(1) Securitization property shall consist of the rights and interests of an electric utility, or its successor, under a financing order, including without limitation all of the following:
  (a) The right to impose, collect, and receive securitization charges authorized in the financing order in an amount necessary to provide the full recovery of all qualified costs.

Terms Used In Michigan Laws 460.10j

  • Assignee: means an individual, corporation, or other legally recognized entity to which an interest in securitization property is transferred. See Michigan Laws 460.10h
  • Commission: means the Michigan public service commission in the department of consumer and industry services. See Michigan Laws 460.10h
  • Contract: A legal written agreement that becomes binding when signed.
  • Electric utility: means that term as defined in section 2 of the electric transmission line certification act, 1995 PA 30, MCL 460. See Michigan Laws 460.10h
  • Financing order: means an order of the commission approving the issuance of securitization bonds and the creation of securitization charges and any corresponding utility rate reductions. See Michigan Laws 460.10h
  • Qualified costs: means an electric utility's regulatory assets as determined by the commission, adjusted by the applicable portion of related investment tax credits, plus any costs that the commission determines that the electric utility would be unlikely to collect in a competitive market, including, but not limited to, retail open access implementation costs and the costs of a commission approved restructuring, buyout or buy-down of a power purchase contract, together with the costs of issuing, supporting, and servicing securitization bonds and any costs of retiring and refunding the electric utility's existing debt and equity securities in connection with the issuance of securitization bonds. See Michigan Laws 460.10h
  • Securitization bonds: means bonds, debentures, notes, certificates of participation, certificates of a beneficial interest, certificates of ownership, or other evidences of indebtedness that are issued by an electric utility, its successors, or an assignee under a financing order, that have a term of not more than 15 years, and that are secured by or payable from securitization property. See Michigan Laws 460.10h
  • Securitization charges: means nonbypassable amounts to be charged for the use or availability of electric services, approved by the commission under a financing order to fully recover qualified costs, that shall be collected by an electric utility, its successors, an assignee, or other collection agents as provided for in the financing order. See Michigan Laws 460.10h
  • Securitization property: means the property described in section 10j. See Michigan Laws 460.10h
  (b) The right under the financing order to obtain periodic adjustments of securitization charges under section 10k(3).
  (c) All revenue, collections, payments, money, and proceeds arising out of the rights and interests described under this subsection.
  (2) Securitization property shall constitute a present property right even though the imposition and collection of securitization charges depends on the further acts of the electric utility or others that have not yet occurred. The rights of an electric utility to securitization property before its sale to any assignee shall be considered a property interest in a contract. The financing order shall remain in effect and the securitization property shall continue to exist until the commission approved securitization bonds and expenses related to the bonds have been paid in full.
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