Saber Partners was the investment banker and financial advisor to the Public Utility Commission of Texas (PUCT) to assist in discharging the PUCT’s mandate on securitization to protect customers/ratepayers interests in the transition to a deregulated electricity market. While engaged, Saber oversaw the structuring, marketing and pricing of $6.426 billion of “Transition Bonds” authorized for the state’s three investor-owned utilities in six sequential transactions over six years.
The assignment included bond issues for:
CenterPoint Energy Houston Electric:
* CenterPoint Energy Transition Bond Company, LLC (formerly Reliant Energy Transition Bond Company LLC) (PUCT Docket #21665, and
* CenterPoint Energy Transition Bond Company II, LLC, (PUCT Docket # 30485)
American Electric Power:
Oncor Electric Delivery:
* Oncor Electric Delivery Transition Bond Company LLC Series 2003-1 and
* Oncor Electric Delivery Transition Bond Company LLC Series 2004-1.
Saber established standards for the entire state program and oversaw six consecutive bond issues for a total of $6.426 billion. This allowed the Public Utility of Commission of Texas to oversee future bond issues independently.
Saber, at the direction of the Commission, was a joint decision-maker with each of the utilities on all aspects of the capital raising venture, an unprecedented role for a financial advisor. The assignment included ensuring that the companies comply with PUC financing orders and that the structuring and pricing of the bonds achieve the lowest cost of funds at the time of pricing while promoting the competitive market for electricity in Texas. Saber has also created and advised on an extensive investor and financial analyst education program concerning the regulatory environment in Texas.