Amendments for HB19-1037

House Journal, February 12
5 HB19-1037 be amended as follows, and as so amended, be referred to
6 the Committee of the Whole with favorable
7 recommendation:
8
9 Amend printed bill, strike everything below the enacting clause and
10 substitute:
11
12 "SECTION 1. In Colorado Revised Statutes, add article 41 to
13 title 40 as follows:
41 14 ARTICLE
15 Colorado Energy Impact Assistance Act
1 16 PART
17 ENERGY IMPACT ASSISTANCE BONDS
18 40-41-101. Short title. THE SHORT TITLE OF THIS ARTICLE 41 IS
19 THE "COLORADO ENERGY IMPACT ASSISTANCE ACT".
20 40-41-102. Legislative declaration. (1) THE GENERAL ASSEMBLY
21 HEREBY FINDS AND DECLARES THAT:
22 (a) COLORADO'S ELECTRIC UTILITIES WILL CONTINUE TO FACE THE
23 NEED TO RETIRE EXISTING ELECTRIC GENERATING FACILITIES TO REDUCE
24 ELECTRICITY RATES FOR CUSTOMERS AND ENSURE THE HEALTH AND
25 WELL-BEING OF COLORADO'S NATURAL ENVIRONMENT AND RESIDENTS;
26 (b) THE CLOSURE OF ELECTRIC GENERATING FACILITIES MAY HAVE
27 DIRECT ECONOMIC IMPACTS ON COLORADO COMMUNITIES WHERE THE
28 FACILITIES ARE LOCATED, ELECTRIC GENERATING FACILITY WORKERS, AND
29 COMMUNITIES WHERE FUELS FOR THE FACILITIES ARE PRODUCED;
30 (c) CUSTOMERS OF COLORADO'S ELECTRIC UTILITIES HAVE AN
31 INTEREST IN ENSURING THAT THEIR UTILITIES ARE PROVIDING EFFICIENT
32 AND COST-EFFECTIVE ELECTRIC GENERATION;
33 (d) COLORADO COMMUNITIES AND WORKERS MAY BE DIRECTLY
34 AFFECTED BY THE CLOSURE OF ELECTRIC GENERATING FACILITIES, AND IT
35 IS IN THE BEST INTEREST OF THE STATE TO ENSURE THAT COLORADO'S
36 WORKFORCE IS ABLE TO ADAPT TO THE STATE'S CHANGING ENERGY
37 PORTFOLIO;
38 (e) THERE ARE ALTERNATIVE FINANCING MECHANISMS USED BY
39 MORE THAN TWENTY OTHER STATES SINCE 1997 THAT WILL RESULT IN
40 LOWER COSTS TO ELECTRIC UTILITY CUSTOMERS, AND THE USE OF THESE
41 MECHANISMS CAN ENSURE THAT BOTH THE COSTS OF RETIRING ELECTRIC
42 GENERATING FACILITIES LOCATED IN THE STATE AND TRANSITION COSTS
43 FOR DIRECTLY AFFECTED COLORADO COMMUNITIES AND ELECTRIC
44 GENERATING FACILITY WORKERS CAN BE FINANCED IN A WAY THAT
45 REDUCES THE TOTAL AMOUNT OF COSTS BEING INCLUDED IN CUSTOMER
46 RATES;
47 (f) CUSTOMER COSTS OF ALTERNATIVE FINANCING MECHANISMS
48 CAN BE MINIMIZED BY ACHIEVING THE HIGHEST POSSIBLE CREDIT RATING
49 FROM INDEPENDENT CREDIT RATING AGENCIES, WHICH REQUIRES SPECIAL
50 PROCEDURES AND CONDITIONS INCLUDING:
51 (I) THE USE OF LIMITED PURPOSE BANKRUPTCY-REMOTE
52 FINANCING ENTITIES TO ISSUE RATEPAYER-BACKED BONDS;
53 (II) THE CREATION OF A PROPERLY STRUCTURED AND
54 IMPLEMENTED ADJUSTMENT MECHANISM TO ADJUST THE CHARGE
55 DEDICATED TO THE REPAYMENT OF THE BONDS TO ENABLE CONSISTENT,
1 ACCURATE, AND TIMELY REMITTANCES TO THE FINANCING ENTITIES FOR
2 THE BENEFIT OF BONDHOLDERS; AND
3 (III) A STATE PLEDGE THAT CONSTITUTES AN ENFORCEABLE
4 PROMISE THAT THE STATE WILL NOT TAKE ANY ACTION THAT WOULD
5 PREVENT, OBSTRUCT, IMPAIR, OR LIMIT THE PAYMENT OF PRINCIPAL AND
6 INTEREST ON SECURITIZED ELECTRIC UTILITY RATEPAYER-BACKED BONDS
7 AS THOSE AMOUNTS BECOME LEGALLY DUE AND OWING; AND
8 (g) TO IMPLEMENT THIS ALTERNATIVE FINANCING MECHANISM, IT
9 IS NECESSARY TO AUTHORIZE THE PUBLIC UTILITIES COMMISSION TO
10 REVIEW AND APPROVE ONE OR MORE FINANCING ORDERS THAT ADVANCE
11 THESE GOALS IF IT DEEMS SUCH APPROVAL APPROPRIATE AND IN THE
12 INTEREST OF RATEPAYERS.
13 (2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:
14 (a) IT IS THE POLICY OF THE STATE TO ASSIST COLORADO ELECTRIC
15 GENERATING FACILITY WORKERS WHO ARE DIRECTLY IMPACTED BY THE
16 RETIREMENT OF ELECTRIC GENERATING FACILITIES, THE COMMUNITIES
17 WHERE THE FACILITIES ARE LOCATED, AND THE COMMUNITIES WHERE
18 FUELS FOR THE FACILITIES ARE PRODUCED;
19 (b) IT IS THEREFORE IN THE INTEREST OF THE STATE AND ITS
20 CITIZENS TO ENCOURAGE AND FACILITATE THE USE OF SECURITIZED
21 RATEPAYER-BACKED BONDS AS A METHOD FOR ENABLING ELECTRIC
22 UTILITIES TO LOWER THE COST OF FINANCING THE RETIREMENT OF
23 ELECTRIC GENERATING FACILITIES UNDER CERTAIN CONDITIONS AND TO
24 EMPOWER THE PUBLIC UTILITIES COMMISSION TO REVIEW SUCH
25 SECURITIZATION MECHANISMS TO DETERMINE WHETHER THEY ARE
26 CONSISTENT WITH THE PUBLIC INTEREST AND WORTHY OF APPROVAL;
27 (c) THE PRIMARY PURPOSE OF THIS ACT IS TO AUTHORIZE THE
28 ISSUANCE OF LOW-COST SECURITIZED RATEPAYER-BACKED BONDS, THE
29 PROCEEDS OF WHICH MUST BE USED SOLELY:
30 (I) TO PROVIDE TRANSITION ASSISTANCE TO COLORADO
31 COMMUNITIES AND ELECTRIC GENERATING FACILITY WORKERS THAT ARE
32 DIRECTLY IMPACTED BY THE RETIREMENT OF ELECTRIC GENERATING
33 FACILITIES;
34 (II) TO LOWER RATES PAID BY ELECTRIC UTILITY CUSTOMERS BY
35 REDUCING FINANCING COSTS OF CERTAIN RETIRED ELECTRIC GENERATING
36 FACILITIES; AND
37 (III) TO MAKE AVAILABLE CAPITAL INVESTMENT FOR MODERNIZED
38 FACILITIES AND SERVICES INCLUDING LEAST-COST ELECTRIC GENERATING
39 FACILITIES AND OTHER SUPPLY-SIDE AND DEMAND-SIDE RESOURCES; AND
40 (d) AN ADDITIONAL PURPOSE OF THIS ACT IS TO CREATE THE
41 COLORADO ENERGY IMPACT ASSISTANCE AUTHORITY TO ASSIST WITH THE
42 ADMINISTRATION OF THE PORTION OF SECURITIZED RATEPAYER-BACKED
43 BOND PROCEEDS THAT IS DEDICATED TO TRANSITION ASSISTANCE FOR
44 DIRECTLY IMPACTED COLORADO COMMUNITIES AND ELECTRIC
45 GENERATING FACILITY WORKERS.
46 40-41-103. Definitions. AS USED IN THIS ARTICLE 41 AND FOR USE
47 BY THE COMMISSION, AND IN THE COURSE OF THE REVIEW BY
48 INDEPENDENT CREDIT RATING AGENCIES THAT IS NECESSARY TO ACHIEVE
49 THE HIGHEST POSSIBLE BOND RATINGS, UNLESS THE CONTEXT OTHERWISE
50 REQUIRES:
51 (1) "ANCILLARY AGREEMENT" MEANS ANY BOND, INSURANCE
52 POLICY, LETTER OF CREDIT, RESERVE ACCOUNT, SURETY BOND, INTEREST
53 RATE LOCK OR SWAP ARRANGEMENT, HEDGING ARRANGEMENT, LIQUIDITY
54 OR CREDIT SUPPORT ARRANGEMENT, OR OTHER FINANCIAL ARRANGEMENT
55 ENTERED INTO IN CONNECTION WITH CO-EIA BONDS THAT IS DESIGNED TO
1 PROMOTE THE CREDIT QUALITY AND MARKETABILITY OF THE CO-EIA
2 BONDS OR TO MITIGATE THE RISK OF AN INCREASE IN INTEREST RATES.
3 (2) "ASSIGNEE" MEANS ANY PERSON TO WHICH AN INTEREST IN
4 CO-EIA PROPERTY IS SOLD, ASSIGNED, TRANSFERRED, OR CONVEYED,
5 OTHER THAN AS SECURITY, AND ANY SUCCESSOR TO OR SUBSEQUENT
6 ASSIGNEE OF SUCH A PERSON.
7 (3) "AUTHORITY" MEANS THE COLORADO ENERGY IMPACT
8 ASSISTANCE AUTHORITY CREATED IN SECTION 40-41-201 (1).
9 (4) "BOARD" MEANS THE BOARD OF DIRECTORS OF THE AUTHORITY
10 CREATED IN SECTION 40-41-201 (2)(a).
11 (5) "BONDHOLDER" MEANS ANY HOLDER OR OWNER OF CO-EIA
12 BONDS.
13 (6) "CO-EIA" MEANS COLORADO ENERGY IMPACT ASSISTANCE.
14 (7) "CO-EIA BONDS" MEANS LOW-COST CORPORATE SECURITIES,
15 SUCH AS SENIOR SECURED BONDS, DEBENTURES, NOTES, CERTIFICATES OF
16 PARTICIPATION, CERTIFICATES OF BENEFICIAL INTEREST, CERTIFICATES OF
17 OWNERSHIP, OR OTHER EVIDENCES OF INDEBTEDNESS OR OWNERSHIP THAT
18 HAVE A SCHEDULED MATURITY OF NO LONGER THAN THIRTY YEARS AND
19 A FINAL LEGAL MATURITY DATE THAT IS NOT LATER THAN THIRTY-TWO
20 YEARS FROM THE ISSUE DATE, THAT ARE RATED AA OR AA2 OR BETTER BY
21 AT LEAST ONE MAJOR INDEPENDENT CREDIT RATING AGENCY AT THE TIME
22 OF ISSUANCE, AND THAT ARE ISSUED BY AN ELECTRIC UTILITY OR AN
23 ASSIGNEE PURSUANT TO A FINANCING ORDER, THE PROCEEDS OF WHICH
24 ARE USED TO RECOVER, FINANCE, OR REFINANCE COMMISSION-APPROVED
25 CO-EIA COSTS AND FINANCING COSTS, INCLUDING ASSISTANCE TO
26 AFFECTED WORKERS AND COMMUNITIES, AND THAT ARE SECURED BY OR
27 PAYABLE FROM CO-EIA PROPERTY. IF CERTIFICATES OF PARTICIPATION OR
28 OWNERSHIP ARE ISSUED, REFERENCES IN THIS SECTION TO PRINCIPAL,
29 INTEREST, OR PREMIUM REFER TO COMPARABLE AMOUNTS UNDER THOSE
30 CERTIFICATES.
31 (8) "CO-EIA CHARGE" MEANS A CHARGE IN AN AMOUNT
32 DETERMINED APPROPRIATE BY THE COMMISSION AND AUTHORIZED BY THE
33 COMMISSION IN A FINANCING ORDER IN ORDER TO PROVIDE A SOURCE OF
34 REVENUE SOLELY TO REPAY, FINANCE, OR REFINANCE CO-EIA COSTS AND
35 FINANCING COSTS THAT ARE IMPOSED ON AND ARE A PART OF ALL
36 CUSTOMER BILLS AND ARE COLLECTED IN FULL BY THE ELECTRIC UTILITY
37 TO WHICH THE FINANCING ORDER APPLIES, ITS SUCCESSORS OR ASSIGNEES,
38 OR A COLLECTION AGENT THROUGH A NONBYPASSABLE CHARGE THAT IS
39 SEPARATE AND APART FROM THE ELECTRIC UTILITY'S BASE RATES.
40 (9) (a) "CO-EIA COSTS" MEANS:
41 (I) (A) AT THE OPTION OF AND UPON PETITION BY AN ELECTRIC
42 UTILITY, AND AS APPROVED BY THE COMMISSION PURSUANT TO SECTION
43 40-41-105, THE PRETAX COSTS THAT THE ELECTRIC UTILITY HAS INCURRED
44 OR WILL INCUR THAT ARE CAUSED BY, ASSOCIATED WITH, OR REMAIN AS
45 A RESULT OF THE RETIREMENT OF AN ELECTRIC GENERATING FACILITY
46 LOCATED IN THE STATE.
47 (B) AS USED IN THIS SUBSECTION (9), "PRETAX COSTS", IF
48 APPROVED BY THE COMMISSION, INCLUDE, BUT ARE NOT LIMITED TO, THE
49 UNRECOVERED CAPITALIZED COST OF A RETIRED ELECTRIC GENERATING
50 FACILITY, COSTS OF DECOMMISSIONING AND RESTORING THE SITE OF THE
51 ELECTRIC GENERATING FACILITY, AND OTHER APPLICABLE CAPITAL AND
52 OPERATING COSTS, ACCRUED CARRYING CHARGES, DEFERRED EXPENSES,
53 REDUCTIONS FOR APPLICABLE INSURANCE AND SALVAGE PROCEEDS AND
54 THE COSTS OF RETIRING ANY EXISTING INDEBTEDNESS, FEES, COSTS, AND
55 EXPENSES TO MODIFY EXISTING DEBT AGREEMENTS OR FOR WAIVERS OR
1 CONSENTS RELATED TO EXISTING DEBT AGREEMENTS.
2 (II) AMOUNTS REQUIRED TO BE TRANSFERRED TO THE AUTHORITY
3 FOR TRANSITION ASSISTANCE AND THE PAYMENT OF THE AUTHORITY'S
4 REASONABLE AND NECESSARY ADMINISTRATIVE AND OPERATING COSTS AS
5 REQUIRED BY A FINANCING ORDER.
6 (III) PRETAX COSTS THAT AN ELECTRIC UTILITY HAS PREVIOUSLY
7 INCURRED RELATED TO THE COMMISSION-APPROVED CLOSURE OF AN
8 ELECTRIC GENERATING FACILITY OCCURRING BEFORE THE EFFECTIVE DATE
9 OF THIS SECTION.
10 (b) "CO-EIA COSTS" DO NOT INCLUDE ANY MONETARY PENALTY,
11 FINE, OR FORFEITURE ASSESSED AGAINST AN ELECTRIC UTILITY BY A
12 GOVERNMENT AGENCY OR COURT UNDER A FEDERAL OR STATE
13 ENVIRONMENTAL STATUTE, RULE, OR REGULATION.
14 (10) "CO-EIA PROPERTY" MEANS:
15 (a) ALL RIGHTS AND INTERESTS OF AN ELECTRIC UTILITY OR
16 SUCCESSOR OR ASSIGNEE OF AN ELECTRIC UTILITY UNDER A FINANCING
17 ORDER FOR THE RIGHT TO IMPOSE, BILL, COLLECT, AND RECEIVE CO-EIA
18 CHARGES AS IT IS AUTHORIZED TO DO SOLELY UNDER THE FINANCING
19 ORDER AND TO OBTAIN PERIODIC ADJUSTMENTS TO SUCH CO-EIA
20 CHARGES AS PROVIDED IN THE FINANCING ORDER; AND
21 (b) ALL REVENUE, COLLECTIONS, CLAIMS, RIGHTS TO PAYMENTS,
22 PAYMENTS, MONEY, OR PROCEEDS ARISING FROM THE RIGHTS AND
23 INTERESTS SPECIFIED IN SUBSECTION (10)(a) OF THIS SECTION,
24 REGARDLESS OF WHETHER SUCH REVENUE, COLLECTIONS, CLAIMS, RIGHTS
25 TO PAYMENT, PAYMENTS, MONEY, OR PROCEEDS ARE IMPOSED, BILLED,
26 RECEIVED, COLLECTED, OR MAINTAINED TOGETHER WITH OR COMMINGLED
27 WITH OTHER REVENUE, COLLECTIONS, RIGHTS TO PAYMENT, PAYMENTS,
28 MONEY, OR PROCEEDS.
29 (11) "CO-EIA REVENUE" MEANS ALL REVENUE, RECEIPTS,
30 COLLECTIONS, PAYMENTS, MONEY, CLAIMS, OR OTHER PROCEEDS ARISING
31 FROM CO-EIA PROPERTY.
32 (12) "COMMISSION" MEANS THE PUBLIC UTILITIES COMMISSION OF
33 THE STATE OF COLORADO.
34 (13) "CUSTOMER" MEANS A PERSON THAT TAKES ELECTRIC
35 DISTRIBUTION OR ELECTRIC TRANSMISSION SERVICE FROM AN ELECTRIC
36 UTILITY FOR CONSUMPTION OF ELECTRICITY IN THE STATE.
37 (14) "ELECTRIC UTILITY" MEANS AN ENTITY OPERATING FOR THE
38 PURPOSE OF SUPPLYING ELECTRICITY TO THE PUBLIC FOR DOMESTIC,
39 MECHANICAL, OR PUBLIC USES AND INCLUDES AN INVESTOR-OWNED
40 ELECTRIC UTILITY SUBJECT TO REGULATION UNDER ARTICLES 1 TO 7 OF
41 THIS TITLE 40, A MUNICIPALLY-OWNED UTILITY, AND A COOPERATIVE
42 ELECTRIC ASSOCIATION.
43 (15) "FINANCING COSTS" MEANS, IF APPROVED BY THE
44 COMMISSION IN A FINANCING ORDER, COSTS TO ISSUE, SERVICE, REPAY, OR
45 REFINANCE CO-EIA BONDS, WHETHER INCURRED OR PAID UPON ISSUANCE
46 OF THE CO-EIA BONDS OR OVER THE LIFE OF THE CO-EIA BONDS, AND
47 INCLUDES:
48 (a) PRINCIPAL, INTEREST, AND REDEMPTION PREMIUMS THAT ARE
49 PAYABLE ON CO-EIA BONDS;
50 (b) ANY PAYMENT REQUIRED UNDER AN ANCILLARY AGREEMENT
51 AND ANY AMOUNT REQUIRED TO FUND OR REPLENISH A RESERVE ACCOUNT
52 OR OTHER ACCOUNTS ESTABLISHED UNDER THE TERMS OF ANY INDENTURE,
53 ANCILLARY AGREEMENT, OR OTHER FINANCING DOCUMENT PERTAINING TO
54 CO-EIA BONDS;
55 (c) ANY OTHER DEMONSTRABLE COSTS RELATED TO ISSUING,
1 SUPPORTING, REPAYING, REFUNDING, AND SERVICING CO-EIA BONDS,
2 INCLUDING, BUT NOT LIMITED TO, SERVICING FEES, ACCOUNTING AND
3 AUDITING FEES, TRUSTEE FEES, LEGAL FEES, CONSULTING FEES, FINANCIAL
4 ADVISOR FEES, ADMINISTRATIVE FEES, PLACEMENT AND UNDERWRITING
5 FEES, CAPITALIZED INTEREST, RATING AGENCY FEES, STOCK EXCHANGE
6 LISTING AND COMPLIANCE FEES, SECURITY REGISTRATION FEES, FILING
7 FEES, INFORMATION TECHNOLOGY PROGRAMMING COSTS, AND ANY OTHER
8 DEMONSTRABLE COSTS NECESSARY TO OTHERWISE ENSURE AND
9 GUARANTEE THE TIMELY PAYMENT OF CO-EIA BONDS OR OTHER
10 AMOUNTS OR CHARGES PAYABLE IN CONNECTION WITH CO-EIA BONDS;
11 (d) ANY TAXES AND LICENSE FEES IMPOSED ON THE REVENUE
12 GENERATED FROM THE COLLECTION OF A CO-EIA CHARGE;
13 (e) ANY STATE AND LOCAL TAXES, INCLUDING FRANCHISE, SALES
14 AND USE, AND OTHER TAXES OR SIMILAR CHARGES, INCLUDING, BUT NOT
15 LIMITED TO, REGULATORY ASSESSMENT FEES, WHETHER PAID, PAYABLE,
16 OR ACCRUED; AND
17 (f) ANY COSTS INCURRED BY AN ELECTRIC UTILITY TO PAY THE
18 COMMISSION'S COSTS OF ENGAGING SPECIALIZED COUNSEL AND EXPERT
19 CONSULTANTS EXPERIENCED IN SECURITIZED ELECTRIC UTILITY
20 RATEPAYER-BACKED BOND FINANCING SIMILAR TO CO-EIA BONDS AS
21 AUTHORIZED BY SECTION 40-41-108 (4).
22 (16) "FINANCING ORDER" MEANS AN ORDER OF THE COMMISSION
23 ISSUED PURSUANT TO SECTION 40-41-105 THAT GRANTS, IN WHOLE OR IN
24 PART, AN APPLICATION FILED PURSUANT TO SECTION 40-41-104 AND THAT
25 AUTHORIZES THE ISSUANCE OF CO-EIA BONDS IN ONE OR MORE SERIES,
26 THE IMPOSITION, CHARGING, AND COLLECTION OF CO-EIA CHARGES, AND
27 THE CREATION OF CO-EIA PROPERTY. IN A FINANCING ORDER, THE
28 COMMISSION MAY INCLUDE ANY CONDITIONS THAT ARE NECESSARY TO
29 PROMOTE THE PUBLIC INTEREST AND MAY GRANT RELIEF THAT IS
30 DIFFERENT FROM THAT WHICH WAS REQUESTED IN THE APPLICATION SO
31 LONG AS THE RELIEF IS WITHIN THE SCOPE OF THE MATTERS ADDRESSED IN
32 THE COMMISSION'S NOTICE OF THE APPLICATION.
33 (17) "FINANCING PARTY" MEANS HOLDERS OF CO-EIA BONDS AND
34 TRUSTEES, COLLATERAL AGENTS, ANY PARTY UNDER AN ANCILLARY
35 AGREEMENT, OR ANY OTHER PERSON ACTING FOR THE BENEFIT OF
36 HOLDERS OF CO-EIA BONDS.
37 (18) "FINANCING STATEMENT" HAS THE SAME MEANING AS SET
38 FORTH IN SECTION 4-9-102 (39).
39 (19) "NONBYPASSABLE" MEANS THAT THE PAYMENT OF A CO-EIA
40 CHARGE REQUIRED TO REPAY BONDS AND RELATED COSTS MAY NOT BE
41 AVOIDED BY ANY CUSTOMER LOCATED WITHIN AN ELECTRIC UTILITY
42 SERVICE AREA, BUT MUST BE PAID BY:
43 (a) ALL EXISTING AND FUTURE CUSTOMERS RECEIVING RETAIL
44 ELECTRICITY USING UTILITY TRANSMISSION OR DISTRIBUTION FACILITIES
45 FROM THE ELECTRIC UTILITY OR ITS SUCCESSORS OR ASSIGNEES UNDER
46 COMMISSION-APPROVED RATE SCHEDULES OR UNDER SPECIAL CONTRACTS,
47 EVEN IF A CUSTOMER ELECTS TO PURCHASE ELECTRICITY FROM AN
48 ELECTRIC SUPPLIER OTHER THAN THE UTILITY; AND
49 (b) ANY PERSON LOCATED WITHIN THE ELECTRIC UTILITY SERVICE
50 AREA THAT MAY SUBSEQUENTLY RECEIVE RETAIL ELECTRICITY USING
51 UTILITY TRANSMISSION OR DISTRIBUTION FACILITIES FROM ANOTHER
52 ELECTRIC UTILITY OPERATING IN THE SAME SERVICE AREA.
53 (20) "SUCCESSOR" MEANS, WITH RESPECT TO ANY LEGAL ENTITY,
54 ANOTHER LEGAL ENTITY THAT SUCCEEDS BY OPERATION OF LAW TO THE
55 RIGHTS AND OBLIGATIONS OF THE FIRST LEGAL ENTITY PURSUANT TO ANY
1 BANKRUPTCY, REORGANIZATION, RESTRUCTURING, OTHER INSOLVENCY
2 PROCEEDING, MERGER, ACQUISITION, CONSOLIDATION, OR SALE OR
3 TRANSFER OF ASSETS, WHETHER ANY OF THESE OCCUR DUE TO A
4 RESTRUCTURING OF THE ELECTRIC POWER INDUSTRY OR OTHERWISE.
5 (21) "TRANSITION ASSISTANCE" MEANS ASSISTANCE PROVIDED BY
6 OR DIRECTED BY THE AUTHORITY USING CO-EIA BOND PROCEEDS
7 TRANSFERRED BY AN ELECTRIC UTILITY TO THE AUTHORITY PURSUANT TO
8 THE TERMS OF A FINANCING ORDER TO ASSIST COLORADO COMMUNITIES
9 THAT ARE DIRECTLY IMPACTED BY THE RETIREMENT OF AN ELECTRIC
10 GENERATING FACILITY AND MAY INCLUDE, WITHOUT LIMITATION:
11 (a) PAYMENT OF RETRAINING COSTS, INCLUDING COSTS OF ANY
12 APPRENTICESHIP PROGRAM, AS DEFINED IN SECTION 8-83-303 (2), OR
303 13 SKILLED WORKER TRAINING PROGRAM, AS DEFINED IN SECTION 8-83-
14 (10), FOR DIRECTLY DISPLACED ELECTRIC GENERATING FACILITY
15 WORKERS;
16 (b) FINANCIAL ASSISTANCE FOR DIRECTLY DISPLACED ELECTRIC
17 GENERATING FACILITY WORKERS;
18 (c) FOR A PERIOD OF NO MORE THAN FIVE YEARS, COMPENSATION
19 TO LOCAL GOVERNMENTS FOR LOSSES OF PROPERTY TAX REVENUE
20 RESULTING DIRECTLY FROM THE RETIREMENT OF THE ELECTRIC
21 GENERATING FACILITY, WHICH COMPENSATION MAY BE REDUCED
22 ANNUALLY DURING THE PERIOD DURING WHICH IT IS PROVIDED;
23 (d) PAYMENT OF RETRAINING COSTS, INCLUDING COSTS OF ANY
24 APPRENTICESHIP PROGRAM, AS DEFINED IN SECTION 8-83-303 (2), OR
303 25 SKILLED WORKER TRAINING PROGRAM, AS DEFINED IN SECTION 8-83-
26 (10), AND PROVISION OF FINANCIAL ASSISTANCE, INCLUDING WAGE
27 SUPPORT OR SUPPLEMENTAL RETIREMENT SUPPORT, FOR COLORADO
28 WORKERS AND ASSISTANCE TO LOCAL GOVERNMENTS WITH LOSSES OF TAX
29 REVENUE DIRECTLY RELATED TO PRODUCTION OF FUEL PREVIOUSLY USED
30 IN THE RETIRED FACILITIES; AND
31 (e) JOB RETRAINING AND EDUCATION FOR WORKERS WHO ARE
32 COLORADO RESIDENTS WHO WERE DIRECTLY INVOLVED IN THE TRANSPORT
33 OF FUEL TO A RETIRED COLORADO ELECTRIC GENERATING FACILITY AND
34 WHO ARE LAID OFF OR EXPERIENCE REDUCED WORK SCHEDULES
35 RESULTING FROM THE RETIREMENT OF THE ELECTRIC GENERATING
36 FACILITY.
37 40-41-104. Financing orders - application requirements.
38 (1) AN ELECTRIC UTILITY MAY APPLY TO THE COMMISSION FOR A
39 FINANCING ORDER AS AUTHORIZED BY THIS SECTION.
40 (2) (a) AN INVESTOR-OWNED OR OTHER REGULATED ELECTRIC
41 UTILITY MAY FILE AN APPLICATION FOR APPROVAL TO ISSUE CO-EIA
42 BONDS IN ONE OR MORE SERIES, IMPOSE, CHARGE, AND COLLECT CO-EIA
43 CHARGES, AND CREATE CO-EIA PROPERTY RELATED TO THE RETIREMENT
44 OF AN ELECTRIC GENERATING FACILITY IN COLORADO THAT HAS
45 PREVIOUSLY BEEN APPROVED BY THE COMMISSION.
46 (b) AN ELECTRIC UTILITY THAT IS NOT REGULATED MAY FILE AN
47 APPLICATION FOR APPROVAL TO ISSUE CO-EIA BONDS IN ONE OR MORE
48 SERIES, IMPOSE, CHARGE, AND COLLECT CO-EIA CHARGES, AND CREATE
49 CO-EIA PROPERTY RELATED TO THE RETIREMENT OF AN ELECTRIC
50 GENERATING FACILITY IN COLORADO.
51 (c) THE COMMISSION SHALL TAKE FINAL ACTION TO APPROVE,
52 DENY, OR MODIFY ANY APPLICATION FOR A FINANCING ORDER AS
53 DESCRIBED IN SUBSECTION (2)(a) OR (2)(b) OF THIS SECTION IN A FINAL
54 ORDER ISSUED IN ACCORDANCE WITH THE COMMISSION'S RULES FOR
55 ADDRESSING APPLICATIONS.
1 (3) IN ADDITION TO ANY OTHER INFORMATION REQUIRED BY THE
2 COMMISSION, AN APPLICATION FOR A FINANCING ORDER MUST INCLUDE
3 THE FOLLOWING INFORMATION:
4 (a) AN ESTIMATED SCHEDULE FOR THE RETIREMENT;
5 (b) A SPECIFICATION OF THE EFFECTS OF THE PROPOSED CO-EIA
6 BOND FINANCING ON THE RETIREMENT;
7 (c) A PROPOSED METHODOLOGY FOR ALLOCATING THE REVENUE
8 REQUIREMENT FOR THE CO-EIA CHARGE AMONG CUSTOMER CLASSES;
9 (d) A DESCRIPTION OF THE NONBYPASSABLE CO-EIA CHARGE
10 REQUIRED TO BE PAID BY CUSTOMERS WITHIN THE ELECTRIC UTILITY'S
11 SERVICE AREA FOR RECOVERY OF CO-EIA COSTS;
12 (e) AN ESTIMATE OF THE NET PRESENT VALUE OF ELECTRIC UTILITY
13 CUSTOMER SAVINGS EXPECTED TO RESULT IF THE FINANCING ORDER IS
14 ISSUED AS DETERMINED BY A NET PRESENT VALUE COMPARISON BETWEEN
15 THE COSTS TO CUSTOMERS THAT ARE EXPECTED TO RESULT FROM THE
16 FINANCING OF THE UNDEPRECIATED BALANCES OF ELECTRIC GENERATING
17 FACILITIES WITH CO-EIA BONDS AND THE COSTS THAT WOULD RESULT
18 FROM THE APPLICATION OF TRADITIONAL ELECTRIC UTILITY FINANCING
19 MECHANISMS TO THE SAME UNDEPRECIATED BALANCES; AND
20 (f) ONE OR MORE ALTERNATIVE FINANCING SCENARIOS IN
21 ADDITION TO THE PREFERRED SCENARIO CONTAINED IN THE APPLICATION.
22 40-41-105. Issuance of financing orders. (1) FOLLOWING
23 NOTICE AND HEARING ON AN APPLICATION FOR A FINANCING ORDER AS
24 REQUIRED BY THE COMMISSION'S RULES, PRACTICE, AND PROCEDURE, THE
25 COMMISSION MAY ISSUE A FINANCING ORDER IF THE COMMISSION FINDS
26 THAT:
27 (a) THE CO-EIA COSTS DESCRIBED IN THE APPLICATION RELATED
28 TO THE RETIREMENT OF THE ELECTRIC GENERATING FACILITIES ARE
29 REASONABLE;
30 (b) THE PROPOSED ISSUANCE OF CO-EIA BONDS AND THE
31 IMPOSITION AND COLLECTION OF CO-EIA CHARGES:
32 (I) ARE JUST AND REASONABLE;
33 (II) ARE CONSISTENT WITH THE PUBLIC INTEREST;
34 (III) CONSTITUTE A PRUDENT AND REASONABLE MECHANISM FOR
35 THE FINANCING OF THE CO-EIA COSTS DESCRIBED IN THE APPLICATION;
36 AND
37 (IV) WILL PROVIDE SUBSTANTIAL, TANGIBLE, AND QUANTIFIABLE
38 BENEFITS TO CUSTOMERS THAT ARE GREATER THAN THE BENEFITS THAT
39 WOULD HAVE BEEN ACHIEVED ABSENT THE ISSUANCE OF CO-EIA BONDS;
40 AND
41 (c) THE PROPOSED STRUCTURING, MARKETING, AND PRICING OF
42 THE CO-EIA BONDS WILL:
43 (I) SIGNIFICANTLY LOWER OVERALL COSTS TO CUSTOMERS OR
44 SIGNIFICANTLY MITIGATE RATE IMPACTS TO CUSTOMERS RELATIVE TO
45 TRADITIONAL METHODS OF FINANCING; AND
46 (II) ACHIEVE THE MAXIMUM NET PRESENT VALUE OF CUSTOMER
47 SAVINGS, AS DETERMINED BY THE COMMISSION IN A FINANCING ORDER,
48 CONSISTENT WITH MARKET CONDITIONS AT THE TIME OF SALE AND THE
49 TERMS OF THE FINANCING ORDER.
50 (2) THE FINANCING ORDER MUST:
51 (a) DETERMINE THE MAXIMUM AMOUNT OF CO-EIA COSTS THAT
52 MAY BE FINANCED FROM PROCEEDS OF CO-EIA BONDS AUTHORIZED TO BE
53 ISSUED BY THE FINANCING ORDER;
54 (b) NOTWITHSTANDING THE LIMITATION ON THE USE OF
55 RATEPAYER FUNDS SET FORTH IN SECTION 40-3-114, PROVIDE THAT AN
1 AMOUNT OF CO-EIA BOND PROCEEDS EQUAL TO FIFTEEN PERCENT OF THE
2 NET PRESENT VALUE OF ELECTRIC UTILITY CUSTOMER SAVINGS ESTIMATED
3 PURSUANT TO SECTION 40-41-104 (3)(e) BE TRANSFERRED TO THE
4 AUTHORITY BY THE ELECTRIC UTILITY TO WHICH THE FINANCING ORDER
5 APPLIES FOR USE BY THE AUTHORITY IN PROVIDING TRANSITION
6 ASSISTANCE AS REQUIRED BY SECTION 40-41-202 AND PAYING ITS
7 REASONABLE AND NECESSARY ADMINISTRATIVE AND OPERATING COSTS AS
8 AUTHORIZED BY SECTION 40-41-201 (3)(f); EXCEPT THAT THE COMMISSION
9 MAY CONSIDER, AND IF DETERMINED AS PART OF AN EVIDENTIARY
10 PROCEEDING TO BE APPROPRIATE, APPROVE THE USE OF UP TO AN
11 ADDITIONAL TEN PERCENT OF THE NET PRESENT VALUE FOR SUCH USE BY
12 THE AUTHORITY IF THE COMMISSION FINDS THAT FIFTEEN PERCENT IS NOT
13 ADEQUATE TO MEET THE SCOPE OF LOCAL NEEDS;
14 (c) DESCRIBE THE PROPOSED CUSTOMER BILLING MECHANISM FOR
15 CO-EIA CHARGES AND INCLUDE A FINDING THAT THE MECHANISM IS JUST
16 AND REASONABLE;
17 (d) DESCRIBE THE FINANCING COSTS THAT MAY BE RECOVERED
18 THROUGH CO-EIA CHARGES AND THE PERIOD OVER WHICH THE COSTS
19 MAY BE RECOVERED, WHICH MUST END NO EARLIER THAN THE DATE OF
20 FINAL LEGAL MATURITY OF THE CO-EIA BONDS;
21 (e) DESCRIBE THE CO-EIA PROPERTY THAT IS CREATED AND THAT
22 MAY BE USED TO PAY, AND SECURE THE PAYMENT OF, THE CO-EIA BONDS
23 AND FINANCING COSTS AUTHORIZED IN THE FINANCING ORDER;
24 (f) AUTHORIZE THE APPLICANT ELECTRIC UTILITY TO FINANCE
25 CO-EIA COSTS THROUGH THE ISSUANCE OF ONE OR MORE SERIES OF
26 CO-EIA BONDS. AN ELECTRIC UTILITY IS NOT REQUIRED TO SECURE A
27 SEPARATE FINANCING ORDER FOR EACH ISSUANCE OF CO-EIA BONDS OR
28 FOR EACH SCHEDULED PHASE OF THE PREVIOUSLY APPROVED RETIREMENT
29 OF ELECTRIC GENERATING FACILITIES APPROVED IN THE FINANCING ORDER.
30 (g) INCLUDE AN ADJUSTMENT MECHANISM FOR MAKING
31 EXPEDITIOUS PERIODIC ADJUSTMENTS IN THE CO-EIA CHARGES THAT
32 CUSTOMERS ARE REQUIRED TO PAY PURSUANT TO THE FINANCING ORDER
33 AND FOR MAKING ANY ADJUSTMENTS THAT ARE NECESSARY TO CORRECT
34 FOR ANY OVER COLLECTION OR UNDER COLLECTION OF THE CO-EIA
35 CHARGES IN PAST PERIODS OR TO OTHERWISE GUARANTEE THE TIMELY
36 PAYMENT OF CO-EIA BONDS AND FINANCING COSTS AND OTHER
37 REQUIRED AMOUNTS AND CHARGES PAYABLE IN CONNECTION WITH
38 CO-EIA BONDS;
39 (h) INCLUDE ANY ADDITIONAL FINDINGS OR CONCLUSIONS DEEMED
40 APPROPRIATE BY THE COMMISSION;
41 (i) SPECIFY THE DEGREE OF FLEXIBILITY AFFORDED TO THE
42 ELECTRIC UTILITY IN ESTABLISHING THE TERMS AND CONDITIONS OF THE
43 CO-EIA BONDS, INCLUDING, BUT NOT LIMITED TO, REPAYMENT
44 SCHEDULES, EXPECTED INTEREST RATES, AND OTHER FINANCING COSTS;
45 (j) SPECIFY THE TIMING OF ACTIONS REQUIRED BY THE ORDER SO
46 THAT:
47 (I) THE CO-EIA BONDS ARE ISSUED AS SOON AS FEASIBLE
48 FOLLOWING THE ISSUANCE OF THE FINANCING ORDER, INDEPENDENT OF
49 THE SCHEDULE OF CLOSING AND DECOMMISSIONING OF THE ELECTRIC
50 GENERATING FACILITY;
51 (II) THE ENERGY ASSISTANCE FUNDS ARE TRANSFERRED TO THE
52 AUTHORITY AS SOON AS FEASIBLE, BUT NO LATER THAN THE EARLIER OF
53 THE DATE ON WHICH THE ELECTRIC GENERATING FACILITY CEASES
54 OPERATION; AND
55 (III) THE APPLICANT ELECTRIC UTILITY FILES TO REDUCE ITS RATES
1 AS REQUIRED IN SUBSECTION (4) OF THIS SECTION SIMULTANEOUSLY WITH
2 THE INCEPTION OF THE CO-EIA CHARGES AND INDEPENDENTLY OF THE
3 SCHEDULE OF CLOSING AND DECOMMISSIONING OF THE ELECTRIC
4 GENERATING FACILITY; AND
5 (k) SPECIFY A FUTURE RATEMAKING PROCESS TO RECONCILE ANY
6 DIFFERENCE BETWEEN THE PROJECTED PRETAX COSTS INCLUDED IN THE
7 AMOUNT FINANCED BY CO-EIA BONDS AND THE FINAL ACTUAL PRETAX
8 COSTS INCURRED BY THE ELECTRIC UTILITY IN RETIRING THE ELECTRIC
9 GENERATING FACILITY. THE RECONCILIATION MAY AFFECT THE ELECTRIC
10 UTILITY'S BASE RATES OR ANY RIDER ADOPTED PURSUANT TO SUBSECTION
11 (4) OF THIS SECTION, BUT SHALL NOT AFFECT THE AMOUNT OF THE BONDS
12 OR THE ASSOCIATED CO-EIA CHARGES PAID BY CUSTOMERS.
13 (3) A FINANCING ORDER ISSUED TO AN ELECTRIC UTILITY MUST
14 PERMIT AND MAY REQUIRE THE CREATION OF AN ELECTRIC UTILITY'S
15 CO-EIA PROPERTY PURSUANT TO SUBSECTION (2)(e) OF THIS SECTION TO
16 BE CONDITIONED UPON, AND SIMULTANEOUS WITH, THE SALE OR OTHER
17 TRANSFER OF THE CO-EIA PROPERTY TO AN ASSIGNEE AND THE PLEDGE
18 OF THE CO-EIA PROPERTY TO SECURE CO-EIA BONDS.
19 (4) A FINANCING ORDER SHALL REQUIRE THE APPLICANT ELECTRIC
20 UTILITY, SIMULTANEOUSLY WITH THE INCEPTION OF THE COLLECTION OF
21 CO-EIA CHARGES, TO REDUCE ITS RATES THROUGH A REDUCTION IN BASE
22 RATES OR BY A NEGATIVE RIDER ON CUSTOMER BILLS IN AN AMOUNT
23 EQUAL TO THE REVENUE REQUIREMENT ASSOCIATED WITH THE UTILITY
24 ASSETS BEING FINANCED BY CO-EIA BONDS.
25 40-41-106. Effect of financing order. (1) A FINANCING ORDER
26 REMAINS IN EFFECT UNTIL THE CO-EIA BONDS ISSUED AS AUTHORIZED BY
27 THE FINANCING ORDER HAVE BEEN PAID IN FULL AND ALL FINANCING
28 COSTS RELATING TO THE CO-EIA BONDS HAVE BEEN PAID IN FULL.
29 (2) A FINANCING ORDER REMAINS IN EFFECT AND UNABATED
30 NOTWITHSTANDING THE BANKRUPTCY, REORGANIZATION, OR INSOLVENCY
31 OF THE ELECTRIC UTILITY TO WHICH THE FINANCING ORDER APPLIES OR
32 ANY AFFILIATE OF THE ELECTRIC UTILITY OR SUCCESSOR ENTITY OR
33 ASSIGNEE.
34 (3) SUBJECT TO JUDICIAL REVIEW AS PROVIDED FOR IN SECTION
35 40-41-109, A FINANCING ORDER IS IRREVOCABLE. THEREFORE,
36 NOTWITHSTANDING SECTION 40-6-112 (1), THE COMMISSION MAY NOT
37 REDUCE, IMPAIR, POSTPONE, OR TERMINATE CO-EIA CHARGES APPROVED
38 IN A FINANCING ORDER OR IMPAIR CO-EIA PROPERTY OR THE COLLECTION
39 OR RECOVERY OF CO-EIA REVENUE.
40 (4) NOTWITHSTANDING SUBSECTION (3) OF THIS SECTION, UPON ITS
41 OWN MOTION OR AT THE REQUEST OF AN ELECTRIC UTILITY OR ANY OTHER
42 PERSON, THE COMMISSION MAY COMMENCE A PROCEEDING AND ISSUE A
43 SUBSEQUENT FINANCING ORDER THAT PROVIDES FOR REFINANCING,
44 RETIRING, OR REFUNDING CO-EIA BONDS ISSUED PURSUANT TO THE
45 ORIGINAL FINANCING ORDER IF:
46 (a) THE COMMISSION MAKES ALL OF THE FINDINGS SPECIFIED IN
47 SECTION 40-41-105 (1) WITH RESPECT TO THE SUBSEQUENT FINANCING
48 ORDER; AND
49 (b) THE MODIFICATION PROVIDED FOR IN THE SUBSEQUENT
50 FINANCING ORDER DOES NOT IMPAIR IN ANY WAY THE COVENANTS AND
51 TERMS OF THE CO-EIA BONDS TO BE REFINANCED, RETIRED, OR
52 REFUNDED.
53 40-41-107. Effect on commission jurisdiction. (1) EXCEPT AS
54 OTHERWISE PROVIDED IN SUBSECTION (2) OF THIS SECTION, IF THE
55 COMMISSION ISSUES A FINANCING ORDER TO AN ELECTRIC UTILITY, THE
1 COMMISSION SHALL NOT, IN EXERCISING ITS POWERS AND CARRYING OUT
2 ITS DUTIES PURSUANT TO THIS ARTICLE 41:
3 (a) CONSIDER THE CO-EIA BONDS ISSUED PURSUANT TO THE
4 FINANCING ORDER TO BE DEBT OF THE ELECTRIC UTILITY OTHER THAN FOR
5 INCOME TAX PURPOSES UNLESS IT IS NECESSARY TO CONSIDER THE
6 CO-EIA BONDS TO BE SUCH DEBT TO ACHIEVE CONSISTENCY WITH
7 PREVAILING UTILITY DEBT RATING METHODOLOGIES;
8 (b) CONSIDER THE CO-EIA CHARGES PAID UNDER THE FINANCING
9 ORDER TO BE REVENUE OF THE ELECTRIC UTILITY;
10 (c) CONSIDER THE CO-EIA COSTS OR FINANCING COSTS SPECIFIED
11 IN THE FINANCING ORDER TO BE THE REGULATED COSTS OR ASSETS OF THE
12 ELECTRIC UTILITY; OR
13 (d) DETERMINE ANY PRUDENT ACTION TAKEN BY AN ELECTRIC
14 UTILITY THAT IS CONSISTENT WITH THE FINANCING ORDER TO BE UNJUST
15 OR UNREASONABLE.
16 (2) NOTHING IN SUBSECTION (1) OF THIS SECTION:
17 (a) AFFECTS THE AUTHORITY OF THE COMMISSION TO APPLY OR
18 MODIFY ANY BILLING MECHANISM DESIGNED TO RECOVER CO-EIA
19 CHARGES;
20 (b) PREVENTS OR PRECLUDES THE COMMISSION FROM
21 INVESTIGATING THE COMPLIANCE OF AN ELECTRIC UTILITY WITH THE
22 TERMS AND CONDITIONS OF A FINANCING ORDER AND REQUIRING
23 COMPLIANCE WITH THE FINANCING ORDER; OR
24 (c) PREVENTS OR PRECLUDES THE COMMISSION FROM IMPOSING
25 REGULATORY SANCTIONS AGAINST A REGULATED ELECTRIC UTILITY FOR
26 FAILURE TO COMPLY WITH THE TERMS AND CONDITIONS OF A FINANCING
27 ORDER OR THE REQUIREMENTS OF THIS ARTICLE 41.
28 (3) THE COMMISSION MAY NOT REFUSE TO ALLOW THE RECOVERY
29 OF ANY COSTS ASSOCIATED WITH THE RETIREMENT OF ELECTRIC
30 GENERATING FACILITIES BY AN ELECTRIC UTILITY SOLELY BECAUSE THE
31 ELECTRIC UTILITY HAS ELECTED TO FINANCE THOSE ACTIVITIES THROUGH
32 A FINANCING MECHANISM OTHER THAN CO-EIA BONDS.
33 40-41-108. Electric utility customer protection - legislative
34 declaration. (1) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES
35 THAT:
36 (a) THE USE OF CO-EIA BOND FINANCING WILL BRING
37 SUBSTANTIAL BENEFITS TO COLORADO ELECTRIC UTILITY CUSTOMERS AND
38 TO COLORADO ELECTRIC GENERATING FACILITY WORKERS AND COLORADO
39 COMMUNITIES THAT ARE DIRECTLY IMPACTED BY THE RETIREMENT OF
40 ELECTRIC GENERATING FACILITIES; AND
41 (b) BECAUSE, SUBJECT TO JUDICIAL REVIEW AS PROVIDED FOR IN
42 SECTION 40-41-109, THE COMMISSION'S APPROVAL OF A FINANCING ORDER
43 IS IRREVOCABLE, TYPICALLY ADDRESSES VERY LARGE AMOUNTS OF
44 FINANCING UNDERTAKEN PURSUANT TO THIS ARTICLE 41, AND CAN ONLY
45 BE SUPERSEDED BY THE COMMISSION THROUGH THE ISSUANCE OF A
46 SUBSEQUENT FINANCING ORDER TO THE LIMITED EXTENT AND IN THE
47 LIMITED CIRCUMSTANCES SPECIFIED IN SECTIONS 40-41-106 (4) AND
48 40-41-114 (3), IN ADDITION TO ITS OTHER POWERS AND DUTIES, THE
49 COMMISSION HAS THE DUTY TO PERFORM AND AUTHORITY REQUIRED TO
50 PERFORM COMPREHENSIVE DUE DILIGENCE IN ITS EVALUATION OF AN
51 APPLICATION FOR A FINANCING ORDER AND HAS THE DUTY AND
52 AUTHORITY TO OVERSEE THE PROCESS USED TO STRUCTURE, MARKET, AND
53 PRICE CO-EIA BONDS.
54 (2) IN ADDITION TO ANY OTHER AUTHORITY OF THE COMMISSION:
55 (a) THE COMMISSION MAY ATTACH SUCH CONDITIONS TO THE
1 APPROVAL OF A FINANCING ORDER AS THE COMMISSION DEEMS
2 APPROPRIATE TO MAXIMIZE THE FINANCIAL BENEFITS OR MINIMIZE THE
3 FINANCIAL RISKS OF THE TRANSACTION TO CUSTOMERS AND TO DIRECTLY
4 IMPACTED COLORADO WORKERS AND COMMUNITIES;
5 (b) THE COMMISSION MAY SPECIFY DETAILS OF THE PROCESS USED
6 TO STRUCTURE, MARKET, AND PRICE CO-EIA BONDS, INCLUDING THE
7 SELECTION OF THE UNDERWRITER OR UNDERWRITERS;
8 (c) THE COMMISSION SHALL REVIEW AND DETERMINE THE
9 REASONABLENESS OF ALL PROPOSED UP-FRONT AND ONGOING FINANCING
10 COSTS; AND
11 (d) THE COMMISSION SHALL ENSURE THAT THE STRUCTURING,
12 MARKETING, AND PRICING OF CO-EIA BONDS MAXIMIZES NET PRESENT
13 VALUE CUSTOMER SAVINGS, CONSISTENT WITH MARKET CONDITIONS AND
14 THE TERMS OF THE FINANCING ORDER.
15 (3) WITHIN ONE HUNDRED TWENTY DAYS AFTER THE ISSUANCE OF
16 CO-EIA BONDS, THE APPLICANT ELECTRIC UTILITY SHALL FILE WITH THE
17 COMMISSION INFORMATION REGARDING THE ACTUAL UP-FRONT AND
18 ONGOING FINANCING COSTS OF THE CO-EIA BONDS. THE COMMISSION
19 SHALL REVIEW THE PRUDENCE OF THE ELECTRIC UTILITY'S ACTION TO
20 DETERMINE WHETHER THE COSTS RESULTED IN THE LOWEST OVERALL
21 COSTS THAT WERE REASONABLY CONSISTENT WITH BOTH MARKET
22 CONDITIONS AT THE TIME OF THE ISSUANCE AND THE TERMS OF THE
23 FINANCING ORDER. IF THE COMMISSION DETERMINES THAT THE ELECTRIC
24 UTILITY'S ACTIONS WERE NOT PRUDENT OR WERE INCONSISTENT WITH THE
25 FINANCING ORDER, THE COMMISSION MAY APPLY ANY REMEDIES THAT ARE
26 AVAILABLE TO IT UNDER ARTICLE 7 OF THIS TITLE 40; EXCEPT THAT THE
27 COMMISSION SHALL NOT APPLY ANY REMEDY THAT HAS THE EFFECT,
28 DIRECTLY OR INDIRECTLY, OF IMPAIRING THE SECURITY FOR THE CO-EIA
29 BONDS.
30 (4) IN PERFORMING ITS RESPONSIBILITIES UNDER THIS ARTICLE 41,
31 THE COMMISSION MAY ENGAGE OUTSIDE CONSULTANTS AND COUNSEL,
32 SELECTED BY THE COMMISSION, WHO ARE EXPERIENCED IN SECURITIZED
33 ELECTRIC UTILITY RATEPAYER-BACKED BOND FINANCING SIMILAR TO
34 CO-EIA BONDS. THESE OUTSIDE CONSULTANTS AND COUNSEL HAVE A
35 DUTY OF LOYALTY SOLELY TO THE COMMISSION AND SHALL NOT BE
36 INVOLVED, EITHER DIRECTLY OR INDIRECTLY THROUGH AFFILIATES, IN
37 TRADING DEBT OR EQUITY SECURITIES ISSUED BY OR ON BEHALF OF ANY
38 ELECTRIC UTILITY THAT HAS APPLIED FOR A FINANCING ORDER. THE
39 EXPENSES ASSOCIATED WITH ANY ENGAGEMENT SHALL BE PAID BY THE
40 APPLICANT UTILITY AS THEY ARE INCURRED, SHALL BE INCLUDED AS
41 FINANCING COSTS AND INCLUDED IN THE CO-EIA CHARGE, ARE NOT AN
42 OBLIGATION OF THE STATE, AND ARE ASSIGNED SOLELY TO THE
43 TRANSACTION.
44 (5) IF AN ELECTRIC UTILITY'S APPLICATION FOR A FINANCING
45 ORDER IS DENIED OR WITHDRAWN OR FOR ANY REASON NO CO-EIA BONDS
46 ARE ISSUED, ANY COSTS OF RETAINING EXPERT CONSULTANTS AND
47 COUNSEL ON BEHALF OF THE COMMISSION, AS AUTHORIZED BY
48 SUBSECTION (4) OF THIS SECTION, SHALL BE PAID BY THE APPLICANT
49 ELECTRIC UTILITY AND SHALL BE CONSIDERED BY THE COMMISSION AS A
50 PRUDENT DEFERRED EXPENSE FOR RECOVERY IN THE ELECTRIC UTILITY'S
51 FUTURE RATES.
52 40-41-109. Judicial review of financing orders. A FINANCING
53 ORDER IS A FINAL ORDER OF THE COMMISSION. NOTWITHSTANDING
54 SECTION 40-6-115 (5) SPECIFYING PROPER VENUE FOR PETITION FILINGS,
55 A PARTY AGGRIEVED BY THE ISSUANCE OF A FINANCING ORDER MAY
1 PETITION FOR SUSPENSION AND REVIEW OF THE FINANCING ORDER ONLY IN
2 THE DISTRICT COURT FOR THE CITY AND COUNTY OF DENVER. IN THE CASE
3 OF ANY PETITION FOR SUSPENSION AND REVIEW, THE COURT SHALL
4 PROCEED TO HEAR AND DETERMINE THE ACTION AS EXPEDITIOUSLY AS
5 PRACTICABLE AND SHALL GIVE THE ACTION PRECEDENCE OVER OTHER
6 MATTERS NOT ACCORDED SIMILAR PRECEDENCE BY LAW.
7 40-41-110. Electric utilities - duties. (1) THE ELECTRIC BILLS OF
8 AN ELECTRIC UTILITY THAT HAS OBTAINED A FINANCING ORDER AND
9 CAUSED CO-EIA BONDS TO BE ISSUED:
10 (a) MUST EXPLICITLY REFLECT THAT A PORTION OF THE CHARGES
11 ON THE BILL REPRESENTS CO-EIA CHARGES APPROVED IN A FINANCING
12 ORDER ISSUED TO THE ELECTRIC UTILITY AND, IF THE CO-EIA PROPERTY
13 HAS BEEN TRANSFERRED TO AN ASSIGNEE, MUST INCLUDE A STATEMENT
14 THAT THE ASSIGNEE IS THE OWNER OF THE RIGHTS TO CO-EIA CHARGES
15 AND THAT THE ELECTRIC UTILITY OR OTHER ENTITY, IF APPLICABLE, IS
16 ACTING AS A COLLECTION AGENT OR SERVICER FOR THE ASSIGNEE;
17 (b) MUST INCLUDE THE CO-EIA CHARGE ON EACH CUSTOMER'S
18 BILL AS A SEPARATE LINE ITEM TITLED "ENERGY IMPACT ASSISTANCE
19 CHARGE" AND MAY INCLUDE BOTH THE RATE AND THE AMOUNT OF THE
20 CHARGE ON EACH BILL. THE FAILURE OF AN ELECTRIC UTILITY TO COMPLY
21 WITH THIS SUBSECTION (1) DOES NOT INVALIDATE, IMPAIR, OR AFFECT ANY
22 FINANCING ORDER, CO-EIA PROPERTY, CO-EIA CHARGE, OR CO-EIA
23 BONDS, BUT DOES SUBJECT THE ELECTRIC UTILITY TO PENALTIES UNDER
24 APPLICABLE COMMISSION RULES; AND
25 (c) MUST EXPLAIN TO CUSTOMERS IN AN ANNUAL FILING WITH THE
26 COMMISSION THE RATE IMPACT THAT FINANCING THE RETIREMENT OF
27 ELECTRIC GENERATING FACILITIES HAS HAD ON CUSTOMER RATES.
28 (2) AN ELECTRIC UTILITY THAT HAS OBTAINED A FINANCING ORDER
29 AND CAUSED CO-EIA BONDS TO BE ISSUED MUST DEMONSTRATE IN AN
30 ANNUAL FILING WITH THE COMMISSION THAT CO-EIA REVENUES ARE
31 APPLIED SOLELY TO THE REPAYMENT OF CO-EIA BONDS AND OTHER
32 FINANCING COSTS.
33 40-41-111. CO-EIA property. (1) CO-EIA PROPERTY THAT IS
34 DESCRIBED IN A FINANCING ORDER CONSTITUTES AN EXISTING PRESENT
35 PROPERTY RIGHT OR INTEREST IN AN EXISTING PRESENT PROPERTY RIGHT
36 EVEN THOUGH THE IMPOSITION AND COLLECTION OF CO-EIA CHARGES
37 DEPENDS ON THE ELECTRIC UTILITY TO WHICH THE FINANCING ORDER IS
38 ISSUED PERFORMING ITS SERVICING FUNCTIONS RELATING TO THE
39 COLLECTION OF CO-EIA CHARGES AND ON FUTURE ELECTRICITY
40 CONSUMPTION. THE PROPERTY RIGHT OR INTEREST EXISTS REGARDLESS OF
41 WHETHER THE REVENUES OR PROCEEDS ARISING FROM THE CO-EIA
42 PROPERTY HAVE BEEN BILLED, HAVE ACCRUED, OR HAVE BEEN COLLECTED
43 AND NOTWITHSTANDING THE FACT THAT THE VALUE OR AMOUNT OF THE
44 PROPERTY RIGHT OR INTEREST IS DEPENDENT ON THE FUTURE PROVISION
45 OF SERVICE TO CUSTOMERS BY THE ELECTRIC UTILITY OR A SUCCESSOR OR
46 ASSIGNEE OF THE ELECTRIC UTILITY.
47 (2) CO-EIA PROPERTY DESCRIBED IN A FINANCING ORDER EXISTS
48 UNTIL ALL CO-EIA BONDS ISSUED PURSUANT TO THE FINANCING ORDER
49 ARE PAID IN FULL AND ALL FINANCING COSTS AND OTHER COSTS OF THE
50 CO-EIA BONDS HAVE BEEN RECOVERED IN FULL.
51 (3) ALL OR ANY PORTION OF CO-EIA PROPERTY DESCRIBED IN A
52 FINANCING ORDER ISSUED TO AN ELECTRIC UTILITY MAY BE TRANSFERRED,
53 SOLD, CONVEYED, OR ASSIGNED TO A SUCCESSOR OR ASSIGNEE THAT IS
54 WHOLLY OWNED, DIRECTLY OR INDIRECTLY, BY THE ELECTRIC UTILITY
55 AND IS CREATED FOR THE LIMITED PURPOSE OF ACQUIRING, OWNING, OR
1 ADMINISTERING CO-EIA PROPERTY OR ISSUING CO-EIA BONDS AS
2 AUTHORIZED BY THE FINANCING ORDER. ALL OR ANY PORTION OF CO-EIA
3 PROPERTY MAY BE PLEDGED TO SECURE CO-EIA BONDS ISSUED PURSUANT
4 TO A FINANCING ORDER, AMOUNTS PAYABLE TO FINANCING PARTIES AND
5 TO COUNTERPARTIES UNDER ANY ANCILLARY AGREEMENTS, AND OTHER
6 FINANCING COSTS. EACH TRANSFER, SALE, CONVEYANCE, ASSIGNMENT, OR
7 PLEDGE BY AN ELECTRIC UTILITY OR AN AFFILIATE OF AN ELECTRIC
8 UTILITY IS A TRANSACTION IN THE NORMAL COURSE OF BUSINESS FOR
9 PURPOSES OF SECTION 40-5-105 (1)(a).
10 (4) IF AN ELECTRIC UTILITY DEFAULTS ON ANY REQUIRED PAYMENT
11 OF CHARGES ARISING FROM CO-EIA PROPERTY DESCRIBED IN A FINANCING
12 ORDER, A COURT, UPON APPLICATION BY AN INTERESTED PARTY AND
13 WITHOUT LIMITING ANY OTHER REMEDIES AVAILABLE TO THE APPLYING
14 PARTY, SHALL ORDER THE SEQUESTRATION AND PAYMENT OF THE
15 REVENUE ARISING FROM THE CO-EIA PROPERTY TO THE FINANCING
16 PARTIES. ANY SUCH FINANCING ORDER REMAINS IN FULL FORCE AND
17 EFFECT NOTWITHSTANDING ANY REORGANIZATION, BANKRUPTCY, OR
18 OTHER INSOLVENCY PROCEEDINGS WITH RESPECT TO THE ELECTRIC
19 UTILITY OR ITS SUCCESSORS OR ASSIGNEES.
20 (5) THE INTEREST OF A TRANSFEREE, PURCHASER, ACQUIRER,
21 ASSIGNEE, OR PLEDGEE IN CO-EIA PROPERTY SPECIFIED IN A FINANCING
22 ORDER ISSUED TO AN ELECTRIC UTILITY, AND IN THE REVENUE AND
23 COLLECTIONS ARISING FROM THAT PROPERTY, IS NOT SUBJECT TO SETOFF,
24 COUNTERCLAIM, SURCHARGE, OR DEFENSE BY THE ELECTRIC UTILITY OR
25 ANY OTHER PERSON OR IN CONNECTION WITH THE REORGANIZATION,
26 BANKRUPTCY, OR OTHER INSOLVENCY OF THE ELECTRIC UTILITY OR ANY
27 OTHER ENTITY.
28 (6) A SUCCESSOR TO AN ELECTRIC UTILITY, WHETHER PURSUANT
29 TO ANY REORGANIZATION, BANKRUPTCY, OR OTHER INSOLVENCY
30 PROCEEDING OR WHETHER PURSUANT TO ANY MERGER OR ACQUISITION,
31 SALE, OTHER BUSINESS COMBINATION, OR TRANSFER BY OPERATION OF
32 LAW, AS A RESULT OF ELECTRIC UTILITY RESTRUCTURING OR OTHERWISE,
33 MUST PERFORM AND SATISFY ALL OBLIGATIONS OF, AND HAS THE SAME
34 DUTIES AND RIGHTS UNDER A FINANCING ORDER AS THE ELECTRIC UTILITY
35 TO WHICH THE FINANCING ORDER APPLIES AND SHALL PERFORM THE
36 DUTIES AND EXERCISE THE RIGHTS IN THE SAME MANNER AND TO THE
37 SAME EXTENT AS THE ELECTRIC UTILITY, INCLUDING COLLECTING AND
38 PAYING TO ANY PERSON ENTITLED TO RECEIVE THEM THE REVENUES,
39 COLLECTIONS, PAYMENTS, OR PROCEEDS OF CO-EIA PROPERTY DESCRIBED
40 IN THE FINANCING ORDER.
41 40-41-112. CO-EIA bonds - legal investments - not public debt
42 - pledge of state. (1) BANKS, TRUST COMPANIES, SAVINGS AND LOAN
43 ASSOCIATIONS, INSURANCE COMPANIES, EXECUTORS, ADMINISTRATORS,
44 GUARDIANS, TRUSTEES, AND OTHER FIDUCIARIES MAY LEGALLY INVEST
45 ANY MONEY WITHIN THEIR CONTROL IN CO-EIA BONDS. PUBLIC ENTITIES,
46 AS DEFINED IN SECTION 24-75-601 (1), MAY INVEST PUBLIC FUNDS IN
47 CO-EIA BONDS ONLY IF THE CO-EIA BONDS SATISFY THE INVESTMENT
48 REQUIREMENTS ESTABLISHED IN PART 6 OF ARTICLE 75 OF TITLE 24.
49 (2) CO-EIA BONDS ISSUED AS AUTHORIZED BY A FINANCING
50 ORDER ARE NOT DEBT OF OR A PLEDGE OF THE FAITH AND CREDIT OR
51 TAXING POWER OF THE STATE, ANY AGENCY OF THE STATE, OR ANY
52 COUNTY, MUNICIPALITY, OR OTHER POLITICAL SUBDIVISION OF THE STATE.
53 HOLDERS OF CO-EIA BONDS HAVE NO RIGHT TO HAVE TAXES LEVIED BY
54 THE STATE OR BY ANY COUNTY, MUNICIPALITY, OR OTHER POLITICAL
55 SUBDIVISION OF THE STATE FOR THE PAYMENT OF THE PRINCIPAL OR
1 INTEREST ON CO-EIA BONDS. THE ISSUANCE OF CO-EIA BONDS DOES NOT
2 DIRECTLY, INDIRECTLY, OR CONTINGENTLY OBLIGATE THE STATE OR A
3 POLITICAL SUBDIVISION OF THE STATE TO LEVY ANY TAX OR MAKE ANY
4 APPROPRIATION FOR PAYMENT OF PRINCIPAL OR INTEREST ON THE CO-EIA
5 BONDS.
6 (3) (a) THE STATE PLEDGES TO AND AGREES WITH HOLDERS OF
7 CO-EIA BONDS, ANY ASSIGNEE, AND ANY FINANCING PARTIES THAT THE
8 STATE WILL NOT:
9 (I) TAKE OR PERMIT ANY ACTION THAT IMPAIRS THE VALUE OF
10 CO-EIA PROPERTY; OR
11 (II) REDUCE, ALTER, OR IMPAIR CO-EIA CHARGES THAT ARE
12 IMPOSED, COLLECTED, AND REMITTED FOR THE BENEFIT OF HOLDERS OF
13 CO-EIA BONDS, ANY ASSIGNEE, AND ANY FINANCING PARTIES, UNTIL ANY
14 PRINCIPAL, INTEREST, AND REDEMPTION PREMIUM PAYABLE ON CO-EIA
15 BONDS, ALL FINANCING COSTS, AND ALL AMOUNTS TO BE PAID TO AN
16 ASSIGNEE OR FINANCING PARTY UNDER AN ANCILLARY AGREEMENT ARE
17 PAID IN FULL.
18 (b) A PERSON WHO ISSUES CO-EIA BONDS MAY INCLUDE THE
19 PLEDGE SPECIFIED IN SUBSECTION (3)(a) OF THIS SECTION IN THE CO-EIA
20 BONDS, ANCILLARY AGREEMENTS, AND DOCUMENTATION RELATED TO THE
21 ISSUANCE AND MARKETING OF THE CO-EIA BONDS.
22 40-41-113. Assignee or financing party not automatically
23 subject to commission regulation. AN ELECTRIC UTILITY, ASSIGNEE, OR
24 FINANCING PARTY THAT IS NOT ALREADY REGULATED BY THE COMMISSION
25 DOES NOT BECOME SUBJECT TO COMMISSION REGULATION SOLELY AS A
26 RESULT OF ENGAGING IN ANY TRANSACTION AUTHORIZED BY OR
27 DESCRIBED IN THIS ARTICLE 41.
28 40-41-114. Effect of other laws and judicial decisions. (1) IF
29 ANY PROVISION OF THIS ARTICLE 41 CONFLICTS WITH ANY OTHER LAW
30 REGARDING THE ATTACHMENT, ASSIGNMENT, PERFECTION, EFFECT OF
31 PERFECTION, OR PRIORITY OF ANY SECURITY INTEREST IN OR TRANSFER OF
32 CO-EIA PROPERTY, THE PROVISION OF THIS ARTICLE 41 GOVERNS TO THE
33 EXTENT OF THE CONFLICT.
34 (2) EFFECTIVE ON THE DATE THAT CO-EIA BONDS ARE FIRST
35 ISSUED, IF ANY PROVISION OF THIS ARTICLE 41 IS HELD TO BE INVALID OR
36 IS INVALIDATED, SUPERSEDED, REPLACED, REPEALED, OR EXPIRES, THAT
37 OCCURRENCE DOES NOT AFFECT ANY ACTION ALLOWED UNDER THIS
38 ARTICLE 41 THAT WAS LAWFULLY TAKEN BY THE COMMISSION, AN
39 ELECTRIC UTILITY, AN ASSIGNEE, A COLLECTION AGENT, A FINANCING
40 PARTY, A BONDHOLDER, OR A PARTY TO AN ANCILLARY AGREEMENT
41 BEFORE THE OCCURRENCE, AND ANY SUCH ACTION REMAINS IN FULL FORCE
42 AND EFFECT.
43 (3) NOTHING IN SUBSECTION (1) OR (2) OF THIS SECTION
44 PRECLUDES AN ELECTRIC UTILITY FOR WHICH THE COMMISSION HAS
45 INITIALLY ISSUED A FINANCING ORDER FROM APPLYING TO THE
46 COMMISSION FOR:
47 (a) A SUBSEQUENT FINANCING ORDER AMENDING THE FINANCING
48 ORDER AS AUTHORIZED BY SECTION 40-41-106 (4); OR
49 (b) APPROVAL OF THE ISSUANCE OF CO-EIA BONDS TO REFUND
50 ALL OR A PORTION OF AN OUTSTANDING SERIES OF CO-EIA BONDS.
51 40-41-115. Choice of law. THE LAWS OF THE STATE GOVERN THE
52 VALIDITY, ENFORCEABILITY, ATTACHMENT, PERFECTION, PRIORITY, AND
53 EXERCISE OF REMEDIES WITH RESPECT TO THE TRANSFER OF AN INTEREST
54 OR RIGHT OR CREATION OF A SECURITY INTEREST IN ANY CO-EIA
55 PROPERTY, CO-EIA CHARGE, OR FINANCING ORDER.
1 40-41-116. Security interests in CO-EIA property. (1) THE
2 CREATION, PERFECTION, AND ENFORCEMENT OF ANY SECURITY INTEREST
3 IN CO-EIA PROPERTY TO SECURE THE REPAYMENT OF THE PRINCIPAL OF
4 AND INTEREST ON CO-EIA BONDS, AMOUNTS PAYABLE UNDER ANY
5 ANCILLARY AGREEMENT, AND OTHER FINANCING COSTS ARE GOVERNED BY
6 THIS SECTION AND NOT BY THE "UNIFORM COMMERCIAL CODE", TITLE 4.
7 (2) THE DESCRIPTION OR INDICATION OF CO-EIA PROPERTY IN A
8 TRANSFER OR SECURITY AGREEMENT AND A FINANCING STATEMENT IS
9 SUFFICIENT ONLY IF THE DESCRIPTION OR INDICATION REFERS TO THIS
10 ARTICLE 41 AND THE FINANCING ORDER CREATING THE CO-EIA
11 PROPERTY.
12 (3) (a) A SECURITY INTEREST IN CO-EIA PROPERTY IS CREATED,
13 VALID, AND BINDING AS SOON AS ALL OF THE FOLLOWING EVENTS HAVE
14 OCCURRED:
15 (I) THE FINANCING ORDER THAT DESCRIBES THE CO-EIA
16 PROPERTY IS ISSUED;
17 (II) A SECURITY AGREEMENT IS EXECUTED AND DELIVERED; AND
18 (III) VALUE IS RECEIVED FOR THE CO-EIA BONDS.
19 (b) ONCE A SECURITY INTEREST IN CO-EIA PROPERTY IS CREATED
20 UNDER SUBSECTION (3)(a) OF THIS SECTION, THE SECURITY INTEREST
21 ATTACHES WITHOUT ANY PHYSICAL DELIVERY OF COLLATERAL OR ANY
22 OTHER ACT. THE LIEN OF THE SECURITY INTEREST IS VALID, BINDING, AND
23 PERFECTED AGAINST ALL PARTIES HAVING CLAIMS OF ANY KIND IN TORT,
24 CONTRACT OR OTHERWISE AGAINST THE PERSON GRANTING THE SECURITY
25 INTEREST, REGARDLESS OF WHETHER SUCH PARTIES HAVE NOTICE OF THE
26 LIEN, UPON THE FILING OF A FINANCING STATEMENT WITH THE SECRETARY
27 OF STATE. THE SECRETARY OF STATE SHALL MAINTAIN A FINANCING
28 STATEMENT FILED PURSUANT TO THIS SUBSECTION (3)(b) IN THE SAME
29 MANNER IN WHICH THE SECRETARY MAINTAINS AND IN THE SAME
30 RECORD-KEEPING SYSTEM IN WHICH THE SECRETARY MAINTAINS
31 FINANCING STATEMENTS FILED PURSUANT TO ARTICLE 9 OF TITLE 4. THE
32 FILING OF ANY FINANCING STATEMENT PURSUANT TO THIS SUBSECTION
33 (3)(b) IS GOVERNED BY ARTICLE 9 OF TITLE 4 REGARDING THE FILING OF
34 FINANCING STATEMENTS.
35 (4) A SECURITY INTEREST IN CO-EIA PROPERTY IS A
36 CONTINUOUSLY PERFECTED SECURITY INTEREST AND HAS PRIORITY OVER
37 ANY OTHER LIEN, CREATED BY OPERATION OF LAW OR OTHERWISE, WHICH
38 MAY SUBSEQUENTLY ATTACH TO THE CO-EIA PROPERTY UNLESS THE
39 HOLDER OF THE SECURITY INTEREST HAS AGREED IN WRITING OTHERWISE.
40 (5) THE PRIORITY OF A SECURITY INTEREST IN CO-EIA PROPERTY
41 IS NOT AFFECTED BY THE COMMINGLING OF CO-EIA PROPERTY OR
42 CO-EIA REVENUE WITH OTHER MONEY. AN ASSIGNEE, BONDHOLDER, OR
43 FINANCING PARTY HAS A PERFECTED SECURITY INTEREST IN THE AMOUNT
44 OF ALL CO-EIA PROPERTY OR CO-EIA REVENUE THAT IS PLEDGED FOR
45 THE PAYMENT OF CO-EIA BONDS EVEN IF THE CO-EIA PROPERTY OR
46 CO-EIA REVENUE IS DEPOSITED IN A CASH OR DEPOSIT ACCOUNT OF THE
47 ELECTRIC UTILITY IN WHICH THE CO-EIA REVENUE IS COMMINGLED WITH
48 OTHER MONEY, AND ANY OTHER SECURITY INTEREST THAT APPLIES TO THE
49 OTHER MONEY DOES NOT APPLY TO THE CO-EIA REVENUE.
50 (6) NEITHER A SUBSEQUENT ORDER OF THE COMMISSION
106 51 AMENDING A FINANCING ORDER AS AUTHORIZED BY SECTION 40-41-
52 (4), NOR APPLICATION OF AN ADJUSTMENT MECHANISM AS AUTHORIZED BY
53 SECTION 40-41-105 (2)(g), AFFECTS THE VALIDITY, PERFECTION, OR
54 PRIORITY OF A SECURITY INTEREST IN OR TRANSFER OF CO-EIA PROPERTY.
55 40-41-117. Sales of CO-EIA property. (1) (a) A SALE,
1 ASSIGNMENT, OR TRANSFER OF CO-EIA PROPERTY IS AN ABSOLUTE
2 TRANSFER AND TRUE SALE OF, AND NOT A PLEDGE OF OR SECURED
3 TRANSACTION RELATING TO, THE SELLER'S RIGHT, TITLE AND INTEREST IN,
4 TO, AND UNDER THE CO-EIA PROPERTY IF THE DOCUMENTS GOVERNING
5 THE TRANSACTION EXPRESSLY STATE THAT THE TRANSACTION IS A SALE
6 OR OTHER ABSOLUTE TRANSFER. A TRANSFER OF AN INTEREST IN CO-EIA
7 PROPERTY MAY BE CREATED ONLY WHEN ALL OF THE FOLLOWING HAVE
8 OCCURRED:
9 (I) THE FINANCING ORDER CREATING AND DESCRIBING THE
10 CO-EIA PROPERTY HAS BECOME EFFECTIVE;
11 (II) THE DOCUMENTS EVIDENCING THE TRANSFER OF THE CO-EIA
12 PROPERTY HAVE BEEN EXECUTED AND DELIVERED TO THE ASSIGNEE; AND
13 (III) VALUE IS RECEIVED.
14 (b) UPON THE FILING OF A FINANCING STATEMENT WITH THE
15 SECRETARY OF STATE, A TRANSFER OF AN INTEREST IN CO-EIA PROPERTY
16 IS PERFECTED AGAINST ALL THIRD PERSONS, INCLUDING ANY JUDICIAL LIEN
17 OR OTHER LIEN CREDITORS OR ANY CLAIMS OF THE SELLER OR CREDITORS
18 OF THE SELLER, OTHER THAN CREDITORS HOLDING A PRIOR SECURITY
19 INTEREST, OWNERSHIP INTEREST, OR ASSIGNMENT IN THE CO-EIA
20 PROPERTY PREVIOUSLY PERFECTED IN ACCORDANCE WITH THIS
21 SUBSECTION (1) OR SECTION 40-41-116. THE SECRETARY OF STATE SHALL
22 MAINTAIN A FINANCING STATEMENT FILED PURSUANT TO THIS SUBSECTION
23 (1)(b) IN THE SAME MANNER IN WHICH THE SECRETARY MAINTAINS AND IN
24 THE SAME RECORD-KEEPING SYSTEM IN WHICH THE SECRETARY MAINTAINS
25 FINANCING STATEMENTS FILED PURSUANT TO ARTICLE 9 OF TITLE 4. THE
26 FILING OF ANY FINANCING STATEMENT PURSUANT TO THIS SUBSECTION
27 (1)(b) IS GOVERNED BY ARTICLE 9 OF TITLE 4 REGARDING THE FILING OF
28 FINANCING STATEMENTS.
29 (2) THE CHARACTERIZATION OF A SALE, ASSIGNMENT, OR
30 TRANSFER AS AN ABSOLUTE TRANSFER AND TRUE SALE AND THE
31 CORRESPONDING CHARACTERIZATION OF THE PROPERTY INTEREST OF THE
32 ASSIGNEE IS NOT AFFECTED OR IMPAIRED BY THE EXISTENCE OR
33 OCCURRENCE OF ANY OF THE FOLLOWING:
34 (a) COMMINGLING OF CO-EIA REVENUE WITH OTHER MONEY;
35 (b) THE RETENTION BY THE SELLER OF:
36 (I) A PARTIAL OR RESIDUAL INTEREST, INCLUDING AN EQUITY
37 INTEREST, IN THE CO-EIA PROPERTY, WHETHER DIRECT OR INDIRECT, OR
38 WHETHER SUBORDINATE OR OTHERWISE; OR
39 (II) THE RIGHT TO RECOVER COSTS ASSOCIATED WITH TAXES,
40 FRANCHISE FEES, OR LICENSE FEES IMPOSED ON THE COLLECTION OF
41 CO-EIA REVENUE;
42 (c) ANY RECOURSE THAT THE PURCHASER MAY HAVE AGAINST THE
43 SELLER;
44 (d) ANY INDEMNIFICATION RIGHTS, OBLIGATIONS, OR REPURCHASE
45 RIGHTS MADE OR PROVIDED BY THE SELLER;
46 (e) AN OBLIGATION OF THE SELLER TO COLLECT CO-EIA
47 REVENUES ON BEHALF OF AN ASSIGNEE;
48 (f) THE TREATMENT OF THE SALE, ASSIGNMENT, OR TRANSFER FOR
49 TAX, FINANCIAL REPORTING, OR OTHER PURPOSES;
50 (g) ANY SUBSEQUENT FINANCING ORDER AMENDING A FINANCING
51 ORDER AS AUTHORIZED BY SECTION 40-41-106 (4); OR
52 (h) ANY APPLICATION OF AN ADJUSTMENT MECHANISM AS
53 AUTHORIZED BY SECTION 40-41-105 (2)(g).
54 40-41-118. Use of CO-EIA bond proceeds by an electric utility
55 - definition. (1) FOR PURPOSES OF THIS SECTION, "LEAST-COST
1 GENERATION RESOURCE" MEANS AN INCREMENTAL SUPPLY-SIDE OR
2 DEMAND-SIDE RESOURCE THAT, WHEN INCLUDED IN AN ELECTRIC UTILITY'S
3 GENERATION PORTFOLIO, PRODUCES THE LOWEST COST AMONG
4 ALTERNATIVE RESOURCES, CONSIDERING BOTH SHORT-TERM AND
5 LONG-TERM COSTS AND ASSESSING THE LIKELIHOOD OF CHANGES IN
6 FUTURE FUEL PRICES AND FUTURE ENVIRONMENTAL REQUIREMENTS,
7 AMONG OTHER CONSIDERATIONS.
8 (2) SUBJECT TO COMMISSION APPROVAL AS REQUIRED BY
9 SUBSECTION (3) OF THIS SECTION, AN ELECTRIC UTILITY THAT ISSUES CO-
10 EIA BONDS MAY EXPEND OR INVEST AN AMOUNT EQUAL TO THE AMOUNT
11 OF CO-EIA BOND PROCEEDS PLUS, AT ITS DISCRETION, OTHER FINANCIAL
12 RESOURCES, IN A MANNER THAT DEMONSTRABLY BENEFITS RATEPAYER
13 INTERESTS, AS FOLLOWS:
14 (a) TO PURCHASE POWER TO REPLACE ELECTRICITY GENERATED BY
15 THE ELECTRIC GENERATING FACILITIES THAT WERE RETIRED IF THE
16 COMMISSION DETERMINES THAT THE PURCHASED POWER IS A LEAST-COST
17 GENERATION RESOURCE AND IS CONSISTENT WITH THE ELECTRIC UTILITY'S
18 APPROVED INTEGRATED RESOURCE PLAN;
19 (b) TO BUILD AND OWN ELECTRIC GENERATING FACILITIES THAT
20 ARE LEAST-COST GENERATION RESOURCES, THE ADDITION OF WHICH IS NOT
21 INCONSISTENT WITH THE ELECTRIC UTILITY'S APPROVED INTEGRATED
22 RESOURCE PLAN;
23 (c) TO BUILD, OWN, OR PURCHASE ELECTRICITY STORAGE
24 CAPACITY TO THE EXTENT THAT SUCH INVESTMENT IS EITHER REQUIRED
25 BY LAW OR RULE OR IS NEEDED TO INCREASE THE AMOUNT OF LEAST-COST
26 GENERATION RESOURCES THAT THE ELECTRIC UTILITY IS ABLE TO ADD TO
27 ITS GENERATION PORTFOLIO; AND
28 (d) TO INVEST IN NETWORK MODERNIZATION TO THE EXTENT THAT
29 THE MODERNIZATION IS NECESSARY TO INCREASE THE AMOUNT OF
30 LEAST-COST GENERATION RESOURCES ABLE TO BE ADDED TO THE
31 ELECTRIC UTILITY'S SYSTEM; EXCEPT THAT PROCEEDS MAY NOT BE USED
32 FOR NEW TRANSMISSION FACILITIES.
33 (3) IN CONSIDERING ANY APPLICATION FOR APPROVAL OF THE USE
34 OF CO-EIA BOND PROCEEDS, THE COMMISSION SHALL:
35 (a) USE ITS REGULAR PROCESS FOR CONSIDERATION OF
36 APPLICATIONS;
37 (b) FOR LEAST-COST GENERATION RESOURCES, DETERMINE THE
38 APPROPRIATE LEVELS OF ELECTRIC UTILITY RESOURCE OWNERSHIP, AS
39 PROVIDED FOR IN SUBSECTION (2)(b) OF THIS SECTION, WHICH LEVELS
40 MUST BE NO LESS THAN THE FULL VALUE OF THE ELECTRIC GENERATING
41 FACILITIES THAT WERE RETIRED AS AUTHORIZED BY THE FINANCING
42 ORDER, AND PURCHASED POWER, AS PROVIDED FOR IN SUBSECTION (2)(a)
43 OF THIS SECTION; AND
123 44 (c) FULLY CONSIDER THE PROVISIONS OF SECTION 40-2-
45 CONCERNING NEW ENERGY TECHNOLOGIES AND FUTURE ENVIRONMENTAL
46 REGULATIONS.
47 (4) WHEN AN ELECTRIC UTILITY ACQUIRES LEAST-COST
48 GENERATION RESOURCES TO REPLACE ELECTRIC GENERATING FACILITIES
49 THAT WERE RETIRED AS AUTHORIZED BY A FINANCING ORDER, THE
50 ELECTRIC UTILITY MAY OWN AN EQUIVALENT AMOUNT OF REPLACEMENT
51 LEAST-COST GENERATION RESOURCES, AS MEASURED BY ENERGY OR
52 CAPACITY AND TO THE EXTENT NEEDED TO SERVE EXISTING LOAD, AS
53 FOLLOWS:
54 (a) UP TO AN ADDITIONAL FORTY PERCENT OF LEAST-COST
55 GENERATION RESOURCES IF THE LEAST-COST GENERATION RESOURCES ARE
1 ACQUIRED TO THE EXTENT NEEDED TO SERVE EXISTING LOAD THROUGH A
2 BUILD-OPERATE-TRANSFER AGREEMENT;
3 (b) ANY LARGER AMOUNT OF LEAST-COST GENERATION
4 RESOURCES THAT IS AUTHORIZED BY THE COMMISSION; AND
5 (c) AN INDEPENDENT EVALUATOR, SELECTED AND EMPLOYED BY
6 THE COMMISSION AND PAID BY THE ELECTRIC UTILITY, PERFORMS A
7 REVIEW, THE RESULTS OF WHICH THE INDEPENDENT EVALUATOR SHALL
8 REPORT TO THE COMMISSION TOGETHER WITH AN EVALUATION OF THE
9 SALE OF THE LEAST-COST GENERATION RESOURCES TO THE ELECTRIC
10 UTILITY.
2 11 PART
12 COLORADO ENERGY IMPACT ASSISTANCE AUTHORITY
13 40-41-201. Colorado energy impact assistance authority -
14 creation - board - general powers and duties. (1) THE COLORADO
15 ENERGY IMPACT ASSISTANCE AUTHORITY IS HEREBY CREATED. THE
16 AUTHORITY IS AN INDEPENDENT PUBLIC BODY POLITIC AND CORPORATE,
17 IS NOT AN AGENCY OF STATE GOVERNMENT, AND IS NOT SUBJECT TO
18 ADMINISTRATIVE DIRECTION BY ANY DEPARTMENT, COMMISSION, BOARD,
19 OR AGENCY OF THE STATE. THE AUTHORITY IS A PUBLIC
20 INSTRUMENTALITY, AND ITS EXERCISE OF ITS POWERS AND EXECUTION OF
21 THE DUTIES AS SPECIFIED IN THIS ARTICLE 41 IS THE PERFORMANCE OF AN
22 ESSENTIAL PUBLIC FUNCTION.
23 (2) (a) THE AUTHORITY IS GOVERNED BY A BOARD OF DIRECTORS,
24 WHICH CONSISTS OF SEVEN DIRECTORS APPOINTED BY THE GOVERNOR AS
25 FOLLOWS:
26 (I) ONE DIRECTOR WHO HAS PROFESSIONAL JOB TRAINING
27 EXPERIENCE;
28 (II) ONE DIRECTOR WHO HAS PROFESSIONAL EXPERIENCE IN RURAL
29 ECONOMIC DEVELOPMENT;
30 (III) ONE DIRECTOR WHO HAS ELECTRICAL TRADES LABOR
31 EXPERIENCE; AND
32 (IV) FOUR DIRECTORS APPOINTED WITHOUT OCCUPATIONAL
33 REQUIREMENTS, BUT THE GOVERNOR SHALL STRONGLY CONSIDER
34 APPOINTING A DIRECTOR WHO IS LICENSED TO PRACTICE LAW IN
35 COLORADO, A DIRECTOR WHO HAS PROFESSIONAL FINANCE EXPERIENCE,
36 AND AT LEAST ONE DIRECTOR WHO RESIDES IN AN AREA DIRECTLY
37 IMPACTED BY THE RETIREMENT OF ONE OR MORE ELECTRIC GENERATING
38 FACILITIES.
39 (b) THE GOVERNOR SHALL APPOINT THE INITIAL DIRECTORS OF THE
40 BOARD FOR TERMS BEGINNING SEPTEMBER 1, 2019. DIRECTORS SERVE FOR
41 FIVE-YEAR TERMS; EXCEPT THAT TWO OF THE DIRECTORS SHALL SERVE
42 INITIAL TERMS OF THREE YEARS. THE GOVERNOR MAY REMOVE A
43 DIRECTOR FOR MISFEASANCE, MALFEASANCE, WILLFUL NEGLECT OF DUTY,
44 OR OTHER CAUSE AFTER NOTICE AND A PUBLIC HEARING UNLESS THE
45 DIRECTOR BEING REMOVED EXPRESSLY WAIVES IN WRITING HIS OR HER
46 RIGHT TO NOTICE AND A PUBLIC HEARING. THE GOVERNOR SHALL FILL ANY
47 VACANCY ON THE BOARD BY THE APPOINTMENT OF A NEW DIRECTOR FOR
48 THE REMAINDER OF THE UNEXPIRED TERM OF THE DIRECTOR WHOSE
49 DEPARTURE CAUSED THE VACANCY.
50 (c) DIRECTORS OF THE BOARD SERVE WITHOUT COMPENSATION
51 BUT ARE ENTITLED TO REIMBURSEMENT FOR ALL NECESSARY EXPENSES
52 INCURRED IN THE PERFORMANCE OF THEIR DUTIES UNDER THIS ARTICLE 41.
53 REIMBURSEMENT OF DIRECTORS MUST BE PAID BY THE AUTHORITY.
54 (3) THE PURPOSE AND MISSION OF THE AUTHORITY IS TO EXPEND
55 MONEY RECEIVED FROM ELECTRIC UTILITIES THAT ARE ISSUING CO-EIA
1 BONDS AS AUTHORIZED BY FINANCING ORDERS AND FROM OTHER SOURCES
2 FOR THE PURPOSE OF MITIGATING DIRECT IMPACTS TO COLORADO
3 WORKERS AND COMMUNITIES RESULTING FROM THE RETIREMENT OF
4 ELECTRIC GENERATING FACILITIES. IN FURTHERANCE OF ITS MISSION, AND
5 IN ADDITION TO ANY OTHER POWERS AND DUTIES GRANTED TO THE
6 AUTHORITY BY THIS ARTICLE 41, THE AUTHORITY HAS THE FOLLOWING
7 GENERAL POWERS:
8 (a) TO HAVE THE DUTIES, PRIVILEGES, IMMUNITIES, RIGHTS,
9 LIABILITIES, AND DISABILITIES OF A BODY CORPORATE AND POLITICAL
10 SUBDIVISION OF THE STATE;
11 (b) TO HAVE PERPETUAL EXISTENCE AND SUCCESSION;
12 (c) TO ADOPT, HAVE, AND USE A SEAL AND TO ALTER THE SAME AT
13 ITS PLEASURE;
14 (d) TO ADOPT RULES, BYLAWS, ORDERS, AND RESOLUTIONS
15 NECESSARY FOR THE REGULATION OF ITS AFFAIRS, THE CONDUCT OF ITS
16 BUSINESS, THE EXERCISE OF ITS POWERS, AND THE FULFILLMENT OF ITS
17 DUTIES AND MISSION AS SPECIFIED IN THIS ARTICLE 41;
18 (e) TO FIX THE TIME AND PLACE OF BOARD MEETINGS, WHICH MUST
19 BE HELD AT LEAST FOUR TIMES PER YEAR AND, CONSISTENT WITH THE
20 OPEN MEETINGS LAW UNDER PART 4 OF ARTICLE 6 OF TITLE 24, THE
21 METHOD OF PROVIDING NOTICE OF BOARD MEETINGS. AT LEAST ONE
22 BOARD MEETING PER YEAR MUST BE HELD IN-PERSON, AND OTHER
23 MEETINGS MAY BE HELD USING AUDIO OR VIDEO TELECOMMUNICATIONS
24 TECHNOLOGY.
25 (f) TO PAY ITS REASONABLE AND NECESSARY ADMINISTRATIVE
26 AND OPERATING COSTS FROM ANY REVENUE THAT IT RECEIVES;
27 (g) TO SUE AND BE SUED;
28 (h) TO APPOINT, HIRE, RETAIN, AND TERMINATE OFFICERS AND
29 EMPLOYEES AND CONTRACT WITH AGENTS, ATTORNEYS, ACCOUNTANTS,
30 AUDITORS, FINANCIAL ADVISERS, INVESTMENT BANKERS, AND OTHER
31 PROFESSIONAL CONSULTANTS TO THE EXTENT NEEDED TO EXERCISE ITS
32 POWERS AND PERFORM ITS DUTIES UNDER THIS ARTICLE 41;
33 (i) TO ENTER INTO CONTRACTS AND AGREEMENTS, INCLUDING
34 MEMORANDUMS OF UNDERSTANDING OR INTERGOVERNMENTAL
35 AGREEMENTS WITH ONE OR MORE AGENCIES OR POLITICAL SUBDIVISIONS
36 OF THE STATE OR ANOTHER STATE OR WITH THE FEDERAL GOVERNMENT,
37 NOT INCONSISTENT WITH THIS ARTICLE 41 OR ANY OTHER LAWS OF THE
38 STATE. THE AUTHORITY MAY ENTER INTO A CONTRACT OR AGREEMENT
39 WITH AN APPROPRIATE STATE AGENCY TO HELP THE AUTHORITY
40 ADMINISTER THE DISTRIBUTION OF ITS MONEY AS TRANSITION ASSISTANCE,
41 AND, IF IT DOES SO, THE MONEY ADMINISTERED REMAINS MONEY OF THE
42 AUTHORITY UNTIL IT IS DISTRIBUTED AND IS NOT MONEY OR REVENUE OF
43 THE STATE.
44 (j) TO ACQUIRE SPACE, INCLUDING OFFICE SPACE, EQUIPMENT,
45 SERVICES, SUPPLIES, AND INSURANCE NECESSARY TO EXECUTE ITS
46 POWERS, DUTIES, AND MISSION UNDER THIS ARTICLE 41;
47 (k) TO DEPOSIT ITS MONEY IN ANY BANKING INSTITUTION WITHIN
48 THE STATE OR IN ANY DEPOSITORY AUTHORIZED IN SECTION 24-75-603, TO
49 APPOINT, FOR THE PURPOSE OF MAKING SUCH DEPOSITS, ONE OR MORE
50 PERSONS, WHO SHALL GIVE SURETY BONDS IN SUCH AMOUNTS AND FORM
51 AND FOR SUCH PURPOSES AS THE BOARD REQUIRES, TO ACT AS
52 CUSTODIANS OF ITS MONEY, AND TO OTHERWISE DEPOSIT AND INVEST ITS
53 MONEY AS PERMITTED BY PART 6 OF ARTICLE 75 OF TITLE 24; AND
54 (l) TO HAVE AND EXERCISE ANY OTHER POWERS NECESSARY OR
55 INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS AND DUTIES
1 GRANTED IN THIS SECTION.
2 40-41-202. Mitigation of impacts - specific powers and duties
3 of authority - local advisory committees. (1) IN ORDER TO MITIGATE
4 THE DIRECT IMPACTS TO COLORADO WORKERS AND LOCAL COMMUNITIES
5 RESULTING FROM THE RETIREMENT OF ELECTRIC GENERATING FACILITIES,
6 THE AUTHORITY HAS THE FOLLOWING SPECIFIC POWERS AND DUTIES:
7 (a) TO DETERMINE THE DIRECT IMPACTS THAT THE RETIREMENT OF
8 AN ELECTRIC GENERATING FACILITY OWNED BY AN ELECTRIC UTILITY WILL
9 HAVE ON COLORADO WORKERS AND COMMUNITIES AND TO CONSULT WITH
10 THE DEPARTMENT OF LOCAL AFFAIRS, LOCAL GOVERNMENTS, ELECTRIC
11 UTILITIES, LABOR UNIONS, AND ANY OTHER PERSONS WHO POSSESS
12 RELEVANT INFORMATION IN MAKING ANY SUCH DETERMINATION;
13 (b) TO RECEIVE PAYMENTS FROM ELECTRIC UTILITIES REQUIRED TO
14 MAKE PAYMENTS TO THE AUTHORITY PURSUANT TO THE PROVISIONS OF A
15 FINANCING ORDER AND MAINTAIN A BALANCING ACCOUNT TO HOLD ANY
16 EXCESS MONEY NOT NEEDED IN THE SHORT RUN THAT HAS SEPARATE
17 SUBACCOUNTS FOR EACH ELECTRIC UTILITY THAT MAKES PAYMENTS TO
18 THE AUTHORITY; AND
19 (c) (I) TO PROVIDE TRANSITION ASSISTANCE, WHICH THE
20 AUTHORITY MAY EITHER PROVIDE DIRECTLY OR, EXCEPT AS OTHERWISE
21 PROVIDED IN SUBSECTION (1)(c)(II) OF THIS SECTION, MAY PROVIDE
22 INDIRECTLY BY DISBURSING MONEY TO THE DEPARTMENT OF LOCAL
23 AFFAIRS, TO ANY LOCAL GOVERNMENT OR AGENCY OF LOCAL
24 GOVERNMENT, TO ANY NONPROFIT CORPORATION OR EDUCATIONAL
25 INSTITUTION, TO ANY FOR-PROFIT CORPORATION, TO ANY COMMUNITY
26 DEVELOPMENT AGENCY, OR TO ANY ELIGIBLE APPLICANT, AS DEFINED IN
27 SECTION 8-83-303 (4), FOR ITS USE IN MITIGATING DIRECT IMPACTS TO
28 WORKERS AND LOCAL COMMUNITIES RESULTING FROM THE RETIREMENT
29 OF ELECTRIC GENERATING FACILITIES.
30 (II) THE AUTHORITY SHALL DISBURSE AT LEAST THIRTY PERCENT
31 OF ALL TRANSITION ASSISTANCE DIRECTLY TO COLORADO WORKERS, AND
32 THE AUTHORITY SHALL NOT DISBURSE MONEY AS TRANSITION ASSISTANCE
33 TO THE DEPARTMENT OF LOCAL AFFAIRS OR A LOCAL GOVERNMENT OR
34 AGENCY OF LOCAL GOVERNMENT IF THE RECEIPT OF THE MONEY WOULD
35 TRIGGER OR INCREASE THE AMOUNT OF ANY REFUND OF EXCESS STATE OR
36 LOCAL GOVERNMENT REVENUE REQUIRED BY SECTION 20 OF ARTICLE X OF
37 THE STATE CONSTITUTION, BUT MAY COMPENSATE THE DEPARTMENT OR
38 A LOCAL GOVERNMENT OR AGENCY OF LOCAL GOVERNMENT FOR SERVICES
39 CONTRACTED FOR PURSUANT TO SECTION 40-41-201 (3)(i).
40 (2) WHEN DETERMINING HOW BEST TO ADDRESS THE DIRECT
41 IMPACTS TO A LOCAL COMMUNITY RESULTING FROM THE RETIREMENT OF
42 ELECTRIC GENERATING FACILITIES AND PROVIDE TRANSITION ASSISTANCE,
43 THE AUTHORITY SHALL TAKE INTO CONSIDERATION THE ADVICE OF A
44 LOCAL ADVISORY COMMITTEE, WHICH THE AUTHORITY SHALL ESTABLISH
45 IN CONJUNCTION WITH EACH BOARD OF COUNTY COMMISSIONERS,
46 MUNICIPAL GOVERNING BODY, AND SCHOOL DISTRICT THAT INCLUDES ALL
47 OR A PORTION OF THE IMPACTED COMMUNITY. A LOCAL ADVISORY
48 COMMITTEE:
49 (a) CONSISTS OF ONE MEMBER APPOINTED BY EACH PARTICIPATING
50 BOARD OF COUNTY COMMISSIONERS, MUNICIPAL GOVERNING BODY,
51 SCHOOL DISTRICT, AND LOCAL LABOR UNION FOR AFFECTED WORKERS;
52 (b) SHALL ADVISE THE AUTHORITY WITH RESPECT TO THE NATURE
53 AND SCOPE OF THE DIRECT IMPACTS TO THE COMMUNITY RESULTING FROM
54 THE RETIREMENT OF AN ELECTRIC GENERATING FACILITY AND THE
55 DEVELOPMENT OF A TRANSITION ASSISTANCE PLAN FOR THE COMMUNITY;
1 AND
2 (c) MAY EITHER BE DISSOLVED BY THE AUTHORITY WHEN THE
3 TRANSITION ASSISTANCE IS COMPLETED OR MAINTAINED TO ADVISE THE
4 AUTHORITY REGARDING THE IMPLEMENTATION OF THE TRANSITION
5 ASSISTANCE.
6 40-41-203. Voluntary contributions to authority by utilities.
7 (1) NOTWITHSTANDING THE LIMITATION ON THE USE OF RATEPAYER
8 FUNDS SET FORTH IN SECTION 40-3-114, UPON THE RETIREMENT OF AN
9 ELECTRIC GENERATING FACILITY, AN ELECTRIC UTILITY MAY, AT ITS SOLE
10 DISCRETION, TRANSFER TO THE AUTHORITY AN AMOUNT OF UP TO FIFTEEN
11 PERCENT OF THE NET PRESENT VALUE OF OPERATIONAL SAVINGS CREATED
12 BY THE RETIREMENT OF THE ELECTRIC GENERATING FACILITY, WHETHER
13 OR NOT THE ELECTRIC UTILITY HAS OBTAINED A FINANCING ORDER AND
14 ISSUED CO-EIA BONDS IN CONNECTION WITH THE RETIREMENT OF THE
15 ELECTRIC GENERATING FACILITY. A DECISION BY A COLORADO ELECTRIC
16 UTILITY TO TRANSFER A PERCENTAGE OF THE NET PRESENT VALUE OF
17 OPERATING SAVINGS TO THE AUTHORITY SHALL BE DEEMED BY THE
18 COMMISSION TO BE A PRUDENT ACTION BY THE UTILITY.
19 (2) FOR PURPOSES OF THIS SECTION, THE NET PRESENT VALUE OF
20 OPERATIONAL SAVINGS CREATED BY THE RETIREMENT OF AN ELECTRIC
21 GENERATING FACILITY IS THE NET PRESENT VALUE OF
House Journal, February 27
37 Amendment No. 1, Energy & Environment Report, dated February 11,
38 2019, and placed in member's bill file; Report also printed in House
39 Journal, February 12, 2019.
40
41 Amendment No. 2, by Representative(s) Hansen.
42
43 Amend the Energy & Environment Committee Report, dated February 11,
44 2019, page 8, line 1, strike "OTHERWISE." and substitute "OTHERWISE;
45 EXCEPT THAT "SUCCESSOR" DOES NOT INCLUDE ANY MUNICIPALLY-OWNED
46 ELECTRIC UTILITY ESTABLISHED BEFORE THE DATE ON WHICH CO-EIA
47 BONDS ARE ISSUED PURSUANT TO A FINANCING ORDER RELATING TO
48 ELECTRIC GENERATING FACILITIES THAT SERVE OR PREVIOUSLY SERVED
49 THE SERVICE AREA OF THE MUNICIPALLY-OWNED ELECTRIC UTILITY.".
50
51 Page 11, line 36, strike "THE EARLIER OF".
52
1 Amendment No. 3, by Representative(s) Hansen.
2
3 Amend the Energy & Environment Committee Report, dated February 11,
4 2019, page 22, strike lines 27 through 41.
5
6 Strike page 23.
7
8 Page 24, strike lines 1 through 11 and substitute:
9
10 "40-41-118. Replacement resources - definitions. (1) AN
11 ELECTRIC UTILITY THAT ISSUES CO-EIA BONDS IN CONJUNCTION WITH THE
12 RETIREMENT OF AN ELECTRIC GENERATING FACILITY MAY SEEK
13 AUTHORIZATION FROM THE COMMISSION TO REPLACE THE RETIRED
14 ELECTRIC GENERATING FACILITY WITH COST-EFFECTIVE GENERATION
15 RESOURCES OR ENERGY STORAGE FACILITIES BY FILING WITH THE
16 COMMISSION FOR ITS APPROVAL:
17 (a) AN ELECTRIC RESOURCE PLAN APPLICATION UNDER THE RULES
18 OF THE COMMISSION;
19 (b) AN AMENDMENT TO THE ELECTRIC UTILITY'S MOST RECENTLY
20 APPROVED ELECTRIC RESOURCE PLAN; OR
21 (c) A SEPARATE APPLICATION THAT IS CONSISTENT WITH THE
22 ELECTRIC RESOURCE PLANNING RULES OF THE COMMISSION AND THAT
23 UTILIZES A COMPETITIVE ACQUISITION PROCESS FOR RESOURCE
24 ACQUISITION.
25 (2) WHEN CONSIDERING AN APPLICATION FILED AS AUTHORIZED BY
26 SUBSECTION (1) OF THIS SECTION FOR APPROVAL TO REPLACE AN ELECTRIC
27 GENERATING FACILITY RETIRED IN CONJUNCTION WITH CO-EIA BONDS,
28 THE COMMISSION SHALL:
29 (a) USE ITS REGULAR PROCESS FOR CONSIDERATION OF
30 APPLICATIONS;
31 (b) DETERMINE WHETHER THE REPLACEMENT RESOURCES ARE
32 NEEDED TO SERVE LOAD AND ARE CONSISTENT WITH THE ELECTRIC
33 UTILITY'S MOST RECENTLY APPROVED ELECTRIC RESOURCE PLAN; AND
34 (c) DETERMINE THE RELATIVE LEVELS OF ELECTRIC UTILITY
35 OWNERSHIP AND NON-UTILITY OWNERSHIP AS FOLLOWS:
36 (I) THE ELECTRIC UTILITY SHALL BE PERMITTED TO OWN
37 REPLACEMENT FACILITIES WITH A VALUE THAT IS NO LESS THAN THE
38 UTILITY-OWNED REPLACEMENT MINIMUM; AND
39 (II) THE UTILITY SHALL NOT BE PERMITTED TO OWN REPLACEMENT
40 FACILITIES WITH A VALUE GREATER THAN THE UTILITY-OWNED
41 REPLACEMENT MAXIMUM.
42 (3) FOR ANY APPLICATION FILED AS AUTHORIZED BY SUBSECTION
43 (1) OF THIS SECTION, THE ELECTRIC UTILITY, SUBJECT TO COMMISSION
44 APPROVAL, SHALL USE A COMPETITIVE ACQUISITION PROCESS TO ACQUIRE
45 COST-EFFECTIVE RESOURCES, REGARDLESS OF OWNERSHIP OF SUCH
46 RESOURCES, FOR ALL ACQUISITION OF GENERATION OR ENERGY STORAGE
47 RESOURCES TO REPLACE ELECTRIC GENERATING FACILITIES THAT WERE
48 RETIRED IN CONJUNCTION WITH A FINANCING ORDER.
49 (4) FOR PURPOSES OF THIS SECTION:
50 (a) "UTILITY-OWNED REPLACEMENT MAXIMUM" MEANS THE VALUE
51 OF REPLACEMENT GENERATION RESOURCES WITH TOTAL CAPACITY THAT
52 IS EQUAL TO THE NAMEPLATE CAPACITY OF THE ELECTRIC GENERATING
53 FACILITY BEING RETIRED.
54 (b) "UTILITY-OWNED REPLACEMENT MINIMUM" MEANS THE VALUE
55 OF ELECTRIC UTILITY INVESTMENTS IN EXISTING OR NEW ELECTRIC
1 GENERATION CAPACITY OR ENERGY STORAGE FACILITIES THAT IS THE
2 LESSER OF:
3 (I) THE VALUE OF THE PROCEEDS OF THE ASSOCIATED CO-EIA
4 BONDS; OR
5 (II) THE UNDEPRECIATED ACCOUNTING VALUE AT THE TIME OF
6 RETIREMENT OF THE ELECTRIC GENERATING FACILITIES RETIRED
7 PURSUANT TO THIS ARTICLE 41.".
8
9 Amendment No. 4, by Representative(s) Esgar.
10
11 Amend the Energy & Environment Committee Report, dated February 11,
12 2019, page 8, line 35, strike "UTILITY" and substitute "UTILITY, IN ITS SOLE
13 DISCRETION,".
14
15 Page 9, line 30, strike "AND".
16
17 Page 9, line 32, strike "APPLICATION." and substitute "APPLICATION; AND
18 (g) A WORKFORCE TRANSITION PLAN, WHICH MUST INCLUDE, TO
19 THE EXTENT FEASIBLE, ESTIMATES OF:
20 (I) THE NUMBER OF WORKERS EMPLOYED BY THE ELECTRIC
21 UTILITY OR A CONTRACTOR OF THE ELECTRIC UTILITY AT THE ELECTRIC
22 GENERATING FACILITY, WHICH NUMBER MUST INCLUDE ALL WORKERS
23 THAT DIRECTLY DELIVER FUEL TO THE ELECTRIC GENERATING FACILITY;
24 (II) THE TOTAL NUMBER OF WORKERS WHOSE EXISTING JOBS WILL
25 BE RETAINED AND THE TOTAL NUMBER OF WORKERS WHOSE EXISTING JOBS
26 WILL BE ELIMINATED DUE TO THE RETIREMENT OF THE ELECTRIC
27 GENERATING FACILITY;
28 (III) WITH RESPECT TO THE WORKERS WHOSE EXISTING JOBS WILL
29 BE ELIMINATED DUE TO THE RETIREMENT OF THE ELECTRIC GENERATING
30 FACILITY, THE TOTAL NUMBER AND NUMBER BY JOB CLASSIFICATION OF
31 WORKERS:
32 (A) WHOSE EMPLOYMENT WILL END WITHOUT THEM BEING
33 OFFERED OTHER EMPLOYMENT;
34 (B) WHO WILL RETIRE AS PLANNED, BE OFFERED EARLY
35 RETIREMENT, OR LEAVE ON THEIR OWN;
36 (C) WHO WILL BE RETAINED BY BEING TRANSFERRED TO OTHER
37 ELECTRIC GENERATING FACILITIES OR OFFERED OTHER EMPLOYMENT BY
38 THE ELECTRIC UTILITY; AND
39 (D) WHO WILL BE RETRAINED TO CONTINUE TO WORK FOR THE
40 ELECTRIC UTILITY IN A NEW JOB CLASSIFICATION; AND
41 (IV) IF THE ELECTRIC UTILITY IS REPLACING THE ELECTRIC
42 GENERATING FACILITY BEING RETIRED WITH A NEW ELECTRIC GENERATING
43 FACILITY:
44 (A) THE NUMBER OF WORKERS FROM THE OLD ELECTRIC
45 GENERATING FACILITY WHO WILL BE EMPLOYED AT THE NEW ELECTRIC
46 GENERATING FACILITY; AND
47 (B) THE NUMBER OF JOBS AT THE NEW ELECTRIC GENERATING
48 FACILITY THAT WILL BE OUTSOURCED TO SUBCONTRACTORS.".
49
50 Page 27, line 6, strike "AND".
51
52 Page 27, line 18, strike "THE" and substitute "UNLESS FIFTEEN OR FEWER
53 COLORADO WORKERS ARE DIRECTLY IMPACTED BY THE RETIREMENT OF AN
54 ELECTRIC GENERATING FACILITY IN ACCORDANCE WITH A FINANCING
55 ORDER ISSUED PURSUANT TO SECTION 40-41-105, THE" and strike
1 "THIRTY" and substitute "FIFTY".
2
3 Page 27, lines 19 and 20, strike "WORKERS, AND THE" and substitute
4 "WORKERS; EXCEPT THAT, IF THE LOCAL ADVISORY COMMITTEE
5 ESTABLISHED BY THE AUTHORITY PURSUANT TO SUBSECTION (2) OF THIS
6 SECTION DETERMINES THAT THE DISBURSEMENT OF FIFTY PERCENT OF ALL
7 TRANSITION ASSISTANCE DIRECTLY TO COLORADO WORKERS WOULD BE
8 EXCESSIVE BASED ON THE AMOUNT OF TRANSITION ASSISTANCE
9 AVAILABLE AND THE AMOUNT OF NEED FOR SUCH DIRECT ASSISTANCE AND
10 RECOMMENDS THAT A LOWER PERCENTAGE OF ALL TRANSITION
11 ASSISTANCE BE DISBURSED DIRECTLY TO COLORADO WORKERS, THE
12 AUTHORITY MAY REDUCE THE PERCENTAGE OF ALL TRANSITION
13 ASSISTANCE DISBURSED DIRECTLY TO COLORADO WORKERS BELOW FIFTY
14 PERCENT TO ANY PERCENTAGE NOT LESS THAN THIRTY PERCENT. THE".
15
16 Page 27, line 27, strike "(3)(i)." and substitute "(3)(i);
17
18 (d) IF THE AUTHORITY BELIEVES THAT IT CAN ALLOCATE
19 SUFFICIENT TRANSITION ASSISTANCE DIRECTLY TO COLORADO WORKERS
20 DESCRIBED IN SECTION 40-41-103 (21)(a), (21)(b), (21)(d), AND (21)(e)
21 WHO ARE DIRECTLY IMPACTED BY THE RETIREMENT OF AN ELECTRIC
22 GENERATING FACILITY AS AUTHORIZED BY A FINANCING ORDER WITHOUT
23 SPENDING ALL OF THE MONEY ALLOCATED FOR SUCH TRANSITION
24 ASSISTANCE, TO, IF AND TO THE EXTENT AUTHORIZED BY THE COMMISSION,
25 RETAIN ANY UNSPENT MONEY ALLOCATED FOR SUCH TRANSITION
26 ASSISTANCE TO PAY TRANSITION ASSISTANCE DIRECTLY TO COLORADO
27 WORKERS WHO ARE DIRECTLY IMPACTED BY THE FUTURE RETIREMENT OF
28 OTHER ELECTRIC GENERATING FACILITIES AS AUTHORIZED BY FINANCING
29 ORDERS; AND
30 (e) TO DEVELOP STANDARDIZED WORKER ASSISTANCE PROGRAMS
31 TO ENSURE THAT TRANSITION ASSISTANCE PROVIDED FOR WORKER
32 RETRAINING, RETIREMENT ASSISTANCE, WAGE ASSISTANCE, AND OTHER
33 FORMS OF WORKER ASSISTANCE IS PROVIDED AS FAIRLY AND EQUITABLY
34 AS POSSIBLE ACROSS ALL WORKFORCES DIRECTLY IMPACTED BY THE
35 RETIREMENT ELECTRIC GENERATING FACILITIES RETIRED AS AUTHORIZED
36 BY FINANCING ORDERS.".
37
38 Page 27, line 35, after "COMMUNITY." insert "BOTH THE AUTHORITY AND
39 THE LOCAL ADVISORY COMMITTEE SHALL CONSIDER THE WORKFORCE
40 TRANSITION PLAN SUBMITTED TO THE COMMISSION AS REQUIRED BY
41 SECTION 40-41-104 (3)(g) WHEN DETERMINING WHICH WORKERS MOST
42 NEED TRANSITION ASSISTANCE AND HOW TRANSITION ASSISTANCE SHOULD
43 BE ALLOCATED.".
44
45 As amended, ordered engrossed and placed on the Calendar for Third
46 Reading and Final Passage.
47
48 On motion of Representative Garnett, the remainder of the General
49 Orders Calendar HB19-1131 was laid over until March 1, retaining place
50 on Calendar.
51

Senate Journal, April 18
After consideration on the merits, the Committee recommends that HB19-1037 be
amended as follows, and as so amended, be referred to the Committee on Transportation
& Energy with favorable recommendation.

Amend reengrossed bill, page 14, line 13, strike "AND".

Page 14, strike line 19 and substitute "FACILITY; AND
(f) PAYMENTS TO A LOCAL GOVERNMENT TO PROVIDE A SOURCE
OF REPAYMENT FOR BONDS, NOTES, LEASE-PURCHASE AGREEMENTS, OR
OTHER MULTIPLE-FISCAL YEAR OBLIGATIONS OF A LOCAL GOVERNMENT
THAT WERE ISSUED BEFORE THE COMMISSION ISSUED THE FINANCING
ORDER.".

Page 44, line 5, after "PERCENT." insert "IF A LOCAL GOVERNMENT HAS
AN OBLIGATION TO REPAY BONDS, NOTES, LEASE-PURCHASE
AGREEMENTS, OR OTHER MULTIPLE-FISCAL YEAR OBLIGATIONS THAT ARE
PAYABLE FROM A REVENUE SOURCE, INCLUDING BUT NOT LIMITED TO
PROPERTY TAX OR SALES TAX, THAT IS LIKELY TO BE DIRECTLY OR
INDIRECTLY IMPACTED BY THE RETIREMENT OF AN ELECTRIC GENERATING
FACILITY PURSUANT TO THE TERMS OF A FINANCING ORDER, TRANSITION
ASSISTANCE PROVIDED TO THE LOCAL GOVERNMENT SHALL FIRST BE
USED, TO THE EXTENT NECESSARY, TO REPAY THE BONDS, NOTES,
AGREEMENTS, OR OTHER OBLIGATIONS.".


Finance