In February 2021, the extreme temperatures of Winter Storm Uri caused a surge in demand for electricity across affected regions. In Texas, electricity prices soared to unprecedented levels, triggering a series of financial defaults across the Texas electricity market. Texas Legislature passed House Bill 4492 in June 2021 to authorize ERCOT, the Texas ISO, to obtain 30-year financing to partially offset excess costs and defaults incurred by power companies during the storm. ERCOT will allocate proceeds from the financing to affected power companies, and recover amounts required to service the financing through additional market charges over the next 30 years.
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