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Texas QSE To Pay $375,000 Under Settlement With PUC Staff
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The City of Garland d/b/a Garland Power and Light System would pay $375,000 under a settlement with Texas PUC Staff to resolve alleged violations of Electric Reliability Council of Texas, Inc. (ERCOT) Nodal Protocols §§ 8.1.1.3(3) and 8.1.1.4.3(3)(a), (b), governing various obligations related to the provision ancillary services (AS)
Garland during the relevant activities was a QSE
Under ERCOT Nodal Protocols § 8.1.1.3(3), relating to AS insufficiency, a QSE must, within ten minutes of receiving an insufficient capacity notification from ERCOT:
a. If due to a telemetry issue, correct the telemetered Ancillary Services Resource Responsibility to provide sufficient capacity; or
b. provide both appropriate justification for not satisfying its Ancillary Service Obligation and a plan to correct the shortfall that is acceptable with the ERCOT operator.
Staff alleges that Garland violated ERCOT Nodal Protocols § 8.1.1.3(3) on 15 days in the period between November 8, 2021, and February 24, 2022
Garland asserts that, prior to the period in question, the ERCOT Board of Directors had approved a change in Nodal Protocols § 8.1.1.3(3) on February 12, 2021, extending the time of compliance for the provision of AS from ten minutes to twenty-five minutes. The change went into effect in April 2024. Garland asserts that many of the alleged violations identified by Commission Staff would not have been violations under the Board-approved version of the Nodal Protocols.
Staff also alleges that Garland violated ERCOT Nodal Protocols § 8.1.1.4.3(3)(b), relating to control performance during periods in which ERCOT has deployed Non-Spin, on 10 times in the period between July 2022 and November 2022, by allegedly failing to provide the minimum net generation within 25 minutes as required by ERCOT Nodal Protocols related to the monthly performance metrics.
Garland alleges that for these alleged incidents, ERCOT failed to consistently follow Resource Desk Operating Procedure Manual Sections 3.1, which states that if a “discrepancy is identified between a COP and telemetered Resource Status” then the Resource Desk Operator would “call the QSE representing Resource to determine the correct resource status and have them make the necessary correction.” Garland alleges that ERCOT did not make that phone call in many of the incidents, thereby failing to follow communication standards from the grid operator that generation resource owners rely upon to prevent such incidents
Among Garland's corrective actions, the settlement states that Garland has implemented an Ancillary Service Capacity Monitor to process notifications
in near real time to avoid compliance failures.
The settlement states that Garland has implemented new training for all operators to work with the Ancillary Service
Capacity Monitor and in the appropriate resource status codes and telemetry timing
requirements.
The settlement's administrative penalty of $375,000 is an amount equal to excess revenues realized due to the alleged violations
Docket 59562
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March 27, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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