ERCOT Issues Short-pay Notice For Invoices To Be Paid Out On March 3

ERCOT issued a market notice detailing $147,000 in short payments for Settlement Invoices due for payout on March 3, 2021

The latest short pay entities include two retail electric providers who were listed as short paying invoices due March 2 (see story here)

It is expected that such short-pays may continue as entities seek to understand how invoices for earlier periods -- where the bulk of the additional approximately $50 billion in market costs, due to the weather event and scarcity pricing, were billed -- are addressed, and whether there will be any price relief, state action, or at least a pause in collection pending any dispute resolution process, etc. Entities have little incentive to pay subsequent invoices if they will still be subject to the default and mass transition process for the truly large invoices

ERCOT in the notice stated, "Qualified Scheduling Entities (QSEs) and Congestion Revenue Right Account Holders (CRRAHs) that are owed monies from ERCOT on Settlement Invoices due for payout on March 3, 2021, will notice that the amount of funds transferred is short of the balance payable on the Settlement Invoices."

"ERCOT initiates the short payment procedure when a Market Participant fails to make a complete payment for Settlement Invoices. Several Market Participants failed to make full payments for Settlement Invoices that were due on March 2, 2021,' ERCOT said

"In accordance with ERCOT Protocol Section 9.19, ERCOT will draw from available Financial Security provided by short-paying Market Participants. Funds received from Financial Security will be allocated to short paid Invoice Recipients as soon as possible. Furthermore, ERCOT will deduct any applicable ERCOT Administrative fees, payments for Reliability-Must-Run (RMR) services, and the CRR Balancing Account from the amount received, and then reduce payments to all Invoice Recipients owed monies. The reductions will be made on a pro-rata basis of monies owed to each ERCOT creditor to the extent necessary to clear ERCOT's accounts on the payment date to ensure revenue neutrality for ERCOT," ERCOT said

The March 3, 2021 invoice pay outs included the DAM for 02/24/2021 and the RTM Initial for 02/21/2021, as well as certain final and true-up invoices

The Total Amount Short to Market was $147,422.12

Per the ERCOT notice, the Total Amount of Short Pay by entity was:

Brazos Electric Power CO OP INC - $1,160.94

Energy Monger LLC - $10,700.34

GB Power LLC - $14,677.99

"Other, attributable to meter read timing" - $120,882.85