HB 2265 Summary

• Establishes the Catastrophic Wildfire Securitization Act to allow public utilities to issue recovery bonds secured by fixed recovery charges to raise capital for wildfire-related costs, disaster relief, litigation, and settlements.

• Requires the Public Utilities Commission to issue financing orders authorizing recovery bonds when the utility demonstrates costs are just and reasonable, consistent with the public interest, and would reduce ratepayer costs compared to traditional financing on a present value basis.

• Creates "recovery property" as a nonbypassable rate charge that ratepayers must pay until recovery bonds and all associated financing costs are fully paid, with annual true-up adjustments to ensure accurate cost recovery.

• Makes recovery bonds nonrecourse to utility assets except recovery property, and establishes statutory first-priority liens on recovery property that are perfected automatically upon financing order effectiveness without requiring additional filings.

• Protects recovery property and bonds from setoff, counterclaim, or impairment in utility bankruptcy proceedings, while allowing customers to receive credits from insurance proceeds or tax benefits the utility receives for covered catastrophic wildfire costs.