NOTICE DATE: March 13, 2026

NOTICE TYPE: M-B031326-01 Settlements

SHORT DESCRIPTION: ERCOT is increasing the Total Securitization Default Charge Monthly Amount (TSDCMA) used to calculate Securitization Subchapter M escrow deposits and Securitization Default Charges

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: April 1, 2026

LONG DESCRIPTION: In accordance with the Debt Obligation Order issued by the Public Utility Commission of Texas (PUC) in PUC 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, and ERCOT Protocols Section 26.2(4), ERCOT, as servicer of the bonds issued under Subchapter M of PURA Chapter 39, is required to evaluate, at least semi-annually, the TSDCMA to determine if it should be modified. 

On February 13, 2026, ERCOT filed with the Public Utility Commission of Texas (PUC), in Docket No. 52709, a Mandatory Semi-Annual True-Up Compliance Filing, Report of Recoveries, and Notice of Default Charge Adjustment for the debt obligations issued under Subchapter M.  This filing is required under Findings of Fact 65, 66, and 74 and Ordering Paragraphs 15 and 15A of the Debt Obligation Order the PUC issued in Docket No. 52321.  On February 24, 2026, the presiding PUC administrative law judge, inter alia, approved the ERCOT filing.  Therefore, effective in April 2026, the TSDCMA will slightly increase from $2,226,786 to $2,255,839.

Under 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.  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 April 9, 2026.  The revised TSDCMA will be used in the calculation of Securitization Default Charge Credit Exposure (SDCCE) beginning on April 7, 2026.

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.

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dg/dsl