PLACEHOLDER H2 TO MEET WCAG REQUIREMENT TO PROVIDE ADVISORY SERVICES WITH RESPECT TO THE STRUCTURE AND PRICING OF SECURITIZED REFINANCING OF THE WINTER STORM URI DEFAULT BALANCE.
| Agency: | State Government of Texas |
|---|---|
| State: | Texas |
| Level of Government: | State & Local |
| Category: |
|
| Opps ID: | NBD15092269084129347 |
| Posted Date: | Apr 1, 2024 |
| Due Date: | Apr 29, 2024 |
| Solicitation No: | RFP 473-23-00004 |
| Source: | Members Only |
Request for Proposals - RFP
PLACEHOLDER H2 TO MEET WCAG REQUIREMENT TO PROVIDE ADVISORY SERVICES WITH RESPECT TO THE STRUCTURE AND PRICING OF SECURITIZED REFINANCING OF THE WINTER STORM URI DEFAULT BALANCE.
- RFP 473-23-00004
- Project Number: 56159
The procurement can be found on the
ESBD Details (txsmartbuy.com)
.
Close Date: April 29, 2024 9:00am Central Time.
Attachment Preview
PUBLIC UTILITY COMMISSION OF TEXAS
REQUEST FOR PROPOSALS TO PROVIDE ADVISORY SERVICES
WITH RESPECT TO THE STRUCTURE AND PRICING OF
SECURITIZED REFINANCING OF THE WINTER STORM URI
DEFAULT BALANCE
Public Utility Commission of Texas
William B. Travis Building
1701 North Congress Avenue
Austin, Texas 78711
Closing Time and Date:
April 29, 2024
9:00 a.m., Central Time
RFP Number: 473-24-00004
Project Number: 56159
NIGP Class Item: 946-30, 38, 48, 49
Table of Contents
SECTION 1 – INTRODUCTION ________________________________________________ 3
SECTION 2 – DEFINITIONS __________________________________________________ 3
SECTION 3 – STATEMENT OF WORK __________________________________________ 4
SECTION 4 – ELIGIBILITY AND EVALUATION CRITERIA _______________________ 6
4.A. EEO and HUB Statement ______________________________________________________ 6
4.B. Minimum Eligibility Requirements ______________________________________________ 6
4.C. Evaluation Criteria ___________________________________________________________ 7
4.D. Texas Vendor Preference ______________________________________________________ 7
4.E. References ___________________________________________________________________ 7
SECTION 5 – SCHEDULE AND PROCESS ______________________________________ 8
5.A. Anticipated Schedule __________________________________________________________ 8
5.B. PUCT Contact Person _________________________________________________________ 8
5.C. Process for Asking Questions ___________________________________________________ 8
5.D. Process for Submitting Proposals ________________________________________________ 9
5.E. PUCT’s Standard Process for Selecting Vendors ___________________________________ 9
SECTION 6 – REQUIRED COMPONENTS AND FORMAT ________________________ 11
6.A. Components ________________________________________________________________ 11
6.B. Format Requirements ________________________________________________________ 16
SECTION 7 – CONDITIONS __________________________________________________ 17
7.A. Irrevocable Offer ____________________________________________________________ 17
7.B. Proposals are the Property of the PUCT _________________________________________ 17
7.C. Public Information Act Notice _________________________________________________ 17
7.D. Publicity ___________________________________________________________________ 17
7.E. No Proposal Costs Reimbursed_________________________________________________ 18
7.F. Contract Terms and Conditions ________________________________________________ 18
7.G. Vendor Performance Tracking System __________________________________________ 18
ATTACHMENT A – PUCT’s Standard General Terms and Conditions ________________ 19
PUCT RFP 473-24-00004
Page 2 of 36
SECTION 1 – INTRODUCTION
The Public Utility Commission of Texas (PUCT) issues this request for proposals (RFP) to
provide consulting services regarding ERCOT securitization refinancing of the Winter Storm Uri
default balance. This RFP is issued pursuant to Texas Utilities Code, Section 14.001, and
Chapter 39, Subchapter M.
The issuance of securitized bonds involves highly specialized expertise and experience in capital
market conditions and debt financing. The proposed consulting contract will procure services
that enable the Commission to fulfill the statutory requirement of PURA Section 39.601, which
states "The commission shall ensure that the structuring and pricing of the debt obligations
results in the lowest uplift charges consistent with market conditions and the terms of the order
issued under this subchapter."
The term of the contract resulting from this RFP is anticipated to start on June 1, 2024 and
conclude following the finalization of the transaction, which is estimated to be on or before May
31, 2025.
SECTION 2 – DEFINITIONS
As used in this RFP, the following terms have the meanings specified:
1) “Business day” means a day the PUCT is open for business and is not observing a
holiday.
2) “Commission” means the governing body of the PUCT.
3) “Commission’s Designated Representative” means the PUCT Contract Administrator.
4) “Contractor” means the person, organization, business entity, or other entity that is
selected for the contract contemplated by this RFP.
5) “ERCOT” means the Electric Reliability Council of Texas.
6) “May” means “is authorized to.”
7) “Proposer” means “a person, organization, business entity, or other entity that submits a
proposal for this RFP.”
8) “PUCT” means “the Public Utility Commission of Texas, an agency of the state of
Texas.”
9) “Subject Entity” or “Filing Party,” means ERCOT.
10) “Vendor” means “a person, organization, business entity, or other entity that has been
selected for or entered into a contract with a Texas state agency.”
11) “Vendor Performance Tracking System” means “the system the Texas Comptroller of
Public Accounts is required to provide under Section 2262.055, Texas Government Code,
for evaluating vendor performance.” The Vendor Performance Tracking System is
located at: http://txsmartbuy.com/vpts
PUCT RFP 473-24-00004
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SECTION 3 – STATEMENT OF WORK
The contractor will serve as a consultant for the PUCT to provide transparency into and
evaluation of the securitization financing process followed by ERCOT with regard to the
securitization refinancing of the Winter Storm Uri default balance. The purpose of the
consultant’s work is to assist the PUCT in determining the facts that will form the basis for
allowing ERCOT to go forward with the securitized financing as proposed or for stopping the
transaction. As a consultant for the PUCT, the contractor must:
• As directed by the commission’s designated representative, hold discussions with the
transaction’s book-running senior manager to fully understand the type of security that is
to be sold.
• Hold discussions with the commission’s designated representative to understand the
commission’s objectives and the pricing considerations consistent with those objectives.
• As directed by the commission’s designated representative, participate in conference calls
with ERCOT, underwriters, the commission’s designated representative, and various
counsel and consultants with regard to the structuring plans for the securities and the
potential implications of evolving market conditions.
• At the beginning of the public marketing process, hold discussions with the transaction’s
book-running senior manager and the commission’s designated representative regarding
the market environment and the specific structuring of tranches, amortization, coupons
and yields, and call features.
• Provide relevant feedback to the commission’s designated representative regarding the
information gathered through discussions with the transaction’s book-running senior
manager.
• During the order process, evaluate pricing of tranching structures based on the evaluation
of investor preferences, analyze relative pricing of tranches against relevant benchmark
securities, and assess market environment for other primary offerings as well as U.S.
economic indicators that could affect the pricing and scheduled sale of the securities.
• As directed by the commission’s designated representative, analyze alternatives (such as
lowering yields) to reduce the amount of oversubscription and recommend whether the
oversubscribed bonds are reasonably priced or should be re-priced.
• At the time of final pricing, provide feedback to the commission’s designated
representative on the securities’ coupon rates, yield, tranching, and structuring in given
market conditions.
• If requested by the commission’s designated representative, attend pricing of securitized
bonds at the offices of the transaction’s book-running senior manager.
• If requested by the commission’s designated representative, attend a commission public
PUCT RFP 473-24-00004
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meeting and provide to the commission one or more oral briefings on the results of the
transaction.
• Provide a written report on the pricing process as directed by the commission or its
designated representative.
Deliverables
Throughout the contract, the contractor must update the PUC’s Contract Administrator and
provide an assessment of relevant market conditions at least weekly, or more often if required by
the Contract Administrator. These updates may be by phone unless the Contract Administrator
directs the contractor to provide updates in writing. If the update is by phone, the contractor must
submit the update in writing to the contract administrator within one business day after the call.
If the update is done strictly in writing, the update must be submitted to the contract
administrator by 8am CT each Monday while the contract is in place, or as otherwise directed by
the contract administrator.
By the last business day of the month following the month in which the transaction has been
finalized:
• Contractor must prepare a post-pricing book memorializing the pre-issuance and actual
market for the securities.
• Contractor must provide a detailed invoice, as described in Section 2.2, Payment Process,
of the contract’s general terms and conditions.
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PUCT RFP 473-24-00004
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