Bill Text: NY A10346 | 2023-2024 | General Assembly | Amended


Bill Title: Enacts the "New York utility corporation securitization act"; allows electric corporations to petition the public service commission for authority to issue storm recovery bonds.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced) 2024-06-07 - substituted by s9339a [A10346 Detail]

Download: New_York-2023-A10346-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                        10346--A

                   IN ASSEMBLY

                                      May 17, 2024
                                       ___________

        Introduced  by  COMMITTEE  ON  RULES  -- (at request of M. of A. Paulin,
          McDonald, Kelles, Woerner, Solages) -- read once and referred  to  the
          Committee  on  Corporations,  Authorities and Commissions -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN ACT to enact the "New York utility corporation securitization act"

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York utility corporation securitization act".
     3    § 2. Definitions. As used in this act, the following terms shall  have
     4  the following meanings:
     5    1.  "Ancillary  agreement" means any bond, insurance policy, letter of
     6  credit, reserve account, surety bond, swap arrangement, hedging arrange-
     7  ment, liquidity or credit support arrangement or other similar agreement
     8  or arrangement entered into in connection with the issuance of  recovery
     9  bonds under this act, that is designed to promote the credit quality and
    10  marketability  of  such  recovery  bonds  or  to mitigate the risk of an
    11  increase in interest rates.
    12    2. "Assignee" means any  individual,  corporation,  limited  liability
    13  company,  partnership  or  limited  partnership,  trust or other legally
    14  recognized entity to which an interest in recovery property is  created,
    15  recognized,  assigned,  sold  or  transferred,  other  than as security,
    16  including any assignee of such property.
    17    3. "Commission" means the public service commission.
    18    4. "Consumer" means any individual, governmental body, trust, business
    19  entity, nonprofit organization or other legally recognized  entity  that
    20  takes  electric  delivery  service  within  the service area by means of
    21  electric transmission or distribution facilities, whether those electric
    22  transmission or distribution facilities are owned by  a  utility  corpo-
    23  ration or other entity.
    24    5. "Financing costs" means:
    25    (a)  interest and acquisition, defeasance, or redemption premiums that
    26  are payable on recovery bonds;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05310-05-4

        A. 10346--A                         2

     1    (b) any payment approved in the financing order and required under  an
     2  ancillary agreement or other accounts established under the terms of any
     3  indenture,  ancillary agreement, or other financing documents pertaining
     4  to recovery bonds;
     5    (c)  provided  that  recovery  bonds  shall be the only method used to
     6  recover the costs identified in this paragraph, any other  cost  related
     7  to  issuing, supporting, repaying, and servicing recovery bonds, includ-
     8  ing but not limited to servicing fees,  accounting  and  auditing  fees,
     9  trustee  fees,  legal fees, consulting fees, administrative fees, place-
    10  ment and underwriting fees, capitalized interest,  rating  agency  fees,
    11  stock  exchange  listing and compliance fees, and filing fees, including
    12  costs related to obtaining a financing order; or
    13    (d) any federal, state or local taxes,  payments  in  lieu  of  taxes,
    14  franchise fees or license fees imposed on recovery charge revenues.
    15    6.  "Financing  order"  means an order of the commission which author-
    16  izes:
    17    (a) the issuance of recovery bonds;
    18    (b) the imposition, collection, and periodic adjustments  of  recovery
    19  charges;
    20    (c) the creation or recognition of recovery property; and/or
    21    (d)  the  sale,  assignment,  or  transfer  of recovery property to an
    22  assignee.
    23    7. "Financing party" means any holder of recovery bonds and any  trus-
    24  tee, collateral agent, or other person acting for the benefit of holders
    25  of recovery bonds.
    26    8.  "Financing statement" shall have the same meaning as that provided
    27  in paragraph 39 of subsection (a) of section 9-102 the  uniform  commer-
    28  cial  code.  All  financing  statements under this act shall be filed in
    29  accordance with section 9-501 of the uniform commercial code.
    30    9. "Lien creditor" shall have the same meaning  as  that  provided  in
    31  paragraph  52  of subsection (a) of section 9-102 of the uniform commer-
    32  cial code.
    33    10. "Recovery bonds" means bonds, debentures, notes,  certificates  of
    34  participation,  certificates of ownership, or other evidences of indebt-
    35  edness or ownership that are issued pursuant to an indenture,  contract,
    36  or  other agreement of a utility corporation or its assignee pursuant to
    37  a financing order, the proceeds of which are used directly or indirectly
    38  to provide, recover, finance, or refinance commission-approved  recovery
    39  costs and financing costs, to such level as the commission may authorize
    40  in  a financing order, and which are secured by or payable from recovery
    41  property, and that have a final maturity date of no longer  than  twenty
    42  years  from  the original issuance.  If certificates of participation or
    43  ownership are issued, references in this act to principal, interest,  or
    44  premium  shall  be  construed  to refer to comparable amounts under such
    45  certificates.  Recovery bonds shall be nonrecourse to the credit or  any
    46  assets  of  the  utility corporation other than the recovery property as
    47  specified in the financing order and  any  rights  under  any  ancillary
    48  agreement.  Recovery  bonds  shall  be  legal  investments for financial
    49  institutions, insurance companies, fiduciaries, and other  persons  that
    50  require statutory authority regarding legal investment.
    51    11.  "Recovery  charge" means the amounts authorized by the commission
    52  to recover recovery costs and financing costs.  If  provided  for  in  a
    53  financing  order,  such  amounts  shall be imposed on consumer bills and
    54  collected by a utility corporation or its successors or assignees  or  a
    55  collection  agent, in full, through a charge paid by existing and future
    56  consumers receiving transmission or distribution service, or both,  from

        A. 10346--A                         3

     1  the utility corporation or its successors or assignees under rate sched-
     2  ules  or  special  contracts  approved  by  the commission. The recovery
     3  charge shall be non-bypassable and  imposed  on  all  consumers  in  the
     4  service  area and collected by the utility corporation or its successor,
     5  agent, subcontractor, assignee, or collection agent or any other  entity
     6  designated under the financing order.
     7    12.  "Recovery costs" means storm recovery costs identified for recov-
     8  ery in a financing order.
     9    13. "Recovery property" (a) means the property  rights  and  interests
    10  created  pursuant  to this act, including but not limited to any and all
    11  right, title, and interest:
    12    (i) in and to recovery charges established  pursuant  to  a  financing
    13  order,  as  approved by the commission and adjusted from time to time in
    14  accordance with such financing order;
    15    (ii) in and to all revenues, collections, claims, payments, money,  or
    16  proceeds  of or arising from the recovery charges or constituting recov-
    17  ery charges that are the subject of a  financing  order,  regardless  of
    18  whether such revenues, collections, claims, payments, money, or proceeds
    19  are imposed, billed, received, collected, or maintained together with or
    20  commingled with other revenues, collections, claims, payments, money, or
    21  proceeds; and
    22    (iii)  in  and  to  all  rights  to obtain periodic adjustments to the
    23  recovery charges pursuant to the terms of the financing order; and
    24    (b) shall constitute a vested, presently existing property right.
    25    14. "Secured party" means a financing party in favor of which a utili-
    26  ty corporation or its successors or assignees creates a security  inter-
    27  est  in all or any portion of its interest in or right to recovery prop-
    28  erty. A secured party may be granted a  security  interest  in  recovery
    29  property  under  this  act  and  a security interest in other collateral
    30  subject to the uniform commercial code in a single security agreement.
    31    15. "Security interest" means a pledge, hypothecation, or other encum-
    32  brance of or other right over any portion of recovery  property  created
    33  by contract to secure the payment or performance of an obligation.
    34    16.  "Service area" means the geographical area within which a utility
    35  corporation provides electric distribution services as of the date of  a
    36  financing order.
    37    17.  "Service interruption" means the loss of service for five minutes
    38  or more, for one or more consumers, which is the result of one  or  more
    39  component failures.
    40    18.  "Storm"  means  a  period of adverse weather during which service
    41  interruptions affect at least ten percent of the consumers in an operat-
    42  ing area and/or result in consumers being without electric  service  for
    43  durations of at least twenty-four hours.
    44    19.  "Storm  recovery activity" means any activity or activities by or
    45  on behalf of  a  utility  corporation  taken  before  July  1,  2024  in
    46  connection with the restoration of service and infrastructure associated
    47  with electric power outages affecting consumers of a utility corporation
    48  as the result of a storm or storms, including but not limited to mobili-
    49  zation,  staging,  and  construction,  reconstruction,  replacement,  or
    50  repair of electric generation, transmission, or distribution facilities.
    51    20. "Storm recovery costs" means, if requested  by  a  utility  corpo-
    52  ration  and  approved  by  the commission, costs incurred before July 1,
    53  2024 by a utility corporation in undertaking a storm recovery  activity.
    54  Such  costs  may  be net of applicable insurance proceeds, tax benefits,
    55  and any other amounts intended to reimburse the utility corporation  for
    56  storm recovery activities such as governmental grants or aid of any kind

        A. 10346--A                         4

     1  and may include adjustments for normal capital replacement and operating
     2  costs,  or  other potential offsetting adjustments. Storm recovery costs
     3  may include retiring any existing indebtedness relating to storm  recov-
     4  ery activities.
     5    21. "Utility corporation" means any electric corporations individually
     6  or collectively who are subsidiaries of the same corporation who jointly
     7  or  collectively have storm recovery costs of $500 million or more as of
     8  July 1, 2024.
     9    § 3. Financing orders. 1. No utility corporation or its  affiliate  or
    10  other assignee shall issue any recovery bonds unless it has been specif-
    11  ically  authorized to do so by a financing order issued pursuant to this
    12  section. No later than two years after the effective date of this act, a
    13  utility corporation may petition the commission for  a  financing  order
    14  granting  such  authority.  Such  petition  shall be made under oath and
    15  shall be signed and filed on behalf of the utility  corporation  or  its
    16  affiliate  or  other  assignee  by the president or by a vice president,
    17  treasurer, or other executive officer having knowledge  of  the  matters
    18  set  forth therein and shall be submitted in such form as the commission
    19  shall prescribe.
    20    2. Each petition filed under this section shall  include  all  of  the
    21  following:
    22    (a)  A  description  of the storm recovery activities that the utility
    23  corporation has undertaken and the reasons for  undertaking  the  activ-
    24  ities.
    25    (b)  The  storm  recovery costs the utility corporation has determined
    26  would be appropriate to recover through recovery bonds and is seeking to
    27  recover, and the level that the utility corporation is funding  or  will
    28  seek  to  fund  through  other means, together with a description of the
    29  factors and calculations used in determining such amounts and methods of
    30  recovery.
    31    (c) Whether the utility corporation  proposes  to  finance  all  or  a
    32  portion  of  the  recovery  costs using recovery bonds.   If the utility
    33  corporation proposes to finance a portion of  such  costs,  the  utility
    34  corporation  must  identify  the  specific  portion  in the petition. An
    35  election not to finance a portion of the recovery costs  using  recovery
    36  bonds by a utility corporation shall not be deemed to waive its right to
    37  recover such costs pursuant to a separate proceeding with the commission
    38  pursuant to this act.
    39    (d) An estimate of the financing costs related to the recovery bonds.
    40    (e)  An  estimate  of  the  recovery  charges necessary to recover the
    41  recovery costs and financing costs and the period for recovery  of  such
    42  costs.
    43    (f) A comparison between the net present value of the costs to consum-
    44  ers that are estimated to result from the issuance of recovery bonds and
    45  the  result  from the application of the traditional method of financing
    46  and recovering recovery costs from consumers.    The  comparison  should
    47  demonstrate  that  the  issuance of recovery bonds and the imposition of
    48  recovery charges  are  expected  to  provide  quantifiable  benefits  to
    49  consumers.
    50    3.  (a)  The  commission may grant a petition under subdivision one of
    51  this section in whole or in part by issuing a financing order, with such
    52  modifications thereto and upon such terms and conditions as the  commis-
    53  sion  prescribes  and  that  are consistent with this act, provided such
    54  financing is prudent and would provide a net benefit to the consumer. If
    55  the commission issues a financing order approving the issuance of recov-
    56  ery bonds under this act, the commission shall consider whether:

        A. 10346--A                         5

     1    (i) the proposed issuance of recovery bonds  and  the  imposition  and
     2  collection  of  a  recovery  charge are expected to provide quantifiable
     3  benefits to consumers as compared to the  costs  that  would  have  been
     4  incurred absent the issuance of recovery bonds; and
     5    (ii)  the  proposed structuring, expected pricing, and financing costs
     6  of the recovery bonds are reasonably expected to result  in  the  lowest
     7  recovery  charges  consistent  with  market  conditions  at the time the
     8  recovery bonds are priced and the terms of the financing order or  would
     9  avoid or mitigate rate impacts to consumers as compared with traditional
    10  methods of financing or recovering recovery costs.
    11    (b)  The commission may determine what degree of flexibility to afford
    12  to the utility corporation or assignees in establishing  the  terms  and
    13  conditions of the recovery bonds, including but not limited to repayment
    14  schedules,  interest  rates,  and  other  financing costs. A copy of any
    15  financing order issued under this act duly certified by  a  commissioner
    16  or  other  person authorized to act on behalf of the commission shall be
    17  sufficient evidence for all purposes of whole and complete compliance by
    18  the utility corporation with all procedural and other  matters  required
    19  precedent to the issuance of the order.
    20    4.  Proceedings on a petition submitted pursuant to this section begin
    21  with the petition for a financing order filed by a  utility  corporation
    22  with  the  commission  for  review  and  approval within 135 days of the
    23  filing of the petition and shall be disposed of in accordance  with  the
    24  requirements of this act and the rules of the commission.
    25    5. A financing order issued by the commission to a utility corporation
    26  shall:
    27    (a)  Specify the amount of storm recovery costs, taking into consider-
    28  ation, to the extent the commission deems appropriate, any other methods
    29  used to recover these costs and any offsets or credits to  those  costs,
    30  and  provide  with respect to the amount of financing costs which may be
    31  recovered through recovery charges;
    32    (b) Provide that the proposed financing through issuance  of  recovery
    33  bonds and the imposition and collection of recovery charges are expected
    34  to  provide  quantifiable benefits to consumers as compared to the costs
    35  that would have been incurred absent the issuance of the recovery  bonds
    36  and  that the net present value of the costs to consumers that are esti-
    37  mated to result from the  financing through issuance of  recovery  bonds
    38  is  less  than  the net present value of costs of the application of the
    39  traditional method of  financing  and  recovering  recovery  costs  from
    40  consumers;
    41    (c) Provide that the structuring and pricing of the recovery bonds are
    42  expected to result in the lowest recovery charges consistent with market
    43  conditions  at  the time the recovery bonds are priced and the terms set
    44  forth in such financing order;
    45    (d) Specify and create the recovery property of a utility  corporation
    46  or  its successors or assignees that may be used to pay or secure recov-
    47  ery bonds and financing costs;
    48    (e) Provide that such recovery property may be: (i) sold, assigned, or
    49  transferred by the utility corporation to  (A)  a  subsidiary  which  is
    50  wholly  owned,  directly  or  indirectly, by the utility corporation and
    51  which will be the issuer of the recovery bonds or (B)  another  assignee
    52  which will be the issuer of the recovery bonds; or
    53    (ii)  created  or  recognized as property of an assignee which will be
    54  the issuer of the recovery bonds;
    55    (f) Provide that the recovery charges shall be sufficient at all times
    56  to pay the principal of and interest on the recovery bonds as  the  same

        A. 10346--A                         6

     1  shall become due and payable and all other financing costs and establish
     2  a  true-up mechanism requiring that the recovery charges be reviewed and
     3  adjusted at least annually to correct any  overcollection  or  undercol-
     4  lection during the period since the issuance or preceding adjustment and
     5  to ensure the projected recovery of amounts sufficient to provide timely
     6  payment  of  all  principal,  interest  and  other financing costs. Each
     7  adjustment to the recovery charge, in amounts as  calculated  by  or  on
     8  behalf  of  the  owner of recovery property, pursuant to a method estab-
     9  lished in the financing order, shall automatically become  effective  60
    10  days  following  the date on which the periodic adjustment is filed with
    11  the commission unless the commission approves an earlier effective  date
    12  requested by the issuer of recovery bonds;
    13    (g)  Provide  and  pledge  that  after  the earlier of the transfer of
    14  recovery property to an assignee  or  the  issuance  of  recovery  bonds
    15  authorized thereby, a financing order is irrevocable until the indefeas-
    16  ible  payment in full of the recovery bonds and the financing costs and,
    17  provided that, except as provided in subdivision 8 of this section or to
    18  implement any true-up mechanism adopted by the commission  as  described
    19  in  paragraph  (f)  of  this  subdivision, the commission may not amend,
    20  modify, or terminate the financing order by  any  subsequent  action  or
    21  reduce, impair, postpone, terminate, or otherwise adjust recovery charg-
    22  es  approved  in  the  financing  order, provided nothing shall preclude
    23  limitation or alteration if and when full compensation,  including  full
    24  cost  recovery,  is made for the full protection of the recovery charges
    25  collected pursuant to a financing order and the full protection  of  the
    26  holders of recovery bonds and any assignee or financing party;
    27    (h)  Specify  how  amounts collected from consumers shall be allocated
    28  between recovery charges and other charges;
    29    (i) Provide that a financing order remains in effect until the  recov-
    30  ery  bonds  issued  pursuant to the order have been indefeasibly paid in
    31  full and the financing costs of such bonds have been recovered in full;
    32    (j) Provide that a financing order shall remain in effect and unabated
    33  notwithstanding the  reorganization,  bankruptcy,  or  other  insolvency
    34  proceedings, or merger or sale, of the applicable utility corporation or
    35  its successors or assignees;
    36    (k)  Authorize and require the utility corporation, to the extent that
    37  any interest in recovery property is sold or  assigned,  shall  contract
    38  with  the  assignee  or  any  financing party to continue to operate its
    39  system to provide service to its consumers, collect amounts  in  respect
    40  of  the recovery charges for the benefit and account of such assignee or
    41  financing party, and account for and remit such amounts to  or  for  the
    42  account  of  such  assignee  or financing party, including pursuant to a
    43  sequestration order authorized by  subdivision  6  of  section  four  or
    44  subdivision 7 of section six of this act; and
    45    (l)  Provide  that  any  cost  to  the consumer in connection with the
    46  financing order, that is not identified in  and  provided  for  in  such
    47  financing  order,  shall  not be recovered through any rates or recovery
    48  charges, and shall solely be the obligation of the  utility  corporation
    49  or its successors or assignees.
    50    6.  In each financing order issued to or on behalf of a utility corpo-
    51  ration, the commission shall:
    52    (a) Prescribe any limitations on potential assignees of recovery prop-
    53  erty;
    54    (b) Authorize an assignee which is a subsidiary of  a  utility  corpo-
    55  ration  and which issues recovery bonds or another assignee which issues
    56  recovery bonds to provide and establish in its organizational documents,

        A. 10346--A                         7

     1  partnership agreement, or operating agreement, as  applicable,  that  in
     2  order  for a person to file a voluntary bankruptcy petition on behalf of
     3  such assignee, the prior unanimous consent of the  directors,  partners,
     4  or  managers,  as  applicable, shall be required.  If so authorized in a
     5  financing order, any such provision  set  forth  in  the  organizational
     6  documents,  partnership  agreement,  or  operating  agreement of such an
     7  assignee shall constitute a legal, valid, and binding agreement  of  the
     8  shareholders,  partners, or members, as applicable, of such assignee and
     9  shall be enforceable against such shareholders,  partners,  or  members;
    10  and
    11    (c)  Provide  that  the  creation of the recovery property pursuant to
    12  paragraph (d) of subdivision 5 of  this  section  shall  be  conditioned
    13  upon,  and  shall be simultaneous with either: (i) the sale, assignment,
    14  or other transfer of the recovery property to an assignee; or  (ii)  the
    15  issuance  of the recovery bonds and the security interest created in the
    16  recovery property to secure recovery bonds.
    17    7. After the issuance of a financing order, and within such  time  and
    18  subject  to  any other limitations set forth in the financing order, the
    19  utility  corporation  retains  discretion  regarding  whether  to  sell,
    20  assign, or otherwise transfer recovery property or to cause the recovery
    21  bonds  to be issued, including the right to defer or postpone such sale,
    22  assignment, transfer, or issuance.
    23    8. At the  request  of  a  utility  corporation,  the  commission  may
    24  commence  a  proceeding  and  issue  a  subsequent  financing order that
    25  provides for the refinancing, retiring, or refunding of  recovery  bonds
    26  issued  by  an  affiliate  of  the  utility  corporation pursuant to the
    27  original financing order if the commission  finds  that  the  subsequent
    28  financing  order satisfies all of the criteria specified in subdivisions
    29  3 and 5 of this section or that provides for an  accounting,  refunding,
    30  or  crediting  to  consumers  of  the  proceeds of any true-up mechanism
    31  adopted by the commission in accordance with paragraph (f)  of  subdivi-
    32  sion  5 of this section.  Effective on retirement of the refunded recov-
    33  ery bonds and the issuance of new recovery  bonds,  the  commission  may
    34  adjust  the related recovery charges accordingly or establish substitute
    35  recovery charges, provided any such subsequent order shall be consistent
    36  with the provisions of subdivision 5 of this section.
    37    9. (a) The commission shall not, in exercising its powers and carrying
    38  out its duties regarding any matter within  its  authority  pursuant  to
    39  this  act,  consider  the  recovery bonds issued pursuant to a financing
    40  order to be the debt of the utility corporation other than  for  federal
    41  income  tax  purposes,  consider  the  recovery  charges  paid under the
    42  financing order to be the revenue of the  utility  corporation  for  any
    43  purpose,  or consider the recovery costs or financing costs specified in
    44  the financing order to be the costs of the utility corporation.
    45    (b) The commission may not order or otherwise directly  or  indirectly
    46  require  a  utility  corporation  to  use  recovery bonds to finance any
    47  project, addition,  plant,  facility,  extension,  capital  improvement,
    48  equipment,  or  any other expenditure. After the issuance of a financing
    49  order, the utility corporation retains sole discretion whether to  cause
    50  the  recovery  bonds to be issued, including the right to defer or post-
    51  pone such sale, assignment, transfer or issuance. Nothing shall  prevent
    52  the  utility  corporation from abandoning the issuance of recovery bonds
    53  under the financing order by filing with the commission a  statement  of
    54  abandonment  and  the reasons therefor.  The commission shall not refuse
    55  to allow a utility corporation to recover recovery costs that  would  be
    56  otherwise  permissible for recovery or refuse or condition authorization

        A. 10346--A                         8

     1  or approval of the issuance and sale by a utility corporation of securi-
     2  ties or the assumption by the  utility  corporation  of  liabilities  or
     3  obligations,  solely  because  of the potential availability of recovery
     4  bond financing.
     5    10.  All  financing orders issued by the commission shall be operative
     6  and in full force and effect on the date of the issuance of such order.
     7    11. Notwithstanding any other law to the contrary, any action, suit or
     8  proceeding to which the commission or the recovery bond issuer may be  a
     9  party,  in  which  any question arises as to the validity of this act or
    10  any financing order, shall be preferred over all other civil  causes  in
    11  all courts of the state, except election matters, and shall be heard and
    12  determined  in  preference  to all other civil business pending therein,
    13  except election matters, irrespective of position on the calendar.  Such
    14  preference shall also be granted upon petition of counsel to the commis-
    15  sion in any action or proceeding questioning the validity of any financ-
    16  ing  order  or  other  decision made by the commission under this act in
    17  which such counsel may be allowed to  intervene.    Notwithstanding  any
    18  other  provision  of  law to the contrary, the validity of any financing
    19  order or other decision may only be challenged  by  an  aggrieved  party
    20  pursuant to an action, suit or proceeding filed within thirty days after
    21  such  financing  order  becomes  final; provided, however, that any such
    22  action, suit or proceeding and all supporting papers shall be  commenced
    23  directly  in  the  supreme  court,  appellate  division,  third judicial
    24  department.
    25    12. A financing order shall require the recovery bond  issuer  or  the
    26  assignee  to  file  at least annually with the commission, the governor,
    27  the temporary president of the senate, the speaker of the assembly,  the
    28  chair  of  the  senate  finance committee, and the chair of the assembly
    29  ways and means committee, a periodic  report  showing  the  billing  and
    30  collection  of  recovery  charges,  the  application  of recovery charge
    31  revenues to debt service on the recovery bonds and other ongoing financ-
    32  ing costs, and the balances in any accounts required  by  the  financing
    33  order, and any other information the commission deems necessary.
    34    §  4.    Recovery  property.  1.  All recovery property specified in a
    35  financing order shall constitute an existing,  present  property  right.
    36  Such  property shall exist whether or not the revenues or proceeds aris-
    37  ing from the property have been  billed,  have  accrued,  or  have  been
    38  collected.
    39    2.  Recovery property specified in a financing order shall continue to
    40  exist until the recovery bonds issued pursuant to such order are paid in
    41  full and all financing costs of the bonds have been recovered in full.
    42    3. All or any portion of recovery property specified  in  a  financing
    43  order  issued  to a utility corporation may be sold, assigned, or trans-
    44  ferred to a successor or an assignee, including an affiliate  or  affil-
    45  iates  of  the utility corporation or any other assignee created for the
    46  limited purpose of acquiring, owning, or administering recovery property
    47  or issuing recovery bonds under the financing order.  All or any portion
    48  of recovery property may be encumbered by a security interest to  secure
    49  recovery  bonds  issued pursuant to the order and other financing costs.
    50  Each such sale, assignment, transfer, or security interest granted by  a
    51  utility  corporation  or  affiliate of a utility corporation or assignee
    52  shall be considered to be a transaction in the ordinary course of  busi-
    53  ness.
    54    4.  The  description  of  recovery  property  being sold, assigned, or
    55  transferred to an assignee in any sale agreement, purchase agreement, or
    56  other transfer agreement or created and recognized  as  property  of  an

        A. 10346--A                         9

     1  assignee  in  accordance  with  subdivision  nine of this section, being
     2  encumbered to a secured party in any security agreement,  pledge  agree-
     3  ment,  or  other security document, or indicated in any financing state-
     4  ment  is only sufficient if such description or indication refers to the
     5  specific financing order that created the recovery property  and  states
     6  that  such  agreement  or financing statement covers all or part of such
     7  recovery property described in such financing order.   A description  of
     8  recovery  property  in  a  financing statement shall be sufficient if it
     9  refers to the financing order creating  the  recovery  property.    This
    10  subdivision  shall  apply to all purported sales, assignments, or trans-
    11  fers of, and all purported liens  or  security  interests  in,  recovery
    12  property,  regardless  of  whether  the related sale agreement, purchase
    13  agreement, other transfer agreement, security agreement,  pledge  agree-
    14  ment,  or  other  security  document  was entered into, or any financing
    15  statement was filed, before or after the effective date of this act.
    16    5. Every electric bill  issued  by  a  utility  corporation  that  has
    17  obtained  a financing order and caused recovery bonds to be issued shall
    18  comply with the provisions of this subdivision; provided, however,  that
    19  the  failure  of  a  utility corporation to comply with this subdivision
    20  shall not invalidate, impair, or affect any  financing  order,  recovery
    21  property, recovery charge, or recovery bonds.  Every such bill shall:
    22    (a)  Explicitly  reflect  that  a  portion of the charges on such bill
    23  represents recovery charges approved in a financing order issued to  the
    24  utility  corporation  and, if the recovery property has been transferred
    25  to, or created at, an assignee, must include a statement to  the  effect
    26  that  the  assignee  is  the owner of the rights to recovery charges and
    27  that the utility corporation or other entity, if applicable,  is  acting
    28  as  a collection agent or servicer for that assignee.  The tariff appli-
    29  cable to consumers must indicate the recovery charge and  the  ownership
    30  of the charge.
    31    (b)  Include the recovery charge on each consumer's bill as a separate
    32  line item and include either the rate or the amount  of  the  charge  on
    33  each bill.
    34    6. If a utility corporation defaults on any required payment of charg-
    35  es  arising  from  recovery property specified in a financing order, the
    36  supreme court, Albany county, upon petition by an interested party,  and
    37  without  limiting  any  other  remedies available to the applying party,
    38  shall order the sequestration and payment of the revenues  arising  from
    39  the recovery property to the financing parties or their representatives.
    40  Any such order shall remain in full force and effect notwithstanding any
    41  reorganization, bankruptcy, or other insolvency proceedings with respect
    42  to the utility corporation or its successors or assignees.
    43    7.  The  interest of an assignee or secured party in recovery property
    44  specified in a financing order shall not be subject to setoff,  counter-
    45  claim,  surcharge,  or  defense  by the utility corporation or any other
    46  person, or in connection with the reorganization, bankruptcy,  or  other
    47  insolvency of the utility corporation or any other entity.
    48    8.  Any  successor  to  a utility corporation, whether pursuant to any
    49  reorganization, bankruptcy, or other insolvency  proceeding  or  whether
    50  pursuant  to any merger or acquisition, sale, or other business combina-
    51  tion, or transfer by operation of law, as a  result  of  utility  corpo-
    52  ration  restructuring  or otherwise, shall perform and satisfy all obli-
    53  gations of, and have the same rights under  a  financing  order  as  the
    54  utility  corporation under the financing order in the same manner and to
    55  the same extent as the utility  corporation,  including  collection  and

        A. 10346--A                        10

     1  payment  of  any  revenues  and proceeds of the recovery property to any
     2  person entitled thereto.
     3    9.  Upon petition by the utility corporation, recovery property may be
     4  immediately created by operation of law on the latter of the issuance of
     5  a financing order, or the issuance of the recovery bonds by an assignee.
     6  Recovery property created in accordance  with  this  subdivision  shall,
     7  upon  creation,  belong  to the assignee and such assignee will have the
     8  same rights to and benefits arising from the  recovery  property  as  it
     9  would  have  if  it  acquired  such  recovery  property as a result of a
    10  purchase, acquisition or other transfer from the utility corporation.
    11    § 5. Sale, assignment, or transfer of recovery property.  1. The sale,
    12  assignment, or other transfer of recovery property by a  utility  corpo-
    13  ration  to  an  assignee that the parties have in the governing contract
    14  expressly stated to be a sale or other absolute transfer  shall  consti-
    15  tute  an absolute transfer and true sale of, and not a security interest
    16  in, the transferor's right, title, and interest in, to, and  under  such
    17  recovery property, other than for federal and state income tax purposes.
    18  The parties' characterization of such transaction as a sale of an inter-
    19  est  in  recovery property shall be conclusive that the transaction is a
    20  true sale and that ownership has passed to the  party  characterized  as
    21  the purchaser, regardless of whether the purchaser has possession of any
    22  documents  evidencing  or  pertaining  to the interest.   After any such
    23  transaction, the recovery property shall not be subject to any claims of
    24  the transferor or the transferor's creditors, other than creditors hold-
    25  ing a prior security interest in the recovery property  perfected  under
    26  section eight of this act.
    27    2.  Notwithstanding  any provision of law to the contrary, the charac-
    28  terization of any sale, assignment, or other transfer as a true sale  or
    29  other  absolute  transfer  pursuant to subdivision 1 of this section and
    30  the corresponding characterization of the assignee's  property  interest
    31  shall  be determinative and conclusive irrespective of, and not affected
    32  or impaired by, the existence of any or all  of  the  following  circum-
    33  stances:
    34    (a)  Commingling of amounts arising with respect to the recovery prop-
    35  erty with other amounts;
    36    (b) The retention by the transferor of a partial or residual interest,
    37  including an equity interest or  entitlement  to  any  surplus,  in  the
    38  recovery property, whether direct or indirect, or whether subordinate or
    39  otherwise;
    40    (c)  Any  recourse  that the assignee may have against the transferor,
    41  except that any such recourse shall not be created, contingent upon,  or
    42  otherwise occurring or resulting from the inability or failure of one or
    43  more of the transferor's consumers to timely pay all or a portion of the
    44  recovery charge;
    45    (d)  Any  indemnifications,  obligations, or repurchase rights made or
    46  provided by the transferor, except that  such  indemnity  or  repurchase
    47  rights  shall  not  be  based  solely upon the inability or failure of a
    48  transferor's consumers to timely pay all or a portion  of  the  recovery
    49  charge;
    50    (e)  The transferor acting as the collector of the recovery charges or
    51  the existence of any contract described in paragraph (k) of  subdivision
    52  5 of section three of this act;
    53    (f)  The contrary or other treatment of the sale, assignment, or other
    54  transfer for tax, financial reporting, or other purposes;
    55    (g) The granting or providing to holders of the recovery  bonds  of  a
    56  preferred  right  to  the recovery property or credit enhancement by the

        A. 10346--A                        11

     1  utility corporation or its  affiliates  with  respect  to  the  recovery
     2  bonds; or
     3    (h)  The  status  of the assignee as a direct or indirect wholly owned
     4  subsidiary or other affiliate of the utility corporation.  The  separate
     5  juridical  personality  of  any assignee of recovery property which is a
     6  subsidiary or affiliate of the utility corporation shall not  be  disre-
     7  garded  due  to  the  fact that the assignee and the utility corporation
     8  share any one or more incidents of control, including  common  managers,
     9  officers,  directors,  members,  accounting  or  administrative systems,
    10  consolidated tax returns, or office space, that the assignee  may  be  a
    11  disregarded  entity  for  tax  purposes,  that  the electric corporation
    12  caused the formation of the assignee, that a  contract  by  the  utility
    13  corporation and the assignee described in paragraph (k) of subdivision 5
    14  of  section  three  of  this  act exists, that the assignee has no other
    15  business other than  pertaining  to  the  recovery  property,  that  the
    16  capitalization  of  the  assignee  is  limited  to  amounts required for
    17  compliance with certain applicable federal income tax laws  and  revenue
    18  procedures,  or  that  other  factors used in applying a single business
    19  enterprise test to juridical persons are present.
    20    3. Any right that a utility corporation has in the  recovery  property
    21  prior  to  its  sale,  assignment, or transfer shall be in the form of a
    22  contractual right or chose in action notwithstanding any contrary treat-
    23  ment thereof for accounting or tax purposes.  The ownership of an inter-
    24  est in recovery  property  is  voluntarily  transferred  by  a  contract
    25  between  the owner and the assignee that purports to transfer the owner-
    26  ship of that interest.   Unless  otherwise  provided,  the  transfer  of
    27  ownership  between  the  parties  shall be effective as soon as there is
    28  written agreement on the interest, the purchase price is fixed, and  the
    29  financing  order  has been issued.  Such transfer shall be perfected and
    30  take effect against all third parties including,  but  not  limited  to,
    31  subsequent lien creditors when the transfer has become effective between
    32  the  parties  and  when a financing statement giving notice of the sale,
    33  assignment, or transfer is filed in accordance  with  subdivision  4  of
    34  this  section.   Delivery of such an interest in recovery property shall
    35  take place by operation of law upon the filing of the  financing  state-
    36  ment.
    37    4.  Financing statements required to be filed under this section shall
    38  be filed, indexed, maintained, and continued in the same manner  and  in
    39  the same system of records maintained for the filing of financing state-
    40  ments  under  article  9  of the uniform commercial code.  The filing of
    41  such financing statement shall be the only method of perfecting a  sale,
    42  assignment,  or transfer of recovery property.  The sale, assignment, or
    43  transfer of an interest in  recovery  property  perfected  by  filing  a
    44  financing  statement  shall  be  effective  against  any consumers owing
    45  payment of the recovery charges, creditors of the transferor, subsequent
    46  transferees, and all other third persons notwithstanding the absence  of
    47  actual  knowledge  of  or notice to such consumers of such sale, assign-
    48  ment, or transfer.
    49    5. The priority of the conflicting ownership interests of assignees in
    50  the same interest or rights in any recovery property shall be determined
    51  as follows:
    52    (a) Conflicting  perfected  interests  or  rights  of  assignees  rank
    53  according to priority in time of perfection.
    54    (b)  A  perfected interest or right of an assignee has priority over a
    55  conflicting unperfected interest or right of an assignee.

        A. 10346--A                        12

     1    (c) A perfected interest or right of an assignee has priority  over  a
     2  person  who  becomes  a  lien  creditor  after  the  perfection  of such
     3  assignee's interest or right.
     4    6.  The  priority  of  a sale, assignment, or transfer perfected under
     5  this section shall not be impaired by  any  later  modification  of  the
     6  financing  order  or  recovery  property  or by the commingling of funds
     7  arising from recovery property with other funds.    Any  other  security
     8  interest  that  may  apply to such funds, other than a security interest
     9  perfected under section six of this act, shall be terminated when  those
    10  funds  are  transferred  to  a  segregated account for the assignee or a
    11  financing party.  If recovery property has been transferred to an assig-
    12  nee or financing party, any proceeds of such property shall be held  for
    13  and  delivered to the assignee or financing party by any collector under
    14  any contract described in paragraph (k)  of  subdivision  5  of  section
    15  three of this act as a mandatary and fiduciary.
    16    § 6. Security interests. 1. The provisions of article 9 of the uniform
    17  commercial  code  relating  to  secured  transactions shall not apply to
    18  recovery property or any right, title, or interest of a  corporation  or
    19  assignee  therein,  whether  before or after the issuance of a financing
    20  order, except as provided in subdivision 1 of section seven of this act.
    21  In addition, such right, title, or interest pertaining  to  a  financing
    22  order,  including  but not limited to, the associated recovery property,
    23  and any revenues, collections,  claims,  rights  to  payment,  payments,
    24  money,  or proceeds of or arising from recovery charges pursuant to such
    25  order, shall not be deemed proceeds of any right or interest other  than
    26  of  the  financing  order  and  the  recovery  property arising from the
    27  financing order.  All revenues and collections resulting  from  recovery
    28  property shall constitute proceeds only of the recovery property arising
    29  from the financing order.
    30    2.  Except  to the extent provided in this act with respect to filings
    31  of financing statements or control of  deposit  accounts  or  investment
    32  property  as  original  collateral,  the creation, attachment, granting,
    33  perfection, and priority of security interests in recovery  property  to
    34  secure  recovery  bonds shall be governed solely by this article and not
    35  by the uniform commercial code.
    36    3. (a) A security interest in recovery property is valid and enforcea-
    37  ble against the utility corporation and its successor or an assignee and
    38  third parties and attaches to recovery property only after  all  of  the
    39  following conditions are met:
    40    (i) The issuance of a financing order;
    41    (ii) The execution and delivery of a security agreement with a financ-
    42  ing party in connection with the issuance of recovery bonds; and
    43    (iii) The receipt of value for the recovery bonds.
    44    (b) A security interest attaches to recovery property without physical
    45  delivery of collateral or other act when all of the foregoing conditions
    46  have  been  met,  unless  the security agreement expressly postpones the
    47  time of attachment.
    48    4. A security interest in recovery property is perfected  only  if  it
    49  has  attached and a financing statement indicating the recovery property
    50  collateral covered thereby has been filed.  A financing  statement  must
    51  be  filed  to perfect all security interests and liens in storm recovery
    52  property under this act.  A security interest in  recovery  property  is
    53  perfected  when it has attached and when the applicable financing state-
    54  ment has been filed.  The interest of a secured party is  not  perfected
    55  unless  a financing statement sufficient under this act and otherwise in
    56  accordance  with  the  uniform  commercial  code  is  filed,  and  after

        A. 10346--A                        13

     1  perfection  the secured party's interest continues in the recovery prop-
     2  erty and all proceeds of such recovery property, whether or not  billed,
     3  accrued,  or  collected,  and  whether  or  not deposited into a deposit
     4  account  and  however  evidenced.    A  security interest in proceeds of
     5  recovery property is a  perfected  security  interest  if  the  security
     6  interest  in the recovery property was perfected under this act. Financ-
     7  ing statements required to be filed pursuant to this act shall be filed,
     8  indexed, maintained, and continued in the same manner and  in  the  same
     9  system  of  records  maintained  for  the filing of financing statements
    10  under the uniform commercial code, except that  the  requirement  as  to
    11  continuation  statements does not apply.  The filing of such a financing
    12  statement shall be the only method of  perfecting  a  lien  or  security
    13  interest  on  recovery property.  The financing statement shall be filed
    14  as if the debtor named therein were located in this state.
    15    5. The priority of  the  conflicting  security  interests  of  secured
    16  parties  in  the  same  interest  or  rights in any recovery property is
    17  determined as follows:
    18    (a) Conflicting perfected security interests of secured  parties  rank
    19  according to priority in time of perfection;
    20    (b) A perfected security interest of a secured party has priority over
    21  a conflicting unperfected security interest of a secured party; and
    22    (c) A perfected security interest of a secured party has priority over
    23  a  person  who  becomes  a  lien  creditor  after the perfection of such
    24  secured party's security interest.
    25    6. A perfected security interest in recovery property and all proceeds
    26  of such recovery property, whether or not billed, accrued, or collected,
    27  and whether  or  not  deposited  into  a  deposit  account  and  however
    28  evidenced,  shall  have priority over a conflicting lien or privilege of
    29  any nature in the same collateral property, except a  security  interest
    30  is  subordinate  to  the rights of a person that becomes a lien creditor
    31  before the perfection of such security interest.  A security interest in
    32  recovery property which qualifies for priority over a conflicting  secu-
    33  rity interest, lien, or privilege also has priority over the conflicting
    34  security  interest, lien, or privilege in proceeds of the recovery prop-
    35  erty.   The relative priority of a  perfected  security  interest  of  a
    36  secured party is not adversely affected by any lien, privilege, or secu-
    37  rity  interest in a deposit account of the utility corporation that is a
    38  collector as described in paragraph (k)  of  subdivision  5  of  section
    39  three of this act and into which the revenues are deposited. The priori-
    40  ty  of  a  security  interest  perfected under this section shall not be
    41  defeated or impaired by any later modification of the financing order or
    42  recovery property or by the commingling of funds arising  from  recovery
    43  property  with  other funds.  Any other security interest that may apply
    44  to those funds shall be terminated as to  all  funds  transferred  to  a
    45  segregated  account  for the benefit of an assignee or a financing party
    46  or to an  assignee  or  financing  party  directly.  The  perfection  by
    47  control,  the  effect  of  perfection  by control, and the priority of a
    48  security interest granted by the issuer of and securing  recovery  bonds
    49  held  by  a secured party having control of a segregated deposit account
    50  or securities  account  as  original  collateral  into  which  revenues,
    51  collections,  or proceeds of recovery property are deposited or credited
    52  shall be governed by section 1-301 of uniform commercial code.
    53    7. If a default occurs under the  terms  of  any  recovery  bond,  the
    54  secured  party may foreclose on or otherwise enforce the security inter-
    55  est in any recovery property as if it was  a  secured  party  under  the
    56  uniform  commercial code. A secured party holding a security interest in

        A. 10346--A                        14

     1  recovery property shall be entitled to exercise all of the  same  rights
     2  and  remedies  available to a secured party under the uniform commercial
     3  code, to the same extent as if those rights and remedies were set  forth
     4  in  this  act.  The  court  may order that amounts arising from recovery
     5  property be transferred to a separate account of the secured  party  for
     6  the  financing  parties' benefit, to which their security interest shall
     7  apply. On petition by or on behalf of a secured party, the  court  shall
     8  order the sequestration and payment to the financing parties of revenues
     9  arising from the recovery property.
    10    8.  A  security  interest created under this section may provide for a
    11  security interest in after-acquired collateral.  Such security  interest
    12  shall  not be invalid or fraudulent against creditors solely because the
    13  grantor or the utility corporation as  collector  or  servicer  has  the
    14  right  or  ability  to commingle the collateral or proceeds, or collect,
    15  compromise, enforce, and otherwise deal with collateral.
    16    9. Any action arising under the provisions of this act  to  enforce  a
    17  security  interest  in  recovery property, or which otherwise asserts an
    18  interest in, or a right in, to or against any recovery property, wherev-
    19  er located or deemed located, or any security interest governed by  this
    20  act,  shall be brought in the supreme court, Albany county. Such actions
    21  shall be governed by the applicable provisions of the civil practice law
    22  and rules and other law applicable to executory  proceedings,  including
    23  provisional  remedies,  but  only to the extent such laws are consistent
    24  with the language and purposes of this act.
    25    § 7. Choice of law; conflicts. 1.  The  law  governing  the  validity,
    26  enforceability,  attachment, perfection, priority, exercise of remedies,
    27  and venue with respect to the creation, recognition,  sale,  assignment,
    28  or transfer of an interest or right or the creation of a security inter-
    29  est  in  any  recovery  property  shall  be exclusively the laws of this
    30  state, without applying  this  state's  law  on  conflict  of  laws  and
    31  notwithstanding  any  contrary contractual provision, except as provided
    32  in subdivision 6 of section six of this act. The validity, enforceabili-
    33  ty, attachment, perfection, priority,  and  exercise  of  remedies  with
    34  respect  to  the creation, recognition, sale, assignment, or transfer of
    35  an interest or right or the creation  of  a  security  interest  in  any
    36  recovery  property  shall  be  governed  by  this act, and solely to the
    37  extent not addressed by this act, by the  uniform  commercial  code  and
    38  other  laws  of this state. Notwithstanding the preceding sentence, this
    39  act provides that the uniform commercial code applies to the filings  of
    40  financing  statements  referenced in this act, to perfection, the effect
    41  of perfection or nonperfection, and the priority of  security  interests
    42  held by a secured party having control of deposit accounts or securities
    43  accounts as original collateral securing recovery bonds, notwithstanding
    44  that  proceeds  of  recovery  charges  are deposited therein, and to the
    45  enforcement of security interests in recovery  property,  in  each  case
    46  subject to subdivision 2 of this section.
    47    2.  Insofar  as  the  provisions of this act are inconsistent with the
    48  provisions of any other law or part thereof  regarding  the  attachment,
    49  creation,  perfection,  the  effect  of  perfection, or priority of, and
    50  sale, assignment, or transfer of,  or  security  interest  in,  recovery
    51  property,  or  the  exercise  of  remedies  with  respect  thereto,  the
    52  provisions of this act shall be controlling.
    53    3. Nothing in this section shall be construed so as to  conflict  with
    54  the provisions of subdivision 6 of section six of this act.
    55    §  8. Recovery bonds not public debt. Recovery bonds are not a debt or
    56  a general obligation of the state or any of its political  subdivisions,

        A. 10346--A                        15

     1  agencies,  or instrumentalities and are not a charge on their full faith
     2  and credit.  An issue of recovery bonds shall not, directly or indirect-
     3  ly or contingently, obligate the state or any agency, political subdivi-
     4  sion, or instrumentality of the state to levy any tax or make any appro-
     5  priation  for  payment  of  the  bonds,  other  than for paying recovery
     6  charges in their capacity as consumers of  electricity.    All  recovery
     7  bonds  authorized by a financing order by the commission must contain on
     8  the face thereof a statement to the following effect: "Neither the  full
     9  faith  and  credit  nor  the  taxing  power  of the State of New York is
    10  pledged to the payment of the principal of, or interest on, this bond."
    11    § 9. State pledge. 1. The state pledges to and agrees with the holders
    12  of recovery bonds, any assignee and all financing parties that the state
    13  will not in any way take or permit any action  that  limits,  alters  or
    14  impairs the value of recovery property or, except as required by a true-
    15  up  mechanism  described in the financing order, reduce, alter or impair
    16  recovery charges that are imposed, collected and remitted for the  bene-
    17  fit  of  the  owners  of recovery bonds, any assignee, and all financing
    18  parties, until all principal, interest and redemption premium in respect
    19  of recovery bonds, all other financing costs and all amounts to be  paid
    20  to  an assignee or financing party under an ancillary agreement are paid
    21  or performed in full.
    22    2. Any person that issues recovery bonds shall be permitted to include
    23  the pledge specified in subdivision 1 of this section  on  the  face  of
    24  such  bonds  and  in  any  ancillary  agreements  or other documentation
    25  related to the issuance and marketing of such bonds.
    26    § 10. Assignee not a utility corporation.  An  assignee  or  financing
    27  party shall not be considered a utility corporation as defined in subdi-
    28  vision  24  of  section  2 of the public service law solely by virtue of
    29  engaging in any of the transactions described in this act.
    30    § 11. Effect of invalidity. If any  provision  of  this  act  is  held
    31  invalid  or  is  invalidated, superseded, replaced, repealed, or expires
    32  for any reason, such occurrence shall not affect  the  validity  of  any
    33  action  allowed  under  this  act  taken by a utility corporation, or an
    34  assignee, a financing party, a collection agent, or a party to an ancil-
    35  lary agreement. Any such action shall remain in full  force  and  effect
    36  with  respect  to all recovery bonds issued or authorized in a financing
    37  order issued pursuant to this act  on  or  before  the  date  that  such
    38  provision  is  held  invalid or is invalidated, superseded, replaced, or
    39  repealed, or expires for any reason.
    40    § 12. Effect of a financing order. Section 70 of  the  public  service
    41  law  shall not apply to: 1. Any sale, assignment or transfer of recovery
    42  property or any equity position held by the utility  corporation  in  an
    43  assignee; or
    44    2.  Any  other  transaction contemplated by or approved in a financing
    45  order issued by the commission pursuant to this act.
    46    § 13. This act shall take effect immediately.
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