Committee hears bill to allow utilities to securitize disaster repair costs; utilities, AG offer differing guardrails

The Senate Environment, Energy & Technology Committee on Tuesday heard public testimony on second substitute House Bill 1990, which would allow water, electric and gas utilities to petition the Utilities and Transportation Commission to issue a financing order permitting securitization of certain disaster and emergency costs.

Kim Cushing, staff to the committee, told members the bill would let investor‑owned utilities ask the UTC to designate “bondable expenditures” tied to events subject to a federal or state disaster or emergency declaration and to recover those costs through bonds and a dedicated rate recovery charge. The bill, as described by staff, excludes criminal or civil penalties but otherwise contemplates UTC review of whether the costs are “reasonable and prudent.”

Representative Peter Abarno (R‑20th District), the bill’s prime sponsor in the House, said the tool is intended to spread…