NAC704.79531. Acceptable securities: Amounts; adjustments.

     1. At least 10 business days before filing its first service request form with a local distribution company, a licensed alternative seller must:

     (a) Post a cash security deposit of $10,000 with the local distribution company;

     (b) Post a financial guarantee bond or other form of insurance in an amount of $10,000, which is payable to the local distribution company; or

     (c) Open a customer trust account in the amount of $10,000, in a bank or other financial institution which is federally insured or otherwise authorized to do business in this State.

     2. A financial guarantee bond posted as security pursuant to subsection 1 must carry an endorsement that allows the issuer of the bond or the insurer to pay such amounts, and in such a manner, as ordered by the Commission. Any form of security provided pursuant to subsection 1 must be for the exclusive protection of residential and small commercial customers in Nevada.

     3. The security posted pursuant to this section must be increased by an amount equal to $100 for each residential or small commercial customer of the alternative seller in excess of the first 100 such customers enrolled into the service of the alternative seller, as adjusted quarterly by the local distribution company. Additional deposits are not required after 1,000 such customers are enrolled. Upon request, a licensed alternative seller shall provide information on the number of its customers to the local distribution company in a timely manner.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)