Pro Bono Team from Analysis Group Assists Massachusetts in Analyzing Use of Securitization to Finance Energy Costs
September 10, 2025
Massachusetts is one of many states striving to balance a drive for sustainability with energy affordability. As part of that effort, a pro bono team from Analysis Group worked with the Massachusetts Office of Energy Transformation – which oversees the energy transition – to study the use of securitization as one tool to help finance the investments needed for a reliable transition. Securitization is a financing tool through which utilities can issue high-quality securitized bonds designed to lower borrowing and customer costs. Other states, such as California and Louisiana, have used securitization to mitigate energy price spikes caused by wildfires and other extreme weather events.
In their report, Analysis Group Senior Advisor Susan Tierney and Principal Paul Hibbard compare standard utility financing methods (e.g., debt and shareholder equity) to securitization, identify the benefits associated with securitization, and outline three factors necessary for its use: legislative authorization, regulatory review, and a plan ensuring that the debt is fully recovered through customer rates.
The authors write in their report that having the option for securitization doesn’t guarantee it will be used, but, like bringing a Swiss Army knife on a long hike, it’s smart to have “the right tool ready to use as needed when circumstances change over time.”