Section 16-245-4 - Security(a)(1) In addition to the security required by subsection (b) of section 16-245a-1 of the Regulations of Connecticut State Agencies, each electric supplier shall maintain security in an amount that will ensure its financial responsibility and its supply of electricity to end use customers in accordance with contracts, agreements, or arrangements.The security shall (A) Name the Authority as obligee; and(B) Be continuous without an expiration date during the term of the electric supplier's license and shall be revised annually as required pursuant to subsection (b) of this section.(2)(A) An electric supplier shall maintain an amount of security based on its forecast year load in accordance with the following schedule. The forecast year load shall be the amount of the full load served by the electric supplier during the previous calendar year, as adjusted to account for changes in the type and quantity of customers to be served in the forecast year. (i) Up to 100,000 MWh: $ 250,000;(ii) 100,001 MWh to 499,999 MWh: $ 500,000;(iii) 500,000 MWh to 999,999 MWh: $1 million; and(iv) 1,000,000 to 1,500,000 MWh: $2 million.(B) An electric supplier may elect to maintain continuous security in an amount greater than indicated in the schedule set forth in subparagraph (A) of this subdivision. Notwithstanding such schedule, the Authority shall have discretion to increase an electric supplier's security as indicated by a decision in the electric supplier's licensing docket to accommodate an electric supplier's forecast year load in excess of 1,500,000 MWh, in increments of one million dollars per each additional 500,000 MWh of annual load.(b) All electric suppliers shall submit necessary revisions of security as a compliance filing in their most current licensing docket on or before the date on which the electric supplier is required to submit its annual report pursuant to section 16-245a-1(a) of the Regulations of Connecticut State Agencies. Such compliance filings shall include a cover letter that identifies the electric supplier's name, licensing docket number, and licensing docket title. Any electric supplier serving in its first year licensed in Connecticut shall post the minimum security and shall adjust the security accordingly each subsequent year based on the electric supplier's forecast year load.(c) The amount of security maintained to comply with this section may be satisfied by (1) adding the amount of security required by this section to the security the electric supplier uses to comply with the security requirements of subsection (b) of section 16-245a-1 of the Regulations of Connecticut State Agencies, or (2) maintaining a separate security in the amount required by this section.Conn. Agencies Regs. § 16-245-4
Adopted effective April 6, 1999; amended 7/24/2024