Subchapter M Default Balance Securitization
The Subchapter M Default Balance Securitization financing closed, and proceeds were disbursed, in November 2021. ERCOT began collecting default charges to repay the default balance in January 2022.
Texas Electric Market Stabilization Funding M LLC (TEMSFM) is the issuing entity for the Subchapter M bonds (i.e., the “Texas Stabilization M Bonds”). TEMSFM is a limited liability company registered in Delaware and its sole member is ERCOT. TEMSFM has no commercial operations. Please see the “Key Documents” section for further information regarding TEMSFM.