40-602. Statement of public policy

A. It is the public policy of this state to gain the benefits of securitization by establishing irrevocable financing charges that are payable to a qualified special purpose entity and by creating and vesting a present and alienable property interest in financing revenues in a qualified special purpose entity. Those benefits include reducing all of the following:

1. The contribution of assets, which are subject to potential retirement, abandonment, sale, disposition or transition, or that have been damaged or destroyed, to the rate base, or as would otherwise be recovered through rates, of public service corporations and any associated liabilities.

2. The costs arising from or related to weather, wildfire or other significant events or incidents that cause damage, destruction or otherwise render inoperable, in whole or in part, any of the applicant's assets, facilities or infrastructure that are in operation providing service for customers.

B. The use of low-cost securitized borrowing by a separate special purpose entity is intended to enable public service corporations to achieve the benefits of securitization for customers by reinvesting capital now committed to paying the costs related to the production and delivery of energy from new facilities, resources or other assets.