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ERCOT Banks on Bonds

June 07, 2021


The Texas legislature passed legislation that securitizes ERCOT for up to $800M in market participants default charges allowing those to be repaid by wholesale market participants. The legislation provides for securitization (bonds) for up to another $2.1 billion for ancillary service charges and reliability deployment price adder charges during winter storm Uri to be collected from load-serving entities. Retail electric providers must pass through offsets to customers under their terms of service. The next step is for the PUCT to develop “financing orders,” which is expected this summer. The Austin Statesman reports that without bonds, it could take nearly 100 years to recover the funds. 

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