The commission may require certain bond-related accounting reductions and keeps several regulatory powers, but it may not force a public service corporation to apply for permission to do a securitization transaction or to enter one.
40-604 - Commission authority; jurisdiction 40-604. Commission authority; jurisdiction A. On an applicant's receipt of the net proceeds of the issuance of the transition bonds under section 40-606, subsection A, the commission has the authority to ensure that: 1. Any undepreciated value of the transition assets on the applicant's books are reduced by the corresponding amount, including any reductions in associated regulatory assets or recorded liabilities, as applicable. 2. Any regulatory assets that are related to significant event recovery costs are reduced by that corresponding amount. 3. Any incurred costs of a recorded liability that are incurred and associated with significant event recovery costs are reduced by that corresponding amount. B. This chapter does not abrogate or prevent the commission's authority to do any of the following: 1. Establish and regulate rates of public service corporations. 2. Investigate the practices of public service corporations. 3. Review and audit the books and records of public service corporations, including the actions taken under a transition billing services tariff and the receipt, handling and remittance to the qualified special purpose entity of financing revenues. 4. Investigate an applicant's compliance with the terms and conditions of a financing order and to require that the applicant comply with the financing order. 5. Impose regulatory sanctions on an applicant for the wilful failure to comply with a financing order or this chapter. C. The commission shall not order or require, directly or as a condition for any other action or finding, a public service corporation to apply for permission to initiate a securitization transaction under this chapter or to engage in a transaction authorized by this chapter. D. Except as provided in section 40-610, this chapter does not preclude the commission from considering the bill impact of unit financing charges when determining the design of the rates within its jurisdiction or the allocation of the costs to and among persons or groups of persons paying the rates.