Illinois Administrative Code › Title 32 - ENERGY › Part 326 - FINANCIAL ASSURANCE REQUIREMENTS › Section 326.130 - Self-Guarantee as a Financial Assurance Arrangement

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as provided in subsection (b) of
			 this Section, each licensee electing to use self-guarantee as a financial
			 assurance arrangement shall be subject to the following requirements:
1) The company shall not have a parent
			 company holding majority control of its voting stock.
2) The company shall have at least one class
			 of equity securities registered under the Securities Exchange Act of
			 1934.
3) The company shall submit a
			 financial test, independently audited financial statements and other documents
			 demonstrating that it passes the financial tests prescribed in Section
			 326.140
			 of this Part. At a minimum, documentation shall include the following:
A) A self-guarantee, as described in Appendix
			 E of this Part, signed by the company's chief executive officer;
B) A letter, as described in Appendix E of
			 this Part, from the company's chief executive officer;
C) A letter, as described in Appendix E of
			 this Part, from the company's chief financial officer demonstrating that the
			 company passes the financial tests specified in Section
			 326.140
			 of this Part;
D) The company's
			 audited financial statements for the most recently completed fiscal year,
			 including an independent auditor's report on the financial statements;
			 and
E) An independent auditor's
			 special report, as described in Appendix E of this Part, stating that the
			 certified public accountant has compared the amounts specified in the chief
			 financial officer's letter with corresponding amounts in the audited year-end
			 financial statements, and found no reason to believe that the amounts in the
			 letter from the chief financial officer need to be adjusted.
4) The company's independent
			 certified public accountant shall have compared the data used by the company in
			 the financial test, which is required to be derived from the independently
			 audited year end financial statements for the latest fiscal year, with the
			 amounts in such financial statement. In connection with that procedure, the
			 company shall inform the Agency within 90 days of any matters coming to the
			 attention of the auditor that cause the auditor to believe that the data
			 specified in the financial test should be adjusted and that the licensee no
			 longer passes the test.
5) For
			 commercial companies that issue bonds, the licensee shall provide notice in
			 writing to the Agency within 20 days after publication of a change by the
			 rating service if, at any time, the company's most recent bond issuance ceases
			 to be rated in any category of "A" or above by either Standard and Poor's or
			 Moody's. If the company's most recent bond issuance ceases to be rated in any
			 category A or above by both Standard and Poor's and Moody's, the licensee no
			 longer meets the requirement of Section
			 326.140(a)
			 of this Part. The licensee shall secure replacement financial assurance
			 arrangements in accordance with Section
			 326.170
			 of this Part.
6) After the initial
			 financial test, the company shall repeat passage of the test within 90 days
			 after the close of each succeeding fiscal year, and provide the documents
			 specified in subsection (a)(3) of this Section.
7) If the licensee no longer meets the
			 requirements of the applicable financial tests in Section
			 326.140
			 of this Part, the licensee shall send notice to the Agency of its intent to
			 establish alternative financial assurance. The notice shall be sent by
			 certified mail, return receipt requested, within 90 days after the end of the
			 fiscal year for which the year end financial data demonstrates that the
			 licensee no longer meets the financial test requirements. The licensee shall
			 secure alternative financial assurance within 120 days after the end of such
			 fiscal year.
8) The guarantee shall
			 remain in force unless the licensee sends notice of cancellation by certified
			 mail, return receipt requested, to the Agency. Cancellation shall not occur
			 until either a replacement financial assurance arrangement is submitted and
			 approved by the Agency or the Agency confirms that the licensee has performed
			 reclaiming in accordance with 32 Ill. Adm. Code 330.
9) The guarantee and financial test
			 provisions specified in Section
			 326.140
			 of this Part shall remain in effect until the Agency has terminated the
			 license, or until a replacement financial assurance arrangement is accepted by
			 the Agency in accordance with Section
			 326.170
			 of this Part.