Bond Company Description

Securities Offered

$800,000,000 Senior Secured Transition Bonds, scheduled to pay principal semiannually and sequentially in accordance with the expected sinking fund schedule.

Issuing Entity and Capital Structure

AEP Texas Central Transition Funding III LLC is a special purpose Delaware limited liability company. AEP Texas Central Company is our sole member and owns all of our equity interests. We have no commercial operations. We were formed solely to purchase and own transition property, to issue transition bonds and to perform activities incidental thereto. Please read “AEP Texas Central Transition Funding III LLC, the Issuing Entity” in the accompanying prospectus.

We will be capitalized with an upfront cash deposit by TCC of 0.5% of the bonds’ principal amount issued (to be held in the capital subaccount) and will have an excess funds subaccount to retain, until the next payment date, any amounts collected and remaining after all payments on the bonds have been made.

Our Relationship With The PUCT

Pursuant to the financing order,

  • the PUCT or its designated representative has a decision-making role co-equal with TCC with respect to the structuring, marketing and pricing of the transition bonds and all matters related to the structuring, marketing and pricing of the transition bonds will be determined through a joint decision of TCC and the PUCT or its designated representative,
  • TCC is directed to take all necessary steps to ensure that the PUCT or its designated representative is provided sufficient and timely information to allow the PUCT or its designated representative to fully participate in, and exercise its decision-making power over, the proposed securitization, and
  • The servicer will file periodic adjustments to transition charges with the PUCT on our behalf.

We have agreed that certain reports concerning transition charge collections will be provided to the PUCT.

Purpose Of Transaction

This issuance of Senior Secured Transition Bonds will enable TCC to recover certain costs related to its transition-to-competition in the State of Texas. Please read “The Restructuring Act” in the prospectus.

Our Address

539 N. Carancahua Street
Suite 1700
Corpus Christi, Texas 78401

Our Telephone Number

(361) 881-5399