Since the issuance of Revenue Procedure (Rev. Proc.) 2005-62, many utilities have used securitizations authorized by state law to secure collections of stranded costs upon the retirement of certain generation plants or costs attributable to major storms. The state would authorize the issuance by a public utility commission or other state agency via a financing order for the recovery of those costs, and the utility could currently receive the funds without immediate taxation – i.e., the funds were treated as debt proceeds. The debt would be repaid through non-bypassable charges paid by utility customers, and income would be recognized under the utility's normal method of accounting.

As securitization transactions have evolved, many states allowed for the use of financing entities not owned by utilities, but those entities were not eligible for debt treatment under Rev. Proc. 2005-62. Also, states wanted to allow for less-frequent repayment of the financed amount. Rev. Proc. 2024-15 addresses both issues by 1) allowing state-created agencies not owned by utilities to issue the qualified debt instruments and 2) allowing for repayments to be made at least annually.