The Competitive Transition Charge (CTC) Is Effectively a Legislated Asset

Multiple Choice

The competitive transition charge (CTC) is effectively a legislated asset and is the result of the movement to make the electric utility industry more competitive by deregulating the industry. In regards to CTC, which of the below statements is FALSE?

A) The CTC is collected by the utility over an unknown period of time.
B) Because the state legislature designates the CTC to be a statutory property right, it can be sold by a utility to an SPV and then securitized.
C) It is the legislative designation of the CTC as an asset that makes rate reduction bonds different from the typical asset securitized.
D) The CTC is initially calculated based on projections of utility usage and the ability to collect revenues.