Journal of the House of Representatives of the Regular Session of the Eightieth Legislature of the State of Texas, Volume 6 Page: 6,495
6459-7408, S49-S79 p. ; 23 cm.View a full description of this legislative document.
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securitization provides tangible and quantifiable benefits to ratepayers, greater
than would have been achieved absent the issuance of transition bonds. The
commission shall ensure that the structuring and pricing of the transition bonds
result in the lowest transition bond charges consistent with market conditions and
the terms of the financing order. The amount securitized may not exceed the
present value of the revenue requirement over the life of the proposed transition
bond associated with the regulatory assets or other amounts [stranded- -ests]
sought to be securitized. The present value calculation shall use a discount rate
equal to the proposed interest rate on the transition bonds.
SECTION 17. Section 39.302(4), Utilities Code, is amended to read as
follows:
(4) "Qualified costs" means 100 percent of an electric utility's
regulatory assets and 75 percent of its recoverable costs determined by the
commission under Section 39.201 and any remaining amounts [strended-eet]
determined under Section 39.262 together with the costs of issuing, supporting,
and servicing transition bonds and any costs of retiring and refunding the electric
utility's existing debt and equity securities in connection with the issuance of
transition bonds. The term includes the costs to the commission of acquiring
professional services for the purpose of evaluating proposed transactions under
Section 39.201 and this subchapter.
SECTION 18. Sections 39.303(a) and (b), Utilities Code, are amended to
read as follows:
(a) The commission shall adopt a financing order, on application of a utility
to recover the utility's regulatory assets and other amounts determined [eligible
stranded-costs] under Section 39.201 or 39.262, on making a finding that the total
amount of revenues to be collected under the financing order is less than the
revenue requirement that would be recovered over the remaining life of the
regulatory assets or other amounts [standed-costs] using conventional financing
methods and that the financing order is consistent with the standards in Section
39.301.
(b) The financing order shall detail the amount of regulatory assets and other
amounts [stranded -eets] to be recovered and the period over which the
nonbypassable transition charges shall be recovered, which period may not
exceed 15 years. If an amount determined under Section 39.262 is subject to
judicial review at the time of the securitization proceeding, the financing order
shall include an adjustment mechanism requiring the utility to adjust its rates,
other than transition charges, or provide credits, other than credits to transition
charges, in a manner that would refund over the remaining life of the transition
bonds any overpayments resulting from securitization of amounts in excess of the
amount resulting from a final determination after completion of all appellate
reviews. The adjustment mechanism may not affect the stream of revenue
available to service the transition bonds. An adjustment may not be made under
this subsection until all appellate reviews, including, if applicable, appellate
reviews following a commission decision on remand of its original orders, have
been completed.Saturday, May 26, 2007
HOUSE JOURNAL
85th Day 6495
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Texas. Legislature. House of Representatives. Journal of the House of Representatives of the Regular Session of the Eightieth Legislature of the State of Texas, Volume 6, legislative document, 2007; (https://texashistory.unt.edu/ark:/67531/metapth97476/m1/41/: accessed April 28, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.