Louisiana Revised Statutes 45:1279 – State pledge
Terms Used In Louisiana Revised Statutes 45:1279
- Assignee: means any legal or commercial entity, including but not limited to a corporation, limited liability company, partnership, limited partnership, or other legally recognized entity to which an electric utility sells, assigns, or transfers, other than as security, all or a portion of its interest in or right to energy transition property. See Louisiana Revised Statutes 45:1272
- Commission: means the Louisiana Public Service Commission. See Louisiana Revised Statutes 45:1272
- Contract: A legal written agreement that becomes binding when signed.
- Energy transition bonds: means bonds, notes, certificates of participation, or other evidences of indebtedness that are issued pursuant to an indenture or other contract of an electric utility or an issuer pursuant to a financing order, the proceeds of which are used directly or indirectly to provide, recover, finance, or refinance commission-approved energy transition costs and financing costs, and costs to fund energy transition reserves to such levels as the commission may authorize in a financing order, and that are secured by or payable from energy transition property. See Louisiana Revised Statutes 45:1272
- Energy transition property: means the contract right constituting incorporeal movable property newly created pursuant to this Part which consists of all of the following:
(a) The rights and interests of an electric utility or successors or assignees of the electric utility specified as being energy transition property in a financing order, including the right to impose, bill, charge, collect, and receive energy transition charges authorized in the financing order, the right to enforce the obligations of the utility to collect and service the energy transition charges, and the right to obtain periodic adjustments to such charges as may be provided in the financing order and this Part. See Louisiana Revised Statutes 45:1272
- Financing costs: means , if approved by the commission, whether incurred or paid on issuance of the energy transition bonds or ongoing over the life of the energy transition bonds, any of the following:
(a) Interest and acquisition, defeasance, or redemption premiums that are payable on energy transition bonds and any other amounts owing in respect of energy transition bonds. See Louisiana Revised Statutes 45:1272
- Financing order: means an order of the commission, if granted by the commission in its sole discretion, which allows for all of the following:
(a) The issuance of energy transition bonds. See Louisiana Revised Statutes 45:1272
- Financing party: means any holder of energy transition bonds, any party to or beneficiary of an ancillary agreement, and any trustee, collateral agent, or other person acting for the benefit of any of the foregoing. See Louisiana Revised Statutes 45:1272
- Issuer: means any assignee that is a wholly owned subsidiary of an electric utility and that issues energy transition bonds approved by a financing order. See Louisiana Revised Statutes 45:1272
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
A. For purposes of this Section, the term “bondholder” means a person who holds an energy transition bond, including in book entry form.
B.(1) The state and the Legislature of Louisiana each pledge to and agree with bondholders, the owners of the energy transition property, and other financing parties that, until the financing costs and the energy transition bonds and any ancillary agreements have been paid and performed in full, the state and the Legislature of Louisiana shall not do any of the following:
(a) Alter the provisions of this Part that authorize the commission to create an irrevocable contract right by the issuance of a financing order, to create energy transition property, and to make the energy transition charges imposed by a financing order irrevocable, binding, and nonbypassable charges.
(b) Take or permit any action that impairs or would impair the value of energy transition property.
(c) Take or permit any action that impairs or would impair the rights and remedies of the issuer, any other assignee, such bondholders or other financing parties, or the security for the energy transition bonds or ancillary agreements.
(d) Except as provided for in this Section and except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair energy transition charges that are to be imposed, collected, and remitted for the benefit of the bondholders and other financing parties until any and all principal, interest, premium, financing costs, and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related energy transition bonds have been paid and performed in full.
(2) Nothing in this Subsection shall preclude limitation or alteration if and when full compensation is made by law for the full protection of the energy transition charges imposed, charged, and collected pursuant to a financing order and full protection of the holders of energy transition bonds and any assignee or financing party.
C. Any person or entity that issues energy transition bonds may include the pledges specified in Subsection B of this Section and in La. Rev. Stat. 45:1273(C)(5) in the bonds and related documentation.
Acts 2022, No. 255, §2, eff. June 3, 2022.