Senator Rankin proposes the following amendment (SJ-157.BJ0004S):

Amend the bill, as and if amended, SECTION 1, by striking Section 58-27-1105(7)(f) and inserting:

  (f) any costs incurred by (i) the commission or the Office of Regulatory Staff for any outside consultants, including counsel and advisors,; and (ii) the qualified independent third party selected by the commission, to the extent retained in connection with the securitization of storm recovery costs.

Amend the bill further, SECTION 1, by striking Section 58-27-1105(12) and inserting:

 (12) The term "qualified independent third party" means a person or entity with relevant expertise in accounting, finance, or utility regulation, sufficient to make the professional judgements necessary to certify compliance as required by Section 58-27-1110(C)(6)(a). The qualified independent third party shall be designated and retained by the commission to participate in the pre-bond issuance review process established by the commission pursuant to Section 58-27-1110(C)(2)(h). The role and responsibilities of the qualified independent third party are further detailed in Section 58-27-1110(C)(6). The qualified independent third party's certification of compliance is intended to inform the commission's decisions alongside other evidence in the proceeding.

Amend the bill further, SECTION 1, by striking Section 58-27-1105(17)(c) and (d) and inserting:

  (c) with respect to storm recovery costs that the electrical utility expects to incur, any difference between costs expected to be incurred and actual, reasonable and prudent costs incurred, including carrying costs and financing costs associated with any difference between costs expected to be incurred and actual, reasonable and prudent costs incurred, or any other rate-making adjustments appropriate to fairly and reasonably assign or allocate storm cost recovery to customers over time, shall be addressed in a future general rate proceeding, regardless of whether the electrical utility elects to seek review an and approval of principal costs prior to or after filing a petition for a financing order and issuing storm recovery bonds pursuant to Section 58-27-1110(B), as may be facilitated by other orders of the commission issued at the time or prior to such proceeding; provided, however, any review of financing costs shall be limited to reconciling any estimated financing costs with actual financing costs incurred and that the commission's adoption of a financing order and approval of the issuance of storm recovery bonds may not be revoked or otherwise modified. Any over-recovered costs, including carrying costs and financing costs, shall be ordered by the Commission to be returned to the electrical utility's customers in the next possible proceeding, over a period established by the Commission.
  (d) due to the significant and unprecedented damage caused by the 2024 hurricane referred to as Hurricane Helene to public and private property in South Carolina, including widespread destruction of utility infrastructure and the extraordinary expenses incurred by electrical utilities to repair, restore, and rebuild that infrastructure, the electrical utility is authorized to include as storm recovery costs, for Hurricane Helene only, its cost of capital from the date of the storm through the issuance of storm recovery bonds. This cost of capital shall be determined by the actual interest rate paid by the utility to borrow funds necessary to cover the restoration and recovery efforts after Hurricane Helene through the issuance of storm recovery bonds, provided that the interest rate percentage does not exceed the utility's total weighted average cost of capital percentage as established in its most recent base rate casegeneral rate proceeding, adjusted for income tax savings associated with the interest rate component. This subsection shall not be construed to limit, modify, or otherwise affect the electrical utility's ability to seek recovery of carrying costs in future securitizations under this article, except as specifically provided herein for Hurricane Helene.

Amend the bill further, SECTION 2, by striking Section 58-27-1110(B) and inserting:

 (B) If the principal costs the electrical utility proposes to finance using storm recovery bonds were not already subject to review by the commission in a general rate proceeding, then the electrical utility must, at its discretion, either file a petition with the commission for review and approval of those costs no later than one hundred eighty days before filing a petition for a financing order pursuant to this section, or, alternatively, defer the review and approval of such costs to either a future base general rate proceeding or a separate proceeding established by the commission at the request of the electrical utility in consultation with the Office of Regulatory Staff. If the electrical utility chooses to defer the review and approval of such costs, it shall file a report with the commission updating the reconciliation of estimated costs to actual costs incurred at least twice per calendar year until the costs are reconciled. If the electrical utility does not file a petition with the commission for review and approval of such costs within one calendar year following the issuance of the storm recovery bonds, the Office of Regulatory Staff may, at its discretion, file a petition with the commission to initiate a proceeding for review and approval of such costs. In either case, reconciliation of estimated costs to actual costs shall be subject to review pursuant to Section 58-27-1105(17)(c).
  (1) Any petition for review and approval of the principal costs shall be accompanied by direct testimony, exhibits, and supporting workpapers supporting the petition, testimony, and exhibits. Such workpapers may be filed under seal to the extent necessary to protect confidential, proprietary, or sensitive information. The electrical utility shall provide functional exhibits and workpapers to the Office of Regulatory Staff and to the commission, subject to any appropriate confidentiality designations.
  (2) If the electrical utility must file a petition for review and approval of the principal costs, the electrical utility shall not be required to provide additional notice prior to filing a petition for a financing order pursuant to this section; otherwise, the utility shall file a notice of its intent to file a petition for a financing order not less than thirty days prior to filing any such petition.

Amend the bill further, SECTION 2, by striking Section 58-27-1110(C)(6)(a) and (b) 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 qualified independent third-party shall certify whether the issuance of recovery bonds and the imposition and collection of a storm recovery charge will in fact provide 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 qualified independent third-party shall certify whether the structuring, marketing, and pricing of the storm recovery bonds will in fact result 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. The qualified independent third-party designated by the commission shall review the issuance advice letter and deliver its independent certification to the commission along with any other information it believes the commission should consider as to the commission's decision in subitem (b)(c) no later than one business day after the filing of the issuance advice letter by the electric utility which will contain the aforementioned certifications.
   (b) Once the qualified independent third party is designated and retained by the commission, the qualified independent third party shall independently participate in the pre-bond issuance review process established by the commission pursuant to Section 58-27-1110(C)(2)(j). The qualified independent third party shall have the authority to request and receive all necessary documents, data, and information from the electrical utility to fulfill its responsibilities and ensure compliance with Section 58-27-1110(C)(6)(a). The qualified independent third party shall also have the ability to communicate directly with the parties to the proceeding as needed to carry out its duties. The qualified independent third party's communications with the commission shall be limited solely to docket filings or, if requested by the commission, participation in a post-pricing meeting involving the electrical utility, the qualified independent third party, and other parties. The structure and details of the docket filings and such a meeting, including the handling of any confidential information, shall be determined by the commission in accordance with applicable procedural rules and orders.
   (b)(c) Unless otherwise provided in the financing order, by no later than noon on the fourth business day after the final terms of the storm recovery bonds are determined, the commission shall either accept the issuance advice letter or deliver an order to the electrical utility to prevent the issuance of the storm recovery bonds.

Renumber sections to conform.

Amend title to conform.