The Texas grid operator has been in talks with financial institutions, including Goldman Sachs Group Inc., about possible financing options to address a shortage of more than $ 3 billion in electricity payments, as some market participants are unwilling to pay their share, said people who be familiar with the matter.
The Texas Electric Reliability Council has held preliminary talks with Goldman Sachs investment bankers about measures, such as a possible credit facility, that would cover amounts that electricity buyers failed to pay after last month’s energy crisis, these people said.
Acting as the payment center for electricity buyers and sellers, Ercot has issued large bills for power purchased when a winter break flooded the state and pushed up energy prices. Some municipal utilities, power cooperatives, and electrical stores have disputed the bills, while others have either declared bankruptcy or indicated that they may seek legal protection.
Ercot said on Thursday that it was short of nearly $ 3.1 billion in required payments, having previously said it was short of $ 2.1 billion. On Friday, San Antonio’s public electricity company CPS Energy filed a lawsuit against Ercot to prevent the grid operator from trying to recoup costs other energy providers have not paid on CPS.
Ercot pushed power prices up when last month’s winter storm engulfed Texas as electricity demand spiked and some power generators were unable to operate due to fuel shortages and frozen equipment.