NOTICE DATE: June 16, 2022
NOTICE TYPE: M-A061622-01 Settlements
SHORT DESCRIPTION: PURA Chapter 39, Subchapter N bond financing funded and closed on June 15, 2022
INTENDED AUDIENCE: Market Participants
DAYS AFFECTED: June 15, 2022
LONG DESCRIPTION: In accordance with the provisions of Texas Public Utility Regulatory Act (PURA) Chapter 39, Subchapter N, and the Public Utility Commission of Texas (PUCT) Debt Obligation Order issued in Docket No. 52322, Application of Electric Reliability Council of Texas, Inc. for a Debt Obligation Order Pursuant to Chapter 39, Subchapter N, of the Public Utility Regulatory Act, the special purpose entity (SPE), Texas Electric Market Stabilization Funding N LLC, has issued Subchapter N Bonds totaling approximately $2.1 billion. For details of the bond tranches and final pricing of the bonds, see Market Notice M-A060822-01.
ERCOT will distribute the proceeds of the bonds to eligible Obligated LSEs, via their designated Responsible QSEs, that demonstrated to the PUCT that they were exposed to qualifying, extraordinary costs because of the supply and demand imbalance caused by generation outages during Winter Storm Uri in February 2021. ERCOT will post Miscellaneous Invoices to the Responsible QSEs on June 21, 2022, with disbursement of funds to occur on June 22, 2022. Pending further direction from the PUCT, no disbursement will be made to Obligated LSEs that are no longer an ERCOT wholesale market participant or that failed to file a verification of their exposure in PUCT Docket No. 52364 in a timely manner.
ERCOT plans to begin issuing Subchapter N Securitization Uplift Charge Initial Invoices on August 1, 2022. Prior to that date, ERCOT will issue a Market Notice providing the Securitization Uplift Daily Amount (SUCDA).
ERCOT plans to issue a subsequent Market Notice on June 22, 2022 to clarify and begin the process for an Obligated LSE to meet its compliance obligation to submit a signed attestation to ERCOT, as discussed in the June 14, 2022 PUCT Staff memorandum filed in PUCT Docket No. 52710, Compliance Filing for Docket No. 52322 (Application of Electric Reliability Council of Texas, Inc for a Debt Obligation Order Pursuant to Chapter 39, Subchapter N, of the Public Utility Regulatory Act).
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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