Texas Power Marketer To Disgorge Nearly $83,000 Under Settlement With PUC Staff -- EnergyChoiceMatters.com

Texas Power Marketer To Disgorge Nearly $83,000 Under Settlement With PUC Staff

April 26, 2024

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Copyright 2010-24 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Mercuria Energy America, LLC would disgorge $82,994.52 under a settlement with Staff of the Texas PUC to resolve alleged violations of 16 Texas Administrative Code (TAC) § 25.503(e)(2), and Electric Reliability Council of Texas, Inc. (ERCOT) Nodal Protocol § 4.4.4(17), relating to uneconomic DC tie export transactions

Under 16 TAC § 25.503(e)(2), a market participant is expected to schedule, bid, and operate its resources in a manner consistent with ERCOT procedures to support the efficient and reliable operation of the ERCOT electric system.

ERCOT Nodal Protocols § 4.4.4(17) prohibits market participants from engaging in Direct Current (DC) tie export transactions that are reasonably expected to be uneconomic in consideration of all costs and revenues associated with the transaction, excluding Congestion Revenue Right (CRR) Auction Revenue Distribution (CARD) and CRR Balancing Account (CRRBA) allocations.

The settlement notes that, "Mercuria enters into DC tie transactions to arbitrage prices between ERCOT and non-ERCOT markets. Additionally, since DC tie exports are categorized as load, to the extent Mercuria has CRR positions outstanding during the period in which DC tie transactions are executed, Mercuria receives a pro-rata share of CARD and CRRBA revenues, which are allocated to load. ERCOT allocates CARD and CRRBA payments to QSEs based on that QSE’s load ratio share in the interval coincident with the ERCOT-wide peak 15-minute settlement interval for the month."

The settlement states, "Commission Staff asserts that Mercuria engaged in an uneconomic DC tie export transaction on January 31, 2023. Because of outstanding CRR positions that Mercuria had at the time of this transaction, Mercuria collected CARD revenue and CRRBA surpluses of approximating $82,994.52"

The settlement states, "Mercuria has implemented the following corrective measures to prevent non-compliance with 16 TAC §25.503(e)(2), from occurring, and will maintain such measures going forward: 1.) Mercuria’s Compliance Group reviewed applicable rules as part with relevant personnel.; 2.) Mercuria’s Compliance Group includes review of applicable rules as part of periodic training with relevant staff; 3.) Mercuria’s Compliance Group obtains written certifications from relevant personnel with respect to their participation in and understanding of Compliance training; 4.) Mercuria staff reviews Day Ahead schedules across the DC ties between ERCOT and other control areas/ISO’s for compliance with applicable rules."

The settlement states, "This agreement represents a compromise of claims and allegations, and the execution of this agreement does not constitute an admission on the part of Mercuria that it violated the TAC or ERCOT Protocols or an admission of the truth or accuracy of any allegations set forth herein."

Docket 56459

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