ERCOT Reports It Mis-Allocated ESI IDs In Recent POLR Drops, Contrary To PUC Rule
September 7, 2022
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ERCOT filed a notice with the Texas PUC stating that it violated PUC Subst. R. § 25.43 by not correctly allocating ESI IDs to VREPs [voluntary POLRs] during two mass transitions in 2022.
In a 2021 order, the PUC altered how ERCOT is required to assign Electric Service Identifier (ESI) IDs to voluntary retail electric providers (VREPs) during a mass transition of customers.
Under the prior version of the rule, ERCOT was required to assign VREPs in proportion to the number of ESI IDs that each VREP indicated it was willing to serve. ERCOT noted that, because the Commission determined that this could result in a VREP indicating it was willing to serve a very large number of customers who were being shifted as a result of a mass transition, which would discriminatorily dilute the proportion assignable to other VREPs, the Commission's 2021 Order changed the rule to require ERCOT allocate customers equally between VREPs, up to the VREP' s self-indicated maximum.
ERCOT reported that it inadvertently failed to incorporate this change into its automation tool that assigns ESI IDs during mass transitions. Therefore, during the mass transition of V247 Power Corporation's 24,798 customers in May of 2022, and the mass transition of LPT LLC's 1,117 customers in July of 2022, ERCOT used the former methodology for allocating ESI IDs to VREPs.
This resulted in VREPs either receiving greater or fewer ESI IDs than they should have received under the new methodology required by the amended rule. Details on the deviations between ESI IDs allocated per VREP, and what the proper allocation should have been, were filed under confidential seal
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"After discovery of this issue, ERCOT instituted a manual method for allocating VREPs as required by the amended rule. ERCOT has utilized this manual allocation method before, and it will ensure ESI IDs are allocated in accordance with the amended rule. A longer-term system change that will address this issue in an automated manner will be implemented in conjunction with Texas SET 5.0 (NPRR1095). ERCOT has also changed its internal processes to ensure proper implementation of new or amended rules. ERCOT notes that under § 25.43(m), there is a maximum rate for POLR service that may be charged by each VREP, although VREPs may elect to charge less than the maximum rate established under § 25.43(m). ERCOT has no visibility into the impact on rates for those customers who were allocated to an incorrect VREP, but because of the POLR rate cap built into the Commission's rules, the transitioned customers should have been charged at or below the allowed maximum rate for each VREP," ERCOT said
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