The Texas network operator has been in talks with financial institutions, including Goldman Sachs Group Inc., about possible financing options to address a $ 3 billion shortfall in electricity payments as some market participants are reluctant to pay the fee, according to people familiar with the matter.
Texas Electric Reliability Board held preliminary talks with investment bankers at Goldman Sachs on measures, such as a potential credit facility, that would cover amounts that electricity buyers did not pay after the energy crisis since last month, these people said.
Ercot, which acts as a payment clearing center for electricity buyers and sellers, has issued large bills for purchased energy as a winter frost has swept the state, lowering energy prices. Some municipal utilities, electric cooperatives and electricity retailers have challenged the bills, while others have filed for bankruptcy or signaled that they could seek court protection.
Ercot said on Thursday that the necessary payments are short of almost 3.1 billion dollars, after previously saying that it is short of 2.1 billion dollars. On Friday, San Antonio-based public energy company CPS Energy filed a lawsuit against Ercot, trying to prevent the network operator from trying to recover from CPS costs that other retailers did not pay.
Ercot let energy prices rise when last month’s winter storm swept Texas as electricity demand rose and some power generators were unable to operate due to a lack of fuel and frozen equipment.