This section lets an electric utility apply for a financing order, and requires the commission to issue the related order by a deadline. The corporation and any issuer must participate in the proceeding, and the electric utility may serve as collection agent for the charges.
Sec. 36.456. FINANCING ORDER. (a) This section applies to the commission's issuance of a financing order under this subchapter. (b) Except as otherwise specifically provided by this subchapter, the provisions of Subchapter I of this chapter and, to the extent made applicable to Subchapter I of this chapter, Subchapter G, Chapter 39, that address the commission's issuance of a financing order apply to the commission's issuance of a financing order under this subchapter. (b-1) Notwithstanding Sections 36.405(c) and (d), an electric utility may file an application with the commission under this subchapter for: (1) a determination of the amount of estimated and actual system restoration costs eligible for recovery and securitization; and (2) a financing order that authorizes the securitization of estimated and actual system restoration costs, the issuance of system restoration bonds, and the creation of system restoration charges for the recovery of qualified costs. (b-2) For an application filed under Subsection (b-1), the commission shall issue an order that determines the amount of estimated and actual system restoration costs eligible for recovery and securitization and a financing order that authorizes the securitization of estimated and actual system restoration costs, the issuance of system restoration bonds, and the creation of system restoration charges for the recovery of qualified costs not later than the 150th day after the date the application is filed. (b-3) For an application filed under Subsection (b-1), the estimated system restoration costs shall be subject to true-up and reconciliation and system restoration charges shall be adjusted after the actual system restoration costs are known. (c) The corporation and any issuer must be a party to the commission's proceedings that address the issuance of a financing order along with the relevant electric utility. (d) In addition to the requirements of Subchapter I, as applicable, a financing order issued under this subchapter must: (1) require the sale, assignment, or other transfer to the corporation of certain specified transition property created by the financing order in the manner contemplated by Section 39.308, and, following that sale, assignment, or transfer, require that system restoration charges paid under any financing order be created, assessed, and collected as the property of the corporation, subject to subsequent sale, assignment, or transfer by the corporation as authorized under this subchapter; (2) authorize: (A) the issuance of system restoration bonds by the corporation secured by a pledge of specified transition property, and the application of the proceeds of those system restoration bonds, net of issuance costs, to the acquisition of the transition property from the electric utility; or (B) the acquisition of specified transition property from the electric utility by the corporation financed: (i) by a loan by an issuer to the corporation of the proceeds of system restoration bonds, net of issuance costs, secured by a pledge of the specified transition property; or (ii) by the acquisition by an issuer from the corporation of the transition property financed from the net proceeds of transition bonds issued by the issuer; and (3) authorize the electric utility to serve as collection agent to collect the system restoration charges and transfer the collected charges to the corporation, the issuer, or a financing party, as appropriate. (e) After issuance of the financing order, the corporation shall arrange for the issuance of system restoration bonds as specified in the financing order by it or another issuer selected by the corporation and approved by the commission. (f) System restoration bonds issued pursuant to a financing order under this section are secured only by the related transition property and any other funds pledged under the bond documents. No assets of the state or electric utility are subject to claims by such bondholders. Notwithstanding the provisions of Subchapter G, Chapter 39, following assignment of the transition property, the electric utility does not have any beneficial interest or claim of right in such system restoration charges or in any transition property. Added by Acts 2021, 87th Leg., R.S., Ch. 198 (H.B. 1510), Sec. 2, eff. June 1, 2021. Amended by: Acts 2025, 89th Leg., R.S., Ch. 71 (S.B. 1963), Sec. 2, eff. September 1, 2025.