Application Form For Parties Wishing To Offer, Render, Furnish, Or Supply Electricity Or Electric Generation Services To The Public In The Commonwealth Of Pennsylvania Page 11
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317.
FINANCIAL FITNESS
a. BONDING: In accordance with 66 Pa. C.S. Section 2809(c)(1)(i), the Applicant is required to file a bond or
other instrument to ensure its financial responsibilities and obligations as an EGS. Therefore, the Applicant
is…
Furnishing the original (along with copies) of an initial bond, letter of credit or proof of bonding to the
Commission in the amount of $250,000.
Furnishing the original (along with copies) of another initial security for Commission approval, to ensure
financial responsibility.
Filing for a modification to the $250,000 requirement and furnishing the original (along with copies) of an
initial bond, letter of credit or proof of bonding to the Commission in the amount of $10,000. Applicant is
required to provide information supporting an amount less than $250,000. Such supporting information
must include indication that the Applicant will not take title to electricity and will not pay electricity bills on
behalf of its customers. Further details for modification may be described as well.
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At the conclusion of Applicant's first year of operation it is the intention of the Commission to tie
security bonds to a percentage of Applicant's gross receipts resulting from the sale of generated
electricity consumed in Pennsylvania. The amount of the security bond will be reviewed and
adjusted on an annual basis.
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Example version of a bond and letter of credit are attached at Appendix D & E, Applicant’s security
must follow language from these examples.
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Any deviation from these examples must be identified in the application and may not be
acceptable to the Commission.
b. FINANCIAL RECORDS, STATEMENTS, AND RATINGS: Applicant must provide sufficient information to
demonstrate financial fitness commensurate with the service proposed to be provided. Examples of such
information which may be submitted include the following:
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Actual (or proposed) organizational structure including parent, affiliated or subsidiary companies.
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Published Applicant or parent company financial and credit information (i.e. 10Q or 10K).
(SEC/EDGAR web addresses are sufficient)
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Applicant's accounting statements, including balance sheet and income statements for the past
two years.
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Evidence of Applicant's credit rating. Applicant may provide a copy of its Dun and Bradstreet
Credit Report and Robert Morris and Associates financial form, evidence of Moody’s, S&P, or
Fitch ratings, and/or other independent financial service reports.
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A description of the types and amounts of insurance carried by Applicant which are specifically
intended to provide for or support its financial fitness to perform its obligations as a licensee.
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Audited financial statements exhibiting accounts over a minimum two year period.
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Bank account statement, tax returns from the previous two years, or any other information that
demonstrates Applicant's financial fitness.
c. ACCOUNTING RECORDS CUSTODIAN: Provide the name, title, address, telephone number, FAX number,
and e-mail address of Applicant's custodian for its accounting records.
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