QSE Enters Settlement With Texas Staff Regarding Pricing of RUC-Committed Resources

NextEra Energy Power Marketing, LLC would pay $5,000 under a settlement with Staff of the Public Utility Commission of Texas to resolve its alleged failure to adhere to ERCOT Protocol § 6.4.3.1, relating to energy offer curves for RUC-committed resources.

Pursuant to ERCOT Protocol § 6.4.3.1, prior to the end of the Adjustment Period for an Operating Hour during which a Generation Resource has been committed by ERCOT as part of a Reliability Unit Commitment (RUC) process, the Qualified Scheduling Entity (QSE) shall ensure that an Energy Offer Curve (EOC) that prices all energy from LSL to HSL at the System-Wide Offer Cap (SWOC) for the Operating Hours in the RUC commitment period has been submitted and accepted by ERCOT.

On March 20, 2013, the Oversight & Enforcement Division of the Commission (O&E) issued a warning letter to NextEra for behavior occurring in 2012 in lieu of an administrative penalty at that time, after finding NextEra in non-compliance with ERCOT Protocol § 6.4.3.1, and therefore PURA § 39.151(j) and P.U.C. SUBST. R. 25.503(f)(2), as well.

The non-compliance by NextEra in 2012 related to NextEra's failure to have Energy Offer Curves (EOC) priced at the System Wide Offer Cap (SWOC) for the Operating Hours for which it received Reliability Unit Commitment (RUC) commitments.

Subsequent to O&E's issuance of the warning letter, NextEra self-reported two additional instances of noncompliance with ERCOT Protocols § 6.4.3.1; once each on April 19, 2013 and April 20, 2013. In both instances, NextEra correctly updated the RUC status of the Current Operating Plan, but failed to submit the EOC to ERCOT in one hour of the current operating day.