Transition Deposit Charge Agreements

As described in Chapter 6, Sections 6.1.1.7 and 6.1.1.12 of our filed and approved Tariff for Retail Delivery Service, AEP Texas Central Company (TCC) d/b/a American Electric Power Company requires that each Retail Electric Provider (REP) serving customers in this service territory collect transition charges (TC) from their retail customers on TCC’s behalf. Within the tariff there is also a requirement for the REP to meet a minimum credit rating, or to provide a financial instrument (cash deposit, affiliate guarantee, surety bond, letter of credit or combination thereof) from an entity who also must meet the minimum credit rating.

REPs must download and use the agreement forms shown below when submitting an affiliate guarantee, surety bond, or letter of credit for Transition Charge Deposits. Two separate Transition Funds are administered by separate third party Indenture Trustees as noted below. The financial instruments are to be submitted directly to the respective third party Indenture Trustee and not to AEP Texas. Please contact Jacinta Albrecht, Competitive Retailer Relations at 361-881-5422 or jralbrecht56@aep.com for wire instructions if you wish to submit a cash deposit, or for other questions regarding the information on this page.

Transition Fund I (TC-1)
TC-1 Affiliate Guarantee Form (DOC : 58 KB : get viewer)
TC-1 Letter of Credit Form (DOC : 62 KB : get viewer)
TC-1 Surety Bond Form (DOC : 86 KB : get viewer)

Transition Fund II (TC-2)
TC-2 Affiliate Guarantee Form (DOC : 61 KB : get viewer)
TC-2 Letter of Credit Form (DOC : 68 KB : get viewer)
TC-2 Surety Bond Form (DOC : 86 KB : get viewer)