Updated, 10:45 a.m. 2/23, ERCOT Issues Second Market Notice On Discretion To Resolve Financial Obligations, Notes Use Of Undistributed CRR Revenue To Assist In Covering Short-pays
ERCOT Notes Actions Will Only Provide Limited Financial Support To Address The Market’s Current Liquidity Issues
ERCOT Encourages LSEs To Explore All Available Financial And/Or Business Transition Options At This Time
ERCOT Ends Temporary Deviation From Protocol Deadlines & Timing Related To Settlements, Collateral Obligations, & Invoice Payments
February 23, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
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Updated, 10:45 a.m. 2/23
ERCOT issued a further market notice on Feb. 23 concerning its discretion to resolve financial obligations
The notice states, "On February 21, 2021, the PUCT issued an order granting ERCOT the authority to use its sole discretion in taking actions under the ERCOT Protocols to help resolve financial obligations between Market Participants and ERCOT."
"ERCOT is continuing to use its discretion authority under that order to help protect the overall integrity of the financial electric Market in the ERCOT Region. For example, ERCOT will begin utilizing up to $400 Million in undistributed Congestion Revenue Right (CRR) auction revenue to assist in covering short-paying Invoice Recipients," the notice stated
"While the Commission has provided ERCOT with discretion to take actions to help mitigate financial defaults and Market uplift resulting from short-paying Market Participants, such actions by ERCOT will only provide limited financial support to address the Market’s current liquidity issues. ERCOT encourages Counter-Parties and their represented Resource Entitles and Load Serving Entities to explore all available financial and/or business transition options at this time," the notice stated
ERCOT said in a Feb. 23 market notice that, "ERCOT has ended its temporary deviation from protocol deadlines and timing related to settlements, collateral obligations, and invoice payments."
"Invoices and settlement will be executed in accordance with Protocol language," ERCOT said in the notice