NOTICE DATE: June 15, 2022
NOTICE TYPE: M-A061522-01 Settlements
SHORT DESCRIPTION: Notification of change of Total Securitization Default Charge Monthly Amount (TSDCMA) to calculate Securitization Default Charge Escrow Deposits and Securitization Default Charges
INTENDED AUDIENCE: Market Participants
DAYS AFFECTED: July 2022 billing period and thereafter
LONG DESCRIPTION: Per paragraph (4) of Protocols Section 26.2, at least annually, ERCOT, as servicer of the bonds issued under Subchapter M of PURA Chapter 39, is required to evaluate the TSDCMA to determine if it should be modified. 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.
ERCOT filed with the Public Utility Commission of Texas (PUC), in Docket No. 52709, the Six-Month True-Up Filing, Report of Recoveries, and Notice of Default Charge Adjustment for the debt obligations issued under Subchapter M. This filing is required under Finding of Fact 67 and Ordering Paragraph 15 of the Debt Obligation Order the PUC issued in Docket No. 52321. This filing includes an update to the TSDCMA amount. On May 26, 2022, the PUC, inter alia, approved the new TSDCMA, which increases from $3,713,235 to $3,761,985.
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 July 12, 2022. The revised TSDCMA will be used in the calculation of Securitization Default Charge Credit Exposure (SDCCE) beginning on July 7, 2022.
ADDITIONAL INFORMATION: Additional information regarding securitization can be found at this page on the ERCOT website. See also Market Notice, M-B051222-01 Filing in Public Utility Commission of Texas (PUC) Project No. 52709 Regarding ERCOT’s Six-Month Initial Interim True-Up Compliance Filing, Report of Recoveries, and Notice of Default Charge Adjustment Under Subchapter M of Chapter 39 of the Public Utility Regulatory Act (PURA), providing information regarding ERCOT’s six-month true-up filing.
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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