BON ONDS DS 1 PERFORM RMANCE CE B BOND NDS APPE PPELLATE B - - PowerPoint PPT Presentation

Publi lic S Service Co Commissi ssion o

• f

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

• de 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

• f

Any y Fac acili lity o y or r System:

• $1

$100, 00,000 000 - $350, $350,000 000 B Bon

• nd wit

ith S Sufficient Surety P Payable le t to The Commission

• n
• $1

$100, 00,000 000 - $350, $350,000 000 Cer ertificate of

• f Dep

eposi sit with E h Endorseme ment nts

Public Service Commission of South Carolina 4

S.C S.C. C . Cod

• de Ann.

. §58 58-5-720 Forfe feiture o

• f

Wat ater and r and Was astewat ater B r Bond nds

All ll or A Any Part o

• f W

f Wat ater a and Wastewater Bo Bonds o

• r

CD CDs Ca s Can Be F e Forfeit eited ed

• For a

an Unrea easo sonable L e Len ength o

• f 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

• de 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

• r

r CD CD an and Paym yment t to the he Co Commissi ssion o n of f Fine ne o

• r

r pe penalt nalty (Gene neral F al Fund nd - §58 58-5-71 710)

• A Co

Cond ndition n of t f the he Bond nd: Pe Penalt alty y or F r Fine ne ≥ $1 $100 00/D /Day or

• r ≤ $1

$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

Bo Bond A Amo moun unt Bas Based o

• n 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

• me T

e Taxes

• Incom
• me 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

• f

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

• r

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

• f

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

• Bon
• nd
• 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

• f Bon
• nd, 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

• f Car

f Carrier

Public ic S Servic vice C Commis issio ion o

• f 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

• f

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

• f 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
• rmu

mula for

• r B

Bon

• nd 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

• f 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

• nd or
• r Certificate of
• f

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

• f Sout

uth C Carolin ina 15

Appe ppellate Bonds

• nds

Public Service Commission of South Carolina 16

APPE APPELLATE B BON ONDS ( S (§58 58-5-24 240 a 0 and §58 58-27-87 870)

Public Service Commission of South Carolina 17

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

• nsideration
• n

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

APPELLATE B BONDS DS Example les: Bon

• nd A

Amou

• unt:

$78 $787,867 867.00 00 - Docket N

• No. 2014-

346 346-WS – Order No. 2 2016-15 156 Bon

• nd A

Amou

• unt:

$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

• f 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

• llution A

Act of

• f 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

• f

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

• f Sout

uth C Carolin ina 24