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ERCOT, TDU Oppose Retail Provider's Sought Resettlement Due to Inaccurate Meter Data

September 19, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Public Utility Commission of Texas should deny a request for resettlement sought by Champion Energy Services due to ERCOT's reliance on inaccurate meter data from Texas-New Mexico Power, ERCOT and TNMP said in separate replies to a complaint.

As first reported by EnergyChoiceMatters.com, Champion said that it has paid excess charges for wholesale energy and ancillary services of approximately $564,000 due to the inaccurate settlement meter data from late 2012.

While acknowledging the meter data as incorrect, ERCOT said that Champion did not dispute the original settlement by the deadlines required under market rules. While Champion said that it could not have known of the meter data discrepancy prior to those deadlines, ERCOT said that finality demands that REPs engage in shadow settlement, and reliance on various market tools, to be cognizant of any apparent errors.

"Simply stated, Champion failed to take reasonable measures to review and shadow settle available data extracts concerning the ESI ID for the ODs [Operating Days] at issue, and consequently missed the variance and ADR [Alternative Dispute Resolution] deadlines for ensuring certainty and finality in Settlements," ERCOT said.

"Champion was not prevented from accessing usage data for the ESI ID on the ODs at issue, and had Champion availed itself of reviewing such data, Champion would have had adequate time to comply with ERCOT's DEV [Data Extract Variance] issue submission and ADR request deadlines," ERCOT said.

"Champion is certainly positioned to understand that checking Settlement and consumption data is part of the business of participating as a REP in the Texas market, to effectively utilize the various market tools for identifying overstated meter reads, and to bring such issues to established dispute resolution forums in a timely manner," ERCOT said.

Affording Champion its requested resettlement, "would adversely affect other Market Participants since the money to refund Champion would necessitate a Commission order to resettle the market," ERCOT said.

"All Market Participants deserve certainty, clarity, and finality in the Settlement process, and it is the responsibility of all REPs to have procedures in place to review available data associated with abnormally high consumption usage and shadow settle accordingly," ERCOT said.

"ERCOT Market Participants have long recognized that a quest for absolute perfection in Settlements would prevent ERCOT and Market Participants from ever closing the books on any OD. Market Participants, in drafting and adopting ERCOT Protocols and procedures, have chosen a means for determining a final number with respect to any Load data: reporting and validation by the TDSP. This is in addition a REP's responsibility for reviewing meter data for Settlement purposes (i.e., shadowing Settlements). In conjunction, these processes, along with the timelines set forth in ERCOT Protocols and procedures, provide for certainty and finality in Settlements. Certainty and finality of Settlement are core principles underlying the ERCOT market," ERCOT said.

TNMP also opposed resettlement, rejected any allegation that its actions violated its tariff, and requested that since the only relief sought by Champion against TNMP (which was the provision of corrected meter data) has already occurred, the complaint be dismissed with respect to TNMP.

Docket 42775

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