Oklahoma § 74-9072 - Definitions

§ 74-9072. Definitions

As used in this act:

1. "Authority" shall mean the Oklahoma Development Finance

Authority pursuant to Section 5062.1 et seq. of Title 74 of the

Oklahoma Statutes;

2. "Commission" shall mean the Oklahoma Corporation Commission;

3. "Extraordinary costs" shall mean costs incurred by a

regulated utility related to the extreme weather that occurred

beginning February 7, 2021, and ending February 21, 2021, including

but not limited to fuel-related storage and associated costs,

emergency compressed or liquified natural gas supplies, contracts

for services providing additional pressurization on lines and

transportation pipeline penalties. Extraordinary costs shall not

include extreme purchase costs, as defined in this section;

4. "Financing order" shall mean an order issued by the Oklahoma

Corporation Commission that authorizes securitization of qualified

costs and the creation of an irrevocable and nonbypassable mechanism

for utility customer payments to the regulated utility, its

successors, assignees or collection agents, of amounts necessary for

service and repayment of ratepayer-backed bonds, subject to true-up

and reconciliation;

5. "Nonbypassable mechanism" shall mean that the payment of the

utility customer charges under this act shall not be modified or

avoided by any utility customer at an address located within a

utility service area by switching providers, switching fuel sources

or materially changing usage, and shall be paid by the customer for

as long as bonds issued pursuant to Section 8 of this act remain

outstanding;

6. "Extreme purchase costs" shall mean expenses incurred for

the purchase of fuel, purchased power, natural gas commodity or any

combination thereof, whether at spot pricing, index pricing or

otherwise with delivery beginning February 7, 2021, and ending

February 21, 2021;

7. "Qualified costs" shall mean the extreme purchase costs and

extraordinary costs, as calculated and set out in a financing order

of the Oklahoma Corporation Commission, less any insurance proceeds,

governmental grants or other funding sources, as well as any costs

of managing ratepayer-backed bonds;

8. "Ratepayer-backed bonds" shall mean bonds issued pursuant to

Section 8 of this act with service and repayment supported by

utility customer charges consistent with this act;

9. "Regulated utility" shall mean any utility, as defined in

this act, which is subject to the regulatory jurisdiction of the

Oklahoma Corporation Commission with respect to its rates, charges

and terms and conditions of service;

10. "Securitization" shall mean a financial tool creating a

property right to revenues collected by a regulated utility from

Oklahoma Statutes - Title 74. State Government

customers pursuant to an irrevocable and nonbypassable mechanism,

which is then sold and used as security for repayment of an issuance

of a ratepayer-backed bond;

11. "Securitization property" shall mean the right to receive

revenues collected by a regulated utility from customers pursuant to

an irrevocable and nonbypassable mechanism included in a financing

order;

12. "True-up and reconciliation" shall mean the comparison of

actual revenues received from customers with the revenues estimated

to be received during a period determined by the Oklahoma

Corporation Commission including any steps to carry forward the

difference to a future collection period, as necessary to ensure the

timely payment of ratepayer-backed bonds; and

13. "Utility" shall mean any person or entity doing business in

this state that furnishes natural gas or electric current to its

customers located at an address within this state and within the

service area of the utility.

Added by Laws 2021, c. 204, § 3, emerg. eff. April 23, 2021.