69-3-1617. Montana energy impact assistance property. (1) Montana energy impact assistance property described in a financing order is an existing present property right or interest in a property right even though the imposition and collection of Montana energy impact assistance charges depends on the electric utility collecting Montana energy impact assistance charges and on future electricity consumption. The property right or interest exists regardless of whether the revenues or proceeds arising from the Montana energy impact assistance property have been billed, have accrued, or have been collected.

(2) Montana energy impact assistance property described in a financing order exists until all Montana energy impact assistance bonds issued pursuant to the financing order are paid in full and all financing costs and other costs of the Montana energy impact assistance bonds have been recovered in full.

(3) All or any portion of Montana energy impact assistance property described in a financing order issued to an electric utility may be transferred, sold, conveyed, or assigned to a successor or assignee that is wholly owned, directly or indirectly, by the electric utility and is created for the limited purpose of acquiring, owning, or administering Montana energy impact assistance property or issuing Montana energy impact assistance bonds as authorized by the financing order. All or any portion of Montana energy impact assistance property may be pledged to secure Montana energy impact assistance bonds issued pursuant to a financing order, amounts payable to financing parties and to counterparties under any ancillary agreements, and other financing costs. Each transfer, sale, conveyance, assignment, or pledge by an electric utility or an affiliate of an electric utility is a transaction in the ordinary course of business.

(4) If an electric utility defaults on any required payment of charges arising from Montana energy impact assistance property described in a financing order, a court, upon application by an interested party and without limiting any other remedies available to the applying party, shall order the sequestration and payment of the revenues arising from the Montana energy impact assistance property to the financing parties. Any financing order remains in full force and effect notwithstanding any reorganization, bankruptcy, or other insolvency proceedings with respect to the electric utility or its successors or assignees.

(5) The interest of a transferee, purchaser, acquirer, assignee, or pledgee in Montana energy impact assistance property specified in a financing order issued to an electric utility, and in the revenue and collections arising from that property, is not subject to setoff, counterclaim, surcharge, or defense by the electric utility or any other person or in connection with the reorganization, bankruptcy, or other insolvency of the electric utility or any other entity.

(6) A successor to an electric utility, whether pursuant to any reorganization, bankruptcy, or other insolvency proceeding or whether pursuant to any merger or acquisition, sale, other business combination, or transfer by operation of law, as a result of electric utility restructuring or otherwise, must perform and satisfy all obligations of, and has the same duties and rights under a financing order as the electric utility to which the financing order applies and shall perform the duties and exercise the rights in the same manner and to the same extent as the electric utility, including collecting and paying to any person entitled to receive revenues, collections, payments, or proceeds of Montana energy impact assistance property described in the financing order.

History: En. Sec. 12, Ch. 442, L. 2019.