ERCOT: Texas Retail Provider Failed To Make Payment On Settlement Invoice On Aug. 30, Results In Short-Pay To QSEs

ERCOT on September 3, 2019 issued a market notice stating that, "Qualified Scheduling Entities (QSEs) and Congestion Revenue Right Account Holders (CRRAHs) that are owed monies from ERCOT on the Settlement (STL) Invoices due for payout on September 3, 2019 will notice that the amount of funds transferred is short of the balance payable on the Settlement Invoice."

ERCOT's notice,"is intended to advise Market Participants that ERCOT will follow the short payment procedure in accordance with Protocol Section 9.19, Partial Payments by Invoice Recipients."

ERCOT in the market notice said that, "On August 30, 2019, Axon Power and Gas LLC (QSE) (Axon) failed to make payment on a Settlement Invoice. ERCOT has insufficient funds for Axon to pay the amount owed. The total amount of the short payment is $54,002.29. ERCOT has initiated the process of drawing from available Financial Security provided by Axon to pay Settlement Invoices as they become due."

"Per Protocol Section 9.19, ERCOT will deduct any applicable ERCOT Administrative fees, payments for Reliability-Must-Run (RMR) services, and CRR Balancing Account from the amount received, and then reduce payments to all Invoice recipients that are owed monies. The reductions will be made on a pro rata basis of monies owed to each ERCOT creditor for this Invoice to the extent necessary to clear ERCOT's accounts on the payment date to ensure revenue neutrality for ERCOT," ERCOT said

Staff of the Texas PUC had previously filed a petition to revoke the REP certificate of Axon, alleging a pattern of delinquent TDU payments, as first reported by EnergyChoiceMatters.com (story here)