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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Your bond amount depends on how many households sit inside your video service area, and it is due within five business days after the CPUC issues your state video franchise. Sizing it correctly up front keeps your launch on schedule.
Under the Digital Infrastructure and Video Competition Act and CPUC General Order 169, a state video franchise holder must file a bond of $100,000 per 20,000 households in its video service area, with a $100,000 minimum and a $500,000 maximum. The bond names the California Public Utilities Commission as obligee, must come from a corporate surety authorized in California, and is due before service starts and no later than five business days after the franchise is issued.
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General Order 169 sets the bond at $100,000 for every 20,000 households in the applicant's video service area. It can never be less than $100,000 or more than $500,000 per state video franchise holder. A company holding more than one state video franchise, directly or through an affiliate, is not required to carry bonds totaling more than $500,000.
So a provider serving 20,000 households or fewer posts $100,000, and the amount climbs in $100,000 steps for each additional 20,000 households until it reaches the $500,000 cap.
The bond is how an applicant gives the CPUC adequate assurance that it has the financial, legal and technical qualifications to build and operate its system and to promptly repair any damage it causes to the public right of way. The program carries out the Digital Infrastructure and Video Competition Act of 2006, Public Utilities Code Section 5800 and following, with application requirements in Section 5840.
A new applicant either includes the executed bond with the application or attests in the affidavit that it will deliver it. The bond goes to the CPUC Executive Director before video service begins and no later than five business days after the Commission issues the state video franchise. It must name the Commission as obligee and be written by a corporate surety authorized to transact surety business in California. A franchise holder may not let the bond lapse at any time while it operates under the franchise.
A renewal application is considered incomplete unless the holder has already given the Commission a fully executed bond in the required amount. Plan to keep the bond continuous through the franchise term and into renewal.
The initial application carries a $2,000 fee. Applications are emailed to the CPUC video franchising group, with a copy delivered at the same time to each local entity in the service area.
$100,000 for each 20,000 households in your video service area, never less than $100,000 and never more than $500,000 per state video franchise holder.
No. General Order 169 says a person or entity holding more than one state video franchise, directly or through an affiliate, is not required to carry bonds totaling more than $500,000.
Before you begin video service and no later than five business days after the CPUC issues your state video franchise.
The renewal application is treated as incomplete unless you have already filed a fully executed bond in the required amount with the Commission.
The surety prices the bond from the bond amount and the company's financial statements and credit. Larger bonds near the $500,000 cap usually require fuller financial review.
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