The network operator in Texas has held talks with financial institutions, including Goldman Sachs Group Inc., about potential financing options to address a shortfall in electricity payments of more than $ 3 billion, as some market participants are reluctant to pay their share, according to people familiar with the matter.
The people said the Texas Electric Reliability Board had preliminary talks with Goldman Sachs investment bankers about measures, such as a potential credit facility, that would cover amounts that electricity buyers did not pay for.
Ercot, which serves as the payment plant for buyers and sellers of electricity, has issued large bills for power purchased as a winter-freezing state that dominated the state, causing energy prices to rise. Some municipal utilities, electric cooperatives and electricity traders have disputed the bills, while others have declared bankruptcy or indicated that they may seek court protection.
Ercot said Thursday it is short of nearly $ 3.1 billion in required payments because it said earlier that it was $ 2.1 billion short. San Antonio’s public power provider CPS Energy filed a lawsuit against Ercot on Friday to try to prevent the network operator from recovering the costs that other energy retailers did not pay from CPS.
Ercot caused power prices to rise when the winter storm hit Texas last month as demand for electricity rose and some generators were unable to operate due to fuel shortages and frozen equipment.