© 2026 Arizent. All rights reserved.

Reliant Energy $750 million RRB seen in “next couple of months”

Published 1 Min Read

Houston-based Reliant Energy, which amended its S-3 shelf registration last Monday, plans to price its scheduled $750 million stranded-cost securitization before year-end, according to a company source. Timing for the offering, to be led by Merrill Lynch, is seen in the “next couple of months,” said Reliant treasurer Mark Kilbride.

Since the pricing of just over $7 billion of stranded-cost supply earlier in the year, issuance in the sector has dried up in recent months. More than $2 billion of supply had been delayed by court hearings, disputing both the size and constitutionality of stranded-cost securitizations.

Before year-end the market should see deals from units of AEP, Conectiv CMS Energy, GPU Inc. and TXU Corp., in addition to the Reliant offering, which should push year-to-date supply over $10 billion.

For reprint and licensing requests for this article, click here.

More From Asset Securitization Report

Bright Skies, Bright Future for Utility ABS: Energy needs are evolving, and a new slate of deals demonstrates that securitization is not far behind.

Utility companies once turned to the securitization industry to recover what it called stranded costs – actually stranded profits – as they surrendered monopolies in their respective markets through mandatory deregulation. Many of those deals were called stranded cost securitizations. Puget Sound Power & Light Co. was credited with completing one of the first ABS […]

Utility deals to exceed $3 billion

More than $3 billion in utility deals are in the works, including four that will expand the use of securitization beyond stranded costs. Market observers believe more volume is likely to be generated as other states learn how utilities in Florida, West Virginia and Wisconsin are using securitization in new ways: Florida for storm recovery […]

CenterPoint RRB likely unscathed by Rita-related outages

CenterPoint Energy’s 2001 rate-reduction bond deal will likely not be affected by power outages to nearly half of the company’s customers due to Hurricane Rita. Rating agency officials say the disaster likely falls within the credit enhancement cushions structured into the deal, and, at most, a slight adjustment to the deal’s true-up mechanism will be […]

CenterPoint preps $1.9 bln RRB

The Public Utility Commission of Texas approved CenterPoint Energy Inc.’s request to securitize up to $1.8 billion in stranded cost ABS last week, clearing the way for a deal which the issuer hopes will occur as soon as possible. Some hurdles do remain, however, as the issuer has yet to officially select an underwriter for […]

Amid strong performance, RRB supply seen ahead

Stranded cost ABS is expected to pick up in the near term, according to Lehman Brothers, with the bulk of supply coming from New Jersey and Texas – the most favorable states from which to buy RRB ABS. Depending on the legal challenges Lehman estimates that stranded cost ABS issuance could top $3 billion, should […]