NOTICE DATE: August 15, 2025
NOTICE TYPE: M-A081525-01 Settlements
SHORT DESCRIPTION: Decrease in Total Securitization Default Charge Monthly Amount as a result of Subchapter M Bonds, Series 2025, closing
INTENDED AUDIENCE: All Market Participants
DAYS AFFECTED: September 1, 2025 and thereafter
LONG DESCRIPTION: This notice is regarding the Texas Electric Market Stabilization Funding M LLC Texas Stabilization M Bonds, Series 2025 (Series 2025) and the resulting update of the Total Securitization Default Charge Monthly Amount (TSDCMA). This Series is governed by the provisions of Texas Public Utility Regulatory Act (PURA) Chapter 39, Subchapter M and the Public Utility Commission of Texas (PUCT) Debt Obligation Order issued in Docket No. 52321, Application of Electric Reliability Council of Texas, Inc. for a Debt Obligation Order Pursuant to Chapter 39, Subchapter M, of the Public Utility Regulatory Act. The Series 2025 is being issued to refinance the current unpaid balance due on the initial Texas Electric Market Stabilization Funding M LLC Texas M Stabilization Bonds, Series 2021(Series 2021). The unpaid balance is $379,100,000.
The Texas Stabilization M Bonds, Series 2025, received final pricing as follows:
|
Series
|
Coupon Rate
|
Expected Final Payment
|
Legal Final Maturity
|
|
2025
|
5.147%
|
08/01/2049
|
08/01/2051
|
Consistent with Finding of Fact 26 and Ordering Paragraphs 7, 7A, 7B, 7C, 7D, 7E, 7F, and 19 of the Debt Obligation Order that the PUC issued in Docket No. 52321, ERCOT filed an Issuance Advice Letter with the PUCT in PUCT Project No. 52709. The Texas Stabilization M Bonds, Series 2025 closed on August 14, 2025.
Under ERCOT Protocols Section 26.2(5), if ERCOT modifies the TSDCMA, it will issue a Market Notice notifying Market Participants of the change no later than 15 days before the beginning of the month in which the new TSDCMA will be used to calculate Securitization Default Charges. Because of the refinancing described above and the lower interest rate that the Series 2025 has compared to the Series 2021, the TSDCMA is being revised to be decreased from $2,393,201 to $2,226,786. The revised TSDCMA will be used in the calculation of the Securitization Default Charge Ratio Share per Counter-Party (SDCRSCP) beginning with the Invoice for Securitization Default Charges that will be issued on September 10, 2025. The revised TSDCMA will be used in the calculation of Securitization Default Charge Credit Exposure (SDCCE) beginning on September 6, 2025.
ADDITIONAL INFORMATION: Additional information regarding securitization efforts under PURA Chapter 39, Subchapter M and the PUCT Debt Obligation Order can be found at ERCOT's dedicated webpage: https://www.ercot.com/about/hb4492securitization/subchapterm.
CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.
If you are receiving email from a public ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.
dg