Jersey Central Power & Light is in the market with its second stranded cost bond deal. The $182.4 million transaction is backed by charges placed on the utility's customers and will go toward recovering costs associated with deregulation, said Jennifer San Cartier, analyst at Fitch Ratings.

The JCP&L Transition Funding II 2006-A relies on a different kind of credit enhancement from the previous deal, San Cartier said. Unlike 2002-A, this triple-A deal does not have an overcollateralization subaccount. Instead, it relies on a true-up mechanism and capital subaccount for credit enhancement. The true-up mechanism requires customer charges to be reviewed and adjusted up to once a quarter to pay the principal, interest, fees and capital subaccount. The capital subaccount is a cash reserve that is fully funded at close.

Goldman Sachs is the underwriter. Goldman officials declined to comment.