HRS §269G-8
What happens to financing orders when the utility changes hands or fails
If an electric utility is replaced by a successor, the successor must follow the same financing order rules and pay the infrastructure resilience charge. If the utility fails to pay, the commission can order the charge to be taken and paid to those owed.
The statute, as written — Financing entity successor requirements; default of financing entity
(a) Any successor to an electric utility subject to a financing order, whether pursuant to any bankruptcy, reorganization, or other insolvency proceeding, or pursuant to any merger, sale, or transfer, by operation of law, or otherwise, shall be bound by the requirements of this chapter. The successor of the electric utility shall perform and satisfy all obligations of the electric utility under the financing order in the same manner and to the same extent as the electric utility, including the obligation to collect and pay the infrastructure resilience charge to any financing party as required by a financing order or any assignee. Any successor to the electric utility shall be entitled to receive any fixed recovery tax amounts otherwise payable to the electric utility. (b) The commission may require in a financing order that, if a default by the electric utility in remittance of the infrastructure resilience charge collected arising with respect to infrastructure resilience property occurs, the commission, without limiting any other remedies available to any financing party by reason of the default, shall order the sequestration and payment to the beneficiaries of the infrastructure resilience charge collected arising with respect to the infrastructure resilience property. Any order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the electric utility.
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