Though the utility stranded cost sector has gained a huge following in Texas, electric companies continue to trek a rocky road to securitization.

Central Power and Light (CPL) had originally filed an application with the Texas Public Utility Commission to issue securities in stranded costs worth $1.3 billion but has recently petitioned to lower the amount, said sources in the company.

"We originally requested $1.3 billion, but we've reduced the request to $1 billion in our rebuttal testimony," said a source.

"The numbers changed because the calculations were based on a compromise with the utility commission on how to calculate the amount of regulatory assets that can be securitized," stated another source from the company.

CPL had earlier filed for a delay to give the parties more time to negotiate and reach a settlement. But the company expects to have a financing order from the utility commission in the first week of February, said the source.

Though CPL does not expect further delays. "It's hard to speculate because somebody can appeal," said the source. "I would like to think that the party's on board, but it's hard to anticipate what people will do."

CPL planned to come out to the public arena in the first quarter of this year. The transaction is said to be structured in multiple parts and managed by Goldman, Sachs & Co.

Meanwhile, published reports say the Texas Public Utility Commission gave TXU Electric, a subsidiary of Texas Utility Co, an eight-week extension so parties can reach a settlement in TXU's bid to issue $1.65 billion worth in stranded costs. TXU had filed an application to securitize with the Texas Public Utility Commission in October.

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