The Florida Public Service Commission has selected Saber Partners, LLC to advise it on financing transactions arising from a new Florida law. The law authorizes the Commission to allow Florida investor-owned utilities to issue a special type of bond commonly called a “securitization bond” or “rate reduction bond” to recover costs associated with closing nuclear power plants.
Duke Energy became the first utility to apply to issue these new bonds when it filed with the Commission a petition on Monday, July 27, to issue approximately $1.3 billion of bonds.
The bonds are expected to achieve a top AAA credit rating and, if properly structured and marketed to investors, will save electric utility customers hundreds of millions of dollars. This is the second time the Florida Commission has chosen Saber Partners as its financial advisor on a new type of corporate utility security offering.