278.678 Utility to file documents with commission -- Parameters for securitized
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/ky/278-678A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
bonds -- Semiannual monthly surcharge update -- Adjustments -- Commission
review -- Irrevocability of finance order.
(1)Upon the commission issuing a financing order and after the securitized bonds have
been issued, the electric utility shall file with the commission a:
(a)Tariff containing the mechanism for the assessment of a monthly surcharge to
existing rates for the collection of the securitized costs; and
(b)Formula-based true-up mechanism.
(2)The commission, in a financing order and subject to the issuance advice letter
process, shall specify the degree of flexibility to be afforded the electric utility in
establishing:
(a)The terms and conditions for the securitized bonds to accommodate changes
in market conditions, including repayment schedules, interest rates, financing
costs, collateral requirements, required debt service, and other reserves; and
(b)At its option, a series of issuances of securitized bonds and correlated
assignments, sales, pledges, or other transfers of securitized property.
(3)The electric utility shall file a semiannual update to its monthly surcharge, based on
estimates of consumption for each rate class and other mathematical factors, to
collect the appropriate amount of securitized costs. The review by the commission
of the semiannual update pursuant to this section shall be limited to:
(a)Determining whether there are any mathematical or clerical errors in the
application of the formula-based true-up mechanism relating to the
appropriate amount of any over collection or under collection of a securitized
surcharge; and
(b)The amount of an adjustment.
(4)The adjustments shall ensure solely for the recovery of:
(a)Revenues sufficient to provide for the payment of principal, interest,
acquisition, defeasance, financing costs, or redemption premium; and
(b)Other fees, costs, and charges with respect to securitized bonds approved
under the financing order.
(5)Within ten
(10)days after receiving an electric utility's filing of the billing
adjustment pursuant to this section, the commission shall either:
(a)Affix an official stamp on the filing indicating the commission's review is
complete; or
(b)Inform the electric utility of any mathematical or clerical errors in the electric
utility's calculation.
(6)If the commission informs the electric utility of mathematical or clerical errors in its
calculation, the electric utility shall correct its error and refile its semiannual
surcharge update.
(7)The time frames in subsection
(5)of this section shall also apply to a refiled
request.
(8)At the time of any transfer of securitized property to an assignee or the issuance of
securitized bonds authorized thereby, whichever is earlier, a financing order shall
be irrevocable and, except for changes made pursuant to the formula-based true-up
mechanism authorized in this section, the commission shall not:
(a)Amend, modify, or terminate the financing order by any subsequent action; or
(b)Reduce, impair, postpone, terminate, or otherwise adjust securitized surcharges
approved in the financing order.
(9)After issuance of a financing order, the electric utility retains sole discretion
regarding whether to:
(a)Assign, sell, or otherwise transfer securitized property; or
(b)Cause securitized bonds to be issued, including the right to defer or postpone
the assignment, sale, transfer, or issuance of securitized bonds.
(10)Any changes made under this section to terms and conditions for the securitized
bonds shall be in conformance with the financing order.