Public Utilities and Carriers

Public Utilities Commission

SECTION 39-1-44

§ 39-1-44 Definitions.

For the purpose of this chapter, the following terms shall have the following meanings:

(1) "Assignee" shall mean any party to whom an electric distribution company shall have assigned or transferred all or a portion of its interest, other than as security, in intangible transition property (including, without limitation, affiliates of the electric distribution company or the electric distribution company's wholesale supplier or its affiliates), and any other party to whom all or a portion of such interest shall subsequently be so assigned or transferred.

(2) "Contract termination fees" shall mean the fees owed by the electric distribution company to its wholesale supplier, authorized by § 39-1-27.4, and determined and approved by the federal energy regulatory commission (FERC), which would include, if applicable, the contract termination fees provided in a settlement (approved by the FERC) that may be entered into between (i) an electric distribution company's wholesale power supplier and (ii) the division or the commission, which settlement arises out of the contract termination proceedings at the FERC referred to in § 39-1-27.1(b).

(3) "Financing Party" shall mean a holder of transition bonds, including trustees, collateral agents and other such parties acting for the benefit of such a holder.

(4) "Intangible transition charges" shall mean the amounts authorized to be imposed and collected from customers of the electric distribution company to recover qualified transition expenditures pursuant to a securitization order, whether such charges are fixed, contingent or unliquidated.

(5) "Intangible transition property" shall mean the right, title and interest of an electric distribution company or assignee in a securitization order, including all rights in, to, under and pursuant to such order, which rights shall include all rights to revenues, collections, claims, payments, money or other property and amounts arising from the imposition of intangible transition charges pursuant to such order. The foregoing rights shall include, without limitation, the right to require the electric distribution company to provide electric services, as contemplated in the securitization order, but shall not include the right or duty to provide such services. Property or amounts collected or recovered in respect of the foregoing rights or the disposition thereof, including amounts arising from the temporary investment or reinvestment of such amounts, are proceeds of the intangible transition property, whenever realized.

(6) "Securitization order" shall mean an order of the commission, adopted in accordance with the provisions of this chapter, approving an application of an electric distribution company for the recovery of qualified transition expenditures incurred by or on behalf of an electric distribution company or assignee, including any compliance orders associated therewith.

(7) "Transition bonds" shall mean bonds, debentures, notes, certificates of participation or beneficial interest, and other evidences of indebtedness or ownership, issued pursuant to an executed trust indenture or other agreement of an electric distribution company or assignee, and which are secured by or payable from intangible transition property.

(8) "Qualified transition expenditures" shall mean (i) all of the contract termination fees owed by an electric distribution company to its wholesale power supplier, whether payable in money or through the transfer of other property or rights, and (ii) any reasonable transaction costs incurred to obtain, carry, or administer the financing and transactions of an electric distribution company or assignee, whether or not an electric distribution company has proposed such financing in an application for a securitization order, including without limitation, (A) interest and premium, if any, or with respect to certificates of participation, beneficial interest, or ownership, amounts corresponding thereto, (B) other transaction fees, and (C) any federal, state or local tax expenses arising from the transactions.

History of Section.
(P.L. 1997, ch. 142, § 1.)