REQUEST FOR PROPOSALS TO PROVIDE CONSULTING SERVICES WITH RESPECT TO THE STRUCTURE AND PRICING OF SECURITIES RELATED TO SECURITIZED FINANCING OF WINTER STORM URI UPLIFT FINANCING

Agency: State Government of Texas
State: Texas
Type of Government: State & Local
NAICS Category:
  • 541611 - Administrative Management and General Management Consulting Services
  • 541618 - Other Management Consulting Services
  • 541690 - Other Scientific and Technical Consulting Services
Posted Date: Nov 18, 2021
Due Date: Dec 13, 2021
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REQUEST FOR PROPOSALS TO PROVIDE CONSULTING SERVICES WITH RESPECT TO THE STRUCTURE AND PRICING OF SECURITIES RELATED TO SECURITIZED FINANCING OF WINTER STORM URI UPLIFT FINANCING

Project Number: 52731
Close Date: 12/13/2021 10:00 am, CT

For a copy of the RFP, please go to Solicitation posting


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PUBLIC UTILITY COMMISSION OF TEXAS
REQUEST FOR PROPOSALS TO PROVIDE CONSULTING SERVICES
WITH RESPECT TO THE STRUCTURE AND PRICING OF SECURITIES
RELATED TO SECURITIZED FINANCING OF WINTER STORM URI
UPLIFT FINANCING
Public Utility Commission of Texas
William B. Travis Building
1701 North Congress Avenue
Austin, Texas 78711
Closing Time and Date:
12/13/2021
10:00a.m., Central Time
RFP Number: 473-22-00001
Project Number: 52731
NIGP Class Item: 946-30, 38, 48, 49
Table of Contents
SECTION 1 INTRODUCTION ____________________________________________________ 3
SECTION 2 DEFINITIONS ______________________________________________________ 3
SECTION 3 STATEMENT OF WORK ______________________________________________ 3
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 _______________________________ 10
6.A. Components _________________________________________________________________ 10
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 __________________________________________________ 17
7.F. Contract Terms and Conditions __________________________________________________ 18
7.G. Vendor Performance Tracking System ____________________________________________ 18
ATTACHMENT A General Terms and Conditions for Proposed Contract ________________ 19
PUCT RFP 473-22-00001
Page 2 of 35
SECTION 1 INTRODUCTION
The Public Utility Commission of Texas (PUCT) issues this request for proposals (RFP) to
provide consulting services regarding ERCOT securitization financing for Winter Storm Uri
Uplift Financing. This RFP is issued pursuant to Texas Utilities Code, Sections 14.001, 39.151,
39.651 and 39.652.
The issuance of securitized bonds involves highly specialized expertise and experience in capital
market conditions and debt financing, and the proposed consulting contract will procure services
that enable the Commission to fulfill the statutory requirement of PURA §39.39.651, which
states that "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 be January 1, 2022 to June 1,
2023, or when the transaction has been finalized.
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 Representativemeans 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
SECTION 3 STATEMENT OF WORK
The contractor will serve as a consultant for the PUCT to provide transparency into and
PUCT RFP 473-22-00001
Page 3 of 35
evaluation of the securitization financing process followed by ERCOT to ensure the PUCT has a
basis for allowing ERCOT to go forward with the securitized financing as proposed or 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 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 book-running senior manager.
If requested by the commission’s designated representative, attend a commission public
meeting and provide to the commission one or more oral briefings on the results of the
transaction.
Provide written report on the pricing process as directed by the commission or its
designated representative.
PUCT RFP 473-22-00001
Page 4 of 35
Deliverables
Throughout the contract, the contractor must provide an assessment of relevant market
conditions to the PUC’s Contract Administrator 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 1 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 directed by the contract
administrator.
By the final 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.
{The lower portion of this page is left intentionally blank. RFP continues on the next page.}
PUCT RFP 473-22-00001
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