2007 California Public Utilities Code Article 5.6. Financing Utility Recovery

CA Codes (puc:848-848.8)

848.  For the purposes of this article, the following terms shall
have the following meanings:
   (a) "Consumer" means any individual, governmental body, trust,
business entity or nonprofit organization which consumes electricity
that has been transmitted or distributed by means of electric
transmission or distribution facilities, whether those electric
transmission or distribution facilities are owned by the consumer,
the recovery corporation, or any other party.
   (b) "Financing entity" means the recovery corporation or any
subsidiary or affiliate of the recovery corporation that is
authorized by the commission to issue recovery bonds or acquire
recovery property, or both.
   (c) "Financing order" means an order of the commission adopted in
accordance with this article, which shall include, without
limitation, a procedure to require the expeditious approval by the
commission of periodic adjustments to fixed recovery amounts and to
any associated fixed recovery tax amounts included in that financing
order to ensure recovery of all recovery costs and the costs
associated with the proposed recovery, financing, or refinancing
thereof, including the costs of servicing and retiring the recovery
bonds contemplated by the financing order.
   (d) "Fixed recovery amounts" means those nonbypassable rates and
other charges, including, but not limited to, distribution,
connection, disconnection, and termination rates and charges, that
are authorized by the commission in a financing order to recover (1)
recovery costs specified in the financing order, and (2) the costs of
recovering, financing, or refinancing those recovery costs through a
plan approved by the commission in the financing order, including
the costs of servicing and retiring recovery bonds.
   (e) "Fixed recovery tax amounts" means those nonbypassable rates
and other charges, including, but not limited to, distribution,
connection, disconnection, and termination rates and charges, that
are needed to recover federal and State of California income and
franchise taxes associated with fixed recovery amounts authorized by
the commission in the financing order and that are not financed from
proceeds of recovery bonds.
   (f) "Local publicly owned electric utility" means a local publicly
owned electric utility as defined in Section 9604.
   (g) "Recovery bonds" means bonds, notes, certificates of
participation or beneficial interest, or other evidences of
indebtedness or ownership, issued pursuant to an executed indenture
or other agreement of a financing entity, the proceeds of which are
used, directly or indirectly, to recover, finance, or refinance
recovery costs, and that are directly or indirectly secured by, or
payable from, recovery property.
   (h) "Recovery corporation" means Pacific Gas and Electric Company,
the electrical corporation described in the commission's Decision
No.  03-12-035.
   (i) "Recovery costs" means (1) the unamortized balance of the
regulatory asset arising and existing pursuant to the commission's
Decision No. 03-12-035, (2) federal and State of California income
and franchise taxes associated with recovery of the unamortized
balance of that regulatory asset, (3) costs of issuing recovery
bonds, and (4) professional fees, consultant fees, redemption
premiums, tender premiums and other costs incurred by the recovery
corporation in using proceeds of recovery bonds to acquire
outstanding securities of the recovery corporation.
   (j) (1) "Recovery property" means the property right created
pursuant to this article, including, without limitation, the right,
title, and interest of the recovery corporation or its transferee:
   (A) In and to the tariff established pursuant to a financing
order, as adjusted from time to time in accordance with Section 848.1
and the financing order.
   (B) To be paid the amount that is determined in a financing order
to be the amount that the recovery corporation or its transferee is
lawfully entitled to receive pursuant to the provisions of this
article and the proceeds thereof, and in and to all revenues,
collections, claims, payments, money, or proceeds of or arising from
the tariff or constituting fixed recovery amounts that are the
subject of a financing order including those nonbypassable rates and
other charges referred to in subdivision (d).
   (C) In and to all rights to obtain adjustments to the tariff
relating to fixed recovery amounts pursuant to the terms of Section
848.1 and the financing order.
   (2) "Recovery property" shall not include the right to be paid
fixed recovery tax amounts.
   (3) "Recovery property" shall constitute a current property right
notwithstanding the fact that the value of the property right will
depend on consumers using electricity or, in those instances where
consumers are customers of the recovery corporation, the recovery
corporation performing certain services.
   (k) "Service territory" means the geographical area that the
recovery corporation provided with electric distribution service as
of December 19, 2003.



848.1.  (a) No later than 120 days after the effective date of this
article, and from time to time thereafter, the recovery corporation
shall apply to the commission for a determination that some or all of
the recovery corporation's recovery costs may be recovered through
fixed recovery amounts, which would be recovery property under this
article, and that any portion of the recovery corporation's federal
and State of California income and franchise taxes associated with
those fixed recovery amounts and not financed from proceeds of
recovery bonds be recovered through fixed recovery tax amounts.  The
recovery corporation may request this determination by the commission
in a separate proceeding or in an existing proceeding, or both.  The
recovery corporation shall in its application specify that consumers
within its service territory would benefit from reduced rates on a
present value basis through the issuance of recovery bonds.  The
commission shall designate fixed recovery amounts and any associated
fixed recovery tax amounts as recoverable in one or more financing
orders if the commission determines, as part of its findings in
connection with the financing order, that the designation of the
fixed recovery amounts and any associated fixed recovery tax amounts,
and the issuance of recovery bonds in connection with fixed recovery
amounts, would reduce the rates on a present value basis that
consumers within the recovery corporation's service territory would
pay if the financing order were not adopted.  Fixed recovery amounts
and any associated fixed recovery tax amounts shall only be imposed
on existing and future consumers in the service territory.  Consumers
within the service territory shall continue to pay fixed recovery
amounts and any associated fixed tax recovery amounts until the
recovery bonds are paid in full by the financing entity.  Once the
recovery bonds have been paid in full, the payment by consumers of
fixed recovery amounts and fixed recovery tax amounts shall
terminate.
   (b) The commission shall establish an effective mechanism that
ensures recovery of recovery costs through fixed recovery amounts and
any associated fixed recovery tax amounts from existing and future
consumers in the service territory, provided that the costs shall not
be recoverable from any of the following:
   (1) New load or incremental load of an existing consumer of the
recovery corporation where the load is being met through a direct
transaction and the transaction does not require the use of
transmission or distribution facilities owned by the recovery
corporation.
   (2) Customer Generation departing load that is exempt from
Department of Water Resources power charges pursuant to the
commission's Decision No.  03-04-030, as modified by Decision No.
03-04-041, and as clarified and affirmed by Decision No.  03-05-039,
except that the load shall pay the costs as a component of and in
proportion to any purchase of electricity delivered by the recovery
corporation under standby or other service made following its
departure.
   (3) The Department of Water Resources, with respect to the
pumping, generation, and transmission facilities and operations of
the State Water Resources Development System, except to the extent
that system facilities receive electric service from the recovery
corporation on or after December 19, 2003, under a commission
approved tariff.
   (4) Retail electric load, continuously served by a local publicly
owned electric utility from January 1, 2000, through the effective
date of the act adding this section.
   (5) Load that thereafter comes to take electric service from a
city where all the following conditions are met:
   (A) The new load is from locations that never received electric
service from the recovery corporation.
   (B) The city owns and operates the local publicly owned electric
utility.
   (C) The local publicly owned electric utility served more than 95
percent of the customers receiving electric service residing within
the city limits prior to December 19, 2003.
   (D) The city annexed the territory in which the load is located on
or after December 19, 2003.
   (E) Following annexation, the city provides all municipal services
to the annexed territory that the city provides to other territory
within the city limits, including electric service.
   (F) The total load exempt from paying fixed recovery amounts and
associated fixed recovery tax amounts pursuant to subparagraphs (A)
through (D), inclusive, does not exceed 50 megawatts, as determined
by the commission, and any load above the 50 megawatt exemption
amount shall be responsible for paying recovery amounts and
associated fixed recovery tax amounts, except as provided in
subdivision (c).
   (c) Except as provided in paragraphs (4) and (5) of subdivision
(b), the commission shall determine the extent to which fixed
recovery amounts and any associated fixed recovery tax amounts are
recoverable from new municipal load, consistent with the commission's
determination in the limited rehearing granted in Decision
03-08-076.  The determination of the commission shall be made on the
earlier of the date it adopts a financing order or December 31, 2004.

   (d) Except as provided in paragraphs (4) and (5) of subdivision
(b) and in subdivision (c), the obligation to pay fixed recovery
amounts and any associated fixed recovery tax amounts cannot be
avoided by the formation of a local publicly owned electric utility
on or after December 19, 2003, or by annexation of any portion of the
service territory of the recovery corporation by an existing local
publicly owned electric utility.
   (e) Recovery bonds authorized by the commission's financing orders
may be issued in one or more series on or before December 31, 2006.

   (f) The commission may issue financing orders in accordance with
this article to facilitate the recovery, financing, or refinancing of
recovery costs.  A financing order may be adopted only upon the
application of the recovery corporation and shall become effective in
accordance with its terms only after the recovery corporation files
with the commission the recovery corporation's written consent to all
terms and conditions of the financing order.  A financing order may
specify how amounts collected from a consumer shall be allocated
between fixed recovery amounts, any associated fixed recovery tax
amounts, and other charges.
   (g) Notwithstanding Section 455.5 or 1708, or any other provision
of law, except as otherwise provided in Section 848.7 or in this
subdivision with respect to recovery property that has been made the
basis for the issuance of recovery bonds and with respect to any
associated fixed recovery tax amounts, the financing order, the fixed
recovery amounts and any associated fixed recovery tax amounts shall
be irrevocable, and the commission shall not have authority either
by rescinding, altering, or amending the financing order or
otherwise, to revalue or revise for ratemaking purposes, the recovery
costs or the costs of recovering, financing, or refinancing the
recovery costs, determine that the fixed recovery amounts, any
associated fixed recovery tax amounts or rates are unjust or
unreasonable, or in any way reduce or impair the value of recovery
property or of the right to receive any associated fixed recovery tax
amounts either directly or indirectly by taking fixed recovery
amounts or any associated fixed recovery tax amounts into account
when setting other rates for the recovery corporation or when setting
charges for the Department of Water Resources; nor shall the amount
of revenues arising with respect thereto be subject to reduction,
impairment, postponement, or termination.  Except as otherwise
provided in this subdivision, the State of California does hereby
pledge and agree with the recovery corporation, owners of recovery
property, and holders of recovery bonds that the state shall neither
limit nor alter the fixed recovery amounts, any associated fixed
recovery tax amounts, recovery property, financing orders, or any
rights thereunder until the recovery bonds, together with the
interest thereon, are fully paid and discharged, and any associated
fixed recovery tax amounts have been satisfied or, in the
alternative, have been refinanced through an additional issue of
recovery bonds; provided nothing contained in this section shall
preclude the limitation or alteration if and when adequate provision
shall be made by law for the protection of the recovery corporation,
owners, and holders.  The financing entity is authorized to include
this pledge and undertaking for the state in these recovery bonds.
Notwithstanding any other provision of this section, the commission
shall approve adjustments to the fixed recovery amounts and any
associated fixed recovery tax amounts as may be necessary to ensure
timely recovery of all recovery costs that are the subject of the
pertinent financing order, and the costs of capital associated with
the recovery, financing, or refinancing thereof, including servicing
and retiring the recovery bonds contemplated by the financing order.
When setting other rates for the recovery corporation, nothing in
this subdivision shall prevent the commission from taking into
account either of the following:
   (1) Any collection of fixed recovery amounts in excess of amounts
actually required to pay recovery costs financed or refinanced by
recovery bonds.
   (2) Any collection of fixed recovery tax amounts in excess of
amounts actually required to pay federal and State of California
income and franchise taxes associated with fixed recovery amounts;
provided that this would not result in a recharacterization of the
tax, accounting, and other intended characteristics of the financing,
including, but not limited to, either of the following:
   (A) Treating the recovery bonds as debt of the recovery
corporation or its affiliates for federal income tax purposes.
   (B) Treating the transfer of the recovery property by the recovery
corporation as a true sale for bankruptcy purposes.
   (h) (1) Financing orders issued under this article do not
constitute a debt or liability of the state or of any political
subdivision thereof, and do not constitute a pledge of the full faith
and credit of the state or any of its political subdivisions, but
are payable solely from the funds provided therefor under this
article and shall be consistent with Sections 1 and 18 of Article XVI
of the California Constitution.  This subdivision shall in no way
preclude bond guarantees or enhancements pursuant to this article.
All recovery bonds shall contain on the face thereof a statement to
the following effect:  "Neither the full faith and credit nor the
taxing power of the State of California is pledged to the payment of
the principal of, or interest on, this bond."
   (2) The issuance of recovery bonds under this article shall not
directly, indirectly, or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation therefor or to make any appropriation for their payment.
   (i) The commission shall establish procedures for the expeditious
processing of applications for financing orders, including the
approval or disapproval thereof within 120 days of the recovery
corporation making application therefor.  The commission shall
provide in any financing order for a procedure for the expeditious
approval by the commission of periodic adjustments to the fixed
recovery amounts and any associated fixed recovery tax amounts that
are the subject of the pertinent financing order, as required by
subdivision (g).  The procedure shall require the commission to
determine whether the adjustments are required on each anniversary of
the issuance of the financing order, and at the additional intervals
as may be provided for in the financing order, and for the
adjustments, if required, to be approved within 90 days of each
anniversary of the issuance of the financing order, or of each
additional interval provided for in the financing order.
   (j) Fixed recovery amounts are recovery property when, and to the
extent that, a financing order authorizing the fixed recovery amounts
has become effective in accordance with this article, and the
recovery property shall thereafter continuously exist as property for
all purposes with all of the rights and privileges of this article
for the period and to the extent provided in the financing order, but
in any event until the recovery bonds are paid in full, including
all principal, interest, premium, costs, and arrearages thereon.
   (k) This article and any financing order made pursuant to this
article do not amend, reduce, modify, or otherwise affect the right
of the Department of Water Resources to recover its revenue
requirements and to receive the charges that it is to recover and
receive pursuant to Division 27 (commencing with Section 80000) of
the Water Code, or pursuant to any agreement entered into by the
commission and the Department of Water Resources pursuant to that
division.


848.2.  (a) The financing entity may issue recovery bonds upon
approval by the commission in the pertinent financing orders.
Recovery bonds shall be nonrecourse to the credit or any assets of
the recovery corporation, other than the recovery property as
specified in the pertinent financing order.
   (b) The recovery corporation may sell and assign all or portions
of its interest in recovery property to one or more financing
entities that make that recovery property the basis for issuance of
recovery bonds, to the extent approved in the financing order.  The
recovery corporation or financing entity may pledge recovery property
as collateral, directly or indirectly, for recovery bonds to the
extent approved in the pertinent financing orders providing for a
security interest in the recovery property, in the manner set forth
in Section 848.3.  In addition, recovery property may be sold or
assigned by (1) the financing entity or a trustee for the holders of
recovery bonds in connection with the exercise of remedies upon a
default, or (2) any person acquiring the recovery property after a
sale or assignment pursuant to this subdivision.
   (c) To the extent that any interest in recovery property is so
sold or assigned, or is so pledged as collateral, the commission
shall authorize the recovery corporation to contract with the
financing entity that it will continue to operate its system to
provide service to consumers within its service territory, will
collect amounts in respect of the fixed recovery amounts for the
benefit and account of the financing entity, and will account for and
remit these amounts to or for the account of the financing entity.
Contracting with the financing entity in accordance with that
authorization shall not impair or negate the characterization of the
sale, assignment, or pledge as an absolute transfer, a true sale, or
security interest, as applicable.
   (d) Notwithstanding Section 1708 or any other provision of law,
any requirement under this article or a financing order that the
commission take action with respect to the subject matter of a
financing 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
financing order.  The approval by the commission in a financing order
of the issuance by the recovery corporation or a financing entity of
recovery bonds shall include the approvals, if any, as may be
required by Article 5 (commencing with Section 816) and Section
701.5.  Nothing in Section 701.5 shall be construed to prohibit the
issuance of recovery bonds upon the terms and conditions as may be
approved by the commission in a financing order.  Section 851 is not
applicable to the transfer or pledge of recovery property, the
issuance of recovery bonds, or related transactions approved in a
financing order.



848.3.  (a) A security interest in recovery property is valid, is
enforceable against the pledgor and third parties, subject to the
rights of any third parties holding security interests in the
recovery property perfected in the manner described in this section,
and attaches when all of the following have taken place:
   (1) The commission has issued the financing order authorizing the
fixed recovery amounts included in the recovery property.
   (2) Value has been given by the pledgees of the recovery property.

   (3) The pledgor has signed a security agreement covering the
recovery property.
   (b) A valid and enforceable security interest in recovery property
is perfected when it has attached and when a financing statement has
been filed in accordance with Chapter 5 (commencing with Section
9501) of Division 9 of the Commercial Code naming the pledgor of the
recovery property as "debtor" and identifying the recovery property.
Any description of the recovery property shall be sufficient if it
refers to the financing order creating the recovery property.  A copy
of the financing statement shall be filed with the commission by the
recovery corporation that is the pledgor or transferor of the
recovery property, and the commission may require the recovery
corporation to make other filings with respect to the security
interest in accordance with procedures it may establish, provided
that the filings shall not affect the perfection of the security
interest.
   (c) A perfected security interest in recovery property is a
continuously perfected security interest in all revenues and proceeds
arising with respect thereto, whether or not the revenues or
proceeds have accrued.  Conflicting security interests shall rank
according to priority in time of perfection.  Recovery property shall
constitute property for all purposes, including for contracts
securing recovery bonds, whether or not the revenues and proceeds
arising with respect thereto have accrued.
   (d) Subject to the terms of the security agreement covering the
recovery property and the rights of any third parties holding
security interests in the recovery property perfected in the manner
described in this section, the validity and relative priority of a
security interest created under this section is not defeated or
adversely affected by the commingling of revenues arising with
respect to the recovery property with other funds of the recovery
corporation that is the pledgor or transferor of the recovery
property, or by any security interest in a deposit account of that
recovery corporation perfected under Division 9 (commencing with
Section 9101) of the Commercial Code into which the revenues are
deposited.  Subject to the terms of the security agreement, upon
compliance with the requirements of paragraph (1) of subdivision (b)
of Section 9312 of the Commercial Code, the pledgees of the recovery
property shall have a perfected security interest in all cash and
deposit accounts of the recovery corporation in which revenues
arising with respect to the recovery property have been commingled
with other funds, but the perfected security interest shall be
limited to an amount not greater than the amount of the revenues with
respect to the recovery property received by the recovery
corporation within 12 months before (1) any default under the
security agreement or (2) the institution of insolvency proceedings
by or against the recovery corporation, less payments from the
revenues to the pledgees during that 12-month period.
   (e) If an event of default occurs under the security agreement
covering the recovery property, the pledgees of the recovery
property, subject to the terms of the security agreement, shall have
all rights and remedies of a secured party upon default under
Division 9 (commencing with Section 9101) of the Commercial Code, and
are entitled to foreclose or otherwise enforce their security
interest in the recovery property, subject to the rights of any third
parties holding prior security interests in the recovery property
perfected in the manner provided in this section.  In addition, the
commission may require in the financing order creating the recovery
property that, in the event of default by the recovery corporation in
payment of revenues arising with respect to the recovery property,
the commission and any successor thereto, upon the application by the
pledgees or transferees, including transferees under Section 848.4,
of the recovery property, and without limiting any other remedies
available to the pledgees or transferees by reason of the default,
shall order the sequestration and payment to the pledgees or
transferees of revenues arising with respect to the recovery
property.  Any order shall remain in full force and effect
notwithstanding any bankruptcy, reorganization, or other insolvency
proceedings with respect to the debtor.  Any surplus in excess of
amounts necessary to pay principal, premium, if any, interest, costs,
and arrearages on the recovery bonds, and other costs arising under
the security agreement, shall be remitted to the debtor.
   (f) Sections 9204 and 9205 of the Commercial Code apply to a
pledge of recovery property by the recovery corporation, an affiliate
of the recovery corporation, or a financing entity.
   (g) This section sets forth the terms by which a consensual
security interest can be created and perfected in the recovery
property.  Unless otherwise ordered by the commission with respect to
any series of recovery bonds on or prior to the issuance of the
series, there shall exist a statutory lien as provided in this
subdivision.  Upon the effective date of the financing order, there
shall exist a first priority lien on all recovery property then
existing or thereafter arising pursuant to the terms of the financing
order.  This lien shall arise by operation of this section
automatically without any action on the part of the recovery
corporation, any affiliate thereof, the financing entity, or any
other person.  This lien shall secure all obligations, then existing
or subsequently arising, to the holders of the recovery bonds issued
pursuant to the financing order, the trustee or representative for
the holders, and any other entity specified in the financing order.
The persons for whose benefit this lien is established shall, upon
the occurrence of any defaults specified in the financing order, have
all rights and remedies of a secured party upon default under
Division 9 (commencing with Section 9101) of the Commercial Code, and
are entitled to foreclose or otherwise enforce this statutory lien
in the recovery property.  This lien attaches to the recovery
property regardless of who owns, or is subsequently determined to
own, the recovery property, including the recovery corporation, any
affiliate thereof, the financing entity, or any other person.  This
lien shall be valid, perfected, and enforceable against the owner of
the recovery property and all third parties upon the effectiveness of
the financing order without any further public notice; provided,
however, that any person may, but is not required to, file a
financing statement in accordance with subdivision (b).  Financing
statements so filed may be "protective filings" and are not evidence
of the ownership of the recovery property.
   A perfected statutory lien in recovery property is a continuously
perfected lien in all revenues and proceeds arising with respect
thereto, whether or not the revenues or proceeds have accrued.
Conflicting liens shall rank according to priority in time of
perfection.  Recovery property shall constitute property for all
purposes, including for contracts securing recovery bonds, whether or
not the revenues and proceeds arising with respect thereto have
accrued.
   In addition, the commission may require, in the financing order
creating the recovery property, that, in the event of default by the
recovery corporation in the payment of revenues arising with respect
to recovery property, the commission and any successor thereto, upon
the application by the beneficiaries of the statutory lien, and
without limiting any other remedies available to the beneficiaries by
reason of the default, shall order the sequestration and payment to
the beneficiaries of revenues arising with respect to the recovery
property.  Any order shall remain in full force and effect
notwithstanding any bankruptcy, reorganization, or other insolvency
proceedings with respect to the debtor.  Any surplus in excess of
amounts necessary to pay principal, premium, if any, interest, costs,
and arrearages on the recovery bonds, and other costs arising in
connection with the documents governing the recovery bonds, shall be
remitted to the debtor.


848.4.  (a) A transfer of recovery property by the recovery
corporation to an affiliate or to a financing entity, or by an
affiliate of the recovery corporation or a financing entity to
another financing entity, which the parties in the governing
documentation have expressly stated to be a sale or other absolute
transfer, in a transaction approved in a financing order, shall be
treated as an absolute transfer of all of the transferor's right,
title, and interest (as in a true sale), and not as a pledge or other
financing, of the recovery property, other than for federal and
state income and franchise tax purposes.  The grant to holders of
recovery bonds of a preferred right to revenues of the recovery
corporation, or the provision by the company of other credit
enhancement with respect to recovery bonds, shall not impair or
negate the characterization of any transfer as a true sale, other
than for federal and state income and franchise tax purposes.
   (b) A transfer of recovery property shall be deemed perfected as
against third persons when both of the following have taken place:
   (1) The commission has issued the financing order authorizing the
fixed recovery amounts included in the recovery property.
   (2) An assignment of the recovery property in writing has been
executed and delivered to the transferee.
   (c) As between bona fide assignees of the same right for value
without notice, the assignee first filing a financing statement in
accordance with Chapter 5 (commencing with Section 9501) of Division
9 of the Commercial Code naming the assignor of the recovery property
as debtor and identifying the recovery property has priority.  Any
description of the recovery property is sufficient if it refers to
the financing order creating the recovery property.  A copy of the
financing statement shall be filed by the assignee with the
commission, and the commission may require the assignor or the
assignee to make other filings with respect to the transfer in
accordance with procedures it may establish, but these filings shall
not affect the perfection of the transfer.



848.5.  Any successor to the recovery corporation, whether pursuant
to any bankruptcy, reorganization, or other insolvency proceeding, or
pursuant to any merger, sale, or transfer, by operation of law, or
otherwise, shall perform and satisfy all obligations of the recovery
corporation pursuant to this article in the same manner and to the
same extent as the recovery corporation, including, but not limited
to, collecting and paying to the holders of recovery bonds, or their
representatives, or the applicable financing entity revenues arising
with respect to the recovery property sold to the applicable
financing entity or pledged to secure recovery bonds.  Any successor
to the recovery corporation is entitled to receive any fixed recovery
tax amounts otherwise payable to the recovery corporation.




848.6.  The authority of the commission to issue financing orders
pursuant to Section 848.1 shall expire on December 31, 2006.  The
expiration of the authority shall have no effect upon financing
orders adopted by the commission pursuant to this article or any
recovery property arising therefrom, or upon the charges authorized
to be levied thereunder, or the rights, interests, and obligations of
the recovery corporation or a financing entity or holders of
recovery bonds pursuant to the financing order, or the authority of
the commission to monitor, supervise, or take further action with
respect to the order in accordance with the terms of this article and
of the order.



848.7.  Notwithstanding subdivision (g) of Section 848.1, the
commission shall credit ratepayers, in a manner to be determined by
the commission, with the net after tax amount of any payments,
offsets, or other credits the recovery corporation actually receives
from generators of electricity or other energy suppliers that would
have reduced the unamortized balance of the recovery corporation's
regulatory asset created under the commission's Decision No.
03-12-035 but for the prior issuance of recovery bonds.



848.8.  Notwithstanding any other law, regulations adopted to
implement this article are not subject to the rulemaking provisions
of the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code).