§ 39-1-45 - Securitization order – General.
SECTION 39-1-45
§ 39-1-45 Securitization order –General. – Notwithstanding any other provision of law, the commission is authorized toissue securitization orders in accordance with the provisions of this chapterto facilitate the financing, or financings, of qualified transitionexpenditures through the issuance of transition bonds, subject to the following:
(1) Voluntary filing. Each electric distributioncompany recovering transition charges pursuant to § 39-1-27.4 shall havethe option, but not be obligated, to file an application with the commissionfor issuance of a securitization order. A securitization order may be issued bythe commission only upon the application of an electric distribution company,filed in accordance with the procedures set forth in § 39-1-46; provided,however that if an electric distribution company elects to finance qualifiedtransition expenditures through the issuance of bonds or other evidence ofindebtedness without first seeking a securitization order, then all of the netsavings achieved through such financing shall be credited to the customer ofthe electric distribution company in the same manner as if the electricdistribution company had filed an application for a securitization order inaccordance with § 39-1-46. Such securitization order shall becomeeffective in accordance with its terms only after the electric distributioncompany files with the commission the electric distribution company's writtenconsent to all terms and conditions of such order.
(2) Irrevocability. (i) Notwithstanding any otherprovision of law, the securitization order shall be irrevocable and neither theorder nor the intangible transition charges authorized to be imposed andcollected thereunder shall be subject to reduction, postponement, impairment,alteration, limitation or termination by any subsequent action of thecommission, nor shall the commission, the state, or any agency, employee oragent thereof take any action or make or authorize any statement that wouldsupport such a modification of any intangible transition charges or contracttermination fees to which the securitization order may relate, or any findingrelating to such fees, after those fees have been approved by the federalenergy regulatory commission or any successor thereto.
(ii) Notwithstanding any other provision of law, anyrequirement under this chapter or a securitization order that the commissiontake action with respect to the subject matter of a securitization order shallbe binding upon the commission, as it may be constituted from time to time, andany successor agency exercising functions similar to the commission and thecommission shall have no authority to rescind, alter, or amend that requirementin a securitization order.
(3) Assignment – Pledge. Notwithstanding anyother provision of law, all or portions of the interest of an electricdistribution company or assignee in a securitization order and in intangibletransition property arising therefrom may be sold or otherwise transferred toan assignee, and may be pledged or assigned as security by an electricdistribution company or assignee to or for the benefit of one or more financingparties. To the extent that all or a portion of any such interest is so sold ortransferred, or is so pledged or assigned as security, the electricdistribution company shall be authorized to contract with and for the benefitof any such assignee and/or financing party that it will continue to operateits system to provide electric services to its customers and will impose andcollect the applicable intangible transition charges for the benefit andaccount of the assignee or financing party, and will account for and remit thesame to or for the account of such party.
(4) Nonbypass. Notwithstanding any other provision oflaw, if the electric distribution company contracts as provided in thepreceding paragraph (3), then, such obligations of the electric distributioncompany, (i) shall be binding upon the electric distribution company, itssuccessor and assigns, and (ii) shall be required by the commission to beundertaken and performed by the electric distribution company and any otherparty who provides electric services to a person who was a customer of theelectric distribution company located within the authorized service area of theelectric distribution company on January 1, 1997, or who thereafter became acustomer of electric services within such area, and is still located withinsuch area, as a condition to the provision of services to such customer by suchelectric distribution company or party, unless a termination charge shall havebeen paid by or on behalf of such customer, all in the manner and on the basisspecified in the application for a securitization order approved by thecommission.
(5) Lapse. The irrevocable status of thesecuritization order, as provided in this chapter shall lapse and terminate tothe extent that a sale or other transfer and/or debt financing of theintangible transition property resulting therefor has not commenced within anyperiod or periods specified in the securitization order.
(6) No Cross-Subsidies. Notwithstanding any otherprovision of law, in no event shall any securitization order (i) authorize orrequire the customers of an electric distribution company other than theelectric distribution company applying for such securitization order to pay anyintangible transition charges or other amounts with respect to the transactionsauthorized by such securitization order, or (ii) authorize, permit, or requirethat any amounts arising from the transactions authorized by suchsecuritization order be used to subsidize or benefit an electric distributioncompany (or the customers thereof) other than the electric distribution company(and the affiliates thereof) applying for such securitization order and its (orits affiliates') customers.