STATE OF CALIFORNIA	GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA  94102-3298

November 16, 1999

TO REGISTERED ELECTRIC SERVICE PROVIDERS:

Re:	Increased Amount Due for ESP Security Deposit 

The next filing date for your Standard Service Plan [SSP] is January 4, 2000.  You are also required to increase the amount of your financial guarantee bond or cash security deposit according to the number of customers reported on the January 4, 2000 and all subsequent SSP Filings. 

The new security deposit requirement, adopted by the Commission in Decision No. (D.) 99-05-034, Ordering Paragraph 7.b(1), calls for scaling the amount of the security deposit to the number of residential and small commercial customers served by the ESP. The deposit shall increase in accordance with the schedule that follows:

Number of Customers                                                  Security Deposit Amount

1-250	$25,000
	251-500	$50,000
	501-1000	$75,000
	1001+	$100,000
	
As an ESP, you are responsible for the accuracy of the number of customers reported in the SSP and for supplying the required deposit amount.  Failure to comply with the Commission’s ESP security deposit requirement could lead to suspension or revocation of your ESP registration. Suspended ESPs "must within 48 hours cease serving existing residential and small commercial customers and cease all other operations relating to the offering of electric service in California to these customer classes, including, but not limited to marketing, advertising, and solicitation of new customers." (D. 98-03-072 at p. 46 and D. 99-05-034 at p. 19).

If you have any questions, please call the ESP phone line at (415) 703-3779.

Sincerely,

PAUL CLANON, Director
Energy Division

cc:  William Schulte, Consumer Services Division
David E. Morse, Office of Ratepayer Advocates
Maria Oropeza, Legal Division