Section 61-1605 - COST REDUCTION RATE(1) Each cost reduction order shall specify a procedure for making adjustments to the cost reduction rate that is the subject of the order.(2) Upon application by a public utility the commission may:(a) Authorize the making of adjustments to the cost reduction rate at more frequent intervals than those specified in such order; and/or(b) Authorize a change in the method for calculating the cost reduction rate from that specified in such order so as to better ensure the timely and complete recovery of all approved costs.(3) The cost reduction rate shall be treated as a charge for utility services for purposes of determining both the credit and collection standards and the remedies for nonpayment that are available to a public utility.(4) A cost reduction rate shall constitute cost reduction property when, and to the extent that, a cost reduction order authorizing such cost reduction rate has become effective in accordance with this chapter, and the cost reduction property shall thereafter continuously exist as property for all purposes with all of the rights and privileges of this chapter for the period and to the extent provided in the cost reduction order, but in any event until the approved costs are paid in full.(5) Any surplus cost reduction rate collections in excess of the amounts necessary to pay approved costs shall be used in such manner as the commission may reasonably determine.(6) The obligation to pay amounts in respect of a cost reduction rate cannot be avoided by the formation of a local publicly owned utility or other entity, or by annexation of any portion of the service territory of the public utility by a local publicly owned electric utility or other entity.[61-1605, added 2005, ch. 372, sec. 1, p. 1189.]