[§269G-4] Bonds; issuance; infrastructure resilience property interests. (a) The electric utility may sell and assign all or portions of its interest in infrastructure resilience property to one or more financing entities that make that infrastructure resilience property the basis for issuance of bonds, to the extent approved in a financing order. The electric utility or financing entity may pledge infrastructure resilience property as collateral, directly or indirectly, for bonds to the extent approved in the pertinent financing orders providing for a security interest in the infrastructure resilience property, in the manner set forth in this section. In addition, infrastructure resilience property may be sold or assigned by either of the following:
(1) The financing entity or a trustee for the holders of bonds or the holders of an ancillary agreement in connection with the exercise of remedies upon a default under the terms of the bonds; or
(2) Any person acquiring the infrastructure resilience property after a sale or assignment pursuant to this chapter.
(b) To the extent that any interest in infrastructure resilience property is sold, assigned, or is pledged as collateral pursuant to subsection (a), the commission shall require the electric utility to contract with the financing entity or its assignees that the electric utility will:
(1) Continue to operate its system to provide service to consumers within its service territory;
(2) Collect amounts in respect of the infrastructure resilience charges for the benefit and account of the financing entity or its assignees; and
(3) Account for and remit these amounts to or for the account of the financing entity or its assignees.
Contracting with the financing entity or its assignees in accordance with that authorization shall not impair or negate the characterization of the sale, assignment, or pledge as an absolute transfer, a true sale, or a security interest, as applicable. To the extent that billing, collection, and other related services with respect to the provision of the electric utility's services are provided to a consumer by any person or entity other than the electric utility in whose service territory the consumer is located, that person or entity shall collect the infrastructure resilience charges and any associated fixed recovery tax amounts from the consumer for the benefit and account of the electric utility, financing entity, or assignees with the associated revenues remitted solely for the person's benefit as a condition to the provision of electric utility service to that consumer.
Each financing order shall impose terms and conditions, consistent with the purposes and objectives of this chapter, on any person or entity responsible for billing, collection, and other related services, including but not limited to collection of the infrastructure resilience charges and any associated fixed recovery tax amounts, that are the subject of the financing order.
(c) The financing entity may issue bonds upon approval by the commission in a financing order. Bonds shall be nonrecourse to the credit or any assets of the electric utility, other than the infrastructure resilience property as specified in that financing order.
(d) Infrastructure resilience property that is specified in a financing order shall constitute an existing, present property right, notwithstanding the fact that the imposition and collection of infrastructure resilience charges depend on the electric utility's continuing to provide services or continuing to perform its servicing functions relating to the collection of infrastructure resilience charges or on the level of future service consumption, such as consumption of an electric utility service. Infrastructure resilience property shall exist whether or not the infrastructure resilience charges have been billed, have accrued, or have been collected, and notwithstanding the fact that the value for a security interest in the infrastructure resilience property, or amount of the infrastructure resilience property, is dependent on the future provision of service to consumers. All infrastructure resilience property specified in a financing order shall continue to exist until the bonds issued pursuant to a financing order and all associated financing costs are paid in full.
(e) Infrastructure resilience property; infrastructure resilience charges; and the interests of an assignee, bondholder, or financing entity, or any pledgee in infrastructure resilience property and infrastructure resilience charges shall not be subject to setoff, counterclaim, surcharge, recoupment, or defense by the electric utility or any other person or in connection with the bankruptcy, reorganization, or other insolvency proceeding of the electric utility, any affiliate of the electric utility, or any other entity.
(f) Notwithstanding any law to the contrary, any requirement under this chapter or a financing order that the commission acts upon shall be binding upon the commission, as it may be constituted from time to time, and any successor agency exercising functions similar to the commission, and the commission shall have no authority to rescind, alter, or amend that requirement in a financing order. [L 2025, c 258, pt of §3]