PENNSYLVANIA, December 15 - assignee has qualified transition expenses for which

intangible transition charges are authorized in a qualified

rate order that has become effective in accordance with

subsection (a) and shall thereafter continuously exist to the

extent provided in the order.

"Qualified rate order." An order of the commission

adopted in accordance with this section, authorizing the

imposition and collection of intangible transition charges.

"Qualified transition expenses." The transition or

stranded costs of an electric utility approved by the

commission for recovery under sections 2804 (relating to

standards for restructuring of electric industry) and 2808

(relating to competitive transition charge) through the

issuance of transition bonds; the costs of retiring existing

debt or equity capital of the electric utility or its holding

company parent, including accrued interest and acquisition or

redemption premium, costs of defeasance, and other related

fees, costs and charges relating to, through the issuance of

transition bonds or the assignment, sale or other transfer of

intangible transition property; and the costs incurred to

issue, service or refinance the transition bonds, including

accrued interest and acquisition or redemption premium, and

other related fees, costs and charges, or to assign, sell or

otherwise transfer intangible transition property.

"Transition bonds." Bonds, debentures, notes,

certificates of participation or of beneficial interest or

other evidences of indebtedness or ownership which:

(1) are issued by or on behalf of the electric utility

or assignee pursuant to a qualified rate order;

(2) are secured by or payable from intangible transition

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