1. (1) Each ME shall obtain financial security in the form of a surety bond or irrevocable letter of credit in an amount equal to fifty percent (50%) of the ME’s gross wastewater plant with a maximum required amount of $300,000. The bond or letter of credit shall contain a provision which renders the full amount available to the Commission upon the presentation of a Commission Order which states that the Com possession of the wastewater system in accordance with Ala. Code § 22-25B-1 et seq. Upon request, the Commission will provide a sample bond and letter of credit which meet the requirements of these rules. If a ME proposes to post financial security other than the type or amount permitted here, it must file a separate petition with the Commission and obtain PSC approval for such other financial security.
2. (2) MEs shall ensure that the PSC is notified in writing at least sixty (60) days prior to any termination action concerning an irrevocable letter of credit that will not be renewed. At least sixty (60) days written notice shall also be required prior to the expiration date for a bond of non-perpetual duration that is not renewed or a bond that is otherwise terminated. Written notification by means of certified mail to the PSC shall be required.
3. (3) Each ME shall provide proof of general commercial, pollution, and environmental liability insurance in the amount of $2,000,000 general aggregate.

Author: Alabama Public Service Commission

Statutory Authority: Code of Ala. 1975, §22-25B-6.

History: Effective as Interim Rule: August 2009. Filed with LRS February 5, 2013. Filed for Codification in the Alabama Administrative Code by the Alabama Public Service Commission on February 5, 2013, pursuant to Code of Ala. 1975, §41-22-7. Filed with LRS May 15, 2014. Filed for Codification in the Alabama Administrative Code by the Alabama Public Service Commission on May 15, 2014, pursuant to the Code of Ala. 1975, §41-22-7.