AEP Texas Transition Funding II LLC Series A Transition Bonds

Issuing Entity and Capital Structure

AEP Texas Central Transition Funding II LLC is a special purpose bankruptcy-remote 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 II LLC, the Issuing Entity" in the accompanying prospectus.

In addition to the transition property, we will be capitalized with an upfront deposit 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.

We are responsible to the State of Texas and the Texas commission. Specifically, pursuant to the financing order of the Texas commission relating to the Bonds:

  • Our organizational documents and transaction documents prohibit us from engaging in any activities other than acquiring transition property, issuing transition bonds and performing other activities as specifically authorized by the financing order.
  • We must respond to representatives of the Texas commission throughout the process of offering the Bonds, with the financing order directing the Texas commission's financial advisor to advise the Texas commission of any proposal that does not comply in any material respect with the criteria established in the financing order.
  • All required true-up adjustments must be filed by the servicer on our behalf.

We have also agreed that certain reports will be submitted to the Texas commission by us or on our behalf.

Contact

1539 N. Carancahua Street
Suite 1700
Corpus Christi, Texas 78401
(361) 881-5399

SEC Filings

View SEC filings for AEP Texas Transition Funding II LLC.

Date Filing Description
7/2/2018 10-D July 2018 Form 10-D
3/23/2018 10-K 2017 Form 10-K
7/20/2017 10-D/A July 2017 Form 10-D/A
7/1/2017 10-D July 2017 Form 10-D
03/30/2017 10-K 2016 Form 10-K
1/04/2017 10-D January 2017 Form 10-D
7/1/2016 10-D July 2016 Form 10-D
3/28/2016 10-K 2015 Form 10-K
1/04/2016 10-D January 2016 Form 10-D
7/1/2015 10-D July 2015 Form 10-D
1/2/2015 10-D January 2015 Form 10-D
3/27/2015 10-K 2014 Form 10-K
6/26/2014 10-D July 2014 Form 10-D
3/28/2014 10-K 2013 Form 10-K
12/30/2013 10-D December 2013 Form 10-D
7/1/2013 10-D July 2013 Form 10-D
3/28/2012 10-K 2012 Form 10-K
12/30/2012 10-D December 2012 Form 10-D
7/5/2012 10-D June 2012 Form 10-D
3/30/2012 10-K 2011 Form 10-K
1/4/2012 10-D December 2011 Form 10-D
7/5/2011 10-D June 2011 Form 10-D
3/30/2011 10-K 2010 Form 10-K
1/3/2011 10-D December 2010 Form 10-D
7/7/2010 10-D June 2010 Form 10-D
3/25/2009 10-K 2009 Form 10-K
1/5/2010 10-D December 2009 Form 10-D
7/2/2009 10-D June 2009 Form 10-D
3/30/2009 10-K 2008 Form 10-K
12/30/2008 10-D December 2008 Form 10-D
6/30/2008 10-D June 2008 Form 10-D
3/28/2008 10-K 2007 Form 10-K
1/14/2008 10-D December 2007 Form 10-D-Amended
12/27/2007 10-D December 2007 Form 10-D
6/27/2007 10-D June 2007 Form 10-D
3/30/2007 10-K Annual Report
10/11/2006 8-K Current Report
10/04/2006 424B3 Issuer Free Writing Prospectus Filed Pursuant to Rule 424
10/04/2006 424B5 Prospectus Filed Pursuant to Rule 424
9/15/2006 FWP Term Sheet
9/5/2006 S-3/A Registration Statement
8/21/2006 S-3 Registration Statement

Servicer’s Certificates

Date Description
October 2018Monthly Servicer’s Certificate
September 2018Monthly Servicer’s Certificate
August 2018Monthly Servicer’s Certificate
July 2018Monthly Servicer’s Certificate
June 2018Monthly Servicer’s Certificate
July 2018 Semi-Annual Servicer’s Certificate
May 2018Monthly Servicer’s Certificate
April 2018Monthly Servicer’s Certificate
March 2018Monthly Servicer’s Certificate
February 2018Monthly Servicer’s Certificate
January 2018 Semi-Annual Servicer’s Certificate
January 2018Monthly Servicer’s Certificate
December 2017Monthly Servicer’s Certificate
November 2017Monthly Servicer’s Certificate
October 2017Monthly Servicer’s Certificate
September 2017Monthly Servicer’s Certificate
August 2017Monthly Servicer’s Certificate
July 2017Monthly Servicer’s Certificate
June 2017Monthly Servicer’s Certificate
July 2017 Semi-Annual Servicer’s Certificate
May 2017Monthly Servicer’s Certificate
April 2017Monthly Servicer’s Certificate
March 2017Monthly Servicer’s Certificate
February 2017Monthly Servicer’s Certificate
January 2017Monthly Servicer’s Certificate
December 2016Monthly Servicer’s Certificate
November 2016Monthly Servicer’s Certificate
January 2017 Semi-Annual Servicer’s Certificate
October 2016Monthly Servicer’s Certificate
September 2016Monthly Servicer’s Certificate
August 2016Monthly Servicer’s Certificate
July 2016Monthly Servicer’s Certificate
June 2016Monthly Servicer’s Certificate
July 2016 Semi-Annual Servicer’s Certificate
May 2016Monthly Servicer’s Certificate
April 2016Monthly Servicer’s Certificate
March 2016Monthly Servicer’s Certificate
February 2016Monthly Servicer’s Certificate
January 2016Monthly Servicer’s Certificate
December 2015Monthly Servicer’s Certificate
January 2016 Semi-Annual Servicer’s Certificate
November 2015Monthly Servicer’s Certificate
October 2015Monthly Servicer’s Certificate
September 2015Monthly Servicer’s Certificate
August 2015Monthly Servicer’s Certificate
July 2015Monthly Servicer’s Certificate
July 2015 Semi-Annual Servicer’s Certificate
June 2015Monthly Servicer’s Certificate
May 2015Monthly Servicer’s Certificate
April 2015Monthly Servicer’s Certificate
March 2015Monthly Servicer’s Certificate
February 2015Monthly Servicer’s Certificate
January 2015Monthly Servicer’s Certificate
January 2015 Semi-Annual Servicer’s Certificate
December 2014Monthly Servicer’s Certificate
November 2014Monthly Servicer’s Certificate
October 2014Monthly Servicer’s Certificate
September 2014Monthly Servicer’s Certificate
August 2014Monthly Servicer’s Certificate
July 2014Monthly Servicer’s Certificate
June 2014Monthly Servicer’s Certificate
July 2014 Semi-Annual Servicer’s Certificate
May 2014Monthly Servicer’s Certificate
April 2014Monthly Servicer’s Certificate
March 2014Monthly Servicer’s Certificate
February 2014Monthly Servicer’s Certificate
January 2014Monthly Servicer’s Certificate
January 2014 Semi-Annual Servicer’s Certificate
December 2013Monthly Servicer’s Certificate
November 2013Monthly Servicer’s Certificate
October 2013Monthly Servicer’s Certificate
September 2013Monthly Servicer’s Certificate
August 2013Monthly Servicer’s Certificate
July 2013Monthly Servicer’s Certificate
July 2013 Semi-Annual Servicer’s Certificate
June 2013Monthly Servicer’s Certificate
May 2013Monthly Servicer’s Certificate
April 2013Monthly Servicer’s Certificate
March 2013Monthly Servicer’s Certificate
February 2013Monthly Servicer’s Certificate
January 2013Monthly Servicer’s Certificate
January 2013 Semi-Annual Servicer’s Certificate
December 2012Monthly Servicer’s Certificate
November 2012Monthly Servicer’s Certificate
October 2012Monthly Servicer’s Certificate
September 2012Monthly Servicer’s Certificate
August 2012Monthly Servicer’s Certificate
July 2012 Semi-Annual Servicer’s Certificate
July 2012Monthly Servicer’s Certificate
June 2012Monthly Servicer’s Certificate
May 2012Monthly Servicer’s Certificate
April 2012Monthly Servicer’s Certificate
March 2012Monthly Servicer’s Certificate
February 2012Monthly Servicer’s Certificate
January 2012Monthly Servicer’s Certificate
January 2012 Semi-Annual Servicer’s Certificate
December 2011Monthly Servicer’s Certificate
November 2011Monthly Servicer’s Certificate
October 2011Monthly Servicer’s Certificate
September 2011Monthly Servicer’s Certificate
August 2011Monthly Servicer’s Certificate
July 2011 Semi-Annual Servicer’s Certificate
July 2011Monthly Servicer’s Certificate
June 2011Monthly Servicer’s Certificate
May 2011Monthly Servicer’s Certificate
April 2011Monthly Servicer’s Certificate
March 2011Monthly Servicer’s Certificate
February 2011Monthly Servicer’s Certificate
January 2011Monthly Servicer’s Certificate
January 2011 Semi-Annual Servicer’s Certificate
December 2010Monthly Servicer’s Certificate
November 2010Monthly Servicer’s Certificate
October 2010Monthly Servicer’s Certificate
September 2010Monthly Servicer’s Certificate
August 2010Monthly Servicer’s Certificate
July 2010Monthly Servicer’s Certificate
July 2010 Semi-Annual Servicer’s Certificate
June 2010Monthly Servicer’s Certificate
May 2010Monthly Servicer’s Certificate
April 2010Monthly Servicer’s Certificate
March 2010Monthly Servicer’s Certificate
February 2010Monthly Servicer’s Certificate
January 2010Monthly Servicer’s Certificate
January 2010 Semi-Annual Servicer’s Certificate
December 2009Monthly Servicer’s Certificate
November 2009Monthly Servicer’s Certificate
October 2009Monthly Servicer’s Certificate
September 2009Monthly Servicer’s Certificate
August 2009Monthly Servicer’s Certificate
July 2009Monthly Servicer’s Certificate
July 2009 Semi-Annual Servicer’s Certificate
June 2009Monthly Servicer’s Certificate
May 2009Monthly Servicer’s Certificate
April 2009Monthly Servicer’s Certificate
March 2009Monthly Servicer’s Certificate
February 2009Monthly Servicer’s Certificate
January 2009Monthly Servicer’s Certificate
January 2009 Semi-Annual Servicer’s Certificate
December 2008Monthly Servicer’s Certificate
November 2008Monthly Servicer’s Certificate
October 2008Monthly Servicer’s Certificate
September 2008Monthly Servicer’s Certificate
August 2008Monthly Servicer’s Certificate
July 2008Monthly Servicer’s Certificate
July 2008 Semi-Annual Servicer’s Certificate
June 2008Monthly Servicer’s Certificate
May 2008Monthly Servicer’s Certificate
April 2008Monthly Servicer’s Certificate
March 2008Monthly Servicer’s Certificate
February 2008Monthly Servicer’s Certificate
January 2008Monthly Servicer’s Certificate
January 2008 Semi-Annual Servicer’s Certificate
December 2007Monthly Servicer’s Certificate
November 2007Monthly Servicer’s Certificate
October 2007Monthly Servicer’s Certificate
September 2007Monthly Servicer’s Certificate
August 2007Monthly Servicer’s Certificate
July 2007Monthly Servicer’s Certificate
June 2007Semi-Annual Servicer’s Certificate
June 2007Monthly Servicer’s Certificate
May 2007Monthly Servicer’s Certificate
April 2007Monthly Servicer’s Certificate
March 2007Monthly Servicer’s Certificate
February 2007Monthly Servicer’s Certificate
January 2007Monthly Servicer’s Certificate
December 2006Monthly Servicer’s Certificate
November 2006Monthly Servicer’s Certificate
October 2006Monthly Servicer’s Certificate

Senior Secured Series A Transition Bonds

$1,739,700,000
AEP Texas Central Transition Funding II LLC
Issuing Entity
Senior Secured Transition Bonds, Series A

Tranche Expected Average Life (Years) Principal Amount Issued Scheduled Final Payment Date Final Maturity Date Interest Rate Price to Public Underwriting Discounts and Commissions Proceeds to the Issuing Entity
A-1 2.0 $217,000,000 1/1/2010 1/1/2012 4.98% 99.99585% 0.3250% $216,285,745
A-2 5.0 $341,000,000 7/1/2013 7/1/2015 4.98% 99.94158% 0.3600% $339,573,188
A-3 7.58 $250,000,000 7/1/2015 7/1/2017 5.09% 99.95516% 0.3850% $248,925,400
A-4 10.00 $437,000,000 1/1/2018 1/1/2020 5.17% 99.94852% 0.4200% $434,939,632
A-5 12.68 $494,700,000 7/1/2020 7/1/2021 5.3063% 99.99937% 0.3357% $493,036,175

The total price to the public is $1,739,151,598. The total amount of the underwriting discounts and commissions is $6,391,458. The total amount of proceeds to the Issuing Entity before deduction of expenses (estimated to be $5,178,138) is $1,732,760,141.

Investing in the Senior Secured Transition Bonds, Series A involves risks. Please read "Risk Factors" on page 13 of the accompanying prospectus(PDF).

AEP Texas Central Transition Funding II LLC is issuing $1,739,700,000 of Senior Secured Transition Bonds, Series A, referred to herein as the Bonds, in five tranches. AEP Texas Central Company is the seller, initial servicer and sponsor with regard to the Bonds. The Bonds are senior secured obligations of the Issuing Entity supported by transition property which includes the right to a special, irrevocable non-bypassable charge, known as a transition charge, paid by all retail electric customers in the service territory of the sponsor based on their consumption of electricity as discussed herein. The Public Utility Commission of Texas requires and guarantees that transition charges be adjusted annually, and semi-annually as necessary, to ensure the expected recovery of amounts sufficient to timely provide all scheduled payments of principal and interest on the Bonds, as described further in this prospectus supplement and the accompanying prospectus. Through this adjustment mechanism, all retail customers cross share in the liabilities of all other retail electric customers for the payment of transition charges.

A special statute, the Texas Electric Utility Restructuring Act, enacted in June 1999 authorizes the Public Utility Commission of Texas to issue irrevocable financing orders supporting the issuance of transition bonds. One of the purposes of this act was to lower the cost to consumers of the transition to a competitive retail electricity market in Texas. The Public Utility Commission of Texas issued an irrevocable financing order to the sponsor on June 21, 2006. Pursuant to the financing order, the sponsor established the Issuing Entity as a bankruptcy remote special purpose subsidiary company to issue the Bonds. In the financing order, the Public Utility Commission of Texas authorized a transition charge to be imposed on all retail customers, which includes all individuals, corporations, other business entities, the State of Texas and other federal, state and local governmental entities who purchase electricity in the sponsor's service territory to pay principal and interest on the Bonds and other administrative expenses of the offering. AEP Texas Central Company, as servicer, will collect transition charges on behalf of the Issuing Entity and remit the transition charges daily to a trustee. Please read "The Bonds—The Transition Property" in this prospectus supplement.

The Public Utility Commission of Texas guarantees that it will take specific actions pursuant to its irrevocable financing order as expressly authorized by the Texas Electric Utility Restructuring Act to ensure that transition charge revenues are sufficient to pay on a timely basis scheduled principal and interest on the Bonds. The Public Utility Commission of Texas' obligations relating to the Bonds, including the specific actions that it has guaranteed to take, are direct, explicit, irrevocable and unconditional upon issuance of the Bonds, and are legally enforceable against the Public Utility Commission of Texas, which is a United States public sector entity.

The Bonds represent obligations only of the Issuing Entity and do not represent obligations of the sponsor or any of its affiliates other than the Issuing Entity. Please read "The Bonds—The Transition Property", "—The Collateral" and "Credit Enhancement" in this prospectus supplement. The Bonds are not a debt or general obligation of the State of Texas, the Public Utility Commission of Texas or any other governmental agency or instrumentality and are not a charge on the full faith and credit or the taxing power of the State of Texas or any governmental agency or instrumentality. However, the State of Texas and other federal, state and local governmental entities, as retail electric customers, will be obligated to pay transition charges securing the Bonds. Only in their capacity as retail electric customers will the State of Texas or any political subdivision, agency, authority or instrumentality of the State of Texas, or any other entity, be obligated to provide funds for the payment of the Bonds.

All matters relating to the structuring and pricing of the Bonds have been considered jointly by AEP Texas Central Company and the Public Utility Commission of Texas, acting through its financial advisor. The financial advisor to the Public Utility Commission of Texas is Saber Partners, LLC.

Additional information is contained in the accompanying prospectus. You should read this prospectus supplement and the accompanying prospectus carefully before you decide to invest in the Bonds. This prospectus supplement may not be used to offer or sell the Bonds unless accompanied by the prospectus. Please review the prospectus and prospectus supplement (PDF)

Ratings Assigned

Ratings assigned to the AEP Texas Transition Funding II LLC Series A Transition Bonds and to the debt issued by the Servicer

Issuer:AEP Texas Central Transition Funding II LLC
Instrument: Transition Bonds
Moody’s Rating: Aaa
S&P Rating: AAA
Fitch Rating: AAA

Servicer:AEP Texas Central Company
Instrument: Senior Unsecured Debt
Moody’s Rating: Baa2
Moody’s Outlook: Stable
S&P Rating: BBB
S&P Outlook: Stable
Fitch Rating: A-
Fitch Outlook: Stable

True-Up Filings