NOTICE DATE: October 13, 2023

NOTICE TYPE: M-B101323-01 Settlements

SHORT DESCRIPTION: ERCOT is increasing the Total Securitization Default Charge Monthly Amount (TSDCMA) used to calculate Securitization Subchapter M escrow deposits and Securitization Default Charge

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: November 2023 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.

On September 14, 2023 ERCOT filed with the Public Utility Commission of Texas (PUC), in Docket No. 52709, a Mandatory Annual True-Up Compliance Filing, Report of Recoveries, and Notice of Default Charge Adjustment for the debt obligations issued under Subchapter M. A Notice of Correction of this filing was submitted on September 19, 2023. 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. On September 26, 2023, the presiding PUC administrative law judge, inter alia, approved the ERCOT filing. Therefore, effective in November 2023, the TSDCMA will increase from $1,553,571 to $1,897,324.

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, 2023. The revised TSDCMA will be used in the calculation of Securitization Default Charge Credit Exposure (SDCCE) beginning on November 9, 2023.

ADDITIONAL INFORMATION: Additional information regarding securitization can be found 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 [log in to unmask].

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