Texas grid operator discussed financing with Goldman as power buyers resist payment shortfall – tech2.org

Texas grid operator discussed financing with Goldman as power buyers resist payment shortfall


The Texas grid operator has been in talks with financial institutions, including Goldman Sachs Group Inc., about possible financing options to address a deficit of more than $ 3 billion in electricity payments, as some market participants fall short of They are reluctant to pay their share, according to people familiar with the matter.

The Texas Electric Reliability Council has held preliminary discussions with Goldman Sachs investment bankers about measures, such as a possible line of credit, that would cover amounts that electricity buyers have not paid after last month’s energy crisis, they said. this people.

Ercot, which acts as a clearinghouse for payments for buyers and sellers of electricity, has issued large bills for the energy purchased when a winter frost swept through the state, pushing up energy prices. Some municipal utilities, power cooperatives and power retailers have disputed the bills, while others have declared bankruptcy or indicated that they could seek judicial protection.

Ercot said Thursday it was nearly $ 3.1 billion missing in required payments, having previously said it was $ 2.1 billion short. On Friday, San Antonio public power company CPS Energy filed a lawsuit against Ercot, seeking to prevent the grid operator from trying to recover from CPS costs that other energy retailers have not paid.

Ercot let energy prices skyrocket when last month’s winter storm hit Texas as demand for electricity soared and some power generators were unable to run due to fuel shortages and frozen equipment.

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