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 deals backed by surcharges on utility customer bills, when it did a $200 million transaction in June 1995. That deal and several imitators were called demand-side management securitizations, according to information to Saber Partners.

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