What does using securitized financing mean for the Members?
Ultimately, the costs resulting from Winter Storm Uri must be paid. Because these costs were so significant, they could not be paid from operating funds. Financing the costs is the only option. With securitized financing, a securitization charge will be included on monthly bills to repay the bonds and these ongoing financing costs. The securitized charges will remain effective until the bonds are paid in full. It will be based on energy usage and subject to adjustments periodically to ensure that we collect the sufficient, and only the sufficient, funds to timely pay the principal and interest on the bonds. If the energy usage in HILCO's service territory grows, the amount of the charge per kWh will decrease.