Current through Register No. 12, March 21, 2024
(a) The financial security instrument
required by
Puc
3003.01(c)(1) or
Puc
3003.02(a)(2) shall:
(1) Be in the form of:
a. An irrevocable standby letter of credit
issued by a bank with assets of at least $1 billion and presentable at a U.S.
office of such bank;
b. A surety
bond issued by an insurance company or bonding company included on the U.S.
Treasury Department's list of certified companies and licensed in New
Hampshire, with demand to be made on a U.S office of the named surety;
or
c. An unconditional guaranty of
payment executed by the parent company or other affiliate of the CNGS, if the
parent company or affiliate has and maintains an investment grade credit
rating;
(2) Be in an
amount equal to the greater of:
a.
$100,000.00;
b. The estimated
highest month's aggregated gas usage of all customers served by the CNGS in New
Hampshire multiplied by the same month's Tennessee Gas Pipeline Zone 6 monthly
index, for a CNGS's first year of operation; or
c. The actual highest month's aggregated gas
usage of all customers served by the CNGS in New Hampshire multiplied by the
same month's Tennessee Gas Pipeline Zone 6 monthly index, for any year after
the CNGS's first year of operation;
(3) Not exceed $500,000.00, notwithstanding
(2) above;
(4) Name the commission
as beneficiary, obligee, or guaranteed party, as applicable;
(5) Have an effective term of not less than
12 months with a 6-month extended claims, draws, or demand period;
(6) Have no right of cancellation during the
initial effective term of the financial security instrument; and
(7) Be adjusted annually, if based upon
natural gas usage or estimated usage, under (2)b or (2)c above. The CNGS shall
report its monthly and annual usage for the prior year ending March 31, as used
to determine the amount of financial security, on or before May 31 of each
year.
(b) The commission
shall make a claim under, or pursue an action against, financial security
instruments for the following purposes and in the following order of payment
priority:
(1) Customer complaint reparations,
ordered by the commission following notice and hearing and remaining unpaid by
the CNGS after 30 days;
(2) Costs
incurred as necessary to ensure continuous service to a CNGS's customers
through LDC sales service or another CNGS;
(3) Fines or sanctions for violation of
applicable laws or rules, assessed by the commission following notice and
hearing and remaining unpaid by the CNGS after 30 days; and
(4) Commission annual assessment remaining
unpaid by the CNGS on June 1 of any calendar year, in the absence of exemption
or good faith objection.
(c) Each financial security instrument shall
contain the following operative language:
"The New Hampshire Public Utilities Commission may draw upon
this financial security instrument if and when the Company has failed to make
required payment(s) and/or payment arrangements in accordance with the terms
and conditions of an order issued by the New Hampshire Public Utilities
Commission."
(d) In the
event the commission draws on a financial security instrument pursuant to Puc
3005 and Puc 3003.03(b) above, the CNGS shall replenish the financial security
instrument to the full amount required by (a)(2) and (a)(3) above within the
timeframe specified by the commission in any decision or order.
(e) If the financial security instrument
provided by a CNGS to the commission in connection with its original or any
renewal registration will not be renewed or extended beyond its expiration
date, the CNGS shall:
(1) Provide written
notice to the commission of such non-renewal or non-extension not less than 60
days prior to the expiration date; and
(2) File with the executive director a
replacement financial security instrument meeting the requirements of (a) above
no less than 30 days prior to the expiration date.
(f) A CNGS that fails to comply with the
requirement to file a replacement financial security instrument under (e)(2)
above shall be subject to fines, suspension, or revocation pursuant to Puc
3005.
#9796-A, eff
9-25-10
