The Texas grid operator has held talks with financial institutions including Goldman Sachs Group Inc. about potential financing options to address a more than $3 billion shortfall in electricity payments as some market participants balk at paying their share, according to people familiar with the matter.
The Electric Reliability Council of Texas has held preliminary discussions with investment bankers from Goldman Sachs about measures, such as a potential credit facility, that would cover amounts that energy retailers haven’t paid for the electricity they bought during last month’s energy crisis, these people said.
Ercot, which acts as the payment clearinghouse for electricity buyers and sellers, has issued large bills for power purchased as a winter freeze swept the state, spiking energy prices. Some municipal utilities, electric cooperatives and electricity retailers have disputed the bills, while others have declared bankruptcy or signaled they might seek court protection.
Ercot said Thursday it was short nearly $3.1 billion in required payments, having previously said it was short $2.1 billion. On Friday, San Antonio’s public power utility CPS Energy filed a lawsuit against Ercot, seeking to prevent the grid operator from trying to recoup from CPS the costs that other energy retailers haven’t paid.
Ercot let power prices soar when last month’s winter storm swept Texas, as demand for electricity spiked and some power generators couldn’t function due to fuel shortages and frozen equipment.
