Request for proposals for consulting services regarding securitization for recovery of system restoration costs

The Public Utility Commission of Texas (PUCT) has issued a Request for Proposals (RFP) seeking expert consulting services for a specialized securitization financing project related to system restoration costs from recent natural disasters. Specifically, the RFP targets consulting support for evaluating CenterPoint Energy Houston Electric LLC's securitization financing stemming from Hurricane Beryl (July 2024), Hurricane Francine (September 2024), and Winter Storm Enzo (January 2025). The primary objectives include determining whether the proposed securitization will provide greater benefits to ratepayers compared to alternative approaches and ensuring adherence to proper procedural standards. Key required services encompass engaging in discussions with transaction participants, evaluating pricing structures, analyzing market conditions, attending pricing sessions, and producing comprehensive written reports on the pricing process. Proposers must demonstrate a minimum of ten years' experience in investment banking and working with investor-owned utilities in structuring, marketing, and pricing electric utility securities. The RFP's evaluation criteria will weight proposal substance and methodology at 40%, competence and knowledge at 40%, and proposed compensation at 20%. Proposals are due by August 26, 2025, at 10:00 AM Central Time, with an anticipated contract start date of September 8, 2025, for a two-year term.

The RFP includes a 26% Historically Underutilized Business (HUB) subcontracting goal, indicating a commitment to diverse vendor participation. Proposers must maintain neutrality and disclose any potential conflicts of interest with Texas utilities or securitization participants. The contract requires a firm fixed price proposal with detailed cost bases, and the PUCT will not reimburse out-of-pocket expenses unless specifically negotiated at contract execution. Liquidated damages provisions are included, with a penalty of $5,000 per week for late submission of required deliverables, specifically the post-pricing book. While specific budget ranges are not explicitly stated, the complexity of the project and the required expertise suggest a substantial professional services contract. The RFP emphasizes the need for proposers to have deep technical knowledge of utility finance, securitization processes, and the ability to provide objective, comprehensive analysis of complex financial transactions related to utility system restoration costs.