5300582 Public Service Commission - Notice of Proposed Rulemaking - Notice of the adoption of Chapter 46 of Title 15 DCMR, a new chapter which establishes rules for governing the licensure and bonding of electricity suppliers in DC
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PUBLIC SERVICE COMMISSION OF THE DISTRICT OF COLUMBIA
NOTICE OF PROPOSED RULEMAKING
Formal Case No. 945, Phase II, In the Matter of the Investigation Into Electric Service Market Competition and Regulatory Practices;
And
RulemakinG 46-2015-01-E, In the Matter of the Investigation into the public service commission’s Rules governing the licensure and bonding of Electric Suppliers in the district of columbia
1. The Public Service Commission of the District of Columbia (“Commission”), pursuant to its authority under Sections 34-1501 through 1520 and 34-1671.01 through 1671.14 of the D.C. Code hereby gives notice of the adoption of a new Chapter 46 (Licensure of Electricity Suppliers) of Title 15 (Public Utilities and Cable Television) of the District Code of Municipal Regulations (“DCMR”). Chapter 46 is a new chapter which establishes rules governing the licensure and bonding of Electricity Suppliers in the District of Columbia, pursuant to the Retail Electric Competition and Consumer Protection Act of 1999 (“1999 Act”) as codified in Sections 34-1501 through 1520 of the D.C. Code. Currently, the requirements for licensing Electricity Suppliers are set forth in Formal Case No. 945, Order No. 11796, rel. September 18, 2000. Bonding requirements for Electric Suppliers are set forth in Formal Case No. 945, Order No. 11862, rel. December 18, 2000. This Rulemaking proposes to put the licensing and bonding requirements in a single chapter. This Notice of Proposed Rulemaking (“NOPR”) includes the following attachments: (A) Supplier Application; (B) Notice of Application; (C) Form of Customer Payments Bond-Surety Bond; (D) Form of Integrity Bond for Electric Suppliers other than Aggregators and Brokers-Surety Bond; and (E) Form of Integrity Bond for Aggregators and Brokers-Surety Bond;
CHAPTER 46 LICENSURE OF ELECTRICITY SUPPLIERS
4600 APPLICABILITY
4600.1 Application. These rules apply to a Person who engages in the business of an Electricity Supplier in the District of Columbia.
4600.2 Purpose. These rules provide uniform requirements for obtaining an Electricity Supplier License in the District of Columbia, describe the administrative procedures available to the Applicants and Licensees, outline the grounds for Commission action regarding a Licensee, and describe the sanctions that may be imposed by the Commission.
4600.3 Restrictions. No Person shall present itself as a licensed retail Electricity Supplier, accept Deposits or prepayments from retail customers, or contract with retail customers or arrange for contracts for retail customers, prior to receipt of a license from the Commission.
4601 DEFINITIONS
(a) For the Purposes of these rules, the following terms have the meanings indicated.
(b) Terms Defined
(1) Act. “Act” means the “Retail Competition and Consumer Protection Act of 1999.”
(2) Affiliate. “Affiliate” means a Person who directly or indirectly, or through one or more intermediaries, controls, is controlled by, or is under common control with, or has, directly or indirectly, any economic interest in another person.
(3) Aggregator. “Aggregator” means a Person that acts on behalf of customers to purchase electricity.
(4) Applicant. “Applicant” means the Person that applies for an Electricity Supplier License required by the Act.
(5) Application. “Application” means the written request by a Person for an Electricity Supplier License in a form specified by the Commission. The Application form for an Electricity Supplier License in the District of Columbia is attached to these rules (See Attachment A).
(6) Broker. “Broker” means a Person who acts as an agent or intermediary in the sale and purchase of electricity but who does not take title to electricity and who is not a Consolidator.
(7) Commission. “Commission” means the Public Service Commission of the District of Columbia.
(8) Competitive Billing. “Competitive Billing” means the right of a Customer to receive a single bill from the Electric Company, a single bill from the Electricity Supplier, or separate bills from the Electric Company and the Electricity Supplier.
(9) Consolidator. “Consolidator” means any owner of, or property manager for multi-family residential, commercial office, industrial, and retail facilities who combines more than one property for the primary purpose of contracting with an aggregator or electric energy service provider for electric energy services for those properties, and who: (A) Does not take title to electric energy; (B) Does not sell electric energy to or purchase electric energy for buildings not owned or managed by such owner or property manager; (C) Does not offer aggregation of electric energy services to other, unrelated end-users; and (D) Arranges for the purchase of electric energy services only from duly licensed Electricity Suppliers or Aggregators.
(10) Customer. “Customer” means a purchaser of electricity for end use in the District of Columbia. The term excludes an occupant of a building where the owner, lessee, or manager manages the internal distribution system serving the building and supplies electricity solely to occupants of the building for use by the occupants.
(11) Customer Payments Bond. “Customer Payments Bond” is a bond or other form of acceptable financial instrument such as a line of credit, sworn letter of guarantee, bank loan approval documents, recent bank statements, vendor financing agreements or underwriting agreements in an amount at least equal to the total amount of Deposits or Prepayments specified in this section.
(12) Deposits. “Deposits” include all payments made by a customer to an Electricity Supplier to secure the receipt of electric energy services from the Electricity Supplier.
(13) District of Columbia Electricity Supplier Coordination Tariff. “District of Columbia Electricity Supplier Coordination Tariff” means the document that sets forth the basic requirements for interaction and coordination between the Electric Company as the Local Distribution Company and each Electricity Supplier necessary for ensuring the delivery of competitive power supply from Electricity Suppliers to their customers via the Company’s distribution system.
(14) Electric Company. “Electric Company” includes every corporation, company, association, joint-stock company or association, partnership, or Person doing business in the District of Columbia, their lessees, trustees, or receivers appointed by any court whatsoever, physically transmitting or distributing electricity in the District of Columbia to retail electric customers. The term excludes any building owner, lessee, or manager who, respectively, owns, leases, or manages, the internal distribution system serving the building and who supplies electricity and other electricity related services solely to the occupants of the building for use by the occupants. The term also excludes a Person or entity that does not sell or distribute electricity and that owns or operates equipment used exclusively for the charging of electric vehicles.
(15) Electricity Supplier. “Electricity Supplier” means a person, including an Aggregator, Broker, or Marketer, who generates electricity; sells electricity; or purchases, brokers, arranges or markets electricity for sale to customers. The term excludes the following:
(A) Building owners, lessees, or managers who manage the internal distribution system serving such building and who supply electricity solely to the occupants of the building for use by the occupants;
(B) Any Person who purchases electricity for its own use or for the use of its subsidiaries or affiliates;
(C) Any apartment building or office building manager who aggregates electric service requirements for his or her building or buildings, and who does not: (I) Take title to electricity; (II) Market electric services to the individually-metered tenants of his or her building; or (III) Engage in the resale of electric services to others;
(D) Property owners who supply small amounts of power, at cost, as an accommodation to leases of the property;
(E) A Consolidator; and
(F) A Community Renewable Energy Facilities (“CREFs”) as defined in Subsection 4199.1 and as described in Subsections 4109.1 through 4109.3 pursuant to the Community Renewable Energy Amendment Act of 2013.
(16) Electricity Supplier License. “Electricity Supplier License” means the authority granted by the Commission to a Person to do business as an Electricity Supplier in the District of Columbia.
(17) Electronic Data Interchange Trading Partner Agreement. “Electronic Data Interchange Trading Partner Agreement” means the agreement between the Electric Company and the Electricity Supplier that sets out the terms and conditions between the parties governing Electronic Data Interchange (EDI).
(18) Independent System Operator or “ISO”. “Independent System Operator” means an entity authorized by the Federal Energy Regulatory Commission to manage and control the electric transmission grid in a state or region.
(19) Initiating Service in the District. “Initiating Service in the District,” means the earliest calendar date on which a licensed Electricity Supplier is contractually obligated to provide electric service to any District of Columbia Customer or Consumer.
(20) Integrity Bond. “Integrity Bond” is a bond that is required of an Electricity Supplier who cannot provide credible evidence that it meets the standards listed in Subsection 4606.2 of this chapter.
(21) Licensee. “Licensee” means an Electricity Supplier who has been granted a valid Electricity Supplier License by the Commission.
(22) Marketer. “Marketer” means a Person who purchases and takes title to electricity in order to resell electricity to Customers.
(23) Market Participant. “Market Participant” means any Electricity Supplier (including an affiliate of the Electric Company) or any Person providing billing services or services declared by the Commission to be potentially competitive services.
(24) Person. “Person” means every individual, corporation, company, association, joint stock company, association, firm, partnership, or other entity.
(25) Prepayments. “Prepayments” include all payments other than a Deposit made by a residential and/or small commercial consumer to an Electricity Supplier for services that have not been rendered at the time of payment, subject to the following:
(A) Where an Electricity Supplier charges for services based on a quantity of electricity, such as a price per kilowatt/hour, then Prepayments include any payments for any quantity that has not been delivered to the Customer or Consumer at the time of payment;
(B) Where an Electricity Supplier charges for services based on a period of time, such as charging a membership fee, initiation fee or other fee for services for a time period, then Prepayments include the amount of the total charges collected by the Electricity Supplier for the period of time less the prorated value of the period of time for which services have been rendered;
(C) Where an Electricity Supplier charges for services based on a measure other than quantity of electricity delivered or a period of time, the Commission shall determine, on a case-by-case basis, whether the charges involve a prepayment; and
(D) Prepayments do not include any funds received in advance of the services being rendered as a result of the Customer’s or Consumer's voluntary participation in a budget billing or level billing plan by which the consumer's anticipated electrical costs are averaged over a period of time.
(26) Regional Transmission Organization or “RTO”. “Regional Transmission Organization” or “RTO” means an entity designated by the Federal Energy Regulatory Commission to direct operations of the regional electric transmission grid in its area to ensure electric grid reliability.
(27) Regulatory Contact. “Regulatory Contact” means the staff contact for the licensed Electricity Supplier that handles regulatory matters for that company.
(28) Residential Customers. “Residential Customers” mean those customers served under Potomac Electric Power Company ("Pepco") Rate Schedule DC-R, DC-AE, DC-RAD, DC-RAD-AE, DC-R-TM, or DC-MMA, subject to any revisions made to those tariff sheets by the Commission in the latest rate case.
(29) Small Commercial Customers. “Small commercial customers” means those customers served under Pepco Rate schedule DC-GS or DC-GS-3A, subject to any revisions made to those tariff sheets by the Commission in the latest rate case. Small commercial customers exclude accounts on the above rate schedules in: (1) apartment buildings with four or more units; (2) commercial office buildings; or (3) accounts owned or managed by a Consolidator.
(30) Standard Offer Service or SOS. “Standard Offer Service” or SOS” means electricity supply made available to: (1) Customers who contract for electricity with an electricity supplier, but who fail to receive delivery of electricity under such contracts; (2) Customers who cannot arrange to purchase electricity from an electricity supplier; and (3) Customers who do not choose an electricity supplier.
(31) SOS Administrator. “SOS Administrator” means the provider of standard offer service mandated by Section 109 of the Retail Electric Competition and Consumer Protection Act of 1999, effective May 9, 2000 (D.C. Law 13-107; D.C. Official Code § 34-1509).
(32) Supplier Coordination Agreement. “Supplier Coordination Agreement” means the agreement between the Electric Company and the Electricity Supplier whereby the Electric Company agrees to supply, and the Electricity Supplier requests and agrees to take, all “Coordination Services” pursuant to the Company’s Electricity Supplier Tariff
(33) Transfer Application. “Transfer Application” means the formal submission by a licensed Electricity Supplier to the Commission to transfer its Electricity Supplier License to another licensed Electricity Supplier in the District.
4602 LICENSING REQUIREMENTS
4602.1 Persons Subject to Licensing Requirements. Any Person who engages in the business of an Electricity Supplier in the District of Columbia must hold an Electricity Supplier Lincense issued by the Commission.
4602.2 Application Information Requirements for Electricity Suppliers. An Application for an Electricity Supplier License shall include the following information, in a manner and form specified by the Commission:
(a) Proof of technical and managerial competence;
(b) Proof of compliance with all applicable requirements of the Federal Energy Regulatory Commission, and any Independent System Operator, or Regional Transmission Operator to be used by the Applicant;
(c) A sworn verification that the Applicant is currently in compliance with, and will comply with all, applicable federal and District of Columbia environmental laws and regulations;
(d) Proof of compliance with the Bonding Requirements set forth in §§ 4605 and 4606;
(e) Proof that the Applicant has registered with the Department of Consumer and Regulatory Affairs and the Department of Finance and Revenue to do business in the District of Columbia;
(f) A sworn verification that the Applicant is currently in compliance with, and will comply with, all applicable taxes;
(g) A sworn verification that the Applicant is currently in compliance with, and will comply with all of the requirements of the Act and all orders and regulations of the Commission issued under the Act;
(h) Applicant's web-site address;
(i) A sample copy each of the Electricity Supplier’s electric supply Customer contracts (e.g., fixed, variable) and a sample bill;
(j) The name and contact information for the Electricity Supplier’s designated contact Person for Customer and consumer complaints;
(k) The Trade name(s) or d/b/a (“doing business as name(s)”) if the Applicant will be using either while doing business as an Electricity Supplier in the District of Columbia; and
(l) Any other information required by the Commission.
4603 LICENSING PROCEDURES
4603.1 Scope. These procedures apply to an Application for an Electricity Supplier License before the Commission.
4603.2 Form. An Application for a Electricity Supplier License must be made to the Commission in writing on the applicable form provided by the Commission (See the form set out in Attachment A); be verified by oath or affirmation; and be accompanied by an Application fee of $400.00.
4603.3 Number of copies; Service. Each Applicant must file a signed and verified original and fourteen (14) copies and electronic version of their application and attachments.
4603.4 Change in Application Information. The Applicant shall immediately inform the Commission of any change in the information provided in the Application during the pendency of the Application process.
4603.5 Notice of Application and Notice of Incomplete Application (Deficiency Letter). The Applicant shall provide to the Commission a proposed Notice of Application in the form set out in Attachment B along with its Application. With respect to the Application, the Commission shall review the submitted Application for completeness within fifteen (15) days of receipt of the Application and inform the Applicant if the Application is either complete or incomplete. If the Application is complete, the Commission shall notify the Applicant in writing that the Application is complete and has been accepted for filing and the Commission shall post the Notice of Application in the D.C. Register. If the Application is incomplete, the Commission shall notify the Applicant in writing of the deficiencies in the Application. The Applicant shall have ten (10) days, or such additional time as the Commission may designate if it extends the time period for good cause shown to provide the information requested in the deficiency letter. If the Applicant does not provide the information to the Commission within ten (10) days or within the alternative time period set by the Commission, the Application shall be deemed dismissed without prejudice. Once the deficiency has been cured by the Applicant, the Commission will notify the Applicant in writing that the Application is now complete and has been accepted for filing and the Commission shall post the Notice of Application in the D.C. Register.
4603.6 Comments and Objections Regarding Filed Application. All persons interested in filing an objection or a comment regarding the filed Application or the licensure of an Applicant may submit written comments or objections to the Commission Secretary and to the Applicant no later than thirty (30) days after the Notice of Application has been published in the D.C. Register. An Applicant may file reply comments no later than seven (7) days after objections or comments are filed with the Commission Secretary. The Commission may waive this filing deadline at its discretion.
4603.7 Review of Complete Application. Upon determining that an Application is complete, the Commission shall conduct an appropriate investigation of the information provided by the Applicant in the complete Application and of any objections or comments received on the Application. Within fifteen (15) days after the comment period has expired, the Commission shall conclude its investigation and issue a Licensing Order approving or denying the Application if no objections or comments are filed. If an objection to licensure or comments is filed, the Commission shall conclude its investigation and issue a Licensing Order approving or denying the Application within sixty (60) days after the comments or objection period has expired. In the event that the Commission denies a License to an Applicant, the Commission shall state in writing its reasons for such denial. A copy of the Commission determination shall also be served on the Applicant and the Office of the People's Counsel.
4603.8 Licensee’s Update Information. The licensed Electricity Supplier shall comply with any information update requirements or supplemental information requirements established by Commission rules or in its orders.
4603.9 Term of Electricity Supplier License. An Electricity Supplier License is valid until revoked by the Commission or surrendered by the licensed Electricity Supplier.
4603.10 Transfer of Electricity Supplier License. An Electricity Supplier License is not transferable without the prior approval of the Commission. To obtain the approval of the Commission, a Licensee must file a Transfer Application with the Commission Secretary. After receiving the Transfer Application, the Commission shall give public notice of the Transfer Application by posting it on its website and in the D.C. Register. All Persons interested in filing an objection or a comment regarding the filed Application may submit written comments or objections to the Commission’s Secretary no later than thirty (30) days after the posting of the Notice of Application on the Commission’s website. The Licensee may file reply comments no later than seven (7) days after objections or comments are filed. The Commission may waive this filing deadline at its discretion. Within thirty (30) days after the comment period has expired, the Commission shall issue an order approving or denying the Transfer Application if no objections or comments are filed. If an objection to a Transfer Application or a comment is filed, the Commission shall conclude its investigation and issue an order approving or denying the Transfer Application within sixty (60) days after the comments or objection period has expired. In the event that the Commission denies a Transfer Application, the Commission shall state in writing its reasons for such denial. A copy of the Commission’s determination shall also be served on the Licensee and on the Office of the People's Counsel.
4603.11 Solicitation of Customers. A Licensee (both new and existing, if not currently serving customers) is required to notify the Commission no later than ten (10) days before it starts soliciting customers directly or through an authorized representative. The notice shall include the name of the Electricity Supplier’s designated contact person for pricing information if the Licensee is serving residential customers and small commercial customers and the URL address of the Electricity Supplier’s website. The Licensee shall provide photo identifications for each person who conducts in person Solicitations for the Licensee. The Licensee shall also provide the Commission with a copy of its flyers, consumer pamphlets, scripts and other proposed marketing material at the time of notification.
4603.12 Electronic Solicitation. For the purpose of monitoring compliance with 15 DCMR Subsections 327.26, 327.27, 327.30, 327.31, 327.32, 327.33, 327.34 and 327.48 regarding electronic solicitation on the Licensee’s website, each Licensee who contracts electronically with customers shall provide the Commission with the electronic capability to initiate and complete its website enrollment process, without creating an actual customer account. Each Licensee shall demonstrate this capability by providing the Commission with a dedicated (simulated) account number for its use to test and monitor the Licensee’s website.
4603.13 Serving Customers. A Licensee is required to do the following before it begins to serve customers in the District of Columbia: (a) notify the Commission of the date when it will begin to serve customers in the District of Columbia; and (b) file an affidavit attesting that all sales and marketing and regulatory personnel have been trained in Chapters 3 and 46 of Title 15 of the DCMR before they begin soliciting customers in the District of Columbia.
4603.14 Cessation of Business in the District of Columbia or Cessation of Business to a Customer Class. A Licensee shall provide to the Commission at least sixty (60) days prior written notice of the Licensee's intention to cease providing services (a) in the District of Columbia; or (b) to all Customers within a specified Customer class. Upon receipt of such notice, the Commission may order the Licensee to provide such further notice to the public as the Commission deems necessary, and/or take such other action that the Commission deems appropriate.
4603.15 Electric Company and Licensee Responsibilities in the Event of Default. A Licensee is considered a defaulted Licensee if it is unable to deliver electricity because: (1) the Commission revokes or suspends the Electric Supplier’s retail electricity license; or (2) the Licensee is unable to transact sales through the Regional Transmission Organization designated for the District of Columbia by the Federal Energy Regulatory Commission. In the event of a default, the Licensee and the Electricity Company shall abide by the District of Columbia Electricity Supplier Coordination Tariff. Also, a defaulted Licensee using consolidated billing services remains obligated to provide the Electric Company with information necessary to allow the Electricity Company to continue consolidated billing through the conclusion of the billing cycle in which the default occurred. The defaulted Licensee using consolidated billing services is prohibited from issuing bills to persons who were Customers at the time of the default unless specifically authorized by the Commission. A request to authorize a defaulted Licensee to bill directly may be made to the Commission by the defaulted Licensee or the Electricity Company. In order that a Licensee’s charges may be included in Electric Company consolidated billing services, a defaulted Licensee and the Electricity Company shall abide by the District of Columbia Electricity Supplier Coordination Tariff.
4603.16 Required Notices Upon Default. Upon default, a Licensee must immediately send written notice to its customers notifying them of its default and send written notice to the Electric Company and Commission notifying them of its default. Upon receipt of notice of a Licensee default from the Licensee or from the Regional Transmission Organization, the Electric Company must immediately provide the defaulting Licensee’s customers Standard Offer Service in accordance with the SOS Administrator’s Retail Electric Service Tariff, unless the customers select a new Electricity Supplier.
4603.17 Accuracy of Information. Any Applicant who knowingly or in reckless disregard submits misleading, incomplete, or inaccurate information to the Commission may be penalized in accordance with applicable law and the provisions of these rules.
4603.18 Filing of Electronic Data Interchange Trading Partner Agreement and Supplier Coordination Agreement. Every Licensee shall execute and file with the Commission Secretary a copy of the Electronic Data Interchange Trading Partner Agreement and Supplier Coordination Agreement entered into with the Electric Company within ten (10) days of execution of such agreements.
4603.19 Proprietary and Confidential Information. In its Application, the Applicant may designate as confidential information documents provided in response to Sections 4d and 14 of the Application related to the ownership of the Applicant (to the extent such information is not already public) and financial information If an interested party requests the release of this information, the Applicant shall have the burden of proving the confidential nature of the information. The Commission will notify the Applicant of any request for release of this information and will permit the Applicant to respond to the request through a written motion filed with the Commission prior to the Commission's determination on the request. The Commission may order the release of information if an Applicant does not meet its burden of proving that the information is confidential.
4604 ELECTRICITY SUPPLIER EDUCATION WORKSHOP
4604.1 Electricity Supplier Education Workshop. Within one year of licensing or within one year of the adoption of this rule, whichever is later, each Licensee’s Regulatory Contact or Licensee’s representative responsible for the Licensee’s compliance with the Commission’s rules shall complete the Electricity Supplier Education Workshop sponsored by the Commission. Successful completion of the workshop by the Licensee shall be evidenced by a certificate awarded by the Commission.
4605 BOND REQUIREMENTS FOR ELECTRICITY SUPPLIERS COLLECTING DEPOSITS OR PREPAYMENTS (“CUSTOMER PAYMENTS BOND”)
4605. 1 Applicability.
Any Electricity Supplier that states on its Application that it intends to charge Deposits or collect Prepayments or that does in fact require a Deposit or collects any Prepayment, shall post a Customer Payments Bond with the Commission, in addition to any Integrity Bond that may be required or submitted and shall submit the certification described in this section. Any Electricity Supplier that states on its Application that it does not intend to charge Deposits or collect Prepayments and that does not in fact require a Deposit or collect any Prepayment will not be required to post a Customer Payments Bond or provide the certification described below. Any Licensee that actually charges a Deposit or collects a Prepayment without posting the required Customer Payments Bond may be subject to suspension, revocation, or other action against its license, as well as be held liable for restitution to any Customers who paid such Deposits or Prepayments. Any Licensee requiring, charging, collecting or holding Deposits, or Prepayments may not request return of a current Customer Payments Bond (as defined in this Chapter) or waiver of the requirements for a future Customer Payments Bond, unless and until the Licensee returns the Deposits or Prepayments to its Customers or provides the services to which the Deposit or Prepayments applied.
4605.2 Procedure for Determining Amount of a Customer Payments Bond.
(a) INITIAL BOND: Before accepting any Deposits or Prepayments, a Licensee shall post an initial Customer Payments Bond of $50,000 in the form as set out in Attachment C (Form of Customer Payments Bond-Surety Bond).
(b) SIX MONTH CERTIFICATION: Within six (6) months after the initial Customer Payments Bond is posted, the Licensee shall provide to the Commission (with appropriate confidentiality protections): (1) a certification, subject to review by the Commission, of the amount of the Deposits and Prepayments held by the Licensee, and (2) a Customer Payments Bond in an amount that is at least equal to the amount reflected in that certification.
(c) ANNUAL CERTIFICATION: Annually thereafter, coinciding with the annual update requirements of the Commission's Application, the Licensee shall provide to the Commission (with appropriate confidentiality protections): (1) certification of the amount of the Deposits and Prepayments held by the Licensee, and (2) a Customer Payments Bond in an amount that is at least equal to the amount reflected in that certification.
4605.3 Form of the Bond. Any Applicant or Licensee required to provide a bond under this section shall provide a bond issued by a company authorized to do business in the District of Columbia in a form required by the Commission. At a minimum, the bond form shall:
(a) Designate the Commission as the sole beneficiary of the bond;
(b) Be continuous in nature. If a Licensee seeks to cease providing the bond it must seek approval from the Commission at least sixty (60) days prior to the time it wants to discontinue maintaining the bond;
(c) Cover payment of all District of Columbia Deposits and Prepayments of the Licensee that occurred while the bond was in force; as identified by the Commission under these standards, and
(d) State that the proceeds of the bond shall be paid or disbursed as directed by the Commission. See Attachment C (Form of Customer Payments Bond-Surety Bond).
4605.4 Commission Verification. Each Licensee shall provide appropriate certification, at the intervals discussed in the above paragraphs of funds collected by the Licensee for Prepayments and/or Deposits. Each Licensee shall certify the amount of funds held for Deposits and Prepayments through a notarized statement, subject to verification by the Commission. The certification and any audit by the Commission will verify the year to date collections and balances of Prepayments and Deposits as of a specific date and will be used to verify whether the Licensee has the appropriate amount of Customer Payments Bond coverage. The Commission reserves the right, in its sole discretion, to order the Licensee to have a Certified Public Accountant review such balances, should conditions warrant such a review.
4605.5 Compliance Investigations. The Commission may initiate appropriate investigations if it determines an Electricity Supplier or a Licensee may be collecting Prepayments and/or Deposits from Customers without appropriate Customer Payments Bond coverage. The Commission may utilize appropriate legal remedies both to investigate and, if appropriate, to enforce its requirements for appropriate Customer Payments Bond coverage.
4605.6 Bond Foreclosure. The Commission may foreclose upon any bond posted with the Commission when, in the Commission’s discretion, foreclosure is necessary to ensure the fair and lawful treatment of the District of Columbia’s Residential and/or Small Commercial Customers by a Licensee, to ensure that Deposits and Prepayments collected by a Licensee from a Customer will be paid. In order to draw funds on this Bond, the Commission Secretary shall present an affidavit sworn to and signed by the Commission Secretary to the surety stating that the Commission has determined that the Licensee has not satisfactorily performed its obligations to a Customer who has suffered actual and direct damages or loss of a Deposit or Prepayment in a specific amount by means of failure, or by reason of breach of contract or violation of the Retail Electric Competition and Consumer Protection Act of 1999, effective May 9, 2000 (D.C. Law 13-107; 47 DCR 1091 (February 25, 2000)) and any orders, regulations, rules or standards promulgated thereto.
4606 BOND REQUIREMENTS FOR FINANCIAL INTEGRITY (“INTEGRITY BOND”)
4606.1 Exclusion
(a) An Electricity Supplier or Licensee who cannot provide credible evidence that it meets the standards listed in Subsection 4606.2 below will be required to submit an initial Integrity Bond of $50,000, unless that Electricity Supplier or Licensee is applying to provide service as an Aggregator (as defined in D.C. Official Code § 34-1501 (2) and Section 4601(B) above)who does not take title to electricity or as a Broker (as defined in D.C. Official Code § 34-1501(7) and Section 4601(B) above), in which case a $10,000 Integrity Bond will be required. However, an Electricity Supplier or Licensee that meets the standards listed in Subsection 4606.2 below may still be required to provide a bond to demonstrate financial integrity for the application on a case-by-case basis. This initial Integrity Bond is subject to the update requirements discussed below, except that Aggregators who do not take title and Brokers will not be required to update the initial $10,000 Integrity Bond.
(b) After continuously providing service in the District for two years, any Licensee who has submitted an Integrity Bond to the Commission in compliance with these requirements may request that the Commission return the previously posted Integrity Bond and waive the requirement for a future bond based upon the Licensee's demonstrated record of continuous and high quality service in the District, without meaningful substantiated consumer complaints, as determined by and in the opinion of the Commission, and such other information as the Licensee may choose to present to the Commission. The Commission may accept or reject this request based on a review of information provided by the Licensee and such other information as the Commission may deem appropriate. The Commission retains the discretion to require an Integrity Bond of said Licensee at a later date if circumstances change, or if the Commission otherwise deems the re-institution of an Integrity Bond to be necessary and appropriate.
4606.2 Applicability. Any Electricity Supplier or Licensee that can provide credible evidence that it meets the following standards is not required to post an Integrity Bond in the District of Columbia:
(a) A current credit rating of BBB- or higher from a nationally-recognized credit rating service;
(b) A current commercial paper rating of A2 or higher by Standard & Poor's and/or P2 or higher by Moody’s or similar rating by another nationally-recognized rating service;
(c) An unused line of bank credit or parent guarantees deemed adequate by the Commission; or
(d) Any other evidence of financial integrity that the Commission may deem appropriate.
4606.3 Procedure for Determining Amount of a Financial Integrity Bond
(a) INITIAL INTEGRITY BOND: Any Electricity Supplier that cannot meet the above criteria for financial integrity, and that is not applying to provide service as an Aggregator that does not take title to electricity or a Broker, shall post an initial Integrity Bond of $50,000. If the Electricity Supplier is applying to provide service as an Aggregator that does not take title to electricity or as a Broker, the initial required Integrity Bond amount is $10,000.
(b) FUTURE UPDATES: The Commission, in its sole discretion, shall determine whether or not to reevaluate the amount of the Integrity Bond in light of any changing conditions in the electricity market at the time that a Licensee submits updated information, taking into consideration the Licensee’s past experience with the Commission and with its Customers. The Commission may request such information from the Licensee as may be necessary to make its evaluation.
4606.4 Form of the Bond. Any Electricity Supplier or Licensee required to provide a bond under this section shall provide a bond issued by a company authorized to do business in the District of Columbia in a form required by the Commission. At a minimum, this form shall:
(a) Designate the District of Columbia, or the Commission, as the sole beneficiary of the bond;
(b) Be continuous in nature. If any Licensee seeks to cease providing the bond it must seek approval from the Commission at least sixty (60) days prior to the time it wants to discontinue maintaining the bond;
(c) Cover payment of all of the Licensee’s District of Columbia Deposits and Prepayments that occurred while the bond was in force as identified by the Commission under these standards, and
(d) State that the proceeds of the bond shall be paid or disbursed as directed by the Commission.
(e) Be in the format set out in Attachment D (Form of Integrity Bond for Electricity Suppliers and Marketers-Surety Bond, or Attachment E (Form of Integrity Bond for Aggregators and Brokers-Surety Bond).
4606.5 Commission Verification. Each Licensee shall provide appropriate certification at the intervals discussed in the above paragraphs. The Commission may request such information from the Licensee as is necessary to verify the accuracy of the certification at any time.
4606.6 Compliance Investigations. The Commission has the right to initiate appropriate investigations if it has reason to believe that any Licensee may be providing service without appropriate Bond coverage. The Commission will utilize appropriate legal remedies both to investigate and, if appropriate, to enforce its requirements for an appropriate Integrity Bond.
4606.7 Bond Foreclosure. The Commission’s foreclosure of an Integrity Bond shall be limited to those instances where damages to the Customers by the Licensee are “actual and direct”. In order to draw funds on this Bond, the Commission Secretary shall present an affidavit sworn to and signed by the Commission Secretary to the surety stating that the Commission has determined that the Licensee has not satisfactorily performed its obligations to a Customer who has suffered actual and direct damages or loss of a Deposit or Prepayment in a specific amount by means of failure, or by reason of breach of contract or violation of the Retail Electric Competition and Consumer Protection Act of 1999, effective May 9, 2000 (D.C. Law 13-107; 47 DCR 1091 (February 25, 2000)) and any orders, regulations, rules or standards promulgated thereto.
4607 PRIVACY PROTECTION POLICY
4607.1 All Applicants and current Licensees must submit to the Commission Secretary a copy of the company’s Privacy Protection Policy that demonstrates compliance with 15 DCMR § 308 (Use of Customer Information) and 15 DCMR § 309 (Privacy Protection Policy) within ninety (90) days of the adoption of this rule, or within sixty (60) days of receiving their Electricity Supplier License, whichever date is later.
4608 COMMISSION REPORTING REQUIREMENTS
4608.1 Updates to an Approved Application. After an Application has been approved, a Licensee must inform the Commission of new information that changes or updates any part of the Application, including but not limited to the averment regarding any civil, criminal, or regulatory penalties imposed on the Licensee, within thirty (30) days of the change or the new information. An Applicant or a Licensee must also inform the Commission of changes to the averment regarding bankruptcy proceedings instituted voluntarily or involuntarily within twenty-four (24) hours of the institution of such proceedings.
(a) If a Licensee changes any of its marketing materials, it shall provide the new materials to the Commission no later than ten (10) days before it starts using the new material to solicit Customers; and
(b) If a Licensee changes its trade name or the d/b/a name that it is using in the District of Columbia, the Licensee shall notify the Commission within ten (10) days and prior to soliciting Customers under that new name.
4608.2 Annual Reporting Requirements. The Licensee shall annually review its Application and submit updated information as needed. Annual updates must be filed with the Commission within one hundred twenty (120) days after the anniversary of the grant of the License. The Licensee shall, if it is serving residential customers and small commercial customers, also submit the name of its regulatory contact, website address, the contact for pricing information, copies of its flyers, scripts, pamphlets and other marketing materials. The Licensee shall recertify annually that it has complied with Subsection 4603.12(b) of this chapter. A Licensee shall provide any information required by any other Commission order or regulation. The Licensee shall also provide annually a copy of its Privacy Protection Policy to the Commission.
4609 COMMISSION ACTION REGARDING A LICENSEE
4609.1 Commission Investigation. The Commission may initiate an investigation of a Licensee upon its own motion or upon the complaint of the Office of the People’s Counsel, the Office of the Attorney General, or any aggrieved party. The Commission shall provide written notice of the investigation to the Licensee, and shall provide the Licensee an opportunity for a hearing in accordance with District of Columbia law and Commission regulations.
4609.2 Grounds for Commission Action. The Commission may take action regarding a Licensee for just cause as determined by the Commission. ”Just cause” includes, but is not limited to, the following:
(a) Knowingly or with reckless disregard, providing false or misleading information to the Commission;
(b) Switching, or causing to be switched, the electricity supply for a Customer without first obtaining the Customer's permission, a practice commonly known as slamming;
(c) Disclosing information about a Customer supplied to the Licensee by the Customer or using information about a Customer for any purpose other than the purpose for which the information was originally acquired, without the Customer's written consent, unless the disclosure is for bill collection or credit rating reporting purposes or is required by law or an Order of the Commission;
(d) Adding services or new charges to a Customer's existing retail electric service options without the Customer’s consent, a practice commonly known as cramming;
(e) Failing to provide adequate and accurate information to each Customer about the Licensee’s available services and charges;
(f) Discriminating against any Customer based wholly or partly on the race, color, creed, national origin, sex, or sexual orientation of the Customer or for any arbitrary, capricious, or unfairly discriminatory reason;
(g) Refusing to provide service to a Customer unless the refusal is based on standards reasonably related to the Licensee’s economic and business purposes;
(h) Failing to post on the Internet information that is readily understandable about its services and rates for Small Commercial Customers and Residential Customers;
(i) Failing to provide electricity for its Customers;
(j) Committing fraud or engaging in marketing, advertising, or trade practices that are unfair, false, misleading, or deceptive such as engaging in any solicitation that leads the Customer to believe that the Licensee is soliciting on behalf of, or is an agent of, the District of Columbia Electric Utility when no such relationship exists;
(k) Failing to maintain financial integrity;
(l) Violating a Commission regulation or order including, but not limited to engaging in direct Solicitation to Customers without complying with the Commission’s solicitation rules as provided in the Consumer Protection Standards Applicable to Energy Suppliers (15 DCMR §§ 327.7 - 327.13);
(m) Failing to pay, collect, remit, or accurately calculate applicable taxes;
(n) Violating an applicable provision of the D.C. Code or any other applicable consumer protection law;
(o) Conviction of the Licensee or any principal of the Licensee (including the general partners, corporate officers or directors, or limited liability managers of offices of the Licensee) for any fraud-related crimes (including, but not limited to, counterfeiting and forgery, embezzlement and theft, fraud and false statements, perjury, and securities fraud);
(p) Imposition of a civil, criminal, or regulatory sanction(s) or penalties against the Licensee or any principal of the Licensee (including the general partners, corporate officers or directors, or limited liability managers or officers of the Company) pursuant to any state or Federal consumer protection law or regulation;
(q) Conviction by the Licensee or principal of the Licensee (including the general partners, corporate officers or directors, or limited liability managers or officers of the Licensee) of any felony;
(r) Filing of involuntary bankruptcy/insolvency proceedings against the Licensee or filing of voluntary bankruptcy/insolvency proceedings by the Licensee;
(s) Suspension or revocation of a license by any state or federal authority, including, but not limited to, suspension or revocation of a license to be a power marketer issued by the Federal Energy Regulatory Commission;
(t) Imposition of any enforcement action by any ISO or RTO used by the Licensee;
(u) Failing to provide annually an updated Privacy Protection Policy that complies with 15 DCMR § 308 (Use of Customer Information);
(v) Failing to notify the Commission no later than ten (10) days before it begins soliciting Customers and thirty (30) days after it begins serving Customers, per Subsections 4603.11 and 4603.12, respectively; and
(w) Failing to comply with any regulation contained in this chapter.
4610 SANCTION AND ENFORCEMENT
4610.1 Sanctions. Electricity Suppliers and Licensees are subject to sanctions for violations of the District of Columbia Code, and applicable Commission regulations and orders. The following sanctions may be imposed by the Commission:
(a) Civil Penalty. The Commission may impose a civil penalty of not more than $10,000 for each violation. Each day a violation continues shall be considered a separate violation for purposes of this penalty. The Commission shall determine the amount of a civil penalty after consideration of the following:
(1) The number of previous violations on the part of the Licensee;
(2) The gravity and duration of the current violation; and
(3) The good faith of the Licensee in attempting to achieve compliance after the Commission provides notice of the violation.
(b) Customer Refund or Credit. The Commission may order a Licensee or an Electricity Supplier to issue a full refund for all charges billed or collected by the Licensee or Electricity Supplier or a credit to the Customer’s account. Specifically,
(1) If slamming occurred, the Licensee or the Electricity Supplier shall refund to the Customer all monies paid to the Licensee or the Electricity Supplier; and
(2) If cramming occurred, the Licensee or the Electricity Supplier shall refund to the Customer three times the amount of the unauthorized charges.
(c) Cease and Desist Order. The Commission may order the Licensee or the Electricity Supplier to (1) cease adding or soliciting additional customers; (2) cease serving customers in the District of Columbia; and (3) cease any action found to be in violation of District of Columbia law, or Commission rules and regulations.
(d) Cancellation of a contract or part of a contract between a Customer and a Licensee or an Electricity Supplier;
(e) Suspension of a Licensee’s License; and
(f) Revocation of a Licensee’s License.
4610.2 Commission Access to Records. As part of any Commission investigation, the Commission shall have access to any accounts, books, papers, and documents of the Licensee or the Electricity Supplier that the Commission considers necessary in order to resolve the matter under investigation.
4610.3 Emergency Action by the Commission. The Commission may temporarily suspend a License, issue a temporary cease and desist order, or take any other appropriate temporary remedial action, pending a final determination after notice and hearing, if the Commission determines that there is reasonable cause to believe that Customers or the reliability of electric supply in the District of Columbia is or will be harmed by the actions of a Licensee or an Electricity Supplier.
4611 COMMISSION ASSESSMENT AND FEES
4611.1 The Licensee or the Electricity Supplier shall pay an assessment for the costs and expenses of the Commission and the Office of the People's Counsel as required by Title 34 of the District of Columbia Code.
4611.2 The Licensee or the Electricity Supplier shall pay any additional fees imposed by the Commission pursuant to the Commission’s rules, regulations, or orders.
2. All persons interested in commenting on the subject matter of this NOPR and Attachments may submit written comments and reply comments no later than thirty (30) and forty-five (45) days, respectively, after the publication of this Notice in the D.C. Register. Comments may be filed with Brinda Westbrook-Sedgwick, Commission Secretary, Public Service Commission of the District of Columbia, 1333 H Street, N.W., 2nd Floor, West Tower, Washington, D.C. 20005 or at the Commission’s website at www.dcpsc.org. Persons with questions concerning this Notice should call 202-626-5150.
ATTACHMENT A
APPLICATION FOR LICENSE TO SUPPLY ELECTRICITY
OR ELECTRIC GENERATION SERVICES TO THE PUBLIC IN THE
DISTRICT OF COLUMBIA
You may use the attached form to submit your application. (Please remove this instruction sheet prior to filing.) If you need more space than is provided on this form, then you can create an attachment to this application. You may also attach exhibits. All attachments/exhibits must be labeled or tabbed to identify the application item to which they respond. You are also required to file an electronic version of this document (excluding “confidential” information) which must be converted to the Portable Document Format (“PDF”) before filing.
To file an application with the District of Columbia Public Service Commission (“Commission”), file a signed and verified original and 14 copies, an electronic version of your application and attachments, and a nonrefundable license fee of $400.00 (payable to “Public Service Commission”) with the Commission Secretary in Washington, D.C.:
Commission Secretary
Public Service Commission of the District of Columbia
1333 H Street, N.W., 2nd Floor, West Tower
Washington, D.C. 20005
Questions pertaining to the completion of this application may be directed to the Commission at the above address or you may call the Commission at the following number: (202) 626-5100. You may reach the Commission electronically at www.dcpsc.org.
If your answer to any of the application questions changes during the pendency of your application, or if the information relative to any item herein changes while you are operating within the District of Columbia, you are under a duty to so inform the Commission immediately. After an Application has been approved a licensee must inform the Commission of changes to all parts of the application and the averment regarding any civil, criminal or regulatory penalties, etc. imposed on Applicant, et al. must be updated. A licensee must inform the Commission of changes to the averment regarding bankruptcy proceedings instituted voluntarily or involuntarily within twenty-four (24) hours of the institution of such proceedings. Also, a licensee/Supplier must provide annual updates of all items that have changed in the application. The annual update should be provided to the Commission within 120 days after the anniversary of the grant of the license. A licensee/Supplier also is required to officially notify the Commission if it plans to cease doing business in the District of Columbia 60 days prior to ceasing operations.
Confidentiality: Sections 4d and 14 of this Application related to ownership of the Applicant’s corporation (to the extent such information is not already public) and financial information, respectively, will be treated as confidential information by the Commission to the extent permitted by law if the Applicant requests such treatment by stamping or marking the materials in question as “CONFIDENTIAL.” Any interested person may request, however, release of this information by filing such a request with the Commission. If such a request is made, Applicant shall have the burden of proving the confidential nature of the information. The Commission will notify the Applicant of any request for release of this information, and will permit the Applicant the opportunity to respond to the request through written motion filed with the Commission prior to the Commission’s determination on the request.
If you are applying to provide service as an aggregator (as defined in the “Retail Electric Competition and Consumer Protection Act of 1999” at Section 101(2) and as defined in Commission regulations) who does not take title to electricity as part of providing that service or if you are providing service as a broker (as defined in the “Retail Electric Competition and Consumer Protection Act of 1999” as Section 101(7) as defined in Commission regulations), you do not need to fill out certain questions in this Application. The exempted questions are marked.
Applicable law: The provisions set forth in this application related to the licensing of electric suppliers and the provision of electricity supply and electricity supply services are addressed in detail in the “Retail Electric Competition and Consumer Protection Act of 1999,” and in the Commission’s regulations.
Statements made in this Application are made under penalty of perjury (D.C. Official Code Section 22-2402), false swearing (D.C. Official Code Section 22-2404), and false statements (D.C. Official Code Section 22-2405). Perjury is punishable by a fine of up to $5,000 or imprisonment for up to 10 years, or both. False statements are punishable by a fine not more than $1,000 or imprisonment for not more than 180 days, or both. Further amendments to these Code sections shall apply. If the Commission has reliable information that an Applicant has violated any or all of these sections of the Code, the Commission will forward the information to the appropriate law enforcement agency. Statements made in this Application are also subject to Commission regulations, which require the Applicant to certify the truthfulness of the contents of this Application. Any Applicant in violation of these regulations is subject to the penalties found in the “Retail Electric Competition and Consumer Protection Act of 1999,” Section 108.
BEFORE THE DISTRICT OF COLUMBIA PUBLIC SERVICE COMMISSION
Application Docket No. _______________________________________
Application of ________________________, d/b/a (“doing business as”)
_______________________________________________________________
for approval to offer, render, furnish, or supply electricity or electric generation services as a(n)_____________, [specified in item 10 below] to the public in the District of Columbia
To the District of Columbia Public Service Commission:
BUSINESS INFORMATION
1. IDENTITY OF THE APPLICANT:
a. LEGAL NAME_____________________________________________________
Current Mailing Address:_____________________________________________
______________________________________________
_____________________________________________
Street Address (if different): _____________________________________________
Website URL:______________________________________________________
Other States, including District of Columbia, in which the Applicant is now or has been engaged in the retail sale of electricity or natural gas and the names under which the Applicant is engaged or has been engaged in such business(es):
Name:__________________________________________________________________
Business Address:_________________________________________________________
_________________________________________________________
License # State of Issuance:_________________________________________________
Other states in which the Applicant has applied to provide retail electric or natural gas service but has been rejected. Applicant may limit response to the last three (3) years:
State(s):_____________________________________
Date of Application: ___________________________
Attach additional sheets to the application if necessary.
b. TRADE NAME (If Applicant will not be using a trade name, skip to question no. 2.a.):
Trade Name:________________________________________________________
2.a. CONTACT PERSON-REGULATORY CONTACT:
Name and Title:________________________________________________
Address:______________________________________________________
______________________________________________________
______________________________________________________
Telephone: ( )_____________________
Fax: ( )_____________________
e-mail _____________________
b. CONTACT PERSON-CUSTOMER SERVICE and CONSUMER COMPLAINTS (not required for aggregators who do not take title and/or brokers):
Name and Title:_______________________________________________
Address:_____________________________________________________
Telephone: ( )______________________
Fax: ( )______________________
e-mail ______________________
3. RESIDENT AGENT:
Name and Title:_______________________________________________
Address:_____________________________________________________
Telephone: ( )______________________
Fax: ( )_______________________
e-mail _______________________
4. PRIMARY CORPORATE OFFICERS/GENERAL PARTNERS:
President/General Partners: Name(s)_________________________________
Business Address:___________________________________________
___________________________________________
___________________________________________
CEO Name_______________________________________________________
Business Address:___________________________________________
___________________________________________
___________________________________________
Secretary Name: __________________________________________________
Business Address:___________________________________________
___________________________________________
___________________________________________
Treasurer Name: __________________________________________________
Business Address:___________________________________________
___________________________________________
___________________________________________
a. APPLICANT’S BUSINESS FORM: (select and complete appropriate statement)
□ Proprietorship
□ Corporation
□ Partnership
□ Limited Partnership
□ Limited Liability Company
□ Limited Liability Partnership
□ Other:__________________
b. STATE OF FORMATION: Applicant’s business is formed under the laws of the State of __________________________
c. STATUS: Provide a certificate issued by the state of formation certifying that the Applicant is in good standing and qualified to do business in the state of formation.
If formed under the laws of other than the District of Columbia, provide a certificate issued by the Department of Consumer and Regulatory Affairs certifying that the applicant is registered or qualified, in good standing, to do business in the District of Columbia.
d. OWNERSHIP: Provide on a separate sheet the names and addresses of all persons and entities that directly or indirectly own ten percent (10%) or more of the ownership interests in the Applicant, or have the right to vote ten percent (10%) or more in the Applicant’s voting securities, or who otherwise have the power to control the Applicant.
5. AFFILIATES, OR PRECEDECESSOR(S), ENGAGED IN THE SALE OR TRANSPORTATION/TRANSMISSION OF ELECTRICITY OR NATURAL GAS AT WHOLESALE OR RETAIL OR THE PROVISION OF RETAIL TELEPHONE OR CABLE SERVICES TO THE PUBLIC: (select and complete appropriate statement) (Applicant may limit responses to the last five (5) years)
The Applicant has no such Affiliate(s) or Predecessors(s)
Applicant is an Affiliate of a regulated utility in Pennsylvania, Virginia
Delaware, New Jersey or Maryland. Please provide regulated utility’s
Name:
_______________________________
Affiliate(s), or Predecessor(s), other than a regulated utility in Pennsylvania, Virginia, Delaware, New Jersey or Maryland that provides, or provided, sale or transportation/transmission of electricity or natural gas at wholesale or retail to the public:
Name:____________________________________________________
Business Address:__________________________________________________
___________________________________________________
___________________________________________________
License #, State of Issuance:__________________________________________
Location of Operations (Utility Service Territory):______________________
Name:____________________________________________________
Business Address:__________________________________________________
___________________________________________________
___________________________________________________
License #, State of Issuance:__________________________________________
Location of Operations (Utility Service Territory:_______________________
Attach additional sheets to the application if necessary.
6. ACTIONS AGAINST LICENSEES: Provide the following information for the Applicant, any Predecessor(s), and any unregulated Affiliate that engages in or engaged in the sale or transportation/transmission of electricity or natural gas at wholesale or retail or the provision of retail telephone or cable services to the public. (Applicant may limit responses to the last five (5) years).
□ Actions such as Suspensions/Revocations/Limitations/Reprimands/Fines or unregulated affiliate(s), and are described in the attached statement, including docket numbers, offense dates, and case numbers, if applicable. Formal Investigations (defined as those investigations formally instituted in a public forum by way of the filing of a complaint, show cause order, or similar pleading) instituted by any regulatory agency or law enforcement agency relating to the Applicant, Predecessor(s), or unregulated affiliate(s) if, as a result of the investigation, Applicant’s/Predecessor’s/or affiliate’s license to provide service to the public was in jeopardy are also listed. The license number, state of issuance, and name of license are identified below:
State(s):____________________________________________________
Name(s):___________________________________________________License Number(s) (or other applicable identification):
□ No such action has been taken.
7. FERC FILING: Applicant has:
□ Filed an Application with the Federal Energy Regulatory Commission (“FERC”) to be a Power Marketer.
□ Received approval from FERC to be a Power Marketer at Docket or Case
Number: __________________
□ Not Applicable.
OPERATIONAL CAPABILITY
8. ISO/RTO AFFILIATION: Provide evidence that the Applicant has met all applicable requirements of any ISO and/or RTO to be used by the Applicant. Indicate the evidence provided (not required for aggregators who do not take title and/or brokers)
Evidence of having met all applicable requirements of the PJM Interconnection, L.L.C. (Attach evidence of being a signatory to all applicable agreements)
9. SOURCE OF SUPPLY: (Check all that apply) (not required for aggregators who do not take title and/or brokers)
□ Not applicable. Applicant will not be supplying retail electricity
□ Applicant owns generation.
□ Applicant contracts for generation.
□ Applicant obtains generation on the spot market.
□ Other – Applicant must attach a statement detailing its source of
Generation.
SCOPE OF OPERATIONS
(Check all that apply)
10. APPLICANT’S PROPOSED OPERATIONS: The Applicant proposes to operate as a:
□ Marketer of electricity purchasing and taking title to electricity as an intermediary for sale to customers.
□ Aggregator acting on behalf of customers to purchase electricity.
□ Broker acting as an agent or intermediary on behalf of customers in the sale and purchase of electricity and who does not take title to electricity.
Does Applicant intend to offer competitive billing services?:______________
Is the Applicant proposing to offer any other services?: __________
If so, please provide information regarding the proposed service in an attached statement.
11. AREA OF OPERATION: If the Applicant does not intend to offer services throughout the Potomac Electric Power Company territory in the District of Columbia, Applicant must, in an attached statement, describe in detail the area within the Utility’s service territory in which Applicant’s services will be offered.
□ Applicant intends to offer service throughout the Potomac Electric Power
Company territory in the District of Columbia.
□ Applicant intends to offer services in only a portion of Potomac Electric
Power Company’s service territory in the District of Columbia. Please see
attached statement.
12. CUSTOMERS: Applicant proposes to initially provide services to:
□ Residential Customers
□ Commercial Customers
□ Industrial Customers
□ Other (Describe in attachment)
Also, Applicant proposes:
□ Restrictions upon the number of end use customers (Describe in attachment)
□ No restrictions on the number of end use customers.
□ Restrictions upon the size of end use customers (Describe in attachment).
□ No restrictions regarding customers (Describe in attachment).
□ Other restrictions regarding customers (Describe in attachment).
13. START DATE: The Applicant proposes to begin delivering services:
□ Upon arrival of the Application and license.
□ Other approximate date of commencement (Also, Applicant to notify the Commission no later than ten (10) days before they start soliciting customers).
FINANCIAL INTEGRITY
14. REQUIRED DOCUMENTATION OF FINANCIAL INTEGRITY:
Check that the documents listed below are attached to the Application.
The Applicant shall provide the most recent versions of the following documents to the extent they are available:
□ Credit reports or ratings prepared by established credit bureaus or agencies regarding the Applicant’s payment and credit history.
□ Balance sheets, income statements and statements of cash flow for the two (2) most recent 12 month periods for which information is available. Audited financial statements must be provided if they exist. In addition, the Applicant shall provide any financial statements subsequent to the most recent annual financial statements.
□ In the event that a parent or other corporation or company has undertaken to guarantee the financial integrity of the Applicant, the Applicant must submit such parent’s other corporation’s or company’s balance sheet, income statement and statement of cash flow, together with documentation of such guarantee to insure the financial integrity of the Applicant. Audited financial statements must be provided if they exist. In addition, the Applicant shall provide any available quarterly financial statements subsequent to the most recent annual financial statements.
□ If the Applicant, parent, or other corporation or company has not been in existence for at least two 12-month periods, it must provide balance sheets, income statements and statements of cash flow for the life of the business. Audited financial statements must be provided if they exist.
□ Organizational structure of Applicant. Include Applicant’s parent, affiliate(s), and subsidiary(ies) if applicable.
□ Evidence of general liability insurance.
□ If the Applicant has engaged in the retail supply of electricity supply services in any other jurisdiction, evidence that the Applicant is a licensed supplier in good standing.
□ A current long-term bond rating, or other senior debt rating.
□ Any other evidence of financial integrity such as an unused line of bank credit or parent guarantees.
15. BONDING REQUIREMENTS (Note: Underlining below is provided to highlight differences between Integrity Bond and Customer Payments Bond requirements.)
Integrity Bond
An Applicant who cannot provide credible evidence that it meets the financial integrity standards listed in Section 4606 of Chapter 46 of Title 15 DCMR must submit a bond on the form attached to this Application (“Integrity Bond”). The Applicant, if licensed by the Commission as an electricity supplier, may be required to update/revise this initial Integrity Bond, by revising the initial Integrity Bond or posting an additional Integrity Bond, as set forth in Section 4606.
However, an Applicant who can provide credible evidence that it meets the financial integrity standards listed in Section 4606 will not be required to submit an Integrity Bond. (The Applicant may still be required to submit a separate Customer Payments Bond, as discussed below.)
Customer Payments Bond
A separate bond on the appropriate form attached to this Application is mandatory if an Applicant requires prepayments and/or deposits from residential or small commercial customers (“Customer Payments Bond”). Please check one of the boxes below to state whether you, the Applicant, intend to charge, collect, or hold prepayments and/or deposits, as such terms are defined in the Bonding Requirements Addendum attached to this Application:
□ Applicant will not accept prepayments or deposits from residential and small commercial customers.
□ Applicant intends to accept prepayments or deposits and/or deposits from residential and small commercial customers. Applicant must comply with Bonding Requirements Addendum governing the Customer Payment Bond.
Further details regarding the District of Columbia’s bonding requirements are included in Sections 4605 and 4606 of Chapter 46 of Title 15 DCMR.
16. NOTICE OF REQUIRED COMPLIANCE: The Applicant is hereby notified that it is required to comply with the following:
a. The Applicant may be required to submit bond(s), as applicable as described in Section 15 herein.
b. The Applicant must update this application with the Commission immediately if any of the information provided in this Application changes during the pendency of the Application. After an Application has been approved, a Licensee must inform the Commission of changes to all parts of the application and the averment regarding any civil, criminal, or regulatory penalties, etc. imposed on applicant, et al. within thirty days of the change. A Licensee must inform the Commission of changes to the averment regarding bankruptcy proceedings instituted voluntarily or involuntarily within Twenty-four (24) hours of the institution of such proceedings.
c. If the Applicant receives a license from the Commission, licensee/Supplier must provide annual updates of all items that have changed in the application. The annual update should be provided to the Commission within 120 days after the anniversary of the grant of the license.
d. Supplement this application in the event the Commission modifies the licensing requirements, or request further information.
e. Agree that it will not present itself as a licensed retail supplier of electricity in the District of Columbia, accept deposits, prepayments, or contract with any end-use customers without a license from the Commission.
f. Pay all fees imposed by the Commission and any applicable taxes.
g. Ensure that a copy of each service agreement entered into with Potomac Electric Power Company is provided to the Commission.
h. Agree that the license to sell electricity and electricity supply services is not transferable without the prior approval of the District of Columbia Public Service Commission.
i. Attend an Electricity Suppliers Education Workshop sponsored by the Commission.
j. If certified, the Applicant agrees to submit a Privacy Protection Policy that complies with 15 DCMR § 308 (Use of Customer Information) within ninety (90) days of the adoption of Chapter 46 of Title 15 District Code of Municipal Regulations (DCMR) or within sixty (60) days of receiving their Electricity Supplier license, whichever date is later.
k. The Applicant also agrees to abide by 15 DCMR § 308 and not Disclose information about a Customer or the Customer’s use of service without the customer's written consent.
l. If the Applicant is certified, but later defaults, the licensee/Supplier agrees to comply with 15 DCMR § 4603.15 Electric Company and Licensee Responsibilities in the event of a default, and the District of Columbia Electricity Supplier Coordination Tariff.
17. AFFIDAVITS REQUIRED. The Applicant must supply Affidavits of Tax Compliance and General Compliance to the Commission with the completed Application. The affidavits are included with this Application packet and must be executed by the Applicant or representative with authority to bind the Applicant in compliance with District of Columbia laws.
18. FURTHER DEVELOPMENTS: Applicant is under a continuing obligation to amend its application if substantial changes occur in the information upon which the Commission relied in approving the original filing.
19. FEE: The Applicant has enclosed the required initial fee of $400.00.
Applicant:______________________________
By:___________________________________
Printed Name:___________________________
Title:__________________________________
AFFIDAVIT TAX COMPLIANCE
State of________________ :
: ss
County of______________ :
________________, Affiant, being duly [sworn/affirmed] according to law, deposes and says that:
That he/she is the____________(office of Affiant) of ______________(Name of Applicant);
That he/she is authorized to and does make this affidavit for said Applicant:
That __________, the Applicant herein, certifies to the Public Service Commission of the District of Columbia (“Commission”) that it is subject to, will pay, and in the past has paid, the full amount of taxes imposed by applicable statutes and ordinances, as may be amended from time to time. The Applicant acknowledges that failure to pay such taxes or otherwise comply with the taxation requirements of the District of Columbia, shall be cause for the Commission to revoke the license of the Applicant. The Applicant acknowledges that it shall provide to the Commission it’s jurisdictional Gross Receipts and power sales for ultimate consumption, for the previous year or as otherwise required by the Commission.
As provided by applicable Law, Applicant, by filing of this application waives confidentiality with respect to its tax information in the possession of the (appropriate taxing authority), regardless of the source of the information, and shall consent to the (appropriate taxing authority) providing that information to the Commission. The Commission shall retain such information confidentially. This does not constitute a waiver of the confidentiality of such information with respect to any party other than the Commission.
That the facts above set forth are true and correct to the best of his/her present knowledge, information, and belief after due inquiry and that he/she expects said Applicant to be able to prove the same at any hearing hereof.
________________________________
Signature of Affiant
Sworn and subscribed before me this ____ day of _____________,_____.
________________________________
Signature of official administering oath
My commission expires__________________________.
AFFIDAVIT OF GENERAL COMPLIANCE
State of _______ ________________:
: ss
County of______________________:
_______________, Affiant, being duly [sworn/affirmed] according to law, deposes and says that:
He/she is the ____________(Officer/Affiant) of____________________(Name of Applicant).
That he/she is authorized to and does make this affidavit for said Applicant.
That the Applicant herein certifies to the Public Service Commission of the District of Columbia (“Commission”) that:
The Applicant agrees to comply with the terms and conditions of Potomac Electric Power’s Company’s tariff and agreements.
The Applicant is in compliance with and agrees to comply with all applicable Federal and District of Columbia consumer protection and environmental laws and regulations, and Commissions regulations, fees, assessments, order and requirements.
If certified, the Applicant agrees to submit a Privacy Protection Policy that complies with 15 DCMR §308 (Use of Customer Information) within ninety (90) days of the adoption of Chapter 46 of Title 15 District Code of Municipal Regulations or within sixty (60) days of receiving their Electricity Supplier license, whichever date is later.
The Applicant also agrees to abide by 15 DCMR §308 and not Disclose information about a customer or a customer’s use of service without the customer's written consent.
Applicant agrees, upon request by the Commission, to provide copies to the Commission, of its consumer forms and/or contracts, its marketing or advertising materials (flyers and solicitation scripts), consumer pamphlets and its consumer education materials.
Applicant agrees to abide by any periodic reporting requirements set by the Commission by regulation, including any required periodic reporting to the (appropriate taxing authority).
Applicant agrees to provide proposed notice of the filing of its Application to the Commission so that it may forward the notice to the District of Columbia Register for publication.
The Applicant has obtained all the licenses and permits required to operate the proposed business in the District of Columbia.
The Applicant agrees to comply with power pool, control area, regional transmission operator, and/or ISO standards and requirements, as applicable.
The Applicant agrees that it shall neither disclose nor resell customer data provided to the Applicant by Potomac Electric Power Company.
The Applicant agrees, if the Commission approves its Application, to post an appropriate bond or other form of financial guarantee as required by the Commission and its regulations.
If the Applicant is certified, but later defaults, the licensee/Supplier agrees to comply with 15 DCMR § 4603.15, Electric Company and Licensee Responsibilities in the event of a default, and the District of Columbia Electricity Supplier Coordination Tariff.
The Applicant agrees, that within one (1) year of licensing or within one (1) year of the adoption of Chapter 46 of Title 15 DCMR, whichever is later, each Electricity Supplier shall notify the Commission of the successful completion of the Electricity Supplier Education Workshop sponsored by the Commission by the Licensee’s Regulatory Contact or by the individual responsible for the Licensee’s compliance with the Commission’s rules. Successful completion of the Workshop shall be evidenced by a certificate awarded by the Commission.
The Applicant, including any of its Predecessor(s) and/or affiliate that engages in or engaged in the sale or transportation/transmission of electricity or natural gas at wholesale or retail or the provision of retail telephone or cable services to the public, the general partners, corporate officers or directors, or limited liability company managers or officers of the Applicant, its predecessor(s) or its affiliates:
1. Has had no civil, criminal or regulatory sanctions or Penalties imposed against it within the previous five (5) years pursuant to any state or federal consumer protection law or regulations, has not been convicted of any fraud-related crime (including, but not limited to, counterfeiting and forgery, embezzlement and theft, fraud and false statements, perjury, and securities fraud) within the last five (5) years; and has not ever been convicted of a felony; or alternatively.
2. Has disclosed by attachment all such sanctions, penalties convictions.
The Applicant further certifies that it:
1. Is not under involuntary bankruptcy/insolvency proceedings including but not limited to, the appointment of a receiver, liquidator, or trustee of the supplier, or a decree by such court adjudging the supplier bankrupt or insolvent or sequestering any substantial part of its property or a petition to declare bankruptcy as to reorganize the supplier; and
2. Has not filed a voluntary petition in bankruptcy under any provision of any Federal or state bankruptcy law, or its consent to the filing of any bankruptcy or reorganization petition against it under any similar law; or without limiting the generality of the foregoing, a supplier admits in writing its inability to pay its debt generally as they become due to consents to the appointment of a receiver, trustee or liquidator of it or of all or any part of its property.
That Applicant possesses the requisite managerial and financial fitness to provide service at retail in the District of Columbia.
That the facts above set forth are true and correct to the best of his/her present knowledge, information, and belief after due inquiry and that he/she expects said Applicant to be able to prove the same at any hearing hereof.
________________________________
Signature of Affiant
Sworn and subscribed before me this _____day of______________, _____.
__________________________________________
Signature of official administering oath
My commission expires_________________________.
VERIFICATION
State of____________________________ :
: ss
County of__________________________ :
________________, Affiant, being duly [sworn/affirmed] according to law, deposes and says that:
That he/she is authorized to and does make this affidavit for said corporation;
The Applicant understands that the making of a false statement(s) herein may be grounds for denying the Application or, if later discovered, for revoking any authority granted pursuant to the Application. This Application is subject to all applicable sections of the District of Columbia Code as may be amended from time to time relating to perjury and falsification in official matters.
That the Applicant will supplement this Application in the event the Public Service Commission of the District of Columbia (“Commission”) modifies the licensing requirements, or requests further information.
That the Applicant agrees that it will not present itself as a licensed retail supplier of electricity in the District of Columbia, accept deposits, prepayments, or contract with any end-use customers without a license from the Commission.
That the Applicant agrees that a license issued pursuant to this Application may not be transferred without prior approval by the Commission.
That the Applicant agrees to update information contained in this Application in accordance with the schedule set forth in the Application.
That the facts above set forth are true and correct to the best of his/her present knowledge, information, and belief after due inquiry and that he/she expects said Applicant to be able to prove the same at any hearing hereof.
___________________________________
Signature of Affiant
Sworn and subscribed before me this ______ day of_____________, 20__.
___________________________________
Signature of official administering oath
My commission expires_____________________.
APPLICANT’S GENERAL AUTHORIZATION FOR VERIFICATION OF
FINANCIAL INFORMATION, ETC.
TO WHOM IT MAY CONCERN:
I/We have applied to the District of Columbia Public Service Commission (the “Commission”) for a license to be an Electricity Supplier, or to provide certain Electricity Supply related services, and authorize you to release to the Staff of the Commission and its authorized representatives and agents any information or copies of records requested concerning:
MY COMPANY OR BUSINESS AND ITS HISTORY, PERFORMANCE, OPERATIONS, CUSTOMER RELATIONS, FINANCIAL CONDITION, INCLUDING BANK ACCOUNT TRANSACTIONS AND BALANCES, PAYMENT HISTORY WITH SUPPLIERS AND OTHER CREDITORS, VERIFICATION OF NET WORTH AND OTHER INFORMATION AND RECORDS WHICH THE COMMISSION REQUIRES TO VERIFY OR MAKE INQUIRY CONCERNING MY/OUR FINANCIAL INTEGRITY AND THE INFORMATION CONTAINED IN MY/OUR LICENSE APPLICATION OR OTHER INFORMATION PROVIDED BY ME/US TO THE COMMISSION OR, STAFF OF THE COMMISSION OR ITS REPRESENTATIVES OR AGENTS.
This Authorization is continuing in nature and includes release of information following issuance of a license, for reverification, quality assurance, internal review, etc. The information is for the confidential use of the Commission and the Staff of the Commission in determining my/our financial integrity for being a licensee or to confirm information I/We have supplied and may not be released by order of the Commission or by order of a court of competent jurisdiction.
A photographic or fax copy of this authorization may be deemed to be the equivalent of the original and may be used as a duplicate original. The original signed form is maintained by the Staff of the Commission.
APPLICANT’S AUTHORIZATION TO RELEASE INFORMATION:
_______________________________________
APPLICANT (please print)
_______________________________________ ___________________
APPLICANT’S SIGNATURE DATE
_______________________________________
TITLE
ATTACHMENT B
PUBLIC SERVICE COMMISSION OF THE DISTRICT OF COLUMBIA
NOTICE OF APPLICATION
FORMAL CASE NO. EA [Application Number] IN THE MATTER OF THE APPLICATION OF [Application Name] FOR AN ELECTRICITY LICENSE
1. The Public Service Commission of the District of Columbia (“Commission”) gives notice that on [Month Day, Year], [Name of Applicant] filed its license application to become a retail electricity supplier in the District of Columbia.
2. All persons interested in filing an objection or comments to the licensure of [Name of Applicant] supplier may submit written and reply comments no later than (30) thirty and thirty-seven (37) days, respectively, after the issuance of this Notice. Comments are to be addressed to Brenda Westbrook-Sedgwick, Commission Secretary, Public Service Commission of the District of Columbia, 1333 H Street, N.W., West Tower, Suite 200, Washington, D.C. 20005. Copies of the license application filing may be obtained by visiting the Commission’s website at www.dcpsc.org and clicking on the tab, “e-docket system,” then click on search current documents and then under the section identified as “select case type” click on Electric Applications (“EA”) or at cost, by contacting the Commission Secretary at 202-626-5150 or bwestbrook@psc.dc.gov.
ATTACHMENT C
FORM OF CUSTOMER PAYMENTS BOND-SURETY BOND
Bond No.___________
We,
______________________________________________________________________
(Name of supplier)
______________________________________________________________________
(Address of supplier)
as principal, and
______________________________________________________________________
(Surety Company)
______________________________________________________________________
(Address of surety)
as surety authorized to do business in the District of Columbia, are held and firmly bound to the Public Service Commission of the District of Columbia, as obligee for the use and benefit of all persons establishing legal rights hereunder, in the sum of FIFTY THOUSAND AND NO/100 ($50,000) lawful money of the United States of America, to the payments of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly, severally, and firmly by this document.
WHEREAS, the Principal has applied to the Public Service Commission of the District of Columbia for a license to provide electric service to retail customers in the District of Columbia, and
WHEREAS, pursuant to the Retail Electric Competition and Consumer Protection Act of 1999, D.C. Law 13-107, Section 105, the Public Service Commission of the District of Columbia is authorized to require the Principal to maintain a bond in order to provide retail electric service.
NOW, THEREFORE, if the Principal shall faithfully and truly fulfill all of its service or product contracts and other contractual commitments to deliver retail electric services, and not file for bankruptcy or for similar protection under law, then this obligation shall be void, otherwise to remain in full force and effect as security for the use of the Public Service Commission of the District of Columbia or of any person or entity, who after entering into a service or product contract or third party supplier agreement for service in the District of Columbia with the above named Principal is damaged or suffers any loss of a deposit or prepayment (as such terms are defined in) (Sections 4605 and 4606 of Chapter 46 of Title 15 DCMR) by reason of failure of service or by other breach or bankruptcy by this Principal.
The aggregate liability of the Surety is limited to the foregoing sum which sum shall be reduced by any payment made in good faith hereunder.
The term of this bond is for the period beginning _________ and terminating ______________, and may continue for an annual period by a Continuation Certificate signed by the Principal and Surety, a copy of which must be served by registered mail upon the Secretary of the Public Service Commission of the District of Columbia.
In order to draw funds on this Bond, the Secretary of the Public Service Commission of the District of Columbia shall present the following document to the Surety, and attach thereto documentation in support thereof:
Affidavit sworn to and signed by the Secretary of the Public Service Commission of the District of Columbia, stating that at the public hearing on, __________________________________________, the Public Service Commission of the District of Columbia determined that _____________________________ has not satisfactorily performed its obligations to a person or entity, who has suffered actual and direct damages or loss of a deposit or prepayment (as such terms defined in Sections 4605 and 4606 of Chapter 46 of Title 15 DCMR) in a specific amount by means of failure, or by reason of breach of contract or violation of the Retail Electric Competition and Consumer Protection Act of 1999, D.C. Law 13-107, and/or regulations, rules or standards promulgated pursuant thereto.
SIGNED, SEALED AND DATED this_______ day of _____________________
Principal ___________________________________
By: _____________________________________
(Signatory)
Surety _____________________________________
Address of Surety: ___________________________
_________________________________________________________________________________________________________________________________
By: _____________________________________
(Signatory)
Notary Seal
ATTACHMENT D
FORM OF INTEGRITY BOND
FOR ELECTRICITY SUPPLIERS AND MARKETERS
INTEGRITY BOND-SURETY BOND
Bond No.________
We,
_____________________________________________________________________
(Name of supplier)
_____________________________________________________________________
(Address of supplier)
as principal, and
_____________________________________________________________________
(Surety Company)
_____________________________________________________________________
(Address of surety)
as surety authorized to do business in the District of Columbia, are held and firmly bound to the Public Service Commission of the District of Columbia, as obligee for the use and benefit of all persons establishing legal rights hereunder, in the sum of FIFTY THOUSAND AND 00/100 ($50,000) lawful money of the United States of America, to the payments of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly, severally, and firmly by this document.
WHEREAS, the Principal has applied to the Public Service Commission of the District of Columbia for a license to provide electric service to retail customers in the District of Columbia, and
WHEREAS, pursuant to the Retail Electric Competition and Consumer Protection Act of 1999, D.C. Law 13-107, Section 105, the Public Service Commission of the District of Columbia is authorized to require the Principal to maintain a bond in order to provide retail electric service.
NOW, THEREFORE, if the Principal shall faithfully and truly fulfill all of its service or product contracts and other contractual commitments to deliver retail electric services, and not file for bankruptcy or for similar protection under law, then this obligation shall be void, otherwise to remain in full force and effect as security for the use of the Public Service Commission of the District of Columbia or of any person or entity, who after entering a service or product contract or third party supplier agreement for service in the District of Columbia with the above named Principal is actually and directly damaged or suffers any actual or direct loss by reason of failure of service or by other breach or bankruptcy by this Principal.
The aggregate liability of the Surety is limited to the foregoing sum which sum shall be reduced by any payment made in good faith hereunder.
The term of this bond is for the period beginning __________ and terminating , and may be continued for an annual period by a Continuation Certificate signed by the Principal and Surety, a copy of which must be served by registered mail upon the Secretary of the Public Service Commission of the District of Columbia.
In order to draw funds on this Bond, the Secretary of the Public Service Commission of the District of Columbia shall present the following document to the Surety, and attach thereto documentation in support thereof:
Affidavit sworn to and signed by the Secretary of the Public Service Commission of the District of Columbia, stating that at the public hearing, on _________________________, the Public Service Commission of the District of Columbia determined that ____________________________ has not satisfactorily performed its obligations to a person or entity, who has suffered actual and direct damages or loss in a specific amount by means of failure, or by reason of breach of contract or violation of the Retail Electric Competition and Consumer Protection Act of 1999, D.C. Law 13-107, and/or regulations, rules or standards promulgated pursuant thereto.
SIGNED, SEALED AND DATED this_______________ day of______________________
Principal: ________________________________
By: ____________________________________
(Signatory)
Surety:___________________________________
Address of Surety: _________________________
___________________________________________________________________________________________________________________________
By: _____________________________________
(Signatory)
Notary Seal
ATTATCHMENT E
FORM OF INTEGRITY BOND FOR AGGREGATORS AND BROKERS
INTEGRITY BOND-SURETY BOND
Bond No.________
We,
______________________________________________________________________
(Name of supplier)
______________________________________________________________________
(Address of supplier)
as principal, and
______________________________________________________________________
(Surety Company)
______________________________________________________________________
(Address of surety)
as surety authorized to do business in the District of Columbia, are held and firmly bound to the Public Service Commission of the District of Columbia, as obligee for the use and benefit of all persons establishing legal rights hereunder, in the sum of TEN THOUSAND 00/100 ($ 10,000) lawful money of the United States of America, to the payments of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly, severally, and firmly by this document.
WHEREAS, the Principal has applied to the Public Service Commission of the District of Columbia for a license to provide electric service to retail customers in the District of Columbia, and
WHEREAS, pursuant to the Retail Electric Competition and Consumer Protection Act of 1999, D.C. Law 13-107, Section 105, the Public Service Commission of the District of Columbia is authorized to require the Principal to maintain a bond in order to provide retail electric service.
NOW, THEREFORE, if the Principal shall faithfully and truly fulfill all of its service or product contracts and other contractual commitments to deliver retail electric services, and not file for bankruptcy or for similar protection under law, then this obligation shall be void, otherwise to remain in full force and effect as security for the use of the Public Service Commission of the District of Columbia or of any person or entity, who after entering into a service or product contract or third party supplier agreement for service in the District of Columbia with the above named Principal is actually and directly damaged or suffers any actual or direct loss by reason of failure of service or by other breach or bankruptcy by this Principal.
The aggregate liability of the Surety is limited to the foregoing sum which sum shall be reduced by any payment made in good faith hereunder.
The term of this bond is for the period beginning ________and terminating ___________, and may be continued for an annual period by Continuation Certificate signed by the Principal and Surety, a copy of which must be served by registered mail upon the Secretary of the Public Service Commission of the District of Columbia.
In order to draw funds on this Bond, the Secretary of the Public Service Commission of the District of Columbia shall present the following document to the Surety, and attach thereto documentation in support thereof:
Affidavit sworn to and signed by the Secretary of the Public Service Commission of the District of Columbia, stating that at the public hearing, on ____________________________, the Public Service Commission of the District of Columbia determined that ____________________________________ has not satisfactorily performed its obligations a person or entity; who has suffered actual and direct damages or loss a specific amount by means of failure, or by reason of breach of contract or violation of the Retail Competition and Consumer Protection Act of 1999, D.C. Law 13-107, and/or regulations, rules or standards promulgated pursuant thereto.
SIGNED, SEALED AND DATED this _______ day of ____________________
Principal: ________________________________
By: ____________________________________
(Signatory)
Surety: __________________________________
Address of Surety: _________________________
___________________________________________________________________________________________________________________________
By: ___________________________________
(Signatory)
Notary Seal
