[§269G-2]  Applications to issue bonds and authorize infrastructure resilience charges.  (a)  An electric utility may apply to the commission for one or more financing orders to issue bonds to recover any infrastructure resilience costs, each of which authorizes the following:

     (1)  The imposition, charging, and collection of an infrastructure resilience charge, to become effective upon the issuance of the bonds, and an adjustment of any such infrastructure resilience charge in accordance with a true-up adjustment mechanism under this chapter in amounts sufficient to pay the principal and interest on the bonds and all other associated financing costs on a timely basis;

     (2)  The creation of infrastructure resilience property under the financing order; and

     (3)  The imposition, charging, and collection of fixed recovery tax amounts to recover any portion of the electric utility's federal and state taxes associated with those infrastructure resilience charges and not financed from the proceeds of bonds.

     (b)  The commission may issue a financing order that authorizes the issuance of bonds under subsection (a) only if:

     (1)  The electric utility, in good faith, has sought the maximum federal funding to offset the costs of infrastructure;

     (2)  After July 1, 2025, the first $500,000,000 in infrastructure resilience capital investments, in the aggregate, must be made under this Act; and

     (3)  Any assets that are to be financed under securitization should not already be included in the electric utility's rate base.

     (c)  The application shall include all of the following:

     (1)  The infrastructure resilience costs to be financed through the issuance of bonds;

     (2)  The principal amount of the bonds proposed to be issued and the selection of a financing entity;

     (3)  An estimate of the date on which each series of bonds is expected to be issued;

     (4)  The scheduled final payment date, which shall not exceed thirty years, and a legal final maturity date, which may be longer, subject to rating agency and market considerations, during which term the infrastructure resilience charge associated with the issuance of each series of bonds is expected to be imposed and collected;

     (5)  An estimate of the financing costs associated with the issuance of each series of bonds;

     (6)  An estimate of the amount of the infrastructure resilience charge revenues necessary to pay principal and interest on the bonds and all other associated financing costs as set forth in the application and calculation for that estimate;

     (7)  A proposed design of the infrastructure resilience charge and a proposed methodology for allocating the infrastructure resilience charge among customer classes within the electric utility's service territory;

     (8)  A description of the financing entity selected by the electric utility;

     (9)  A description of a proposed true-up adjustment mechanism for the adjustment of the infrastructure resilience charge to correct for any overcollection or undercollection of the infrastructure resilience charge, and to otherwise ensure the timely payment of principal and interest on the bonds and all other associated financing costs; and

    (10)  Any other information required by the commission.

     (d)  An electric utility may file an application for a financing order, or as a joint applicant with one or more affiliate electric utilities, to issue bonds to recover infrastructure resilience costs.  The application shall include a description of:

     (1)  How the infrastructure resilience charges will be allocated among the applicant electric utilities in a manner that is equitable and that need not correspond to the incurrence of infrastructure resilience costs by each electric utility; and

     (2)  Whether and how the consumers of any of the applicant electric utilities will be responsible for the payment of infrastructure resilience charges allocated to consumers of affiliate electric utilities.

     In the alternative, an electric utility may apply for a financing order to issue bonds to recover infrastructure resilience costs, including infrastructure resilience costs incurred, or to be incurred, by the applicant and one or more of its affiliate electric utilities.  In connection with the issuance of a financing order pursuant to this subsection, the commission shall issue a concurrent order to the affiliate electric utility or electric utilities directing the affiliate electric utility or electric utilities to impose rates on its or their consumers designed to generate revenue sufficient to pay credits over the life of the bonds to the applicant electric utility in the amount as the commission determines is equitable, just, and reasonable.  The application shall describe the allocation method and adjustment mechanism for the affiliate electric utility credit payments proposed to be subject to the concurrent commission order.

     (e)  The commission shall issue an approval or denial of any application for a financing order filed pursuant to this section within ninety days of the last filing in the applicable docket.

     (f)  In exercising its duties under this section, the commission shall consider:

     (1)  Whether the issuance of the bonds, and the imposition and collection of infrastructure resilience charges, are consistent with the public interest;

     (2)  Whether the structuring, marketing, and pricing of the bonds are expected to result in the lowest infrastructure resilience charges consistent with market conditions at the time at which the bonds are priced and the terms of the financing order;

     (3)  Whether the terms and conditions of any bonds to be issued are just and reasonable;

     (4)  With respect to an application by an investor-owned electric utility, whether the recovery of infrastructure resilience costs through the designation of the infrastructure resilience charges and any associated fixed recovery tax amounts, and the issuance of bonds in connection with the infrastructure resilience charges, would result in net savings or mitigate rate impacts to consumers, as compared to rate recovery without securitization; and

     (5)  Any other factors that the commission deems reasonable and in the public interest.

If the commission makes the determination specified in this section, the commission shall establish, as part of the financing order, a procedure for the electric utility to submit applications from time to time to request the issuance of additional financing orders designating infrastructure resilience charges and any associated fixed recovery tax amounts as recoverable.

     An electric utility may include in its application for a financing order a request for authorization to sell, transfer, assign, or pledge infrastructure resilience property to a governmental entity if the electric utility expects bonds issued by a governmental entity to result in a more cost-efficient means, taking into account all financing costs related to the bonds, than using another financing entity to issue bonds to finance the same infrastructure resilience costs, taking into account the costs of issuing the other financing entity's bonds.

     (g)  Infrastructure resilience charges and any associated fixed recovery tax amounts shall be imposed only on existing and future consumers in the utility service territory of the electric utility that is subject to such financing order.  Consumers within the utility service territory of the electric utility that are subject to the financing order shall continue to pay infrastructure resilience charges and any associated fixed recovery tax amounts until the bonds and associated financing costs are paid in full by the financing entity. [L 2025, c 258, pt of §3]

Revision Note

  "July 1, 2025" substituted for "the effective date of this Act" pursuant to §23G-15.