Utilities are increasingly using ratepayer-backed bonds (RBBs) to provide financial protection against extreme weather and more broadly, the energy transition. Consequently, we outline best practices for public utility commissions and ratepayer advocates to reduce financing costs and protect ratepayers in the execution of RBBs.
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J.F., P.S., M.J.L., V.R., and M.Z. conceptualized the paper, analysed the data, contributed materials, and wrote and revised the paper.
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J.F. and P.S. have served as financial advisor in a role similar to that advocated in the paper to public utility commissions and other ratepayer advocate organizations on billions in ratepayer-backed bonds over the last three decades. The contributions to this manuscript from these two authors are informed by these professional capital market experiences. M.J.L., V.R., and M.Z. declare no competing interests.
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Nature Energy thanks Sunhee Baik and Seth Blumsack for their contribution to the peer review of this work.
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Fichera, J., Sutherland, P., Luby, M.J. et al. Ratepayer-backed bonds for utility financings. Nat Energy 10, 419–422 (2025). https://doi.org/10.1038/s41560-025-01755-3
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DOI: https://doi.org/10.1038/s41560-025-01755-3
