In this subchapter:
(1) “Assignee” means any individual, corporation, or other legally recognized entity to which an interest in transition property is transferred, other than as security, including any assignee of that party.
(2) “Financing order” means an order of the commission adopted under § 39.201 or 39.262 approving the issuance of transition bonds and the creation of transition charges for the recovery of qualified costs.
(3) “Financing party” means a holder of transition bonds, including trustees, collateral agents, and other persons acting for the benefit of the holder.
(4) “Qualified costs” means 100 percent of an electric utility’s regulatory assets and 75 percent of its recoverable costs determined by the commission under § 39.201 and any remaining amounts determined under § 39.262 together with the costs of issuing, supporting, and servicing transition bonds and any costs of retiring and refunding the electric utility’s existing debt and equity securities in connection with the issuance of transition bonds. The term includes the costs to the commission of acquiring professional services for the purpose of evaluating proposed transactions under § 39.201 and this subchapter.
(5) “Regulatory assets” means the generation-related portion of the Texas jurisdictional portion of the amount reported by the electric utility in its 1998 annual report on Securities and Exchange Commission Form 10-K as regulatory assets and liabilities, offset by the applicable portion of generation-related investment tax credits permitted under the Internal Revenue Code of 1986.
(6) “Transition bonds” means bonds, debentures, notes, certificates of participation or of beneficial interest, or other evidences of indebtedness or ownership that are issued by an electric utility, its successors, or an assignee under a financing order, that have a term not longer than 15 years, and that are secured by or payable from transition property. If certificates of participation, beneficial interest, or ownership are issued, references in this subchapter to principal, interest, or premium shall refer to comparable amounts under those certificates.
(7) “Transition charges” means nonbypassable amounts to be charged for the use or availability of electric services, approved by the commission under a financing order to 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.
(8) “Transition property” means the property described in § 39.304.