As California seeks sources of financing to buy power for cash-poor utilities Pacific Gas & Electric, San Diego Gas and Electric and Southern California Edison, the state is contemplating issuing $10 billion in revenue bonds, using a portion of the money that comes from the ratepayers from these utilities to service the bonds

Though some would consider this as a straightforward municipal bond sale, the transaction assumes the characteristics of a securitization because the bondholder in this case depends on payments that have been set aside by the legislature as well as the utility commission to pay the bonds.

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