Like most everything, they do rate reduction bonds big in Texas. Three major utilities in the Lone Star State expect to securitize more than $4 billion for the recovery of stranded costs as early as first quarter of 2000.

Following the passage of the state's deregulation law in June, which allows power companies to securitize to refinance their debt by charging customers fees, TXU Corp., Central Power & Light and Reliant Energy Corp. have all flipped the switch on the asset-backed financing process.

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