§ 40-609 — Public service corporation as servicer; transition billing services tariffs; AAA rating

A. If a servicer is a public service corporation, the public service corporation shall use its resources and systems to perform the duties of a servicer under a transition billing services tariff. The commission has continuing jurisdiction over the terms of a transition billing services tariff that is filed and maintained by a public service corporation.

B. Funds that are collected by a servicer in payment of financing charges, whether under a transition billing services tariff or otherwise, are financing revenues when paid by a customer, and the servicer has no right, title or interest in those revenues other than as agent for the qualified special purpose entity. If a customer pays only a portion of the charges stated on a bill provided by a servicer that includes financing charges, the partial payment shall be first applied to the payment of financing charges.

C. If a servicer fails to make any required payment of financing revenues to a qualified special purpose entity or fails to fulfill its servicing obligations under an applicable transition billing services tariff, the qualified special purpose entity or the holders of the transition bonds may request that the superior court order the sequestration and payment of the financing revenues for the benefit of any financing parties or their assignees and may request any other applicable relief. The order shall remain in full force and effect notwithstanding any bankruptcy, reorganization or other insolvency or receivership proceedings of the servicer or the qualified special purpose entity.

D. If this state, whether through order of the commission or otherwise, allows the billing, collection and remittance by a third party of sums that would otherwise be billed, collected or remitted by a public service corporation that acts as a servicer, the authorization must be consistent with the rating agencies' requirements that are necessary for the transition bonds to receive and maintain an AAA or equivalent rating.