New Hampshire Revised Statutes 369-B:5 – Issuance of Rate Reduction Bonds
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I. An electric utility or financing entity may, from time to time, after approval by the commission in a finance order or orders, issue rate reduction bonds. The power and authority of such electric utility or financing entity to issue such bonds authorized by a finance order pursuant to N.H. Rev. Stat. § 369-B:3, IV(a) or (b) shall expire on December 31, 2002.
II. A finance order or finance orders shall direct that the proceeds from the issuance of rate reduction bonds shall be applied only for such purposes approved in such finance order and the financing entity and the electric utility shall apply such proceeds only for such purposes. Rate reduction bonds may qualify for tax-exempt status to the full extent of state and federal law.
III. Notwithstanding any other provision of law, N.H. Rev. Stat. § 374:30 and N.H. Rev. Stat. Chapter 369 shall not apply to any sale, assignment, or other transfer or grant of a security interest in any RRB property or the issuance of rate reduction bonds under this chapter.
IV. Rate reduction bonds issued pursuant to finance orders adopted by the commission under the provisions of this chapter shall not constitute a debt or liability of the state or of any political subdivision thereof, other than any financing entity established by or on behalf of the state, and shall not constitute a pledge of the full faith and credit of the state or any of its political subdivisions, other than any financing entity established by or on behalf of the state, but shall be payable solely from the funds provided therefor pursuant to the provisions of this chapter and shall not constitute an indebtedness of the state or constitute net tax supported debt of the state within the meaning of any constitutional or statutory debt limitations or restrictions and, accordingly, shall not be subject to any statutory limitations on the indebtedness of the state or the net tax supported debt of the state and shall not be included in computing the aggregate indebtedness of the state or the net tax supported debt of the state in respect to and to the extent of any such limitations. All rate reduction 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 New Hampshire or any political subdivision thereof is pledged to the payment of the principal of, or interest on, this bond.” This paragraph shall in no way preclude bond guarantees or enhancements pursuant to this chapter nor shall it preclude the payment of compensation for any breach of the state’s pledge contained in N.H. Rev. Stat. § 369-B:6, II or for any action or failure to act by the commission in contravention of N.H. Rev. Stat. § 369-B:3 or N.H. Rev. Stat. § 369-B:4.
V. The issuance of rate reduction bonds under this chapter 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.
VI. The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare, and prosperity, and as the exercise of such powers shall constitute the performance of an essential public function, neither any electric utility, any affiliate of any electric utility, any financing entity, nor any collection or other agent of any of the foregoing shall be required to pay any taxes or assessments upon or in respect of any revenues or property received, acquired, transferred, or used by any electric utility, any affiliate of any electric utility, any financing entity, or any collection or other agent of any of the foregoing under the provisions of this chapter or upon or in respect of the income therefrom, and any rate reduction bonds shall be treated as notes or bonds of a political subdivision of the state for purposes of RSA 77.
VI. The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare, and prosperity, and as the exercise of such powers shall constitute the performance of an essential public function, neither any electric utility, any affiliate of any electric utility, any financing entity, nor any collection or other agent of any of the foregoing shall be required to pay any taxes or assessments upon or in respect of any revenues or property received, acquired, transferred, or used by any electric utility, any affiliate of any electric utility, any financing entity, or any collection or other agent of any of the foregoing under the provisions of this chapter or upon or in respect of the income therefrom, and any rate reduction bonds shall be treated as notes or bonds of a political subdivision of the state.
VII. Rate reduction bonds are made and declared:
(a) Securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, state banks and trust companies, national banking associations, savings banks, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries and electric utility consumers may properly and legally invest funds, including capital in their control or belonging to them; and
(b) Securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now or may be authorized.
VIII. Rate reduction bonds authorized by a finance order pursuant to N.H. Rev. Stat. § 369-B:3, IV(a) or (b) shall mature at such time or times approved by the commission in the finance order, but not more than 14 years after competition day.
IX. The state treasurer, or other state official designated by the state treasurer, shall have oversight over the terms and conditions of rate reduction bond issuances, that are authorized by a finance order pursuant to N.H. Rev. Stat. § 369-B:3, IV(a) or (b), to assure that the electric utility exercises fiscal prudence and achieves the lowest overall cost for the rate reduction bonds.
X. Subject to the approval of the commission and, in the case of rate reduction bonds authorized by a finance order pursuant to N.H. Rev. Stat. § 369-B:3, IV(a) or (b), the oversight of the state treasurer, or other state official designated by the state treasurer, rate reduction bonds issued and at any time outstanding may, if and to the extent permitted under the indenture or other agreement pursuant to which they are issued, be refunded by other rate reduction bonds.
XI. The state treasurer’s oversight under N.H. Rev. Stat. § 369-B:5, IX and X shall not be governed by the provisions of N.H. Rev. Stat. Chapter 541 or 541-A.
II. A finance order or finance orders shall direct that the proceeds from the issuance of rate reduction bonds shall be applied only for such purposes approved in such finance order and the financing entity and the electric utility shall apply such proceeds only for such purposes. Rate reduction bonds may qualify for tax-exempt status to the full extent of state and federal law.
Terms Used In New Hampshire Revised Statutes 369-B:5
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- commission: as used in this title , means the public utilities commission. See New Hampshire Revised Statutes 362:1
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- Oversight: Committee review of the activities of a Federal agency or program.
- state: when applied to different parts of the United States, may extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall include said district and territories. See New Hampshire Revised Statutes 21:4
III. Notwithstanding any other provision of law, N.H. Rev. Stat. § 374:30 and N.H. Rev. Stat. Chapter 369 shall not apply to any sale, assignment, or other transfer or grant of a security interest in any RRB property or the issuance of rate reduction bonds under this chapter.
IV. Rate reduction bonds issued pursuant to finance orders adopted by the commission under the provisions of this chapter shall not constitute a debt or liability of the state or of any political subdivision thereof, other than any financing entity established by or on behalf of the state, and shall not constitute a pledge of the full faith and credit of the state or any of its political subdivisions, other than any financing entity established by or on behalf of the state, but shall be payable solely from the funds provided therefor pursuant to the provisions of this chapter and shall not constitute an indebtedness of the state or constitute net tax supported debt of the state within the meaning of any constitutional or statutory debt limitations or restrictions and, accordingly, shall not be subject to any statutory limitations on the indebtedness of the state or the net tax supported debt of the state and shall not be included in computing the aggregate indebtedness of the state or the net tax supported debt of the state in respect to and to the extent of any such limitations. All rate reduction 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 New Hampshire or any political subdivision thereof is pledged to the payment of the principal of, or interest on, this bond.” This paragraph shall in no way preclude bond guarantees or enhancements pursuant to this chapter nor shall it preclude the payment of compensation for any breach of the state’s pledge contained in N.H. Rev. Stat. § 369-B:6, II or for any action or failure to act by the commission in contravention of N.H. Rev. Stat. § 369-B:3 or N.H. Rev. Stat. § 369-B:4.
V. The issuance of rate reduction bonds under this chapter 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.
[Paragraph VI effective until January 1, 2025; see also paragraph VI set out below.]
VI. The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare, and prosperity, and as the exercise of such powers shall constitute the performance of an essential public function, neither any electric utility, any affiliate of any electric utility, any financing entity, nor any collection or other agent of any of the foregoing shall be required to pay any taxes or assessments upon or in respect of any revenues or property received, acquired, transferred, or used by any electric utility, any affiliate of any electric utility, any financing entity, or any collection or other agent of any of the foregoing under the provisions of this chapter or upon or in respect of the income therefrom, and any rate reduction bonds shall be treated as notes or bonds of a political subdivision of the state for purposes of RSA 77.
[Paragraph VI effective January 1, 2025; see also paragraph VI set out above.]
VI. The exercise of the powers granted by this chapter shall be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare, and prosperity, and as the exercise of such powers shall constitute the performance of an essential public function, neither any electric utility, any affiliate of any electric utility, any financing entity, nor any collection or other agent of any of the foregoing shall be required to pay any taxes or assessments upon or in respect of any revenues or property received, acquired, transferred, or used by any electric utility, any affiliate of any electric utility, any financing entity, or any collection or other agent of any of the foregoing under the provisions of this chapter or upon or in respect of the income therefrom, and any rate reduction bonds shall be treated as notes or bonds of a political subdivision of the state.
VII. Rate reduction bonds are made and declared:
(a) Securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, state banks and trust companies, national banking associations, savings banks, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries and electric utility consumers may properly and legally invest funds, including capital in their control or belonging to them; and
(b) Securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now or may be authorized.
VIII. Rate reduction bonds authorized by a finance order pursuant to N.H. Rev. Stat. § 369-B:3, IV(a) or (b) shall mature at such time or times approved by the commission in the finance order, but not more than 14 years after competition day.
IX. The state treasurer, or other state official designated by the state treasurer, shall have oversight over the terms and conditions of rate reduction bond issuances, that are authorized by a finance order pursuant to N.H. Rev. Stat. § 369-B:3, IV(a) or (b), to assure that the electric utility exercises fiscal prudence and achieves the lowest overall cost for the rate reduction bonds.
X. Subject to the approval of the commission and, in the case of rate reduction bonds authorized by a finance order pursuant to N.H. Rev. Stat. § 369-B:3, IV(a) or (b), the oversight of the state treasurer, or other state official designated by the state treasurer, rate reduction bonds issued and at any time outstanding may, if and to the extent permitted under the indenture or other agreement pursuant to which they are issued, be refunded by other rate reduction bonds.
XI. The state treasurer’s oversight under N.H. Rev. Stat. § 369-B:5, IX and X shall not be governed by the provisions of N.H. Rev. Stat. Chapter 541 or 541-A.