Texas REP Seeks Emergency Relief From Texas PUC Seeking Continued Deviation From ERCOT Protocols For Collateral Settlements, Invoices
February 24, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Young Energy, LLC d/b/a Payless Power requested on an emergency basis that the Public Utility Commission of Texas order the Electric Reliability Council of Texas (ERCOT) to deviate from its protocol deadlines and timing related to settlements, collateral obligations, and invoice payments and suspend the execution or issuance of invoices or settlements, "until issues are finalized by State leaders considering solutions to the financial challenges caused by the winter event."
Young Energy noted that the PUC on Feb. 21, "in an attempt to protect the overall integrity of the financial electric market in the ERCOT
region," authorized ERCOT to use its sole discretion in
taking actions under the ERCOT Nodal Protocols to resolve financial obligations between a market
participant and ERCOT, including deviating from protocol deadlines and timing related to settlements, collateral obligations, and invoice payments
In response to this directive from the PUC, ERCOT issued a market notice on Feb. 22 stating, "ERCOT is temporarily deviating from Protocol deadlines and timing related to settlements, collateral obligations, and Invoice payments while prices are under review. Invoices or settlements will not be executed until issues are finalized by State leaders considering solutions to the financial challenges caused by the winter event, which is anticipated to occur this week."
However, Young Energy noted that on Feb. 23, as previously reported, ERCOT issued a market notice saying 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."
Young Energy alleged, "Apparently, ERCOT no longer wishes to provide opportunity to State leaders to finalize issues relating to the challenges of the recent winter weather events. Thus, REPs such as Payless Power must turn to the Commission for emergency relief."
Young Energy stated, "Payless Power, REPs generally, and their customers will suffer irreparable injury without Commission action. The exorbitant and extraordinary costs expected to be passed on to REPs in billings for charges for the past week can be expected to drive many REPs from the marketplace thereby decreasing consumer choice and consolidating market shares to a very few survivors. Such a result would be anti-competitive and undermine the competitive marketplace that has heretofore benefitted consumers."
Young Energy said that its monthly ancillary services costs increased from less than $1 million to nearly $20 million due to recent ERCOT market conditions
Young Energy requested that the Commission immediately restore the deviation to ERCOT Protocols as was originally issued by ERCOT on February 22, 2021, and provide such other and further relief as may be appropriate and necessary.