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4:17
WICHITA, Kansas Utility companies in Kansas will soon have a new accounting tool that could speed the closure of coal-fired power plants and save customers money.
The financial tool is known as securitization. It’s not a new idea, but it is complex. The Kansas Legislature passed a bill approving the use of the tool after more than two years of discussion.
Here’s what you need to know about the change, and how it could remake how utilities generate electricity in Kansas.
What is securitization?
It’s a way for a utility company to refinance what it owes on some of its large investments think mostly coal plants at a much lower interest rate.