There is a newer version
of
this Section
2017 Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 1 - Public Utilities and Carriers
Chapter 18 - Light, Heat, and Power Utilities
Subchapter 9 - Arkansas Electric Utility Storm Recovery Securitization Act
§ 23-18-902. Definitions
Universal Citation: AR Code § 23-18-902 (2017)
- As used in this subchapter:
- (1) "Ancillary agreement" means any bond, insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with the issuance of storm recovery bonds;
- (2) "Assignee" means any legal or commercial entity, including but not limited to, a corporation, statutory trust, limited liability company, partnership, limited partnership, or other legally recognized entity to which an electric utility sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to storm recovery property. The term also includes any legal or commercial entity to which an assignee sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to storm recovery property;
- (3) "Commission" means the Arkansas Public Service Commission;
- (4) "Electric utility" means any person or any combination of persons, or lessees, trustees, and receivers of such person, now or hereafter owning or operating for compensation in this state equipment or facilities for producing, generating, transmitting, distributing, selling, or furnishing electricity to or for the public at retail in this state including an electric cooperative corporation generating or transmitting electricity;
- (5) "Financing costs" means:
- (A) Interest, discounts, and acquisition, defeasance, or redemption premiums that are payable on storm recovery bonds;
- (B) Any payment required under an ancillary agreement and any amount required to fund or replenish reserve or other accounts or subaccounts established under the terms of any indenture, ancillary agreement, or other financing documents pertaining to storm recovery bonds;
- (C) Any other cost related to issuing, supporting, repaying, and servicing storm recovery bonds, including, but not limited to, servicing fees, billing or other information system programming costs, accounting and auditing fees, trustee fees and expenses, legal fees and expenses, consulting fees and expenses, administrative fees and expenses, placement and underwriting fees and expenses, independent director and manager fees and expenses, capitalized interest, rating agency fees and expenses, stock exchange listing and compliance fees and expenses, and filing fees, including costs related to obtaining the financing order;
- (D) Any income taxes and license or other fees imposed on the revenues generated from the collection of storm recovery charges or otherwise resulting from the collection of storm recovery charges, in any such case whether paid, payable, or accrued;
- (E) Any gross receipts, franchise, use, and other taxes or similar charges including, but not limited to, regulatory assessment fees, in any such case whether paid, payable, or accrued, imposed upon the electric utility, any assignee, or any financing party with respect to the receipt of storm recovery charges or the issuance of storm recovery bonds; and
- (F) Any other costs, charges, and amounts approved by the commission in a financing order;
- (6) "Financing order" means an order of the commission adopted upon petition of an electric utility and pursuant to § 23-18-903 which, among other things, allows for:
- (A) The issuance of storm recovery bonds;
- (B) The imposition, collection, and periodic adjustments of storm recovery charges;
- (C) The creation of storm recovery property; or
- (D) The sale, assignment, or transfer of storm recovery property to an assignee;
- (7) "Financing party" means any holder of storm recovery bonds and any trustee, collateral agent, or other person acting for the benefit of holders of storm recovery bonds;
- (8) "Financing statement" has the same meaning as that provided in the Uniform Commercial Code -- Secured Transactions, § 4-9-101 et seq.;
- (9) "Secured party" means a financing party in favor of which an electric utility or its direct or indirect successors or assignees creates a security interest in all or any portion of its interest in or right to storm recovery property. A secured party may be granted a security interest in storm recovery property under this subchapter and a security interest in other collateral subject to the Uniform Commercial Code -- Secured Transactions, § 4-9-101 et seq., in one (1) security agreement;
- (10) "Security interest" means a pledge, hypothecation, or other encumbrance of or other right over any portion of storm recovery property created by contract to secure the payment or performance of an obligation;
- (11) "Storm" means, individually or collectively, a named tropical storm, a named hurricane, a tornado, an ice or snow storm, a flood, an earthquake or other significant weather event or a natural disaster that occurred during the calendar year 2009 or thereafter;
- (12) "Storm recovery activity" means any activity or activities by or on behalf of an electric utility in connection with the restoration of service associated with electric power outages affecting customers of an electric utility as the result of a storm or storms, including, but not limited to, all internal and external labor costs and all costs related to mobilization, staging, and construction, reconstruction, replacement, or repair of electric generation, transmission, or distribution facilities;
- (13) "Storm recovery bonds" means bonds, debentures, notes, certificates of beneficial interest, certificates of participation, certificates of ownership, or other evidences of indebtedness or ownership that are issued pursuant to or in connection with an indenture, contract, ancillary agreement, or other agreement of an electric utility or an assignee pursuant to a financing order, the proceeds of which are used directly or indirectly to provide, recover, finance, or refinance commission-approved storm recovery costs, financing costs, and costs to replenish or fund a storm recovery reserve to such level as the commission may authorize in a financing order, and which are secured by or payable from storm recovery property. If certificates of beneficial interest or certificates of participation or ownership are issued, references in this subchapter to principal, interest, or premium shall be construed to refer to comparable amounts under those certificates;
- (14) "Storm recovery charges" means the amounts authorized by the commission to recover, finance, or refinance storm recovery costs, financing costs, and the costs to create, fund, or replenish a storm recovery reserve, including, but not limited to, through the issuance and repayment of storm recovery bonds. Such charges shall be imposed on all customer bills and collected by an electric utility or its successors or assignees, or a collection agent. Such charges shall be nonbypassable charges that are separate and apart from the electric utility's base rates and shall be paid by all existing and future customers receiving transmission or distribution service, or both, from the electric utility or its successors or assignees under commission-approved rate schedules as provided in the financing order. An individual customer's monthly storm recovery charges shall be based upon the customer's then current monthly billing determinants;
- (15) "Storm recovery costs" means, at the option and request of the electric utility and as approved by the commission pursuant to § 23-18-903, reasonable and necessary costs, including costs expensed, charged to self-insurance reserves, capitalized, or otherwise financed, that are incurred, including costs incurred prior to April 1, 2009, or expected to be incurred by an electric utility in undertaking a storm recovery activity. Such costs shall be net of applicable insurance proceeds and, where determined appropriate by the commission, shall include adjustments for normal capital replacement and operating costs, lost revenues, or other potential offsetting adjustments. Storm recovery costs shall include carrying costs, at simple interest which shall accrue at a rate equal to the electric public utility's last approved rate-base rate of return, from the date on which the storm recovery costs were incurred until the date that storm recovery bonds are issued or until storm recovery costs are otherwise recovered. Storm recovery costs shall also include the costs of retiring or purchasing any indebtedness or equity relating to or associated with storm recovery activities, including accrued interest, premium and other fees, costs, and charges related thereto. Storm recovery costs shall also include the costs to create or fund any storm recovery reserves or to replenish any shortfall in any storm recovery reserves;
- (16) "Storm recovery property" means:
- (A) All rights and interests of an electric utility or the direct or indirect successors or assignees of the electric utility under a financing order, including the right to impose, bill, collect, and receive storm recovery charges authorized in the financing order and to obtain periodic adjustments to such charges as provided in the financing order; and
- (B) All revenues, collections, claims, rights to payments, payments, money, or proceeds arising from the rights and interests specified in subdivision (16)(A) of this section, regardless of whether such revenues, collections, claims, rights to payment, payments, money, or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other revenues, collections, rights to payment, payments, money, or proceeds;
- (17) "Storm recovery reserve" means an electric utility's storm cost reserve account established pursuant to § 23-4-112; and
- (18) "Uniform Commercial Code -- Secured Transactions" means § 4-9-101 et seq.
Disclaimer: These codes may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
