RT Journal Article SR Electronic T1 Unstranding “Stranded Cost” Securitizations JF The Journal of Structured Finance FD Institutional Investor Journals SP 33 OP 38 DO 10.3905/jsf.2008.706231 VO 14 IS 1 A1 J. Paul Forrester YR 2008 UL https://pm-research.com/content/14/1/33.abstract AB Stranded cost securitization techniques were originally developed to compensate U.S. electric utilities for regulatory assets rendered obsolete and uneconomic by deregulation. These techniques permitted an affected utility to recover stranded costs in rates charged to customers and to issue bonds backed by such charges. Today, stranded cost securitization techniques are finding new applications in the financing of mandatory pollution control equipment and other similar expenditures, for catastrophic storm reconstruction expenditures and, as proposed by the author, possibly for “synthetic” carbon emission reduction for new fossil-fueled power plants or purchases.TOPICS: Security analysis and valuation, fixed income and structured finance