Hunton Andrews Kurth Advises Underwriters on $1.28 Billion 2024 Senior Secured Deferred Fuel Cost Bonds

Hunton Andrews Kurth LLP acted as counsel to the underwriters on an SEC-registered offering of $1.28 billion aggregate principal amount of 2024 Senior Secured Deferred Fuel Cost Bonds (the “Bonds”) by Virginia Power Fuel Securitization, LLC, as “Issuing Entity”, a special purpose entity, wholly-owned by Virginia Electric and Power Company (“VEPCo”), as sponsor, depositor and initial servicer. VEPCo is a regulated public utility that generates, transmits and distributes electricity for sale in Virginia and North Carolina. The Bonds were sold pursuant to a financing order issued by the State Corporation Commission of the Commonwealth of Virginia. The Bond proceeds will be used to (i) pay upfront bond issuance costs and (ii) purchase the deferred fuel cost property from VEPCo. In accordance with the financing order, VEPCo will use the proceeds to reimburse itself for previously incurred deferred fuel costs, including the repayment of related debt.

The Hunton Andrews Kurth team included Michael F. Fitzpatrick, Jr., Adam O’Brian, Michelle G. Chan and Jingyi “Alice” Yao.  Jason W. Harbour assisted with certain bankruptcy advice, Shawn Patrick Regan and Kate Perkins assisted with certain constitutional law matters, Leslie A. Okinaka provided ERISA advice and George Howell, Anna Knecht Page and Zachary Roop provided tax advice.