§ 62‑110.3. Bondrequired for water and sewer companies.
(a) No franchise may be granted to any water or sewer utilitycompany until the applicant furnishes a bond, secured with sufficient surety asapproved by the Commission, in an amount not less than ten thousand dollars($10,000). The bond shall be conditioned upon providing adequate and sufficientservice within all the applicant's service areas, including those for whichfranchises have previously been granted, shall be payable to the Commission, andshall be in a form acceptable to the Commission. In setting the amount of abond, the Commission shall consider and make appropriate findings as to thefollowing:
(1) Whether the applicant holds other water or sewer franchisesin this State, and if so its record of operation,
(2) The number of customers the applicant now serves andproposes to serve,
(3) The likelihood of future expansion needs of the service,
(4) If the applicant is acquiring an existing company, the age,condition, and type of the equipment, and
(5) Any other relevant factors, including the design of thesystem.
Anyinterest earned on a bond shall be payable to the water or sewer company thatposted the bond.
(b) Notwithstanding the provisions of G.S. 62‑110(a) andsubsection (a) of this section, no water or sewer utility shall extend serviceinto territory contiguous to that already occupied without first having advisedthe Commission of such proposed extension. Upon notification, the Commissionshall require the utility to furnish an appropriate bond, taking intoconsideration both the original service area and the proposed extension. Thissubsection shall apply to all service areas of water and sewer utilitieswithout regard to the date of the issuance of the franchise.
(c) The utility, the Public Staff, the Attorney General, and anyother party may, at any time after the amount of a bond is set, apply to theCommission to raise or lower the amount based on changed circumstances.
(d) The appointment of an emergency operator, either by thesuperior court in accordance with G.S. 62‑118(b) or by the Commissionwith the consent of the owner or operator, operates to forfeit the bondrequired by this section. The court or Commission, as appropriate, shalldetermine the amount of money needed to alleviate the emergency and shall orderthat amount of the bond to be paid to the Commission as trustee for the wateror sewer system.
(e) If the person who operated the system before the emergencywas declared desires to resume operation of the system upon a finding that theemergency no longer exists, the Commission shall require him to post a newbond, the amount of which may be different from the previous bond. (1987, c. 490, s. 2; 1995, c. 28, s. 1.)
§ 62‑110.3. Bondrequired for water and sewer companies.
(a) No franchise may be granted to any water or sewer utilitycompany until the applicant furnishes a bond, secured with sufficient surety asapproved by the Commission, in an amount not less than ten thousand dollars($10,000). The bond shall be conditioned upon providing adequate and sufficientservice within all the applicant's service areas, including those for whichfranchises have previously been granted, shall be payable to the Commission, andshall be in a form acceptable to the Commission. In setting the amount of abond, the Commission shall consider and make appropriate findings as to thefollowing:
(1) Whether the applicant holds other water or sewer franchisesin this State, and if so its record of operation,
(2) The number of customers the applicant now serves andproposes to serve,
(3) The likelihood of future expansion needs of the service,
(4) If the applicant is acquiring an existing company, the age,condition, and type of the equipment, and
(5) Any other relevant factors, including the design of thesystem.
Anyinterest earned on a bond shall be payable to the water or sewer company thatposted the bond.
(b) Notwithstanding the provisions of G.S. 62‑110(a) andsubsection (a) of this section, no water or sewer utility shall extend serviceinto territory contiguous to that already occupied without first having advisedthe Commission of such proposed extension. Upon notification, the Commissionshall require the utility to furnish an appropriate bond, taking intoconsideration both the original service area and the proposed extension. Thissubsection shall apply to all service areas of water and sewer utilitieswithout regard to the date of the issuance of the franchise.
(c) The utility, the Public Staff, the Attorney General, and anyother party may, at any time after the amount of a bond is set, apply to theCommission to raise or lower the amount based on changed circumstances.
(d) The appointment of an emergency operator, either by thesuperior court in accordance with G.S. 62‑118(b) or by the Commissionwith the consent of the owner or operator, operates to forfeit the bondrequired by this section. The court or Commission, as appropriate, shalldetermine the amount of money needed to alleviate the emergency and shall orderthat amount of the bond to be paid to the Commission as trustee for the wateror sewer system.
(e) If the person who operated the system before the emergencywas declared desires to resume operation of the system upon a finding that theemergency no longer exists, the Commission shall require him to post a newbond, the amount of which may be different from the previous bond. (1987, c. 490, s. 2; 1995, c. 28, s. 1.)
§ 62‑110.3. Bondrequired for water and sewer companies.
(a) No franchise may be granted to any water or sewer utilitycompany until the applicant furnishes a bond, secured with sufficient surety asapproved by the Commission, in an amount not less than ten thousand dollars($10,000). The bond shall be conditioned upon providing adequate and sufficientservice within all the applicant's service areas, including those for whichfranchises have previously been granted, shall be payable to the Commission, andshall be in a form acceptable to the Commission. In setting the amount of abond, the Commission shall consider and make appropriate findings as to thefollowing:
(1) Whether the applicant holds other water or sewer franchisesin this State, and if so its record of operation,
(2) The number of customers the applicant now serves andproposes to serve,
(3) The likelihood of future expansion needs of the service,
(4) If the applicant is acquiring an existing company, the age,condition, and type of the equipment, and
(5) Any other relevant factors, including the design of thesystem.
Anyinterest earned on a bond shall be payable to the water or sewer company thatposted the bond.
(b) Notwithstanding the provisions of G.S. 62‑110(a) andsubsection (a) of this section, no water or sewer utility shall extend serviceinto territory contiguous to that already occupied without first having advisedthe Commission of such proposed extension. Upon notification, the Commissionshall require the utility to furnish an appropriate bond, taking intoconsideration both the original service area and the proposed extension. Thissubsection shall apply to all service areas of water and sewer utilitieswithout regard to the date of the issuance of the franchise.
(c) The utility, the Public Staff, the Attorney General, and anyother party may, at any time after the amount of a bond is set, apply to theCommission to raise or lower the amount based on changed circumstances.
(d) The appointment of an emergency operator, either by thesuperior court in accordance with G.S. 62‑118(b) or by the Commissionwith the consent of the owner or operator, operates to forfeit the bondrequired by this section. The court or Commission, as appropriate, shalldetermine the amount of money needed to alleviate the emergency and shall orderthat amount of the bond to be paid to the Commission as trustee for the wateror sewer system.
(e) If the person who operated the system before the emergencywas declared desires to resume operation of the system upon a finding that theemergency no longer exists, the Commission shall require him to post a newbond, the amount of which may be different from the previous bond. (1987, c. 490, s. 2; 1995, c. 28, s. 1.)
