Rep. WEST proposes the following Amendment No. to S. 1077 (COUNCIL\ZW\1077C002.AR.ZW22):

Reference is to Printer's Date 4/7/22-S.

Amend the bill, as and if amended, SECTION 1, Page 1, by striking line 41 and inserting:

/ financing mechanism will maximize quantifiable net benefits to /

Amend the bill further, as and if amended, SECTION 1, Page 6, by striking Section 58-27-1110(A)(4) and inserting:

/ (4) whether the electrical utility proposes to finance all or a portion of the storm recovery costs using storm recovery bonds. If the utility proposes to finance a portion of such costs, the electrical utility must identify the specific portion in the petition; /

Amend the bill further, as and if amended, SECTION 1, Page 6, by striking Section 58-27-1110(A)(7) and inserting:

/ (7) a comparison between the net present value of the costs to customers that are estimated to result from the issuance of storm recovery bonds based on current market conditions and the costs that would result from the application of the traditional method of financing and recovering storm recovery costs from customers. The comparison should demonstrate that the issuance of storm recovery bonds and the imposition of storm recovery charges are expected to maximize quantifiable net benefits to customers on a present value basis as compared to the costs that would have been incurred absent the issuance of storm recovery bonds; and /

Amend the bill further, as and if amended, SECTION 1, Page 7, by striking Section 58-27-1110(c)(2)(b) and inserting:

/ (b)a finding that the proposed issuance of recovery bonds and the imposition and collection of a storm recovery charge will maximize quantifiable net benefits to customers on a present value basis as compared to the costs that would have been incurred absent the issuance of storm recovery bonds; /

Amend the bill further, as and if amended, SECTION 1, Page 10, by striking Section 58-27-1110(C)(6) and inserting:

/ (6) Any financing order issued by the commission shall provide that, within one business day after the final terms of the storm recovery bonds are determined, the electrical utility shall provide an issuance advice letter to the commission. /

Amend the bill further, as and if amended, SECTION 1, Page 10, by striking Section 58-27-1110(C)(6)(a) and inserting:

/ (a) Such issuance advice letter shall be in the form approved in a financing order and include the final terms of the storm recovery bond issuance, up-front financing costs and on-going financing costs. Such issuance advice letter shall include a certification from the electrical utility, the primary underwriter(s), and a qualified independent third-party designated by the commission, as a condition to closing, certifying whether the sale of storm recovery bonds complies with the requirements of this article and the financing order. The certifications of the electrical utility and independent third-party shall certify whether the issuance of recovery bonds and the imposition and collection of a storm recovery charge results in maximized quantifiable net benefits to customers on a present-value basis as compared to the costs that would have been incurred absent the issuance of storm recovery bonds. The certifications of the electrical utility, primary underwriter(s), and independent third-party shall certify whether the structuring, marketing, and pricing of the storm recovery bonds results in the lowest storm recovery charges consistent with market conditions at the time the storm recovery bonds were priced and the terms set forth in the financing order. /

Amend the bill further, as and if amended, SECTION 1, Page 12, by striking Section 58-27-1115(B) and inserting:

/ (B)The commission may not order or otherwise directly or indirectly require an electrical utility to use storm recovery bonds to finance any project, addition, plant, facility, extension, capital improvement, equipment, or any other expenditure except as permitted under this article. After the issuance of a financing order, the electrical utility retains sole discretion regarding whether to cause the storm recovery bonds to be issued, including the right to defer or postpone such sale, assignment, transfer, or issuance, unless otherwise provided in the financing order. Nothing shall prevent the electrical utility from abandoning the issuance of storm recovery bonds under the financing order by filing with the commission a statement of abandonment and the reasons therefor. The commission may not refuse to allow an electrical utility to recover storm recovery costs in an otherwise permissible fashion, solely because of the potential availability of storm recovery bond financing. /