RS 1331 - Legislative findings and purpose
A. The Louisiana Legislature declares in Subpart A of this Part that the restoration and rebuilding of utility systems after natural disasters using low-cost capital, thereby minimizing the cost to ratepayers, is a valid public purpose. Supporting the financial strength and stability of utility companies that already have restored and rebuilt, partially or completely, their utility systems after natural disasters is a valid public purpose in the best interests of the citizens of the state.
B. The Louisiana Legislature finds and declares it to be prudent and in the best interests of the state of Louisiana to consider and make available an additional alternate financing technique to support the financial strength and stability of utility companies that have undertaken past, and will undertake future, utility system restoration. Therefore, the Louisiana Utilities Restoration Corporation may create special public trusts for the purpose of providing an alternate financing mechanism available to the Public Service Commission and the council of the city of New Orleans, as applicable, to attract low-cost capital to finance utility system restoration and capital investments and contributions to financially strengthen and stabilize utilities. Special public trusts are nonbusiness entities authorized by this Subpart as a special type of public corporation.
C. The purpose of this Subpart is to minimize costs charged to ratepayers for system restoration costs by providing the corporation with a beneficial interest in a trust that the corporation shall pledge as further security for its obligations to the issuer of the system restoration bonds. The alternate financing technique contemplated by this Subpart used in conjunction with Subpart A of this Part enables the corporation to finance, directly or indirectly, system restoration costs with low-cost capital. Financing of system restoration costs using this alternate financing technique pursuant to this Subpart will additionally safeguard the system restoration bonds so issued and reduce costs to ratepayers. The Louisiana Legislature further finds that this alternate financing technique is a valid public purpose.
D. Securitization financings pursuant to this Subpart, if authorized by the commission in its sole discretion, shall include a commitment by the related utility that the proceeds from the issuance of the system restoration bonds shall be in lieu of recovery of system restoration costs through the regular rate making process to the extent of those securitization financing proceeds.
Acts 2021, No. 293, §3, eff. June 14, 2021.