{"data":{"id":"us-ky/krs-278.680","jurisdiction":"us-ky","citation":"KRS 278.680","heading":"Issuance of securitized bonds by electric utility -- Subsequent financing","body":"order -- Limits on commission -- Discretion of electric utility.\n(1) Subsequent to the issuance advice letter, and unless an earlier date is specified in\nthe financing order, the electric utility may proceed with the issuance of the\nsecuritized bonds unless, prior to noon on the fourth business day after the pricing\nof the securitized bonds, the commission issues a disapproval order:\n(a) Directing that the securitized bonds, as proposed, not be issued; and\n(b) Stating the basis for the disapproval.\n(2) At the request of an electric utility, the commission may open a proceeding and\nissue a subsequent financing order that provides for refinancing, retiring, or\nrefunding sec uritized bonds issued pursuant to the original financing order if the\ncommission finds that the subsequent financing order satisfies all the criteria\nspecified in KRS 278.670 to 278.696 and 65.114. Effective upon retirement of the\nrefunded securitized bond s and the issuance of new securitized bonds, the electric\nutility shall adjust and the commission shall approve the related securitized\nsurcharges accordingly.\n(3) A financing order remains in effect and securitized property under the financing\norder continues to exist until:\n(a) Securitized bonds issued pursuant to the financing order have been paid in full\nor defeased; and\n(b) In each case, all commission -approved financing costs of the securitized\nbonds have been recovered in full.\n(4) A financing order issued to an electric utility remains in effect and unabated\nnotwithstanding the reorganization, bankruptcy, or other insolvency proceedings,\nmerger, or sale of the electric utility or its successors or assignees.\n(5) The commission shall not, in exercisin g its powers and carrying out its duties\nregarding any matter within its authority:\n(a) Consider the securitized bonds issued pursuant to a financing order to be the\ndebt of the electric utility other than for federal and state income tax purposes;\n(b) Consider the securitized surcharges paid under the financing order to be the\nrevenue of the electric utility for any purpose;\n(c) Consider the securitized costs or financing costs specified in the financing\norder to be the costs of the electric utility;\n(d) Consider the presence of securitized assets as impacting the relative risk of the\nutility as it relates to determining an appropriate return on equity for\nratemaking purposes; or\n(e) Determine any action taken by an electric utility which is consistent w ith the\nfinancing order to be unjust or unreasonable.\n(6) No electric utility shall be:\n(a) Required to apply for a financing order; or\n(b) If not under or applying for a financing order, otherwise be required to utilize\nany of the provisions under KRS 278.670 to 278.696 and 65.114.\n(7) An electric utility's decision not to apply for a financing order shall not be\nadmissible, utilized, or relied on by the commission in any commission proceeding\nrespecting the electric utility's rates or its accounting. The commission shall not\ndirectly or indirectly:\n(a) Order or require an electric utility to use securitized bonds to recover deferred\ncosts for a regulatory asset;\n(b) Consider the debt reflected by the securitized bonds in establishing the\nelectric utility's  capital structure used to determine any regulatory matter,\nincluding the electric utility's revenue requirement used to set its rates; and\n(c) Consider the existence of securitized bonds or the potential use of securitized\nbond financing proceeds in determining the electric utility's authorized rate of\nreturn used to determine the electric utility's revenue requirement used to\nestablish its rates.\n(8) After the issuance of a financing order, the electric utility retains sole discretion\nregarding the issuan ce of the securitized bonds, including the right to defer or\npostpone the sale, assignment, transfer, or issuance. Nothing shall prevent the\nelectric utility from abandoning the issuance of securitized bonds under the\nfinancing order by filing with the com mission a statement of abandonment and the\nreasons therefor.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53805","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:31Z","sha256":"d2cc774aaf8b1506dec2f45041ce3bfdb20e7a63330cb32779294ee40d340c61","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.678","next":"us-ky/krs-278.682"},"notice":"GroundRules: Original legal text. Not legal advice."}