Terms Used In Louisiana Revised Statutes 45:1331

  • Commission: means the Public Service Commission or, solely with respect to an electric or gas utility furnishing electric or natural gas service within the city of New Orleans, the council of the city of New Orleans, as applicable. See Louisiana Revised Statutes 45:1312
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means the Louisiana Utilities Restoration Corporation. See Louisiana Revised Statutes 45:1312
  • Issuer: means any Louisiana public corporation, public trust, or other entity that issues system restoration bonds approved by a financing order. See Louisiana Revised Statutes 45:1312
  • Related utility: means , with respect to a trust, the utility that is a beneficiary of such trust and that obtains a financing order pursuant to this Subpart. See Louisiana Revised Statutes 45:1332
  • State: means the state of Louisiana. See Louisiana Revised Statutes 45:1312
  • System restoration bonds: means bonds, notes, certificates of participation, or other evidences of indebtedness that are issued pursuant to this Part by an issuer at the request of the corporation and a utility, and authorized by a financing order, the net proceeds of which are transferred to the corporation and used as provided in this Part, and which are secured by and payable from system restoration property. See Louisiana Revised Statutes 45:1312
  • System restoration costs: means , if requested by the utility, and as may be approved by the commission, those prudent incremental costs incurred or to be incurred by a utility in undertaking a system restoration activity, including associated carrying costs. See Louisiana Revised Statutes 45:1312
  • Trust: means an express special public trust created only pursuant to and in compliance with the provisions of this Subpart. See Louisiana Revised Statutes 45:1332
  • Utility: means an electric utility or a gas utility. See Louisiana Revised Statutes 45:1312

            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.

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

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