ERCOT Protocol Revision Filed to Shorten Settlement Timeline to Five Days

The ERCOT Commercial Operations Subcommittee and the Communications and Settlements Working Group have filed Nodal Protocol Revision Request (NPRR) 570 to reduce the real-time settlement timeline to five days after the operating day.

NPRR 570 proposes a phased approach to change the posting date for the Real-Time Market (RTM) Initial Settlement Statement from seven days after the Operating Day to five days after the Operating Day and changes the posting date of the Final Settlement Statement from the 57th day after the Operating Day to the 55th day after the Operating Day.

Urgent status was requested as the NPRR addresses concerns raised in regards to the impact of the increase to the high System-Wide Offer Cap (SWCAP).

An effective date of 1/1/14 is requested for the first phase to reduce the Settlement timeline to Operating Day plus six.

An effective date of 5/1/14 is requested for the second phase which further reduces the Settlement timeline to Operating Day plus five in order to allow time for the shortened Settlement timeline to be implemented and evaluated prior to the 6/1/14 increase to the SWCAP of $7,000.

Shortened Settlement timelines will reduce the credit risk by lowering collateral requirements and reducing default uplift risk, COPS said.

COPS continues to discuss aspects related to impacts, tradeoffs, benefits, and potential solutions for RTM Settlement on a faster timeline.