Texas Bets on Utility Securitization to Shore Up Power Market
Energy Partner Dane McKaughan was cited in a Law360 article covering three Texas bills designed to help utilities and electric companies pay off approximately $7 billion in debt accumulated during the February 2021 winter storm. The bills would allow these entities to secure state-approved bonds to refinance their debt over several decades, with the goals of balancing the market and preventing bankruptcy. Mr. McKaughan said these bills, if signed by Texas Gov. Greg Abbott, will help stabilize struggling companies and utilities, thus allowing them to continue to serve customers.
"You can't just let the electricity system fail," he said. "These bills address, 'What are we going to do about it now that we're in a financial situation?' It's a way to keep the market afloat."