30-1002 Statement of public policy

30-1002. Statement of public policy

A. It is the public policy of this state to gain the benefits of securitization by establishing irrevocable financing charges that are payable to a qualified special purpose entity and by creating and vesting in the qualified special purpose entity a present and alienable property interest in the resulting financing revenues. Those benefits include reducing all of the following:

1. The unrecovered cost of transition assets that are subject to potential retirement, abandonment, sale, disposition or transition or that have been damaged or destroyed, including associated liabilities.

2. The costs arising from or related to weather, wildfire or other significant events or incidents that cause damage or destruction or that otherwise render inoperable, in whole or in part, any of the public power entity's assets, facilities or infrastructure that are in operation providing service for customers.

B. The use of low-cost securitized borrowing by a separate qualified special purpose entity is intended to enable public power entities to achieve the benefits of securitization for customers by reinvesting capital now committed to paying those costs related to the production and delivery of energy from new facilities, resources or other assets.