CenterPoint Energy Houston Electric plans to issue a $1.7 billion utility tariff securitization.
The deal will offer investors three Moody's Investors Service and Fitch Ratings triple-A-rated tranches of notes offered under the deal's capital structure.
The bond issuance is permitted under the State of Texas legislation that authorizes utilities to recover certain qualified costs via securitization.
The bonds are backed by transition property created by the state's legislation and an irrevocable financing order issued by the Public Utility Commission of Texas.
The securitization is expected to provide savings or economic benefits to consumers compared with other traditional financing methods.