Okla. Stat. tit. 74, § 74-9074: Financing order

A. Upon the determination that a regulated utility has extreme

purchase costs, extraordinary costs or both that are subject to this

act and may be mitigated by issuing ratepayer-backed bonds, the

Oklahoma Corporation Commission shall make necessary findings and

conclusions to result in a financing order under this act, either in

the same order or through a continued or separate proceeding. The

financing order shall include, but not be limited to, the following:

1. The quantified amount of extreme purchase costs and

extraordinary costs to be recovered using a financial instrument;

2. The maturity or range of maturities of bonds authorized to

be issued, and a corresponding amortization period of customer

charges, subject to reasonable provisions for true-up and

reconciliation, with any authorized maturity not to exceed thirty

(30) years;

3. The creation of an irrevocable and nonbypassable mechanism

under which the regulated utility will recover from customers an

amount necessary to service, repay and administer the ratepayer-

backed bonds. A customer's monthly billing charges collected

pursuant to the nonbypassable mechanism established under a

financing order shall be based upon the then-current monthly billing

of the customer and shall be a separate line-item on the monthly

bill of the customer. The nonbypassable mechanism shall include

procedures for receiving accounting information from the Oklahoma

Development Finance Authority and calculating factors to be applied

to customer bills. The mechanism shall remain in effect until the

complete repayment and retirement of any ratepayer-backed bonds, or

refunding bonds, authorized under the financing order;

4. The frequency of true-up and reconciliation of the customer

repayment revenues collected through the nonbypassable mechanism,

whether on a monthly, quarterly or semiannual basis;

5. The method by which the customer repayment charges will be

allocated among the various customer classes; and

6. The requirement that all funds received under the

irrevocable and nonbypassable mechanism be provided immediately to

the holder of securitization property pursuant to Section 6 of this

act for the purpose of repaying, servicing and administering the

ratepayer-backed bonds authorized by the financing order.

B. Prior to issuing a financing order, the Commission shall

consult with the Deputy Treasurer for Policy and Debt Management

regarding the marketability and efficiency of any proposed financing

authorized by a financing order.

C. The Commission shall issue an order no later than one

hundred eighty (180) days from the date the Commission receives all

necessary information and documentation pursuant to Section 4 of

this act.

D. On the same date a financing order is issued, a copy of the

order shall be delivered to the Governor, the President Pro Tempore

of the Senate, the Speaker of the House of Representatives and the

Oklahoma Development Finance Authority.

E. A financing order shall be effective immediately upon

issuance.

F. A financing order shall not be subject to any form of

rehearing after thirty (30) days from the issuance of the order,

subject to appeals pursuant to Section 20 of Article IX of the

Oklahoma Constitution.

G. Upon entering a financing order under this act, a regulated

utility shall not recover the extreme purchase costs and

extraordinary costs identified and quantified in the financing order

from customers except through the transfer of securitization

property as provided in Section 6 of this act in exchange for the

proceeds of a bond issuance, which shall offset and complete the

recovery of extreme purchase costs and extraordinary costs for the

regulated utility.

H. Upon the issuance of any financing order pursuant to this

section, the periodic determination of factors for customer

collection with true-up and reconciliation authorized by the

erty as provided in Section 6 of this act in exchange for the

proceeds of a bond issuance, which shall offset and complete the

recovery of extreme purchase costs and extraordinary costs for the

regulated utility.

H. Upon the issuance of any financing order pursuant to this

section, the periodic determination of factors for customer

collection with true-up and reconciliation authorized by the

financing order shall not be removed, adjusted or interrupted by any

other regulatory determination of the Commission except where

adjustments are warranted as a result of an audit of amounts

actually collected from customers and provided to the Authority or

where insurance proceeds, government grants or other funding sources

offset or reduce the amount of extreme purchase costs and

extraordinary costs to be recovered from customers. No adjustments

shall in any manner impair or prevent the collection of sufficient

revenues to service and repay ratepayer-backed bonds.

I. No ratepayer-backed bonds authorized in a financing order,

except for refunding obligations authorized under subsection D of

Section 8 of this act, may be issued more than twenty-four (24)

months after issuance of the financing order pursuant to this

section.