South Carolina H 3756: Storm Damage Recovery

Bill Text

2025-2026 Bill 3756 Text of Previous Version (Mar. 05, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3756

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter 
Stricken

Indicates New Matter

Amended

March 5, 2025

H. 3756

Introduced 
by Reps. Herbkersman, Gatch, Hager and Forrest 

S. Printed 3/5/25--H.

Read the first time January 15, 2025

________

A bill

TO AMEND THE SOUTH 
CAROLINA CODE OF LAWS BY AMENDING SECTION 58-27-1105, RELATING TO DEFINITIONS, 
SO AS TO DEFINE "QUALIFIED INDEPENDENT THIRD PARTY" AND TO ALLOW AN ELECTRIC 
UTILITY TO INCLUDE STORM RECOVERY COSTS FOR HURRICANE HELENE AND ITS COST OF 
CAPITAL FROM THE DATE OF THE STORM THROUGH THE ISSUANCE OF STORM RECOVERY 
BONDS; AND BY AMENDING SECTION 58-27-1110, RELATING TO THE PETITION FOR 
FINANCING ORDER AND REQUIREMENTS, SO AS TO ALLOW AN ELECTRIC UTILITY TO DEFER 
THE REVIEW AND APPROVAL OF A FINANCING ORDER.

 Amend Title To Conform

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 58-27-1105 of the S.C. Code is amended to read:

 Section 
58-27-1105. When used in this article:

 (1) 
The term "ancillary agreement" means a bond, insurance policy, letter of 
credit, reserve account, surety bond, liquidity or credit support arrangement, 
or other financial arrangement entered into in connection with recovery bonds.

 (2) 
The term "assignee" means a legally recognized entity to which an electrical 
utility assigns, sells, or transfers, other than as a security, all or a 
portion of its interest in or right to storm recovery property. The term 
includes a corporation, limited liability company, general partnership or 
limited partnership, public authority, trust, financing entity, or any entity 
to which an assignee assigns, sells, or transfers, other than as security, all 
or a portion of its interest in or right to storm recovery property.

 (3) 
The term "bondholder" means a person who holds a storm recovery bond.

 (4) 
The term "code" means The Uniform Commercial Code, Title 36 of the South 
Carolina Code of Laws.

 (5) 
The term "commission" means the Public Service Commission of South Carolina.

 (6) 
The term "electrical utility" is as defined in Section 58-27-10(7).

 (7) 
The term "financing costs" includes all of the following:

 (a) 
interest and acquisition, defeasance, or redemption premiums payable on 
recovery bonds;

 (b) 
any payment required under an ancillary agreement and any amount required to 
fund or replenish a storm reserve account or other accounts established under 
the terms of any indenture, ancillary agreement, or other financing documents 
pertaining to recovery bonds;

 (c) 
any other cost related to issuing, supporting, repaying, refunding, and 
servicing storm recovery bonds, including servicing fees, accounting and 
auditing fees, trustee fees, legal fees, consulting fees, structuring adviser 
fees, administrative fees, placement and underwriting fees, independent 
director and manager fees, capitalized interest, rating agency fees, stock 
exchange listing and compliance fees, security registration fees, filing fees, 
information technology programming costs, and any other costs necessary to 
otherwise ensure the timely payment of recovery or other amounts or charges 
payable in connection with the bonds, including costs related to obtaining the 
financing order;

 (d) 
any taxes and license fees or other fees imposed on the revenues generated from 
the collection of a storm recovery charge or otherwise resulting from the 
collection of storm recovery charges, in any such case whether paid, payable, 
or accrued;

 (e) 
any state and local taxes, franchise, gross receipts, and other taxes or 
similar charges, including regulatory assessment fees, whether paid, payable, 
or accrued;

 (f) 
any costs incurred by (i) the commission or the 
Office of Regulatory Staff for any outside consultants, including counsel and 
advisors,; and (ii) the 
qualified independent third party selected by the commission, to the extent 
retained in connection with the securitization of storm recovery costs.

 (8) 
The term "financing order" means an order that authorizes the issuance of storm 
recovery bonds; the imposition, collection, and periodic adjustments of a 
storm recovery charge; the creation of storm recovery property; and the sale, 
assignment, or transfer of storm recovery property to an assignee.

 (9) 
The term "financing party" means bondholders and trustees, collateral agents, 
any party under an ancillary agreement, or any other person acting for the 
benefit of bondholders.

 (10) 
The term "financing statement" is as defined in Section 36-9-102.

 (11) 
The term "pledgee" means a financing party to which an electrical utility or 
its successors or assignees mortgages, negotiates, pledges, or cr