TITLE 61

PUBLIC UTILITY REGULATION

CHAPTER 16

UTILITY COST REDUCTION BONDS

61-1602.  Definitions. For purposes of this chapter, the following terms shall have the following meanings, unless the context clearly requires otherwise:

(1)  "Approved costs" means the amounts that a public utility or assignee has been authorized to recover by the commission pursuant to a cost reduction order including, without limitation:

(a)  Amounts incurred or to be incurred for purposes for which a public utility may issue stock and stock certificates or other evidences of interest or ownership, or bonds, notes or other evidences of indebtedness under chapter 9, title 61, Idaho Code;

(b)  Amounts necessary to recover federal or state taxes actually paid by a public utility, which tax liability is modified by the transactions approved in a cost reduction order issued by the commission pursuant to this chapter; and

(c)  Reasonable costs, as approved by the commission, relating to the issuance, servicing or refinancing of cost reduction instruments under the provisions of this chapter including, without limitation, principal, interest or other payments and accruals, sinking fund payments, debt service and other reserves, costs of credit enhancement, indemnities, if any, owed to an assignee or the trustee for the cost reduction instrument, issuance costs and redemption premiums, if any, and all other reasonable fees, costs and charges with respect to the cost reduction instrument.

(2)  "Assignee" means any corporation, limited liability company, trust, partnership or other entity to which a public utility assigns, sells or transfers, other than as security, all or a portion of the public utility’s interest in or right to cost reduction property. The term also includes any such entity to which an assignee assigns, sells or transfers, other than as security, the assignee’s interest in or right to cost reduction property.

(3)  "Chapter 9" means chapter 9, title 28, Idaho Code, as from time to time amended, including any successor provisions.

(4)  "Cost reduction instrument" means any instrument, pass-through certificate, note, bond, debenture, certificate of participation, collateral trust certificate, beneficial interest or other evidence of indebtedness or ownership issued by a public utility or an assignee pursuant to a cost reduction order and an executed indenture, security agreement or other similar instrument that is secured by or payable from cost reduction rates or cost reduction property.

(5)  "Cost reduction instrument holder" means any holder of a cost reduction instrument or any trustee, collateral agent or other entity acting for the benefit of or on behalf of any such holder.

(6)  "Cost reduction order" means an order of the commission issued in accordance with this chapter that authorizes the imposition and collection of approved costs.

(7)  "Cost reduction property" means the irrevocable, vested property right created pursuant to this chapter and one (1) or more cost reduction orders including, without limitation, the right, title and interest of a public service company or assignee to all revenues, collections, claims, payments, money or proceeds of or arising from a cost reduction rate, and all rights to obtain adjustments to such cost reduction rate pursuant to the terms of this chapter and any cost reduction order.

(8)  "Cost reduction rate" means a charge or rate that the commission authorizes in a cost reduction order, whether such amounts are billed and/or collected by the public utility, an assignee, any subsidiary or affiliate thereof, or any third party that may assume the responsibility for billing or collecting such cost reduction charges.

(9)  "Public utility" means any electric or gas corporation subject to the jurisdiction, regulation and control of the public utilities commission as contained in chapter 1, title 61, Idaho Code.

History:

[61-1602, added 2005, ch. 372, sec. 1, p. 1187.]