XBRL Extension for Construction, Energy and Transportation
2015 05-15 - North Carolina Utility Commission - Issue 8 Financial Security
2015 05-15 North Carolina Utilities Commission Docket No. E-100, SUB 101 - Finding
The North Carolina Utility Commission has reviewed recommendations from the utilities in the state to consider revisions in the states standard interconnection agreement. See links below.
One of the requested revisions was the removal of surety as an option for interconnection security, which was granted.
The definition of what constitutes Financial Security only lists a Letter of Credit, and the undefined and vague…
“or other financial arrangement that is reasonably acceptable to the Utility and is consistent
with the Uniform Commercial Code of North Carolina”
To restore the surety option so that it is acceptable to utility companies the surety product must be responsive, reliable and predictable.
Utilizing XBRL for monitoring projects, as outlined in the DOE Data by Design contest, is one way the surety product can be improved to meet the needs of the utility.
Surety provides default management expertise, resources and capabilities that can help utility companies better manage default risk for building the Smart Grid, and XBRL can facilitate that objective.
SGIP PAP25 is designed to explore how XBRL can help utility companies manage default risk by harmonizing data between utility, developer and surety.
Text of Proposed Revisions to North Carolina Interconnection Agreement
6.3 Financial Security Arrangements (red text is to be deleted text)
At least 20 Business Days prior to the commencement of the design, procurement, installation, or construction of a discrete portion of the Utility’s Interconnection Facilities and Upgrades,Pursuant to the Interconnection Agreement Milestones Appendix 4, the Interconnection Customer shall provide the Utility, at the Interconnection Customer’s option, a guarantee, a surety bond, a letter of credit or other form of financial security arrangement that is reasonably acceptable to the Utility and is consistent with the Uniform Commercial Code of North Carolina. Such security for payment shall be in an amount sufficient to cover the costs for constructing, designing, procuring, and installing the applicable portion of the Utility’s Interconnection Facilities and Upgrades and shall be reduced on a dollar-for-dollar basis for payments made to the Utility under this Agreement during its term. In addition:
6.3.1 The guarantee must be made by an entity that meets the creditworthiness requirements of the Utility, and contain terms and conditions that guarantee payment of any amount that may be due from the Interconnection Customer, up to an agreed-to maximum amount.
6.3.2 The letter of credit or surety bond must be issued by a financial institution or insurer reasonably acceptable to the Utility and must specify a reasonable expiration date.
6.3.3 The Utility may waive the security requirements if its credit policies show that the financial risks involved are de minimus, or if the Utility’s policies allow the acceptance of an alternative showing of credit-worthiness from the Interconnection Customer.
2015 02-20 - North Carolina Utility Commission - Removal of Surety Option - Background
2015 02-20 - North Carolina Utility Commission - Removal of Surety Option - Cover Letter
2015 02-10 North Carolina Utilities Commission - Financial Security for Interconnection