Hunton Andrews Kurth LLP advised the initial purchasers in connection with the sale of $379.1 million Texas Stabilization Subchapter M Bonds, Series 2025. The bonds were sold by the Texas Electric Market Stabilization Funding M 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 default property that includes the irrevocable contract right, created by the debt obligation order, to impose, collect, and receive the nonbypassable system default charge paid by certain Qualified Scheduling Entities and CRR Account Holders (collectively “Wholesale Market Participants”).

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 27 million Texas consumers. The proceeds from sale of the bonds were used to pay expenses of issuance and to redeem a portion of the outstanding principal balance and any accrued but unpaid interest on the Texas Stabilization M Bonds, Series 2021.

The Hunton team included Michael Fitzpatrick, Adam O'Brian, Josh Van Kirk, Matt Hayes, and Catherine Bulger. Tab Urbankte, Tom Sage, and Nicole Skolnekovich 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; Duncan Angus provided EU and UK legal advice; Leslie Okinaka provided ERISA advice; and George Howell, Anna Page, and Zachary Roop provided tax advice.