2005 Rhode Island Code - § 39-1-45 — Securitization order – General.

    Notwithstanding any other provision of law, the commission is authorized to issue securitization orders in accordance with the provisions of this chapter to facilitate the financing, or financings, of qualified transition expenditures through the issuance of transition bonds, subject to the following:

   (1) Voluntary filing. Each electric distribution company recovering transition charges pursuant to § 39-1-27.4 shall have the option, but not be obligated, to file an application with the commission for issuance of a securitization order. A securitization order may be issued by the commission only upon the application of an electric distribution company, filed in accordance with the procedures set forth in § 39-1-46; provided, however that if an electric distribution company elects to finance qualified transition expenditures through the issuance of bonds or other evidence of indebtedness without first seeking a securitization order, then all of the net savings achieved through such financing shall be credited to the customer of the electric distribution company in the same manner as if the electric distribution company had filed an application for a securitization order in accordance with § 39-1-46. Such securitization order shall become effective in accordance with its terms only after the electric distribution company files with the commission the electric distribution company's written consent to all terms and conditions of such order.

   (2) Irrevocability. (i) Notwithstanding any other provision of law, the securitization order shall be irrevocable and neither the order nor the intangible transition charges authorized to be imposed and collected thereunder shall be subject to reduction, postponement, impairment, alteration, limitation or termination by any subsequent action of the commission, nor shall the commission, the state, or any agency, employee or agent thereof take any action or make or authorize any statement that would support such a modification of any intangible transition charges or contract termination fees to which the securitization order may relate, or any finding relating to such fees, after those fees have been approved by the federal energy regulatory commission or any successor thereto.

   (ii) Notwithstanding any other provision of law, any requirement under this chapter or a securitization order that the commission take action with respect to the subject matter of a securitization order shall be binding upon the commission, as it may be constituted from time to time, and any successor agency exercising functions similar to the commission and the commission shall have no authority to rescind, alter, or amend that requirement in a securitization order.

   (3) Assignment – Pledge. Notwithstanding any other provision of law, all or portions of the interest of an electric distribution company or assignee in a securitization order and in intangible transition property arising therefrom may be sold or otherwise transferred to an assignee, and may be pledged or assigned as security by an electric distribution company or assignee to or for the benefit of one or more financing parties. To the extent that all or a portion of any such interest is so sold or transferred, or is so pledged or assigned as security, the electric distribution company shall be authorized to contract with and for the benefit of any such assignee and/or financing party that it will continue to operate its system to provide electric services to its customers and will impose and collect the applicable intangible transition charges for the benefit and account of the assignee or financing party, and will account for and remit the same to or for the account of such party.

   (4) Nonbypass. Notwithstanding any other provision of law, if the electric distribution company contracts as provided in the preceding paragraph (3), then, such obligations of the electric distribution company, (i) shall be binding upon the electric distribution company, its successor and assigns, and (ii) shall be required by the commission to be undertaken and performed by the electric distribution company and any other party who provides electric services to a person who was a customer of the electric distribution company located within the authorized service area of the electric distribution company on January 1, 1997, or who thereafter became a customer of electric services within such area, and is still located within such area, as a condition to the provision of services to such customer by such electric distribution company or party, unless a termination charge shall have been paid by or on behalf of such customer, all in the manner and on the basis specified in the application for a securitization order approved by the commission.

   (5) Lapse. The irrevocable status of the securitization order, as provided in this chapter shall lapse and terminate to the extent that a sale or other transfer and/or debt financing of the intangible transition property resulting therefor has not commenced within any period or periods specified in the securitization order.

   (6) No Cross-Subsidies. Notwithstanding any other provision of law, in no event shall any securitization order (i) authorize or require the customers of an electric distribution company other than the electric distribution company applying for such securitization order to pay any intangible transition charges or other amounts with respect to the transactions authorized by such securitization order, or (ii) authorize, permit, or require that any amounts arising from the transactions authorized by such securitization order be used to subsidize or benefit an electric distribution company (or the customers thereof) other than the electric distribution company (and the affiliates thereof) applying for such securitization order and its (or its affiliates') customers.