Texas QSE to Pay $18,000 Under Settlement with PUCT Staff

Morgan Stanley Capital Group Inc. would pay $18,000 under a settlement with Staff of the Public Utility Commission of Texas to resolve an investigation to Morgan Stanley Capital Group for alleged violation of non-spinning reserve service (NSRS) energy deployment criteria on March 31, 2012.

On March 31, 2012, ERCOT issued NSRS deployment instructions for the generation resource LARDVFTN G4 (Laredo 4). Morgan Stanley Capital Group, at that time, was acting as QSE for the unit.

At 04:40:48 PM on March 31, 2012, ERCOT issued NSRS deployment instructions to MSCG for the resource Laredo 4. Laredo 4 was obligated to provide 94 MW of NSRS, approximately 4.8% of the total NSRS deployed.

Staff alleged that Laredo 4 did not reach its Low Sustained Limit (LSL) within 25 minutes, as required by ERCOT Protocol §8.1.1.4.3(3)(b). Staff alleged Laredo 4 was also between 12 and 72 seconds late in updating its Resource Status Code as required by ERCOT Protocol §8.1.1.4.3(3)(b). Staff alleged Laredo 4 was able to fully deploy its NSRS capacity within 34 minutes of the NSRS deployment.