Illinois Administrative Code › Title 83 - PUBLIC UTILITIES › Part 451 - CERTIFICATION OF ALTERNATIVE RETAIL ELECTRIC SUPPLIERS › Subpart F - FINANCIAL QUALIFICATIONS FOR THE PROVISION OF SINGLE-BILLING SERVICE › Section 451.510 - Financial Qualifications under Subpart F

Current through Register Vol. 48, No. 28, July 12, 2024
An applicant may request authorization from the Commission to
				  provide single billing services at the time it seeks certification as an ARES or at
				  any time thereafter. However, under no circumstances may an ARES provide single
				  billing services without authorization from the Commission. An applicant that seeks
				  to provide single billing services shall demonstrate an ability to establish and
				  maintain sufficient financial resources to satisfy the obligation to remit to
				  utilities monies that the ARES collects under single billing tariffs adopted
				  pursuant to Section 16-118(b) of the Act. The applicant for single billing services
				  may demonstrate this credit worthiness in one of four ways:
a) The applicant may undertake to post and
				maintain a bond or bonds issued by a qualifying surety or financial institution
				chartered by the United States or the State of Illinois in favor of any Illinois
				utility in whose service territory the applicant will serve retail customers. The
				bond or bonds shall be in an amount equal to 15% of a good faith estimate of the
				total amount that the applicant expects to be obliged to pay to the utility under
				single billing tariffs adopted pursuant to Section 16-118(b) of the Act during the
				next twelve months. The applicant shall provide a copy of the bonding agreements and
				the bonds to the Commission with the application to provide single billing service.
				The bonds shall be conditioned on the full and timely payment of all amounts due to
				the utility in accordance with the terms specified in the single billing tariffs and
				shall be valid for a period of not less than one year.
b) The applicant may deliver an irrevocable letter
				of credit issued by a financial institution with a long-term obligation rating of A-
				or higher from Standard & Poor's or its successor, A3 or higher from Moody's
				Investors Service or its successor, or A- or higher from Fitch Ratings or its
				successor in the same amount and in favor of the same parties as the bond that would
				otherwise be required. The letter of credit shall provide that a draft will be
				honored in accordance with the terms specified in the single billing tariffs. The
				letter of credit shall be valid for a period of not less than one year. The
				applicant shall provide a copy of the letter of credit and the ratings agency
				reports that present the long-term obligation ratings of the issuer of the letter of
				credit to the Commission with the application to provide single billing
				service.
c) The applicant maintains at
				least 2 of the following commercial paper ratings: A-2 or higher from Standard &
				Poor's or its successor, P-2 or higher from Moody's Investors Service or its
				successor, or F-2 or higher from Fitch Ratings or its successor; or at least two of
				the following long-term credit ratings: BBB- or higher from Standard & Poor's or
				its successor, Baa3 or higher from Moody's Investors Service or its successor, or
				BBB- or higher from Fitch Ratings or its successor. The applicant shall provide a
				copy of the ratings agency reports that present applicant's ratings to the
				Commission with its application to provide single billing service.
d) All obligations of the applicant to Illinois
				utilities are unconditionally guaranteed by a counterparty that maintains at least
				two of the following commercial paper ratings: A-2 or higher from Standard &
				Poor's or its successor, P-2 or higher from Moody's Investors Service or its
				successor, or F-2 or higher from Fitch Ratings or its successor; or at least two of
				the following long-term credit ratings: BBB- or higher from Standard & Poor's or
				its successor, Baa3 or higher from Moody's Investors Service or its successor, or
				BBB- or higher from Fitch Ratings or its successor. The unconditional guarantee
				shall be valid for a period of not less than one year. The applicant shall provide a
				copy of the ratings agency reports that presents these ratings of the counterparty
				and a copy of the guarantee to the Commission with its application.