Hunton Andrews Kurth Advises Initial Purchasers of $2.116 Billion Texas Stabilization Subchapter N Bonds, Series 2022 Issued by ERCOT

Hunton Andrews Kurth LLP advised the initial purchasers in connection with the sale of $2.116 billion Texas Stabilization Subchapter N Bonds, Series 2022.

The bonds were sold by the Texas Electric Market Stabilization Funding N LLC (a wholly owned subsidiary of the Electric Reliability Council of Texas, Inc. ("ERCOT")), as the issuing entity, pursuant to a debt obligation order of the Public Utility Commission of Texas, in accordance with Texas enabling legislation. The bonds are secured by uplift property that includes the irrevocable contract right, created by the debt obligation order, to impose, collect and receive the nonbypassable system uplift charge paid by certain Qualified Scheduling Entities. ERCOT, is a non-profit corporation organized under Texas law serving as an Independent System Operator responsible for managing the flow of electric power to more than 26 million Texas consumers. The proceeds from sale of the bonds were distributed to Load Serving Entities that demonstrated in the compliance proceedings that were exposed to extraordinary costs as a result of a 2021 winter storm (Winter Storm Uri).

The Hunton Andrews Kurth team included Michael Fitzpatrick, Adam O’Brian, and Matthew A. Hayes. Tab Urbankte and Lauren Freeland assisted with certain Texas regulatory matters, Jason Harbour assisted with certain bankruptcy advice, Shawn Regan and Kate Perkins assisted with certain constitutional law matters, Eric Nedell assisted with certain security interest matters, and Cary Tolley, Anna Page and Tim Strother provided tax advice.