securitization

A refinancing mechanism involving the issuance of bonds to raise funds to refinance the remaining undepreciated value of existing utility assets, which could include power plants. The bonds are paid back through a surcharge on customer bills. Therefore, the utility can generally refinance the outstanding undepreciated value with 100% securitizationsecuritization A refinancing mechanism involving the issuance of bonds to raise funds to refinance the remaining undepreciated value of existing utility assets, which could include power plants. The bonds are paid back through a surcharge on customer bills. Therefore, the utility can generally refinance the outstanding undepreciated value with 100% securitization financing instead of using its standard combination of debt and equity financing. (2020 North Carolina Energy Regulatory Process) financing instead of using its standard combination of debt and equity financing. (2020 North Carolina Energy Regulatory Process)