We show that, as an industry-wide issue, credit rating ofelectric power companies has been decreasing since the outsetof electricity restructuring. This article proposes electricitybacked security (EBS) as a novel approach to help powercompanies with less desirable credit ratings to access lowcostcapital. Electricity-backed securitisation is the processwhere future receivables from long-term electricity contractsare exchanged for their present value. In the electric powerindustry, the existence