California Telephone Corporation Surety Bond

Surety One, Inc. offers the California Telephone Corporation Surety Bond, a performance bond mandated by the California Public Utilities Commission (CPUC) for companies providing telecommunications services within the state. This bond is a regulatory requirement imposed by multiple CPUC decisions to ensure financial accountability and regulatory compliance among licensed telephone corporations.

In accordance with CPUC Decision 13-05-035 (issued June 3, 2013), and prior and subsequent decisions D.10-09-017/D.11-09-026 (issued September 3, 2010, and September 28, 2011, respectively) and D.24-11-003 (issued November 12, 2024), all telephone corporations licensed by the CPUC must file a $25,000 performance bond. The bond guarantees the prompt and full payment of any monetary sanctions levied against the telecommunications provider, including but not limited to fines, fees, surcharges, taxes, penalties, and restitution in the event of regulatory infractions.

Under California Public Utilities Code Article 6, section 851 et seq., any telephone corporation that seeks to encumber or transfer utility property must also notify its surety of such intent. The bond ensures that if the licensed entity violates these statutory provisions or fails to meet its financial obligations to the Commission, funds are available to satisfy the resulting liabilities. This includes any enforcement action initiated under the California Public Utilities Code or the cited CPUC decisions.

The surety bond must remain active and continuous for the life of the corporation's licensure unless terminated with due notice. The surety company has the right to cancel the bond with thirty (30) days' written notice sent to both the CPUC and the Principal via certified mail. However, cancellation does not absolve the surety of liability for claims arising prior to the effective cancellation date. Importantly, the Principal must secure a replacement bond before the original is canceled and must provide written proof of such replacement to the CPUC. The aggregate liability of the surety under this instrument shall not exceed $25,000, regardless of the duration of the bond or the number of claims made against it. This bond serves as a critical tool for regulatory enforcement, ensuring that telephone corporations operating in California are held financially responsible for their conduct and obligations to the state and its consumers. Documents and bond should be directed to:

Email:
CDcompliance@cpuc.ca.gov

Mail:
CPUC Communications Division
Telco Licensing and Registration Oversight
505 Van Ness Ave.
San Francisco, CA 94102

Surety One, Inc. is a leading provider of utility performance bonds and miscellaneous California surety bonds. Our firm provides rapid processing, competitive terms, and expert support for both established and startup telecom companies. For immediate issuance or to request a quote, contact us at (800) 373–2804, email Underwriting@SuretyOne.com or click here for a live chat with an underwriter. We are licensed in all fifty states, Puerto Rico, and Canada, and we are ready to serve your compliance and bonding needs.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

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