Update #2: Griddy Seeks Relief From ERCOT For Customers Exposed To Non-Market Pricing
Updated with statement from MQE
Updated with Statement from Griddy
ERCOT Reports Two Retail Providers Failed To Make Payment On A Settlement Invoice
February 19, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
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Update #2 6:20 p.m. ET, 2/19:
Griddy issued a further statement as follows:
Griddy Seeks Relief From ERCOT For Customers Exposed To Non-Market Pricing
"On Monday evening, the PUCT implemented a non-market pricing mechanism for
electricity mandating prices reaching as high as hundreds of times normal prices.
Griddy’s customers, which pay pass-through wholesale electricity prices, were
immediately negatively impacted by the non-market pricing and have incurred
bills that they will need more time to pay."
"On Tuesday, Griddy began engaging with ERCOT and the PUCT seeking customer
relief. Griddy is continuing these efforts and is committed to crediting customers
for any relief received, dollar-for-dollar.
"As soon as the PUCT reversed its Monday non-market pricing mechanism today,
many prior Griddy customers who had left to avoid the non-market prices quickly
requested to re-enroll and return to our platform. At the time this press release is
being issued, wholesale prices in ERCOT have become negative and our customers are currently being paid to be on our platform.
Griddy is working to win relief for its customers and continue offering innovative
products and services in the retail energy market in Texas."
--- Statement From Griddy
Updated with statement from MQE LLC, 3:48 pm ET, 2/19
MQE LLC said in a statement to EnergyChoiceMatters.com: "We paid."
Updated with statement from Griddy, 3:20 pm ET, 2/19
Griddy said in a statement to EnergyChoiceMatters.com that right now it is focusing all of its efforts on helping its customers -- in the near and long future.
While the discussion on Griddy's blog post is broader, it does note that the administrative wholesale price adder, that was meant to reflect shed load, continued after ERCOT had stopped shedding load -- an issue REPs are seeking to correct at the PUC, as noted in our related story today (click here)
Griddy noted in the Feb. 18 post that, "As of today (Thursday), 99% of homes have their power restored and available generation was well above the 1,000 MW cushion. Yet, the PUCT left the directive in place and continued to force prices to $9/kWh, approximately 300x higher than the normal wholesale price. For a home that uses 2,000 kWh per month, prices at $9/kWh work out to over $640 per day in energy charges. By comparison, that same household would typically pay $2 per day. "
Griddy said that it will have more information to share in a few hours
ERCOT said in a market notice today that the following Market Participants failed to make payment on a Settlement Invoice: GRIDDY ENERGY LLC 1 (QSE) and MQE LLC (QSE)
Both QSEs are (or serve) retail electric providers. MQE LLC is the corporate name of My Quest Energy
ERCOT has insufficient funds from the Market Participants to pay the amounts owed. ERCOT has initiated the process of drawing from available Financial Security provided by the Market Participants to pay Settlement Invoices as they become due.
ERCOT will follow the short payment procedure in accordance with Protocol Section 9.19, Partial Payments by Invoice Recipients.
Per Protocol Section 9.19, ERCOT will deduct any applicable ERCOT Administrative fees, payments for Reliability-Must-Run (RMR) services, and the CRR Balancing Account from the amount received, and then reduce payments to all Invoice recipients that are owed monies. The reductions will be made on a pro rata basis of monies owed to each ERCOT creditor for this Invoice to the extent necessary to clear ERCOT's accounts on the payment date to ensure revenue neutrality for ERCOT.
ERCOT provided the following info:
Total Amount Shortpay by Griddy Energy LLC: $1,184,604.79
Total Amount Shortpay by MQE LLC: $377,265.33
Total Amount Short to Market: $1,561,870.12
Total Amount Paid Out to Market: $1,029,028,387.32