Texas PUC Extends Deadline To File Invoice, Settlement Disputes At ERCOT

March 11, 2021

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Reporting by Paul Ring • ring@energychoicematters.com

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The Texas PUC adopted an order which directs ERCOT to extend certain deadlines in, and grants an exception to, relevant sections of the ERCOT Nodal Protocols to grant more time for market participants to file a dispute of invoice and settlement statements

A final written order was not immediately available, but the PUC adopted a draft order which was before it for consideration without substantive changes.

The language of the PUC's order does not grant any relief with respect to the obligation to pay such ERCOT invoices while being disputed; generally, such invoices must be paid immediately even if a dispute is initiated.

Paragraph two of ERCOT Nodal Protocol section 9.14.2 states that an, "Invoice Recipient may dispute elements of an Invoice that are not the result of a Settlement Statement that are contained on the Invoice. The Invoice Recipient must file the Invoice dispute within ten Business Days of the date on which ERCOT posted the Invoice." In addition, paragraph six of ERCOT Nodal Protocol section 9.14.2 states that a, "Settlement Statement Recipient is deemed to have validated each DAM Settlement or Resettlement Statement unless it has raised a Settlement and billing dispute or reported an exception within ten Business Days of the date on which ERCOT issued the Settlement or Resettlement Statement.".

The language of the draft order which was adopted by the PUC states, "The disruptions that have occurred and are occurring in the ERCOT market require that market participants have more time than ten business days to dispute an invoice or a day-ahead-market (DAM) settlement statement or resettlement statement."

The language of the draft order which was adopted by the PUC states, "These disruptions are good cause to grant an exception to the 10-day deadlines identified above in section 9.14.2."

The language of the draft order which was adopted by the PUC states, "To allow market participants adequate time in light of current market conditions to review invoices and settlement statements or resettlement statements, market participants should be allowed six months in which to file a dispute."

The language of the draft order which was adopted by the PUC states, "It is appropriate that the extension granted by this Order apply to those invoices or settlement statements or resettlement statements related to ERCOT operating days February 14 through 19,2021, which are the days most impacted."

Under the language of the draft order which was adopted by the PUC, "The Commission grants exception to the 10-business-day deadline in paragraphs two and six of ERCOT Nodal Protocol Section 9.14.2 invoices related to ERCOT operating days February 14 through 19, 2021."

Under the language of the draft order which was adopted by the PUC, "ERCOT shall extend the 10-business-day deadline in paragraphs two and six of ERCOT Nodal Protocol section 9.14.2 to six months after ERCOT posts the invoice, settlement statement, or resettlement statement to file a dispute or exception to an invoice, settlement statement, or resettlement statement related to ERCOT operating days February 14 - 19, 2021."

All other provisions of the ERCOT Nodal Protocols are unaffected by the order

Separately, the PUC also clarified its prior order directing the clawback of payments for ancillary services (AS) that were not provided during the winter weather event

Specifically, per the language of a draft order adopted by the PUC without substantive change, the PUC ordered that such claw back shall be accomplished by the following: "ERCOT must settle each qualified scheduling entity that failed on its ancillary service supply responsibility in accordance with ERCOT Nodal Protocol section 6.4.9.1.3, entitled Replacement of Ancillary Service Due to Failure to Provide, for a particular ancillary service for any hour of ERCOT's operating days February 14,2021 through February 19, 2021."

The IMM had requested such a clarification

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