The generic name given to the charge on consumers bills for stranded investment recovery. Its structure, the length of time it is collected, etc., are determined by restructuring legislation. PUC determines the amount of stranded investment to securitize and authorizes the transaction. The utility sells the right to collect the customer charge on the capital market. The utility receives the proceeds of the bonds upfront.
Utilities can use the money for anything they want, unless restricted by law.
The savings are paid by consumers, with interest. Gives no incentive to reduce costs. More risk on consumer than utility. Distorts the competitive market. Exit Fee A fee to recover stranded investment which is charged only to customers who wish to change suppliers.