§ 45:1333 — Additional powers of the corporation and the commission

§1333. Additional powers of the corporation and the commission
A. The corporation may create express special public trusts for the furtherance and
accomplishment of the corporation's function and purpose pursuant to this Part.
B.(1) Notwithstanding any provisions to the contrary in Subpart A of this Part,
including without limitation R.S. 45:1316(A), 1318(C)(5)(a) and (E), and 1322(B), (D), and
(E), a financing order may require that the corporation shall contribute to a trust all of the net
proceeds from the issuance of system restoration bonds and the trust shall use all such
contributed proceeds to purchase preferred interests from a utility affiliate of the related
utility.
(2) Notwithstanding any provisions to the contrary in Subpart A of this Part, R.S.
45:1318(C)(5)(a) and 1321(K) shall not apply to securitization financing pursuant to this
Subpart and a utility affiliate that sells its preferred interests to a trust shall use those
purchase proceeds for corporate purposes supporting the related utility's financial strength
and stability and thereby promote the economic welfare of the citizens of the state.
(3) In order for this Subpart to be used, a utility shall request in its application to the
commission pursuant to R.S. 45:1318, or in a supplement thereto, that a trust shall be used
by the corporation in its distribution of system restoration bonds' proceeds.
C. A financing order may create system restoration property pursuant to this Part
without including all of the requirements of R.S. 45:1318(C)(5)(a), if the financing order
includes all of the requirements of R.S. 45:1337(A), and if the commission, in such financing
order, requires the corporation to transfer the net proceeds of the system restoration bonds
to a trust that has the related utility as a beneficiary, subject to the express conditions and
requirements set forth in the financing order that, upon receipt of the purchase proceeds by
the utility affiliate from that trust, such related utility shall do all of the following:
(1) Set aside in a restricted escrow account, in an amount and manner required by the
commission, any monies or investments used to fund the related utility's storm damage
reserve.
(2) Not seek to recover the system restoration costs approved by that applicable
financing order, to the extent of the system restoration bonds proceeds, from any of its
commission-jurisdictional customers.
(3) Flow through to the benefit of its customers in a manner determined by the
commission the amount of any insurance proceeds, federal government grants, or similar
source of permanent reimbursement received by the related utility after the issuance of the
financing order relating to that same system restoration activity and those same system
restoration costs.
D. A financing order that is issued pursuant to this Subpart shall require that, upon
receipt of the purchase proceeds by a utility affiliate, the related utility fully release any
claims or rights that the related utility has to recover, in any manner, from its
commission-jurisdictional customers any of the system restoration costs covered by the
financing order, to the extent of the amount of the related bonds' proceeds.

Legislative History

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