Power Trader Says "Facts" Support Texas PUC's Prior Order That Retroactively Raised Prices To Cap For Operating Day February 15

Adam Sinn, of Aspire Power Ventures, LP, filed a letter with the Texas PUC stating that, "I believe that an objective review of the relevant facts supports the Commission’s February 15th Order that retroactively raised prices to the cap for operating day February 15 and maintaining those prices at the cap until the expiration of the EEA3 status on February 19, or whenever it is determined that both industrial and residential load shedding ceased."

"This is consistent with the pricing protocols, the orders issued by the Commission, and the IMM’s position that cap pricing should cease when load shedding abated," Sinn wrote

Noting that debate has occurred regarding the pricing of electricity provided to the ERCOT market on February 18 and 19, Sinn wrote, "The Commission and ERCOT have used deliberate examination of repricing considerations in the past; deliberate consideration of the February 18 and 19 events would comport with past practice. As you noted in March 11, 2021's hearings, repricing has occurred in the past. That process took months, not days, because the facts were fully vetted. Prior repricing considerations related to amounts far smaller than those at issue with the Winter Storm, but they warranted proper vetting nonetheless. To now act without at least the same level of investigation with amounts far larger conflicts with the thoughtful analysis used in years past. The ERCOT Protocols themselves include a roadmap for repricing. The pricing review process was built to provide support the [sic] type of inquiry that is before you and which the Legislature is also undertaking."

Sinn wrote, "The Commission and ERCOT similarly should use a fact-driven analysis related to real-time energy pricing related to the Value of Lost Load ('VOLL') related to the days prior to the Commission's February 15 and 16 orders. The current orders create a situation where pricing after the Commission orders differs from that prior to the orders but where the VOLL and generation scarcity are otherwise the same. Just as the events related to February 18 and 19 warrant thoughtful review; so, too, should the logic and facts related to the VOLL prior to the February 15 and 16 orders. Simply put, I encourage you to prioritize thoughtful deliberation over speedy resolution."

Sinn wrote, "I am grateful for your service to Texas and your great efforts to heal the ERCOT market in a manner consistent with free market principles."

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