The Texas Natural Gas Securitization Finance Corporation is a Texas non–profit corporation, duly constituted as a public authority and instrumentality of the State of Texas (the "Corporation"), created by the Texas Public Finance Authority pursuant to Subchapter C, Chapter 1232, Texas Government Code (as amended by House Bill No. 1520, 87th Regular Session, 2021, and referred to herein as the "Securitization Law").
Pursuant to Securitization Law, the Corporation is authorized to issue "Customer Rate Relief Bonds" for the purpose of allowing certain gas utilities ("Participating Gas Utilities") to recover their respective extraordinary costs incurred to secure gas supplies and provide service during Winter Storm Uri that occurred in February 2021.
Pursuant to the Securitization Law and a financing order adopted by the Railroad Commission of Texas on February 8, 2022, the Corporation will issue its Customer Rate Relief Bonds to finance the recovery of these extraordinary costs incurred by the Participating Gas Utilities. The dollar amount of the extraordinary costs to be recovered by each Participating Gas Utility was established though an order adopted by the Railroad Commission of Texas on November 10, 2021. The Customer Rate Relief Bonds will be secured by and repaid from charges imposed on the customers receiving natural gas from the Participating Gas Utilities.
The Corporation was formed solely to issue the Customer Rate Relief Bonds and has no commercial operations.