HB 364 Summary

• Establishes a securitization framework allowing electric distribution utilities to issue phase-in-recovery bonds to finance previously approved phase-in costs and financing expenses, with recovery through nonbypassable customer charges.

• Requires utilities to apply to the Public Utilities Commission for a financing order, which must be issued within 135 days and demonstrate that securitization results in measurable cost savings and rate impact mitigation compared to traditional financing methods.

• Creates phase-in-recovery property as a perfected security interest that is irrevocable, continues despite utility bankruptcy or insolvency, and remains unaffected by changes in customer consumption or service levels.

• Provides that phase-in-recovery charges are nonbypassable and apply to all customers of the electric distribution utility, with allocation methodology for governmental aggregation customers based on proportionate benefits received.

• Restricts the Public Utilities Commission from treating phase-in-recovery bonds as utility debt, phase-in-recovery charges as utility revenue, or reducing charges except through mathematical adjustments to the approved mechanism under section 4928.238.