How long will this charge be added to your bill?
The securitized financing is amortized, much like a mortgage loan, and requires the recovery of these extraordinary costs and expenses to be spread over a period of about 27.75 years. The term of the bonds that were securitized was in three groups or tranches. The first tranche will be paid in full after 2031, the second after 2040, and the third after 2050.
Every six months, the amount that is charged will be reviewed on a per-kWh basis and adjusted, if necessary, to ensure it is collecting the correct amount to satisfy the bondholders. As HILCO grows, the per-kWh charge is expected to be reduced as the securitized amount will be spread across the additional meter growth.