The proposed bill would update current statutes by allowing public power entities, public service corporations, and member-owned cooperative corporations to initiate securitization transactions, which is a significant expansion of their financial capabilities. New provisions would be inserted to outline the necessary actions for adopting financing resolutions and submitting securitization proposals, including public comment periods and rehearing requirements. Additionally, the bill would introduce definitions for terms such as "Ancillary agreement," "Customer," "Financing charges," and "Transition property," clarifying the roles of public power entities and qualified special purpose entities in managing transition bonds.

Moreover, the bill would establish a distinct legal framework for securitization transactions by exempting certain security interests from the Uniform Commercial Code (UCC) and ensuring that financing charges are nonbypassable. It would also clarify that Transition Property is a vested right belonging to the qualified special purpose entity, not an asset of the public power entity, and that adjustments to Financing Charges through the True-up Mechanism do not require governmental approval. Overall, these updates aim to enhance the financial stability and operational efficiency of public utilities in Arizona while providing clear guidelines for the securitization process.

Statutes affected:
Introduced Version: 47-9109, 30-903, 30-905, 30-902, 30-904, 30-906, 30-907, 30-909, 30-908, 30-910, 30-911, 30-912, 40-302, 30-913, 30-914, 30-915, 30-916, 40-603, 40-606, 40-602, 40-604, 40-610, 40-605, 40-607, 40-608, 40-609, 40-252, 40-611, 40-253, 40-254, 40-254.01, 40-612, 40-613, 40-614, 40-615, 40-616, 40-617