PUB UTILITIES-RATE MITIGATION

Amends the Public Utilities Act. Provides that an electric utility that served fewer than 1,000,000 retail customers on December 31, 2005 may propose a deferral on its books of account for later recovery in rates on any portion of its costs of purchasing electric power and energy incurred to serve residential customers during a specific period. Allows the Illinois Commerce Commission to authorize the issuance of rate mitigation bonds, secured through an irrevocable financing order imposing a non-bypassable bond charge, by such an electric utility or other financing entity designated by the electric utility. Provides conditions on the issuance of rate mitigation bonds. Adds provisions concerning financing orders, the State pledge to holders of rate mitigation bonds, proceeds of rate mitigation bonds, residential customers assessed for bond charges, recourse against an issuer, maintaining records of bond charges, security, transfers of bondable property, successors to electric utilities, subsequent ratemaking, and severability. Makes other changes. Amends the Uniform Commercial Code. Makes changes concerning bondable property in provisions concerning definitions, sufficiency of a description, perfection and priority of security interests, and duration and effectiveness of financing statements. Effective immediately.