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SFAA Addresses Proposed Rules in Mississippi on Energy Efficiency Programs

Friday, January 12, 2018  

SFAA Addresses Proposed Rules in Mississippi on Energy Efficiency Programs

SFAA submitted comments to the Mississippi Development Authority to address its proposed
regulations for energy service providers (ESP) that provide energy efficient programs. The
Authority would pre-qualify the ESPs, but could grant conditional status to ESPs that did not
qualify. Such ESPs would have to obtain performance and payment bonds. SFAA
recommended a broad application of bonding to all ESPs so that all public entities, taxpayers and
subcontractor and suppliers obtain the benefits of prequalification and payment security.

The regulations would require bonding in compliance with the Little Miller Act, which requires a
100% bond, for the duration of the contract. To make bonding more widely available, SFAA
recommended a bond with a one year term that would be equal to 100% of the annual guaranteed
savings under the contract for the first year. The bond could be renewed for a term not to exceed
three consecutive years under our proposal. This would allow the surety to better evaluate the
ESP’s ability to perform the contract, and three years would be sufficient for a “proof of
concept” for the energy savings measures.

Members should visit Government Relations / General Info (Members) for more information.

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