Texas § UT.39.601 - PURPOSE
Full text of Texas The Texas Constitution § UT.39.601 — PURPOSE, with citation guidance and answers to common questions.
§ UT.39.601. PURPOSE
PURPOSE. (a) The purpose of this subchapter is to address the Winter Storm Uri default balance, as defined by Section 39.602 , in a manner that benefits the public interest by: (1) enabling the independent organization to finance the payment of the default balance with debt obligations; and (2) authorizing the commission to contract with the comptroller under Section 404.0241 , Government Code, to finance the payment of the default balance with debt obligations. (b) Financing the default balance in the manner provided by this subchapter will: (1) allow wholesale market participants that are owed money to be paid in a more timely manner; (2) replenish financial revenue auction receipts temporarily used by the independent organization to reduce the Winter Storm Uri-related amounts short-paid to the wholesale market participants; and (3) allow the wholesale market to repay the default balance over time. (c) The legislature finds that the financing authorized by this subchapter serves the public purpose of preserving the integrity of the electricity market in the ERCOT power region. (d) The proceeds of debt obligations issued under this subchapter must be used solely for the purpose of financing default balances that otherwise would be or have been uplifted to the wholesale market. (e) The commission shall ensure that the structuring and pricing of debt obligations issued under this subchapter result in the lowest financing costs consistent with market conditions and the terms of the commission's order. The present value calculation must use a discount rate equal to the proposed interest rate on the debt obligations. Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492 ), Sec. 5, eff. June 16, 2021.
Frequently Asked Questions About Texas § UT.39.601
What does The Texas Constitution § UT.39.601 cover?
Section UT.39.601 ("PURPOSE") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § UT.39.601?
A common citation format is "The Texas Constitution § UT.39.601" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § UT.39.601 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.