[§269-195]  Reserve account; establishment.  (a)  By August 1, 2025, the public utilities commission shall create a surcharge, referred to as reserve fees, which shall be deposited into an account within the fund and be pledged to secure and be applied to the repayment of payment obligations under a covered power purchase agreement to the extent that there is a shortfall in the amount of revenues received from power purchase charges on deposit in the fund.  Reserve fees shall be collected in full by the electric utility or its successors, as collection agents for the department, through a surcharge that is separate and apart from the electric utility's rates.  Reserve fees may be included in the purchased power adjustment clause on customer bills.  The department shall establish and maintain a separate account within the fund to accept and account for revenues from reserve fees, and the electric utility shall, within twenty-four hours of receipt, transfer all revenues collected from the surcharge related to the reserve fees directly to the department for deposit into the account.  The electric utility shall not otherwise assign, sell, or transfer any title to, or any claim or right to, the revenues from reserve fees, except as provided under this part.  The electric utility shall not access the reserve account or utilize the revenues from the reserve fees deposited therein, except as directed by the department pursuant to section 269-196(e).  The public utilities commission may require, in the financing order creating the surcharge, that, if a default occurs by the electric utility in remittance of the reserve fees collected, the public utilities commission, upon the application by the department, and without limiting any other remedies available to the department by reason of the default, shall order the sequestration and payment to the department of the reserve fees.  Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the electric utility.

     (b)  Reserve fees shall be collected and maintained and if necessary, reinstated, to establish or replenish a reserve account in an amount not to exceed the total of fifteen per cent of the forecasted monthly power purchase costs of all covered power purchase agreements plus an amount sufficient to recover costs related to administration by the department of the reserve account and any applicable taxes and fees.

     (c)  If a step-in agreement terminates pursuant to section 269-192(d), reserve fees collected in connection with the related covered power purchase agreement shall cease to be collected.  Upon the termination of all step-in agreements, all moneys remaining in the reserve account shall be returned in full, together with any associated interest earned, to customers through a rate credit. [L 2025, c 191, pt of §2]