Just like Oklahoma did following the 2021 winter storm Uri, Texas also passed a law allowing utilities to securitize their storm costs. The only difference is, Oklahoma acted faster on the deal than Texas.
This week, the Texas Natural Gas Securitization Finance Corp. plans to price a historic $3.5 billion transaction to bail out the natural gas utilities that ran up billions of dollars in storm costs. Oklahoma’s bond deal involved $3 billion in costs by utilities.
Bloomberg reports it is the largest-ever municipal-bond deal in the state of Texas and just as in Oklahoma, the bonds will be paid for by adjustable charges on the bills of customers of the nine utilities.
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