Duke Energy Florida marketed its $1.3 billion securitization of utility fees as a corporate bond, and the strategy appears to have paid off.  The deal was priced last week at interest rates in line with those of some the highest rated U.S. companies and government agencies.

DEF’s bonds are tied to a special charge on the utility’s electric delivery and transmission services that is associated with the retirement of the Crystal River Unit 3 nuclear power plant. The bonds are also backed by a guarantee of the state’s utility regulator to adjust the charge every six months to whatever level is necessary to pay the bonds on time.

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