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Debate over securitization bill spotlights tradeoff between customer savings and consumer protections
Summary
Lawmakers heard hours of testimony on HB 2,679, which would authorize securitization transactions for public power and investor‑owned utilities; utilities and labor said it can lower costs and smooth rate impacts, while environmental and consumer groups warned the measure is broad and could shift storm, fuel and other costs to ratepayers without sufficient caps or sunset provisions.
The Senate Natural Resources Committee spent substantial time on House Bill 2,679, a measure that would authorize public power entities and public service corporations to pursue securitization transactions—issuing transition bonds to refinance certain utility costs and repay them over time with lower interest rates.
Supporters said securitization is a proven financing tool that can lower the cost of recovering unrecovered net book value when aging plants are retired and can protect customers from sudden rate shocks tied to fuel price spikes or disasters. “Securitization is simply a financial tool used to refinance utility assets...that saves customers money,” Michael Vargas of Arizona Public Service told the committee, describing securitization…
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