| Last Action | 03/23/23: signed by Governor (Acts Ch. 72) |
|---|---|
| Title | AN ACT relating to investor-owned electric utilities. |
| Bill Documents |
Acts Chapter 72
Current/Final Introduced |
| Bill Request Number | 446 |
| Sponsor | P. Wheeler |
| Summary of Original Version | Create new sections of KRS Chapter 278 to define terms; give permissive authorization to an investor-owned electric utility to apply to the Public Service Commission to finance though securitization both extraordinary costs and costs associated with the retirement of electric generation of more than $200 million dollars for a single regulatory asset or more than $275 million for multiple regulatory assets; prescribe the contents of an application for a financing order; prescribe the way proceedings of the commission will handle applications for financing orders; require a decision of the commission on securitization to be predicated on fair, just, and reasonable and the public interest of the utility customers; allow for securitization of deferred costs, judicial review, obtaining advisors and other consultants; require the commission to make a decision in 180 days; establish an issuance advice letter process; prescribe the contents of a financing order; establish the method for the utility to put a securitization surcharge on customer bills and make the charge irrevocable; establish a formula-based true-up mechanism for reconciling over collection or under collection of the surcharge; establish a method of tracing funds; allow the commission to issue a disapproval letter to stop the issuance of securitized bonds; make the financing order effective regardless of reorganization, bankruptcy, or other insolvency proceedings of an electric utility; allow for refunding bonds through a subsequent financing order; allow for the transfer of securitized property and interests in the property to others and maintain the property right and interest until the securitized bonds are paid in full; allow for sequestration of payment by a court and create a priority of liens, perfection, and enforcement; require the lien to be recorded in the Office of the Secretary of State and allow for a right to sue; state that securitized bonds are not a debt of the Commonwealth or any other agency of the state and there is no requirement to levy taxes or make appropriations to pay off securitized bonds; require that the bonds are not a debt of the electric utility; create a list of prohibited actions by state agencies; identify agents that are not allowed to invest in the bonds; clarify that an assignee of financing party is not an electric utility; allow severability if any provision is invalidated. |
| Index Headings of Original Version |
Securities - Securitization, regulatory assests, elictric utilities Liens - Securitization, electric utility regulatory assets, priority and perfection, liens Public Utilities - Securitization, regulatory assets, electric utilities Bankruptcy - Interest in securitized property, electric utility, priority, perfection Bonds, Public - Securitized bonds, electric utilities, financing order |
| Jump to Proposed Amendments | Senate Floor Amendment 1 |
| Votes | Vote History |
| 02/21/23 |
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| 02/23/23 |
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| 03/01/23 |
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| 03/02/23 |
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| 03/03/23 |
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| 03/07/23 |
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| 03/08/23 |
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| 03/10/23 |
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| 03/13/23 |
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| 03/14/23 |
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| 03/15/23 |
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| 03/16/23 |
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| 03/23/23 |
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| Amendment | Senate Floor Amendment 1 |
|---|---|
| Sponsor | P. Wheeler |
| Summary | Delete language pertaining to early retirement and abandonment of a facility; add clarifying language requiring the surcharge and other rates be fair, just, and reasonable; create a submission deadline for filing applications for a financing order; allow for the financing order to contain authorization to change the method of tracing funds received by the utility under securitization; change the monthly review of the surcharge to a semiannual review; add lien to language dealing with security interests in securitized property; clarify the value of the securitized property is from a grant of security interest; clarify that the transfer of securitized property is a transaction free and clear; bind the Public Commission and the Commonwealth to the final order regarding the financing order; make grammatical and technical corrections. |
| Index Headings |
Technical Corrections - SB 192 Bonds of Surety - Securitization, secured by ratepayers, binding on Public Service Commission and state Bonds, Public - Securitization bonds, electric utility, securitized property interest Energy - Electric utility, tracing funds, securitization, filing deadline, semiannual surcharge review Public Utilities - Electric utility, tracing funds, securitization, filing deadline, semiannual surcharge review |
Last updated: 11/9/2023 3:03 PM (EST)