Legal considerations in utility stranded cost securitizations

Journal Article · Wed Oct 01 04:00:00 EDT 1997 · Electricity Journal

DOI:https://doi.org/10.1016/S1040-6190(97)80192-3· OSTI ID:569351

Rogers, D B; Jameson, J M; Yoong, D K.L.

The effects that state and federal law provisions, and accounting, tax and bankruptcy considerations have on securitization of utility stranded costs are complex and demand careful attention from government, utilities and their advisors. Although the legal structuring of a utility securitization is more involved than that of most other securitizations, its documentation is not particularly more complicated. To facilitate the movement towards a competitive electricity generation marketplace, many investor-owned utilities, regulators and state lawmakers are considering securitizations as a means of recovering stranded costs. Securitizations generally, and securitizations of stranded costs in particular, are subject to many legal requirements, all of which need to be satisfied in order to structure and consummate a successful transaction. Utility executives, regulators and lawmakers need to be cognizant of the legal requirements that will strongly influence the structure and success of any stranded cost legislation or securitization they propose. As of this writing, no U.S. stranded cost securitizations have been completed.

• OSTI ID: 569351
• Journal Information: Electricity Journal, Journal Name: Electricity Journal Journal Issue: 8 Vol. 10; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
CAPITALIZED COST
COMPETITION
DEREGULATION
ELECTRIC POWER INDUSTRY
ELECTRIC UTILITIES
FINANCING
LEGAL ASPECTS