§ 45:1331 — Legislative findings and purpose

§1331. Legislative findings and purpose
A. The Louisiana Legislature declares in Subpart A of this Part 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.
B. The Louisiana Legislature finds and declares it to be prudent and in the best
interests of the state of Louisiana to consider and make available an additional alternate
financing technique 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 may create special public trusts 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 investments and contributions to financially
strengthen and stabilize utilities. Special public trusts are nonbusiness entities authorized by
this Subpart as a special type of public corporation.
C. The purpose of this Subpart is to minimize costs charged to ratepayers for system
restoration costs by providing the corporation with a beneficial interest in a trust that the
corporation shall pledge as further security for its obligations to the issuer of the system
restoration bonds. The alternate financing technique contemplated by this Subpart used in
conjunction with Subpart A of this Part enables the corporation to finance, directly or
indirectly, system restoration costs with low-cost capital. Financing of system restoration
costs using this alternate financing technique pursuant to this Subpart will additionally
safeguard the system restoration bonds so issued and reduce costs to ratepayers. The
Louisiana Legislature further finds that this alternate financing technique is a valid public
purpose.
D. Securitization financings pursuant to this Subpart, if authorized by the commission
in its sole discretion, shall include a commitment by the related utility that the proceeds from
the issuance of the system restoration bonds shall be in lieu of recovery of system restoration
costs through the regular rate making process to the extent of those securitization financing
proceeds.

Legislative History

Acts 2021, No. 293, §3, eff. June 14, 2021.