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Subchapter M Default Balance Securitization
In October 2021, the PUCT authorized ERCOT to finance a “default balance,” which is an amount not greater than $800 million that includes the following: certain unpaid amounts owed to ERCOT by competitive market participants; Congestion Revenue Right (CRR) auction funds used by ERCOT to reduce short payments related to Winter Storm Uri; and costs associated with implementing the debt obligation order. The PUCT authorized ERCOT to assess a monthly “default charge” on Qualified Scheduling Entitles (QSEs) and CRR Account Holders to repay the default balance.
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.
Key Documents Key Documents
ERCOT Protocols and NPRRs ERCOT Protocols and NPRRs
Dec 17, 2021 - docx - 75.4 KB
True-Up Filings True-Up Filings
May 25, 2022 - pdf - 939.8 KB
Sep 21, 2022 - pdf - 1.2 MB
Jan 17, 2023 - pdf - 1.4 MB
Servicer Certificates Servicer Certificates
Jan 27, 2023 - pdf - 305.5 KB
Jan 24, 2023 - pdf - 333.5 KB
Dec 22, 2022 - pdf - 309.9 KB
Nov 23, 2022 - pdf - 310 KB
Nov 4, 2022 - pdf - 334.3 KB
Nov 4, 2022 - pdf - 310 KB
Aug 26, 2022 - pdf - 777.2 KB
Aug 26, 2022 - pdf - 310 KB
Aug 25, 2022 - pdf - 334.8 KB
Aug 26, 2022 - pdf - 170.6 KB
May 25, 2022 - pdf - 217.3 KB
May 25, 2022 - pdf - 170.3 KB
Mar 28, 2022 - pdf - 37.9 KB
Mar 28, 2022 - pdf - 37.9 KB
Mar 28, 2022 - pdf - 144.8 KB
Mar 28, 2022 - pdf - 144.8 KB
Public Utility Commission of Texas Proceedings Public Utility Commission of Texas Proceedings
Docket 52321
Application of the Electric Reliability Council of Texas, Inc. for a Debt Obligation Order under PURA Chapter 39, Subchapter M and Request for a Good Cause Exception
Docket 52709
Compliance Filing for Docket No. 52321 (Application of the Electric Reliability Council of Texas, Inc. for a Debt Obligation Order Pursuant to Chapter 39, Subchapter M of the Public Utility Regulatory Act)
ERCOT Protocols and NPRRs ERCOT Protocols and NPRRs
NPRR1122
Clarifications for Securitization Default Charges
Subchapter M Financial Security Documents Subchapter M Financial Security Documents
Letter of Credit for Securitization Default Charges Under PURA Chapter 39, Subchapter M
Used to establish a Letter of Credit to maintain securitization Default Charge escrow deposits.
Mar 31, 2022 - docx - 52.9 KB
Past Presentations Past Presentations
November 2021 WMS Presentation
November 3, 2021
November 2021 PRS Presentation
November 10, 2021