|02/23/23: to Natural Resources & Energy (S)
|AN ACT relating to affordable and reliable energy for Kentucky.
|Bill Request Number
|S. Funke Frommeyer, G. Williams
|Summary of Original Version
|Create new sections of KRS Chapter 278 to define terms; allow an investor-owned electric utility to apply for a financing order to securitize deferred costs associated with retired or abandoned electric generating facilities and extraordinary storm costs; clarify that the electric utility may retire and replace the electric generation facility without matching the capacity or the technology of the retired or abandoned unit; establish the contents of an application for a financing order; exclude accumulated depreciation from the rate base; require the Public Service Commission to establish the process for a proceeding to review and render a decision on a financing order application; provide a 120-day time frame for the Public Service Commission to render a decision and issue an order; require the decision to be just and reasonable; clarify the process for judicial review; stipulate and conscribe the powers of the Public Service Commission when reviewing the application and the surcharge placed on customer bills for recovery of the securitized costs; allow the electric utility to cause the issuance of securitized bonds after an order has been approved by the Public Service Commission; specify the contents of the financing order; set the expiration date for the financing order after which the electric utility cannot cause securitized bonds to be issued; predicate the issuance of securitized bonds on a true sale of securitized property; allow for transfer and assignment of securitized property; require the utility to submit a formula for a true-up mechanism to reconcile amounts collected from ratepayers through a surcharge; allow the Public Service Commission to review clerical and mathematical aspects of the formula; specify the process and requirements for an issuance advice letter process and the parameters for the Public Service Commission to participate; provide that the interest in securitized property and the securitized surcharge are irrevocable; allow for the Public Service Commission to submit a disapproval order to stop the issuance of securitized bonds; allow for refinancing and refunding of securitized bonds; establish priority and perfection of lien and require the lien to be recorded in the Secretary of State office; specify prohibited actions to be undertaken by the Public Service Commission; specify the billing requirements when a financing is approved; establish a property right and interest in securitized property that can be transferred, pledged, or assigned; clarify nonrecourse to assets of the utility in the instance of default and that the securitized surcharge remains in cases of bankruptcy or insolvency; clarify that any person acquiring a utility under a financing order obtains the responsibility of performing the duties under the financing order regarding the securitized surcharge; establish the absolute transfer and clarify the factors that do not limit the true sale; clarify how to determine priority when there are conflicting interests; stipulate that the law of the Commonwealth regarding securitization of utility assets are these provisions and that securitization does not create a debt of the Commonwealth or its political subdivisions; create a severability clause if any provision is invalidated; create definitions for biogas and syngas affecting natural gas utilities regulated by the Public Service Commission; authorize the natural gas utility to file an application for a recovery mechanism for using innovative natural gas resources to establish needed infrastructure; require the Public Service Commission to allow recovery for an electric utility to recover reasonable expenses associated with obtaining an early site permit from the United States Nuclear Regulatory Commission; amend KRS 65A.050, 278.021, and 278.516 to conform; amend KRS 278.020 to require the Public Service Commission to consider the policy of the Commonwealth for electric utilities to own their own renewable electric generation when granting a certificate of convenience and necessity for the utility to construct renewable facilities; establish a rebuttable presumption that constructing a plant or facility with a projected cost of less than 3 percent of the utility's total net plant to be an ordinary extension of the system; require the final decision to be made in 120 days and if no action is taken the application is deemed approved; and amend KRS 355.9-109 to exempt securitized interests in securitized property from the Uniform Commercial Code dealing with secured transactions.
|Index Headings of Original Version
Energy - Electric utilities, investor-owned, securitization, plant retirement, storm costs
Fees - Investor-owned electric utilities, securitized surcharge, paid by customers
Public Utilities - Regulated utilities, deferred expenses held as regulatory assets, securitization
Sales - Electric utilities, electric generating units, reasonable attempt to sell before retirement
Securities - Investor-owned electric utilities, securitized property, securitized bonds
Bonds, Public - Investor-owned electric utilities, securitized property, securitized bonds
Last updated: 11/9/2023 3:03 PM (EST)