Utility Tariff Bonds: New and Refined Applications for Proven Stranded Cost Securitization Technology

With the demonstrable performance of prior utility tariff bonds, U.S. regulated electric utilities likely will expand their use of this securitization method. It is only sensible to use the technique to allow a utility to recover mandated costs over which the utility has no particular control in the most efficient manner possible. U.S. regulated electric utilities face a period of disruptive change, which will potentially increase significantly the financial risks faced by affected utilities that will add substantial rate recovery pressure.