Texas power company surrenders last word on ABS to utility commission

AEP Texas Central Co., which is looking to raise as much as $1.7 billion through securitization, filed what it called a unanimous settlement agreement with the Public Utility Commission of Texas. The accord will hold them - and all other affected parties - to any securitization financing order that the commissioners decide on later this year.

If the PUCT accepts the settlement agreement, its commissioners will essentially have the final word on how much in ABS bonds the Texas Central Company can raise. Company officials said, AEP Texas Central Co. might use a portion of the funds to repay state debt and recover stranded costs. The securitization will proceed without any appeal from industrial customers, consumer advocacy groups, municipalities, or any other party.