H.B. 881 Summary

• Establishes the Catastrophic Wildfire Securitization Act to allow public utilities to issue "recovery bonds" to raise capital for costs and expenses related to catastrophic wildfires (defined as wildfires damaging or destroying more than 500 dwellings or commercial buildings).

• Creates a financing mechanism through the Public Utilities Commission that authorizes nonbypassable "fixed recovery charges" on utility ratepayers' bills to repay recovery bonds and associated financing costs over time.

• Permits public utilities to securitize rates by establishing "recovery property" (the right to collect fixed recovery charges) that can be sold, assigned, or pledged as collateral to finance entities issuing recovery bonds.

• Requires the commission to issue financing orders within 120 days of application if costs are just and reasonable, consistent with public interest, and would reduce rates on a present value basis compared to traditional utility financing.

• Protects recovery bonds and fixed recovery charges from modification, reduction, or impairment by the state, and establishes that recovery property constitutes an existing property right that can serve as collateral for securitized debt.