Wisconsin Electric Power Co. pulled the plug - at least temporarily - on plans to complete a $500 million ABS transaction to finance certain environmental upgrades to its facilities, saying it could not agree with other major players in the transaction about the distribution of liabilities in the transaction.

The transaction, if successful, would have been the first of its kind in Wisconsin. In October 2004, Wisconsin established a statute that allows utilities to issue asset-backed securities to finance the upgrades, to be repaid by fees added to consumers' bills. Wisconsin Electric had planned to raise $500 million in environmental trust financing (ETF) bonds, secured by charges paid by the public utility's customers.

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