SIGECO Securitization I, LLC Annual Report - How They Did This Year

I’ve put together this guide to help you understand how SIGECO Securitization I, LLC performed this past year. My goal is to explain these financial filings in plain English so you can decide if this investment fits your goals.

1. What does this company do?

SIGECO Securitization I, LLC is not a typical business like Apple or Ford. It is a "special-purpose entity" created by Southern Indiana Gas and Electric Company (SIGECO), a subsidiary of CenterPoint Energy.

Think of it as a financial "silo." Its only job is to hold the right to collect specific fees from SIGECO’s electric customers. It uses this money to pay off the $350 million in bonds issued in 2023. Because it is a special-purpose vehicle, it has no employees, offices, or traditional business strategy. It exists only to manage this debt and ensure bondholders get paid.

2. Financial performance and health

Because this is a "bankruptcy-remote" vehicle, it does not report traditional profit or growth. Its health depends entirely on the assets backing the bonds.

The latest filings show the company is operating exactly as planned. As of December 31, 2025, the entity successfully collected and paid all scheduled principal and interest to bondholders. SIGECO handles the collection of these fees from customers. The entity keeps a $1.75 million "Capital Subaccount"—equal to 0.5% of the initial bond amount—to cover potential shortfalls. There were no draws on this reserve, no legal issues, and no changes to the debt structure this year.

3. Leadership and structure

Executives from CenterPoint Energy and SIGECO manage the company.

• Leadership: As of early 2026, Patricia L. Martin (Vice President and Treasurer) oversees the collection process and ensures the company follows its legal agreements.
• Independent Oversight: To protect you, the company uses an "Independent Manager," Kevin J. Corrigan. He is not an employee of the company or its parent. His job is to ensure the entity stays a separate, protected silo. This prevents the parent company from touching these assets if it ever faces bankruptcy.
• Costs: The company stays lean. Managers receive no salaries. All administrative costs, like audit fees, are paid from the fees collected from ratepayers. This keeps your bond payments protected.

4. Key risks and outlook

Since this is a securitization vehicle, your risk isn't about "bad management" or "poor sales." Instead, the risk is whether the revenue stream from SIGECO’s customers remains stable.

Key risks include:

• Regulatory Risk: The Indiana Utility Regulatory Commission (IURC) authorizes these fees. Any legal changes that stop these collections could impact bond payments.
• Consumption Risk: These fees are tied to electricity usage. A major drop in regional energy use could affect collection speed. However, the IURC requires annual "true-ups" to adjust charges and ensure full, timely payments.

The company is in full compliance with all rules. Its strategy remains simple: collect the designated funds and pay bondholders on schedule.

What should you take away?

You aren't betting on business growth; you are betting on the stability of a financial structure. The company is operating exactly as designed—as a quiet, regulated vehicle for debt repayment. The latest filings confirm the systems protecting your investment are working as intended. Before making a final decision, consider whether the stability of regulated utility-backed debt aligns with your personal risk tolerance and income needs.