Energy Transition Act

The act governs how a qualifying utility finances the costs associated with abandoning an energy resource, authorizing the utility commission to issue a financing order that lets the utility impose energy transition charges and issue energy transition bonds backed by the resulting energy transition property and revenues. It sets out the mechanics of that securitization — how energy transition property is created, sold as a true sale, and pledged; how security interests attach and take priority; how the charges are adjusted over time; and when a financing order becomes irrevocable, remains in effect, or may be challenged on rehearing and judicial review — while providing that the bonds are not public debt and adding a state pledge not to impair the arrangement. It also assesses fees and directs money into dedicated funds for displaced workers, affected communities and economic development, and Indian affairs, with a community advisory committee, and addresses where replacement resource development may be located after abandonment.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.