216B.495 EXTRAORDINARY EVENT CHARGE; BILLING TREATMENT.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A utility that obtains a financing order and issues extraordinary event bonds must:

(1)include on each customer's monthly natural gas bill:

(i)a statement that a portion of the charges represents extraordinary event charges approved in a financing order;

(ii)the amount and rate of the extraordinary event charge as a separate line item titled "extraordinary event charge"; and

(iii)if extraordinary event property has been transferred to an assignee, a statement that the assignee is the owner of the rights to extraordinary event charges and that the utility or other entity, if applicable, is acting as a collection agent or servicer for the assignee; and

(2)file annually with the commission:

(i)a calculation that identifies the impact financing the retirement or replacement of natural gas facilities has on customer rates, itemized by customer class; and

(ii)evidence demonstrating that extraordinary event revenues are applied solely to pay

(A)principal and interest on extraordinary event bonds, and

(B)other financing costs.

(b)Extraordinary event charges are nonbypassable and must be paid by all existing and future customers receiving service from the utility or the utility's successors or assignees under commission-approved rate schedules or special contracts.

(c)A utility's failure to comply with this section does not invalidate, impair, or affect any financing order, extraordinary event property, extraordinary event charge, or extraordinary event bonds, but does subject the utility to penalties under applicable commission rules provided that any penalty applied must not directly or indirectly:

(1)reduce or impair the extraordinary event property approved in the financing order or impair the collection or recovery of extraordinary event charges and extraordinary event revenue;

(2)reduce, impair, postpone, or terminate extraordinary event charges approved in the financing order until all principal, interest, and redemption premium, if any, payable on the extraordinary event bonds, all financing costs, and all amounts to be paid to an assignee or financing party under an ancillary agreement are paid in full; or

(3)change the customers required to pay extraordinary event charges.