Ala. Admin. Code r. 770-X-9-.07

Current through Register Vol. 43, No. 02, November 27, 2024

Section 770-X-9-.07 - Financial Assurance Requirements

(1) Whenever required by Commission rules and regulations, each ME shall provide proof of a security in the amount of one hundred percent (100%) of gross annual revenue or $100,000, whichever is greater. Such financial security shall be in the form of a bond (See Appendix B) or Irrevocable Letter Of Credit (See Appendix C) made payable to the PSC. If an ME proposes to post financial security other than the type or amount permitted here, it must file a separate petition with the Commission and obtain PSC approval for such other financial security.

(2) Wastewater Management Entities shall ensure that the PSC is notified at least thirty (30) days prior to any termination action concerning an irrevocable letter of credit that will not be renewed. At least thirty (30) days written notice shall also be required prior to the expiration date for a bond of non-perpetual duration that is not renewed or a bond that is otherwise terminated. Written notification by means of certified mail to the PSC shall be required.

(3) Whenever required by Commission rules and regulations, each ME shall provide proof of general commercial liability insurance in the amount of $2,000,000 general aggregate.

Ala. Admin. Code r. 770-X-9-.07

Effective as Interim Rule: August 2009. Filed with LRS February 5, 2013. Filed for Codification in the Alabama Administrative Code by the Alabama Public Service Commission on February 5, 2013, pursuant to Code of Ala. 1975, § 41-22-7.

Author: Alabama Public Service Commission

Statutory Authority:Code of Ala. 1975, §22-2 5B-6.