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Securitization M

Table of Contents

The Gist

Securitization M is a term used to describe a set of payouts and charges designed to lessen the economic impact of the defaults of competitive (i.e. non public power) entities on their ERCOT invoices during Winter Storm Uri.  House Bill 4492 amended (among other things) Subchapter M of section 39, utilities code, to allow ERCOT to get $800M of financing to disburse to ERCOT market participants that were short paid for operations during the period of emergency and to be repaid by all market participants on an ERCOT activity share over the next 30 years.

The $800M were disbursed to short paid entities and used to pay back the money that was taken out of the CRR Revenue account. 

Going forward, all ERCOT market participants will be invoiced on monthly basis based on their market activity ratio share of the monthly debt servicing. 

Important Actions

  • 2/12-20/21 Period of Emergency – many entities defaulted on their invoices for these days.
  • 7/16/21 Public Utility Commission opens up project 52321 to determine methodology of enacting HB4492
  • 10/14/21 Public Utility Commission approves the debt obligation order
  • 11/1/21 NPRR1103 (Securitization M) filed
  • November 2021 – Funds dispersed
  • 12/20/21 NPRR1103 (Securitization M) approved by PUC
  • 1/11/21 First invoice issued
  • 2/16/22 Cleanup NPRR shared with CWG MCWG
  • 3/9/22 ERCOT introduces cleanup NPRR1122 at PRS
  • 3/14/22 ERCOT introduces NPRR1125(Allow general collateral to be used to cure securitization defaults)


HB4492 language

ERCOT Securitization page


Draft Cleanup NPRR

NPRR1122 (Actual cleanup NPRR)

NPRR1125(Allow general collateral to be used to cure securitization defaults)

Meeting Notes

4/6/22 PRS

3/14/22 CWG MCWG

3/9/22 PRS

2/23/22 TAC

2/16/22 CWG MCWG

12/14/21 PRS

11/29/21 TAC

11/11/21 CWG MCWG

11/10/21 PRS