RS 1333 - Additional powers of the corporation and the commission
A. The corporation may create express special public trusts for the furtherance and accomplishment of the corporation's function and purpose pursuant to this Part.
B.(1) Notwithstanding any provisions to the contrary in Subpart A of this Part, including without limitation R.S. 45:1316(A), 1318(C)(5)(a) and (E), and 1322(B), (D), and (E), a financing order may require that the corporation shall contribute to a trust all of the net proceeds from the issuance of system restoration bonds and the trust shall use all such contributed proceeds to purchase preferred interests from a utility affiliate of the related utility.
(2) Notwithstanding any provisions to the contrary in Subpart A of this Part, R.S. 45:1318(C)(5)(a) and 1321(K) shall not apply to securitization financing pursuant to this Subpart and a utility affiliate that sells its preferred interests to a trust shall use those purchase proceeds for corporate purposes supporting the related utility's financial strength and stability and thereby promote the economic welfare of the citizens of the state.
(3) In order for this Subpart to be used, a utility shall request in its application to the commission pursuant to R.S. 45:1318, or in a supplement thereto, that a trust shall be used by the corporation in its distribution of system restoration bonds' proceeds.
C. A financing order may create system restoration property pursuant to this Part without including all of the requirements of R.S. 45:1318(C)(5)(a), if the financing order includes all of the requirements of R.S. 45:1337(A), and if the commission, in such financing order, requires the corporation to transfer the net proceeds of the system restoration bonds to a trust that has the related utility as a beneficiary, subject to the express conditions and requirements set forth in the financing order that, upon receipt of the purchase proceeds by the utility affiliate from that trust, such related utility shall do all of the following:
(1) Set aside in a restricted escrow account, in an amount and manner required by the commission, any monies or investments used to fund the related utility's storm damage reserve.
(2) Not seek to recover the system restoration costs approved by that applicable financing order, to the extent of the system restoration bonds proceeds, from any of its commission-jurisdictional customers.
(3) Flow through to the benefit of its customers in a manner determined by the commission the amount of any insurance proceeds, federal government grants, or similar source of permanent reimbursement received by the related utility after the issuance of the financing order relating to that same system restoration activity and those same system restoration costs.
D. A financing order that is issued pursuant to this Subpart shall require that, upon receipt of the purchase proceeds by a utility affiliate, the related utility fully release any claims or rights that the related utility has to recover, in any manner, from its commission-jurisdictional customers any of the system restoration costs covered by the financing order, to the extent of the amount of the related bonds' proceeds.
Acts 2021, No. 293, §3, eff. June 14, 2021.