CenterPoint Energy Transition Bond Company III, LLC (Transition Bond Company III), is a special purpose subsidiary of CenterPoint Energy Houston Electric, LLC (CenterPoint Energy Houston). Under the Texas electric restructuring law that was enacted in 1999, a special purpose subsidiary of a sponsoring utility (in this case, CenterPoint Energy Houston), may issue transition bonds to enable the utility to recover certain stranded costs and regulatory assets. A specific charge imposed on the distribution of electricity to customers supports principal and interest payments on these transition bonds, and is authorized by the Public Utility Commission of Texas (Texas Utility Commission) under a financing order that is now binding, irrevocable and non-appealable.