HB 4492 Securitization

HB 4492 Subchapter M Updates available

HB 4492 Subchapter N Updates available

House Bill 4492 Securitization:

In response to financial impacts of Winter Storm Uri on the ERCOT power region, the Texas Legislature enacted House Bill (HB) 4492 in 2021. HB 4492 added Subchapters M and N to Chapter 39 of the Public Utility Regulatory Act (PURA) and granted authority to the Public Utility Commission of Texas (PUCT) to approve two debt financing mechanisms.

Details:

Subchapter M Default Balance Securitization

The Subchapter M debt obligation order, approved by the PUCT in 2021, authorized ERCOT to finance a “default balance” amount of $800 million.

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Subchapter N Uplift Balance Securitization

The PUCT issued a debt obligation order in 2021 authorizing ERCOT to finance an “uplift balance” amount of $2.1 billion.

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Need Assistance?

Market Participants with questions regarding the HB 4492 Securitization should contact their ERCOT Account Manager for further assistance.

Resources:

Public Utility Commission of Texas (PUC)

Read about the PUC.

View the PUCT website

Statutes

Public Utility Regulatory Act (PURA) Effective Sept. 1, 2021.

View PURA