--- title: "Settlement: what it means · The AI Compute Race · DRYBURGH" source: https://dryburgh.com/vol1/glossary/settlement description: "Settlement: The day bonds are paid for and delivered. Chapter 10." --- # Settlement What does “Settlement” mean? SettlementThe day bonds are paid for and delivered. *Chapter 10.* From *The AI Compute Race*. [Read the book](https://dryburgh.com/vol1#buy) ## Where the book uses it - [Chapter 10 — The Lender’s Decision](https://dryburgh.com/vol1/notes/chapter-10)Who is lending the money and who bears the loss: the bonds, leases and guarantees behind the largest campuses, and how the paper reaches ordinary retirement accounts. ## Sources that use it - Bank for International Settlements, *Quarterly Review*, March 2026 (special-purpose vehicles in AI infrastructure as “shadow borrowing”; the box of 16 March 2026 on the vehicles’ obligations, “economically akin to debt but largely reside outside corporate balance sheets”, the debt “held by private credit funds and other institutional investors”, and “Banks support the vehicles with funding lines, potentially creating new shock transmission channels – eg via refinancing pressures at the vehicle level, procyclical shifts in private credit appetite or the activation of guarantees.”; the views “those of the authors and not necessarily those of the BIS or its member central banks”). [In the Sources](https://dryburgh.com/vol1/sources/filing#bis-shadow) - Iñaki Aldasoro, Sebastian Doerr and Daniel Rees, “Financing the AI boom: from cash flows to debt,” BIS Bulletin No. 120, Bank for International Settlements, 7 January 2026 (AI, big-data and cloud-technology loans more than $200 billion, almost 8 percent of outstanding private credit; about 20 percent of private-credit funds invested in the category; more than $40 billion of such originations in 2025, about 4 percent of direct loans, its first page giving the date). [In the Sources](https://dryburgh.com/vol1/sources/filing#bis-bulletin-120) - Indiana Utility Regulatory Commission, final order in Cause No. 46097, Indiana Michigan Power Company’s petition to modify its Industrial Power Tariff, approved 19 February 2025 (a settlement every party signed: on 22 November 2024 I&M filed the Stipulation and Settlement Agreement “on behalf of itself, the OUCC, and all intervenors” — the Citizens Action Coalition, Amazon Data Services, the Data Center Coalition, Google and Microsoft — as unopposed; Settlement Agreement Attachment A fixes the monthly billing demand for a Large Load Customer at “in no event less than the greater of (a) 80 percent of the Large Load Customer’s contract capacity specified for the applicable time period of the Contract Term; or (b) 80 percent of the Large Load Customer’s highest previously established Monthly Billing Demand during the past 11 months”; I&M had proposed a 90 percent minimum and a 150 MW threshold, “the DCC proposed 70% on production demand; 60% for the OSS/PJM Rider, and Amazon and Google proposed 60%”, and the OUCC and CAC backed the utility’s figure; the order also directs semi-annual Large Load Customer reports, the first within six months, and holds their contents confidential as trade secret). [In the Sources](https://dryburgh.com/vol1/sources/filing#iurc-46097-feb25) - Louisiana Public Service Commission, Order in Docket U-37425, 29 August 2025 (the application date and the settlement; the Minimum Monthly Charges and their true-up; the Parent Guaranty; the Early Termination Fee; the plants as “system resources for all ELL customers”; prudence review reserved; the ESA not approved; confidentiality; Exhibit A fn. 8: the Sarepta-to-Mount-Olive Transmission Facilities “consist of a new sixty-mile Mount Olive to Sarepta 500 kV transmission line”; fn. 7: the Point of Delivery Transmission Facilities are “the Car Gas Road to Smalling Substation 500 kV Lines 2 and 3, consisting of two thirty-mile 500 kV transmission lines” — the order states no mileage total; ELL “did not seek approval of the ESA and Related Agreements”, and nothing in the certification “should be construed as approval”; Exhibit A, the Final Stipulated Settlement, condition D.2: “ELL will provide to Commission Staff and its delegates annual reporting of Customer usage, demand and billing. All such information shall remain confidential and shall not be made available to any other party”; Exhibit A, p. 6, fn. 4: “Customer Substations 1-6 are 6 Customer funded substations to be built on its property”, three Customer-Paid Substations projects in all with the Smalling and Car Gas Road substations; Exhibit A, III.A, p. 13: the contributions under the CIAC Agreement “offset the full amount of transmission capital additions” for them, “such that the costs for which contributions have been received will not appear in the respective Account 101 Plant in Service balance and not be collected from other customers”; p. 5: Attachment 3 to the settlement, “the Highly Sensitive Protected Materials/Attorney’s Eyes Only” Deferral Proposal Framework, with its illustrative schedule as Attachment 3.1, both “INTENTIONALLY OMITTED” from the public version; Exhibit A, IV.C: on early termination, “following receipt of the Early Termination Fee, ELL will make a filing with the Commission for approval of the manner in which ELL proposes to utilize the Early Termination Fee”). [In the Sources](https://dryburgh.com/vol1/sources/filing#lpsc-order-u37425) - Meta Platforms, Inc., free writing prospectus, pricing term sheet, 30 October 2025 (six series of senior notes, $30.0 billion in all, from 4.200% notes due 2030 to 5.750% notes due 2065; “Trade Date: October 30, 2025” and “Settlement Date (T+2):* November 3, 2025”; the term sheet read whole in a capture of 30 September 2026). [In the Sources](https://dryburgh.com/vol1/sources/filing#meta-fwp-oct25) And 5 more: [search the Sources](https://dryburgh.com/vol1/sources). ## Related terms - [10-K, 10-Q](https://dryburgh.com/vol1/glossary/10-k-10-q) - [Backstop](https://dryburgh.com/vol1/glossary/backstop) - [Basis point](https://dryburgh.com/vol1/glossary/basis-point) - [Beignet](https://dryburgh.com/vol1/glossary/beignet) - [Bridge loan](https://dryburgh.com/vol1/glossary/bridge-loan) - [Convertible](https://dryburgh.com/vol1/glossary/convertible) - [Coupon](https://dryburgh.com/vol1/glossary/coupon) - [Covenant](https://dryburgh.com/vol1/glossary/covenant) - [DDTL](https://dryburgh.com/vol1/glossary/ddtl) - [Debt-service coverage](https://dryburgh.com/vol1/glossary/debt-service-coverage) - [ETF](https://dryburgh.com/vol1/glossary/etf) - [Failed sale-leaseback](https://dryburgh.com/vol1/glossary/failed-sale-leaseback) From the glossary of The AI Compute Race. - [Campuses](https://dryburgh.com/vol1/ledger) - [Tests](https://dryburgh.com/vol1/tests) - [Scorecard](https://dryburgh.com/vol1/scorecard) - [Data](https://dryburgh.com/vol1/data/releases) - [Chapter by chapter](https://dryburgh.com/vol1/companion) - [The record at a glance](https://dryburgh.com/vol1/observatory) - [The machine](https://dryburgh.com/vol1/machine) - [One campus, four futures](https://dryburgh.com/vol1/hyperion) - [Glossary](https://dryburgh.com/vol1/glossary) - [People](https://dryburgh.com/vol1/people) - [Sources](https://dryburgh.com/vol1/sources) - [Notes](https://dryburgh.com/vol1/notes) - [Where the book was wrong](https://dryburgh.com/vol1/corrections) - [Where its sources were wrong](https://dryburgh.com/corrections?book=vol1) - [The Paper](https://dryburgh.com/vol1/paper) - [Consent](https://dryburgh.com/vol1/consent) - [Who builds and pays](https://dryburgh.com/vol1/parties) *The AI Compute Race: Five Races, One Machine* is a book by Lee S. Dryburgh, the first volume of THE COMPUTE ECONOMY, published by Dryburgh, an imprint of Contestra OÜ, Tallinn, Estonia; its record closes on 8 November 2026. [About the book](https://dryburgh.com/vol1)[Tell me when it is out](https://dryburgh.com/vol1#notify)