A public power entity acting as a servicer must use its resources and systems to do servicer duties under a transition billing services tariff, and state authorization for third-party billing/collection/remittance must fit AAA rating-agency requirements.
30-1008 - Public power entity as servicer; transition billing services tariffs; AAA rating 30-1008. Public power entity as servicer; transition billing services tariffs; AAA rating A. If a servicer is a public power entity, the public power entity shall use its resources and systems to perform the duties of a servicer under a transition billing services tariff. B. If a servicer collects payment made by a customer for financing charges, whether under a transition billing services tariff or otherwise, the monies collected are financing revenues when the monies are paid by the customer, and the servicer has no right, title or interest in the revenues other than as an agent for the qualified special purpose entity. If a customer pays only a portion of the charges stated on a bill provided by a servicer that includes financing charges, the partial payment shall be first applied to paying the financing charges. C. If a servicer fails to make any required payment of financing revenues to a qualified special purpose entity or fails to fulfill its servicing obligations under an applicable transition billing services tariff, the qualified special purpose entity or the holders of the transition bonds may request that the superior court order the sequestration and payment of the financing revenues for the benefit of any financing parties or their assignees and may request any other applicable relief. The order shall remain in full force and effect notwithstanding any bankruptcy, reorganization or other insolvency or receivership proceedings of the servicer or the qualified special purpose entity. D. If this state, through the governing body of the public power entity or otherwise pursuant to this chapter, allows the billing, collection and remittance by a third party of sums that would otherwise be billed, collected or remitted by a public power entity that acts as a servicer, the authorization must be consistent with the rating agencies' requirements that are necessary for the transition bonds to receive and maintain an AAA or equivalent rating.