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.
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.