ERCOT Allowing Counter-Parties To Pay For Invoice Payments For IDR Meters Based On Known Usage, Rather Than Estimated Usage Used In Invoice, But There's A Catch

ERCOT Reports Further Short-Payment Of Invoices, Nearly $30 Million

February 24, 2021

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ERCOT issued a market notice concerning IDR Meter Settlements as follows.

"Due to the delay obtaining accurate readings for certain IDR meters, there may be an incorrect estimation of Load in ERCOT’s invoice system, which can lead to erroneous initial charges. At this time, Counter-Parties may submit invoice payments in accordance with known usage of IDR meters for which accurate readings have not been obtained, while understanding that the resulting short-pay will lock the Counter-Party out of the Day-Ahead Market (DAM). In order to not be locked out of the DAM, payment of the full invoice is required. Any QSE/Counter-Party with Load on an IDR meter that wants to take advantage of this opportunity should notify its ERCOT Account Manager. ERCOT will employ resettlement as soon as possible with updated readings for IDR meters," ERCOT said in the notice

"ERCOT is taking these measures in accordance with the authority granted to it by Commission order on February 21, 2021, in Project No. 51812," ERCOT said in the notice

Separately, ERCOT issued a market notice of several additional short payments of invoices by market participants. ERCOT did not identify the market participants which short paid their invoices.

In the notice, ERCOT stated, "Qualified Scheduling Entities (QSEs) and Congestion Revenue Right Account Holders (CRRAHs) that are owed monies from ERCOT on Settlement Invoices due for payout on February 23 and 24, 2021, will notice that the amount of funds transferred is short of the balance payable on the Settlement Invoices."

"Please note that Settlement Invoices originally scheduled for payout on February 23, 2021, will be paid on February 24, 2021. This Notice is intended to advise Market Participants that ERCOT will follow the short payment procedure in accordance with Protocol Section 9.19, Partial Payments by Invoice Recipients," ERCOT said in the notice

"The short payment procedure is being followed because some Market Participants failed to make full payments for Settlement Invoices that were due on February 23, 2021. ERCOT has initiated the process of drawing from available Financial Security provided by these short-paying Market Participants," ERCOT said in the notice

"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 said in the notice

In the notice, ERCOT further provided the information below

Payout Date in Invoice: February 23, 2021

Invoice Payout Date: February 24, 2021

Operating Dates: DAM 02/16/2021; RTM Initial 02/13/2021; RTM Final 12/25/2020; RTM Trueup 08/22/2020

Total Amount Short to Market: $11,752,978.62

Total Amount Paid Out to Market: $1,626,011,621.56

Invoice Payout Date: February 24, 2021

Operating Dates: DAM 02/17/2021; RTM Initial 02/14/2021; RTM Final 12/26/2020; RTM Trueup 08/23/2020

Total Amount Short to Market: $16,601,147.28

Total Amount Paid Out to Market: $2,150,514,457.93

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