Competitive Local Exchange Company (CLEC) License ($25,000) Bond - Statewide in Connecticut

Brief Summary

Connecticut's CLEC bond is $25,000, not the original $50,000 PURA set in 2003. PURA accepts only a surety bond here, so a letter of credit will not satisfy it. PURA also takes the surety's own bond form, which keeps issuance simple once you are approved.

A competitive local exchange company certified by the Connecticut Public Utilities Regulatory Authority must file a $25,000 surety bond with PURA. The requirement comes from PURA's April 2, 2003 decision in Docket 01-12-10, and the May 5, 2004 decision in Docket 01-12-10RE01 cut the amount from $50,000 to $25,000. PURA accepts the bond form the surety uses, and it does not accept a letter of credit or any other security in place of the bond.

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How to Apply for a Competitive Local Exchange Company (CLEC) License ($25,000) Bond:

• Have your PURA docket number and the company name exactly as it appears on your certificate.
• Provide company financial information and owner details for underwriting.
• Complete the bond application for the $25,000 penal sum and review the quote.
• Pay the premium and receive the executed bond on the surety's form.
• File the bond with PURA as a compliance filing in your docket.
• If you cannot file on time, send PURA a written extension request citing your docket number.

Detailed Information About the Connecticut Competitive Local Exchange Company (CLEC) License ($25,000) Bond:

The amount is $25,000

PURA first set the CLEC bond at $50,000. In its May 5, 2004 decision in Docket 01-12-10RE01 it reduced the requirement to $25,000 so that smaller carriers could comply. Some of the filings in that docket are riders reducing the amount of bonds filed earlier.

Only a bond will do

PURA's surety bond FAQ is direct about this. A letter of credit or other form of security is not acceptable. Only a bond is.

Bond form and filing

PURA does not require a specific bond form. The form used by the company providing the bond is acceptable. Bonds are filed with PURA as compliance filings, and many existing CLEC bonds can be viewed in Docket 01-12-10RE01 or in PURA's Undocketed Database.

Where the authority comes from

CGS 16-247g governs certificates of public convenience and necessity to offer and provide intrastate telecommunications services. It lets PURA certify applicants with adequate financial resources, managerial ability and technical competency, and it lets PURA require a performance bond sufficient to cover moneys due or to become due to other telecommunications companies.

If you need more time

A company that needs more time to file the bond can send PURA a letter citing its docket number, asking for an extension, explaining why, and stating when it expects to comply. Electronic filings of that request go in as motions. The PURA Executive Secretary's Office handles procedural questions at 860-827-1553.

Confirm the current filing steps with PURA before the bond is issued.

Eligibility and Requirements for a Connecticut Competitive Local Exchange Company (CLEC) License ($25,000) Bond:

• Connecticut Public Utilities Regulatory Authority as obligee.
• Penal sum of $25,000 under PURA's May 5, 2004 decision in Docket 01-12-10RE01.
• A surety bond only. PURA does not accept letters of credit or other security.
• Any bond form the surety uses is acceptable to PURA.
• Company name on the bond matching the PURA certificate.

Connecticut Competitive Local Exchange Company (CLEC) License ($25,000) Bond FAQs:

Official and Additional Resources for the Connecticut Competitive Local Exchange Company (CLEC) License ($25,000) Bond: