Public Utilities Commission decisions for claims/damages resulting from the principal's nonperformance, fraud, or other violations of the laws, decisions and orders applicable to Electric Service Providers.

NOW, THEREFORE, if the principal shall faithfully conform to, abide by, and/or perform all obligations under any applicable laws, decisions, and orders administered or issued by said Obligee, or any other applicable laws, decisions, and orders, including, without limitation, paying to the Obligee, or to any other person(s) or entity(s) as required by law, all monies due, or which shall become due, pursuant to such laws, decisions, and orders referenced herein then the above obligation shall be void, otherwise to be and remain in full force and effect.

The bond issuer reserves the right to cancel this bond by giving ninety (90) days written notice to the obligee, and on the effective date of such ninety-day cancellation notice, the bond issuer is discharged and relieved of any liability, except the bond issuer shall remain liable for amounts not paid to the utility by the ESP where the ESP's obligation to pay arises out of an involuntary return of the ESP's customers to the utility (as provided in Public Utilities Code Section 394.25(e) as implemented by Commission Decisions 13-01-021, 13-02-017, and 13-04-001) and where the involuntary return occurs, or was noticed to the utility, before the termination of the bond.  It is understood and agreed that the bond issuer will in no event be liable for an amount in excess of the stated coverage amount of this bond.  Any termination notice must be sent to State of California Public Utilities Commission - 505 Van Ness Avenue, San Francisco, CA  94102, Attention:  Energy Division - - Electric Service Provider Registration, by certified mail.

  

Last Modified: 4/8/2014


 
 
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