Exempt Wholesale Generator. STATUS 718 Should any entity to whom PSNH sells its generating assets desire to seek Exempt 719 Wholesale Generator status, the Settling Parties agree that they will support the purchaser's 720 efforts to obtain any necessary approvals and findings from the Commission and/or FERC, as 721 applicable. 722 IX. SECURITIZATION OF STRANDED COSTS 723 A. Role of Securitization in Settlement 724 The Settling Parties recognize that securitization is a useful tool for reducing 725 customers' costs and maximizing customer benefits. The issuance of RRBs will allow PSNH 726 to reduce its cost of capital, thereby significantly reducing rates for customers. Securitization 727 is expected to account for a material portion of the customer cost savings that will be achieved 728 when this Agreement is implemented. 729 B. Legislation 730 Legislation (SB221) deemed necessary and acceptable to the Settling Parties to 731 effectuate the terms of this Agreement and to allow the successful issuance of RRBs is 732 attached hereto as Appendix A. SB221, if enacted, would amend RSA Chapter 369-B and 733 RSA 374-F:3, V (c). Should SB221 not be enacted, such event shall be a failure of a 734 condition precedent to the effectiveness of this Agreement. If SB221 is enacted in a form that 735 differs in any material term from the draft legislation as it appears in Appendix A, any Settling 736 Party shall have the right to withdraw from this Agreement. 737 Such legislation authorizes, among other things, the securitization financing 738 contemplated by this Agreement via the creation by the Commission of an irrevocable 739 property right to xxxx and collect a non-bypassable RRB Charge in amounts sufficient to 740 recover RRB Costs associated with the RRBs. Such irrevocable property right will be 741 referred to as “RRB Property.” 742 Pursuant to RSA Chapter 369-B as amended by the draft legislation, the State of New 743 Hampshire will pledge, contract, and agree that neither the State nor any agency thereof, 744 including the Commission, will limit or alter the RRB Charge, securitized Stranded Costs, 745 RRB Property, or the finance order and all rights thereunder, until the RRBs and any interest, 746 fees and expenses associated therewith are fully discharged, unless adequate provision is 747 made for the protection of the owners or holders. The legislation also provides that RRB 748 Property may be sold in a true sale transaction to a SPSE in order to facilitate the issuance of 749 RRBs and directs the Commission to adjust the RRB Charge periodically in order to ensure 750 the timely recovery of RRB Costs (see the description of the True-Up Mechanism herein). 751 The RRB Charge will be non-bypassable pursuant to RSA 374-F:3 and RSA Chapter 752 369-B, and as provided in Section III. 753 C. Commission Order 754 Securitization will require the expeditious prior approval by the Commission in the 755 form of a finance order which includes the transaction description, certain findings, orders and 756 approvals. PSNH will request findings that will maximize the likelihood of achieving a 757 Triple-A Rating on the RRBs and the marketability of the RRB issuance. PSNH will make 758 filings necessary in order to allow the Commission to issue the finance order concurrently 759 with the Commission’s approval of bids for the sale of PSNH’s generating assets. 760 The Commission will be requested, among other things, to: (i) approve the issuance of 761 RRBs in an amount sufficient to refinance the unrecovered net book value of PSNH’s 762 generation assets, unrecovered deferrals, transaction costs, tax stabilization payments, 763 employee protections, and other costs set forth herein consistent with RSA Chapter 369-B as 764 amended by the draft legislation in Appendix A, less the $25 million in deferred equity return 765 on the scrubber which PSNH has agreed to forego; (ii) approve the organization and 766 capitalization of the SPSE to which the RRB Property will be sold; (iii) establish the RRB 767 Property and the RRB Charge; (iv) provide for the periodic adjustment of the RRB Charge via 768 the True-Up Mechanism described herein; (v) approve the general structure and terms of the 769 RRBs (as summarized below); (vi) approve the servicing of the RRB Charge by PSNH, as 770 provided below in this Section IX, as the initial servicer for the RRB Property (the 771 “Servicer”), or any successor Servicer, under a servicing agreement (the “Servicing 772 Agreement”); and, (vii) declare the finance order irrevocable pursuant to RSA Chapter 369-B 773 as amended by the draft legislation.
Appears in 2 contracts
Exempt Wholesale Generator. STATUS 718 Should any entity to whom PSNH sells its generating assets desire to seek Exempt 719 Wholesale Generator status, the Settling Parties agree that they will support the purchaser's 720 efforts to obtain any necessary approvals and findings from the Commission and/or FERC, as 721 applicable. 722 IX. SECURITIZATION OF STRANDED COSTS 723 A. Role of Securitization in Settlement 724 The Settling Parties recognize that securitization is a useful tool for reducing 725 customers' costs and maximizing customer benefits. The issuance of RRBs will allow PSNH 726 to reduce its cost of capital, thereby significantly reducing rates for customers. Securitization 727 is expected to account for a material portion of the customer cost savings that will be achieved 728 when this Agreement is implemented. 729 B. Legislation 730 Legislation (SB221) deemed necessary and acceptable to the Settling Parties to 731 effectuate the terms of this Agreement and to allow the successful issuance of RRBs is 732 attached hereto as Appendix A. SB221, if enacted, would amend RSA Chapter 369-B and 733 RSA 374-F:3, V (c). Should SB221 not be enacted, such event shall be a failure of a 734 condition precedent to the effectiveness of this Agreement. If SB221 is enacted in a form that 735 differs in any material term from the draft legislation as it appears in Appendix A, any Settling 736 Party shall have the right to withdraw from this Agreement. 737 Such legislation authorizes, among other things, the securitization financing 738 contemplated by this Agreement via the creation by the Commission of an irrevocable 739 property right to xxxx bill and collect a non-bypassable RRB Charge in amounts sufficient to 740 recover RRB Costs associated with the RRBs. Such irrevocable property right will be 741 referred to as “RRB Property.” 742 Pursuant to RSA Chapter 369-B as amended by the draft legislation, the State of New 743 Hampshire will pledge, contract, and agree that neither the State nor any agency thereof, 744 including the Commission, will limit or alter the RRB Charge, securitized Stranded Costs, 745 RRB Property, or the finance order and all rights thereunder, until the RRBs and any interest, 746 fees and expenses associated therewith are fully discharged, unless adequate provision is 747 made for the protection of the owners or holders. The legislation also provides that RRB 748 Property may be sold in a true sale transaction to a SPSE in order to facilitate the issuance of 749 RRBs and directs the Commission to adjust the RRB Charge periodically in order to ensure 750 the timely recovery of RRB Costs (see the description of the True-Up Mechanism herein). 751 The RRB Charge will be non-bypassable pursuant to RSA 374-F:3 and RSA Chapter 752 369-B, and as provided in Section III. 753 C. Commission Order 754 Securitization will require the expeditious prior approval by the Commission in the 755 form of a finance order which includes the transaction description, certain findings, orders and 756 approvals. PSNH will request findings that will maximize the likelihood of achieving a 757 Triple-A Rating on the RRBs and the marketability of the RRB issuance. PSNH will make 758 filings necessary in order to allow the Commission to issue the finance order concurrently 759 with the Commission’s approval of bids for the sale of PSNH’s generating assets. 760 The Commission will be requested, among other things, to: (i) approve the issuance of 761 RRBs in an amount sufficient to refinance the unrecovered net book value of PSNH’s 762 generation assets, unrecovered deferrals, transaction costs, tax stabilization payments, 763 employee protections, and other costs set forth herein consistent with RSA Chapter 369-B as 764 amended by the draft legislation in Appendix A, less the $25 million in deferred equity return 765 on the scrubber which PSNH has agreed to forego; (ii) approve the organization and 766 capitalization of the SPSE to which the RRB Property will be sold; (iii) establish the RRB 767 Property and the RRB Charge; (iv) provide for the periodic adjustment of the RRB Charge via 768 the True-Up Mechanism described herein; (v) approve the general structure and terms of the 769 RRBs (as summarized below); (vi) approve the servicing of the RRB Charge by PSNH, as 770 provided below in this Section IX, as the initial servicer for the RRB Property (the 771 “Servicer”), or any successor Servicer, under a servicing agreement (the “Servicing 772 Agreement”); and, (vii) declare the finance order irrevocable pursuant to RSA Chapter 369-B 773 as amended by the draft legislation. 774 D. RRB Transaction Overview 775 The finance order sought by PSNH will, among other things, require approval of the 776 following aspects of the RRB transaction, finding that they are consistent with achieving the 777 targeted Triple-A Rating and therefore the lowest cost on the RRBs.
Appears in 1 contract
Samples: Stabilization Agreement
Exempt Wholesale Generator. STATUS 718 Should any entity to whom PSNH sells its generating assets desire to seek Exempt 719 Wholesale Generator status, the Settling Parties agree that they will support the purchaser's 720 efforts to obtain any necessary approvals and findings from the Commission and/or FERC, as 721 applicable. 722 IX. SECURITIZATION OF STRANDED COSTS 723 A. Role of Securitization in Settlement 724 The Settling Parties recognize that securitization is a useful tool for reducing 725 customers' costs and maximizing customer benefits. The issuance of RRBs will allow PSNH 726 to reduce its cost of capital, thereby significantly reducing rates for customers. Securitization 727 is expected to account for a material portion of the customer cost savings that will be achieved 728 when this Agreement is implemented. 729 B. Legislation 730 Legislation (SB221) deemed necessary and acceptable to the Settling Parties to 731 effectuate the terms of this Agreement and to allow the successful issuance of RRBs is 732 attached hereto as Appendix A. SB221, if enacted, would amend RSA Chapter 369-B and 733 RSA 374-F:3, V (c). Should SB221 not be enacted, such event shall be a failure of a 734 condition precedent to the effectiveness of this Agreement. If SB221 is enacted in a form that 735 differs in any material term from the draft legislation as it appears in Appendix A, any Settling 736 Party shall have the right to withdraw from this Agreement. 737 Such legislation authorizes, among other things, the securitization financing 738 contemplated by this Agreement via the creation by the Commission of an irrevocable 739 property right to xxxx and collect a non-bypassable RRB Charge in amounts sufficient to 740 recover RRB Costs associated with the RRBs. Such irrevocable property right will be 741 referred to as “RRB Property.” 742 Pursuant to RSA Chapter 369-B as amended by the draft legislation, the State of New 743 Hampshire will pledge, contract, and agree that neither the State nor any agency thereof, 744 including the Commission, will limit or alter the RRB Charge, securitized Stranded Costs, 745 RRB Property, or the finance order and all rights thereunder, until the RRBs and any interest, 746 fees and expenses associated therewith are fully discharged, unless adequate provision is 747 made for the protection of the owners or holders. The legislation also provides that RRB 748 Property may be sold in a true sale transaction to a SPSE in order to facilitate the issuance of 749 RRBs and directs the Commission to adjust the RRB Charge periodically in order to ensure 750 the timely recovery of RRB Costs (see the description of the True-Up Mechanism herein). 751 The RRB Charge will be non-bypassable pursuant to RSA 374-F:3 and RSA Chapter 752 369-B, and as provided in Section III. 753 C. Commission Order 754 Securitization will require the expeditious prior approval by the Commission in the 755 form of a finance order which includes the transaction description, certain findings, orders and 756 approvals. PSNH will request findings that will maximize the likelihood of achieving a 757 Triple-A Rating on the RRBs and the marketability of the RRB issuance. PSNH will make 758 filings necessary in order to allow the Commission to issue the finance order concurrently 759 with the Commission’s approval of bids for the sale of PSNH’s generating assets. 760 The Commission will be requested, among other things, to: (i) approve the issuance of 761 RRBs in an amount sufficient to refinance the unrecovered net book value of PSNH’s 762 generation assets, unrecovered deferrals, transaction costs, tax stabilization payments, 763 employee protections, and other costs set forth herein consistent with RSA Chapter 369-B as 764 amended by the draft legislation in Appendix A, less the $25 million in deferred equity return 765 on the scrubber which PSNH has agreed to forego; (ii) approve the organization and 766 capitalization of the SPSE to which the RRB Property will be sold; (iii) establish the RRB 767 Property and the RRB Charge; (iv) provide for the periodic adjustment of the RRB Charge via 768 the True-Up Mechanism described herein; (v) approve the general structure and terms of the 769 RRBs (as summarized below); (vi) approve the servicing of the RRB Charge by PSNH, as 770 provided below in this Section IX, as the initial servicer for the RRB Property (the 771 “Servicer”), or any successor Servicer, under a servicing agreement (the “Servicing 772 Agreement”); and, (vii) declare the finance order irrevocable pursuant to RSA Chapter 369-B 773 as amended by the draft legislation. 774 D. RRB Transaction Overview 775 The finance order sought by PSNH will, among other things, require approval of the 776 following aspects of the RRB transaction, finding that they are consistent with achieving the 777 targeted Triple-A Rating and therefore the lowest cost on the RRBs.
Appears in 1 contract
Samples: www3.epa.gov
