ERCOT Defers Consideration Of Several Proposals To Improve Payment Processes, Will Move Forward With One Proposal
March 25, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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ERCOT, which recently held a market payment processes workshop to discuss several proposed changes to improve payment processes, issued a market notice stating that it will defer all improvement proposals, except one
"[A]fter considering comments at the Workshop and further internal discussions, ERCOT will defer all improvement proposals, except one -- consolidating all cash held on deposit into one account -- until after summer 2020," ERCOT said. This proposal only impacts Counter-Parties (Qualified Scheduling Entities and Congestion Revenue Right (CRR) Account Holders).
With this proposal, ERCOT's Treasury expects to consolidate all cash held on deposit into one account with a target date of June 1, 2020. All funds held in a Counter-Party’s prepay account (flexible account) will be transferred into that Counter-Party’s collateral account or returned upon request.
Further, ERCOT will file a Nodal Protocol Revision Request (NPRR) to remove grey-box language from NPRR702, Flexible Accounts, Payment of Invoices, and Disposition of Interest on Cash Collateral. Additional information will be communicated to Counter-Parties that use the prepay account.
ERCOT said that benefits of the consolidation are:
• Eliminates confusion between prepay and collateral accounts
• Bears interest for Counter-Party
• Reduces potential errors
• Streamlines payment process
For this one proposal, ERCOT requests feedback by Friday, April 10, 2020. ERCOT will update stakeholders about the feedback at upcoming Technical Advisory Committee (TAC) meetings before implementing on June 1, 2020.
Among other proposals previously considered at the workshop were, for corporate membership and MP registration, using an online registration system, allowing the use of credit cards. Another proposal would send via email invoices for WAN and ERO, rather than posting such invoices to MIS
The improvement proposals previously considered also included changes relating to collateral calls and cash returns