These sample letter of credit, sample escrow agreement, and sample surety bond documents are meant to serve as examples of different types of decommissioning securities that the Commission has previously approved. Decommissioning securities submitted to the Commission can take different forms but must include:
- The appropriate case reference numbers,
- The proper name of the Commission ("Vermont Public Utility Commission"),
- References to the applicability of the laws of the State of Vermont, and
- Relevant provisions addressing the CPG conditions.
In addition:
- The Commission must be named as the sole beneficiary,
- The security must be from an A-rated financial institution, and
- The security must comply with Commission Rule 5.900.
For letter of credit, the following requirements apply:
- The Drawing Certificate must include the following language: "This Letter of Credit has fewer than 30 days remaining prior to the date of expiration and the Beneficiary has not received a replacement letter of credit to the extent required by the Certificate of Public Good, and the undersigned hereby confirms that the amount of this drawing does not exceed the undrawn face amount of the Letter of Credit";
- The irrevocable standby letter of credit must include an automatic renewal provision ("evergreen clause") and be bankruptcy remote; and
- The letter of credit must refer to the applicability of ICC Publication No. 590.
On April 25, 2024, the Public Utility Commission opened case 24-1240-INV to issue a general order clarifying the meaning of "A-Rated" status for financial institutions issuing letters of credit for Section 248 facilities.
On June 21, 2024, the Public Utility Commission opened case #24-1921-INV to issue guidance for Commission Rule 5.904(B)(8) filings to release excess funds after decommissioning is complete. On November 26, 2024, the Public Utility Commission issued an Order Establishing Guidance for Rule 5.904(B)(8) Filings.
On May 2, 2025, the Public Utility Commission opened Case No. 25-0867-INV to issue guidance explaining how decommissioning-security-related documents should be filed with the Commission.
The information provided on this website does not, and is not intended to, constitute legal advice or provide assurances that a particular decommissioning security document will be accepted by the Commission. These samples are provided for informational purposes only.