§ 45:1311 — Short title; purpose

§1311. Short title; purpose
A. This Part shall be known and may be cited as the "Louisiana Utilities Restoration
Corporation Act".
B. It is hereby declared by the Louisiana Legislature that the restoration and
rebuilding of utility systems after natural disasters using low-cost capital, thereby minimizing
the cost to ratepayers, is a valid public purpose. Supporting the financial strength and
stability of utility companies that already have restored and rebuilt, partially or completely,
their utility systems after natural disasters is a valid public purpose in the best interests of the
citizens of the state. The provision of utility services is necessary to the economic welfare
of the state and a crucial element in the continued prosperity of Louisiana's citizens. The
swift restoration of utility services by utility companies following disasters such as tropical
storms, hurricanes, floods, or other natural disasters and terrorist attacks can minimize the
devastating effects of such disasters. Financially sound and stable utility companies will be
able to restore and rebuild their utility systems promptly without having to incur the expense
of providing assurance to contractors, vendors, and creditors that their charges to the utility
will be paid and without having to wait to obtain future loans or complete future rate-making
proceedings. The legislature finds and declares it to be prudent and in the best interests of
the state of Louisiana to consider and make available alternate financing techniques to
support the financial strength and stability of utility companies that have undertaken past, and
will undertake future, utility system restoration. Therefore, the Louisiana Utilities
Restoration Corporation, a nonprofit corporation, may be created, for the purpose of
providing an alternate financing mechanism available to the Public Service Commission and
the council of the city of New Orleans, as applicable, to attract low-cost capital to finance
utility system restoration and capital contributions to financially strengthen and stabilize
utilities. The corporation's exercise of powers conferred by this Part is the performance of
an essential governmental function, and the corporation shall be a special purpose public
corporation and a political instrumentality of the state.
C. The purpose of this Part is to minimize costs charged to ratepayers for system
restoration costs. The alternate financing structure contemplated by this Part will enable the
corporation to finance, directly or indirectly, system restoration costs with low-cost capital.
Financing of system restoration costs pursuant to this Part is hereby recognized to be a valid
public purpose. The commission may authorize the issuance of system restoration bonds if
the commission finds that the proposed structuring, expected pricing, and anticipated
financing costs of the system restoration bonds are reasonably expected to result in lower
overall costs to ratepayers as compared to conventional methods of financing or recovering
utility system restoration costs. Securitization financings under this Part, if authorized by the
commission in its sole discretion, will include a commitment by the utility receiving
proceeds therefrom that such proceeds shall be in lieu of recovery of system restoration costs
through the regular rate-making process to the extent those costs are financed by such
securitization financing proceeds.
D.(1) The system restoration bonds will be solely the obligation of the issuer and will
not be a debt of or a pledge of the faith and credit of the state or any political or
governmental unit thereof.
(2) The system restoration bonds shall be nonrecourse to the credit or any assets of
the state and the commission.
E. System restoration charges, if authorized by the commission in its sole discretion,
will be charges imposed by the corporation, and not by a utility.
F. This Part does not in any way limit or impair the commission's plenary jurisdiction
over the rates charged and services rendered by the public utilities in this state.
G. This Part does not impose fees or system restoration charges, but instead only
authorizes the commission to approve system restoration charges in its discretion.
H. A utility receiving the proceeds of a securitization financing pursuant to this Part
shall not be required to provide utility services to the corporation or the state as a result of
receiving such proceeds.

Legislative History

Acts 2007, No. 55, §3, eff. June 18, 2007; Acts 2021, No. 293, §4, eff. June 14, 2021.