{"data":{"id":"us-ky/krs-278.678","jurisdiction":"us-ky","citation":"KRS 278.678","heading":"Utility to file documents with commission -- Parameters for securitized","body":"bonds -- Semiannual monthly surcharge update -- Adjustments -- Commission\nreview -- Irrevocability of finance order.\n(1) Upon the commission issuing a financing order and after the securitized bonds have\nbeen issued, the electric utility shall file with the commission a:\n(a) Tariff containing the mechanism for the assessment of a monthly surcharge to\nexisting rates for the collection of the securitized costs; and\n(b) Formula-based true-up mechanism.\n(2) The commission, in a financing order and subject to the issuance advice letter\nprocess, shall specify the degree of flexibility to be afforded the electric utility in\nestablishing:\n(a) The terms and conditions for the securi tized bonds to accommodate changes\nin market conditions, including repayment schedules, interest rates, financing\ncosts, collateral requirements, required debt service, and other reserves; and\n(b) At its option, a series of issuances of securitized bonds a nd correlated\nassignments, sales, pledges, or other transfers of securitized property.\n(3) The electric utility shall file a semiannual update to its monthly surcharge, based on\nestimates of consumption for each rate class and other mathematical factors, t o\ncollect the appropriate amount of securitized costs. The review by the commission\nof the semiannual update pursuant to this section shall be limited to:\n(a) Determining whether there are any mathematical or clerical errors in the\napplication of the formu la-based true -up mechanism relating to the\nappropriate amount of any over collection or under collection of a securitized\nsurcharge; and\n(b) The amount of an adjustment.\n(4) The adjustments shall ensure solely for the recovery of:\n(a) Revenues sufficient to provide for the payment of principal, interest,\nacquisition, defeasance, financing costs, or redemption premium; and\n(b) Other fees, costs, and charges with respect to securitized bonds approved\nunder the financing order.\n(5) Within ten (10) days after receiving an electric utility's filing of the billing\nadjustment pursuant to this section, the commission shall either:\n(a) Affix an official stamp on the filing indicating the commission's review is\ncomplete; or\n(b) Inform the electric utility of any mathematical or clerical errors in the electric\nutility's calculation.\n(6) If the commission informs the electric utility of mathematical or clerical errors in its\ncalculation, the electric utility shall correct its error and refile its sem iannual\nsurcharge update.\n(7) The time frames in subsection (5) of this section shall also apply to a refiled\nrequest.\n(8) At the time of any transfer of securitized property to an assignee or the issuance of\nsecuritized bonds authorized thereby, whichever  is earlier, a financing order shall\nbe irrevocable and, except for changes made pursuant to the formula -based true-up\nmechanism authorized in this section, the commission shall not:\n(a) Amend, modify, or terminate the financing order by any subsequent action; or\n(b) Reduce, impair, postpone, terminate, or otherwise adjust securitized\nsurcharges approved in the financing order.\n(9) After issuance of a financing order, the electric utility retains sole discretion\nregarding whether to:\n(a) Assign, sell, or otherwise transfer securitized property; or\n(b) Cause securitized bonds to be issued, including the right to defer or postpone\nthe assignment, sale, transfer, or issuance of securitized bonds.\n(10) Any changes made under this section to terms and conditions for the securitized\nbonds shall be in conformance with the financing order.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53804","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:31Z","sha256":"3cabd611adfa3f3a164d1f47e6d0bea7f2ce54a5cbb3e1dbdfb93bcd52e708e8","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.676","next":"us-ky/krs-278.680"},"notice":"GroundRules: Original legal text. Not legal advice."}