The local electricity distribution system intends this week to take out a loan to help pay the bills associated with last month’s winter storm.
GEUS’s board of directors is expected to issue $ 20 million in short-term funding during Thursday’s regular session, starting at 6 p.m. at GEUS’s operations center, 6000 Joe Ramsey Boulevard.
In a public hearing on March 11, chief executive Alicia Hooks said GEUS plans to seek funds to help cover the costs of an application for ERCOT, which manages the majority of the state’s electricity grid. Texas, to help pay for local utility charges; s share of billions in unpaid storm-related charges.
Hooks said some utilities face bankruptcy filings due to the shortfall, while others go other avenues.
GEUS is part of the Texas Municipal Power Association, alongside Bryan, Garland and Denton power distribution systems.
On February 25, the town of Denton filed a lawsuit against the ERCOT, claiming the agency was unconstitutionally using a mechanism known as an “uprising.”
Due to the surge in energy prices during the storm, some ERCOT market players did not pay ERCOT for electricity purchases as the unpaid deficit spread the costs of these ERCOT market players over others. market players.
The town of Denton said in a statement that it viewed payment of other utility costs as an unconstitutional donation of public funds and an unconstitutional loan of its credit.
Hooks said GEUS plans to repay the debt quickly, in part by delaying a rate cut that was slated for October. The utility can also tap some of the $ 1.87 million in cash reserves that have been saved through fuel adjustment charges.