NOTICE DATE: October 14, 2022
NOTICE TYPE: M-A101422-01 Settlements
SHORT DESCRIPTION: ERCOT is decreasing 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: November 2022 billing period and thereafter
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 annually, the TSDCMA to determine if it should be modified.
ERCOT filed with the Public Utility Commission of Texas (PUC), in Docket No. 52709, the 2022 Annual True-Up 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. This filing includes an update to the TSDCMA amount. On September 15, 2022, the PUC, inter alia, approved the new TSDCMA, which decreases from $3,761,985 to $3,221,826.
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 November 9, 2022. The revised TSDCMA will be used in the calculation of Securitization Default Charge Credit Exposure (SDCCE) beginning on November 8, 2022.
ADDITIONAL INFORMATION: Additional information regarding securitization can be found at this page on the ERCOT website.
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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