Another Texas Retail Electric Provider Enters Into Payment Plan With ERCOT Concerning Short-Paid Invoices

ERCOT announced that, "On March 30, 2021, ERCOT entered into a payment plan with Bulb US LLC (Bulb), a short-paying Invoice Recipient, to enable ERCOT to collect all outstanding amounts from Bulb totaling $8,622.013.00 (final payment due on April 14, 2021), and pay short-paid Market Participants."

Bulb, known as "Market Participant" under the language of the agreement described below, will not actively acquire new customers during the term of the Payment Plan

A Bulb spokesperson provided the following statement concerning the matter:

"The winter storm was one of the worst in Texan history, causing 40% of the state's power to go offline and creating a huge spike in energy-related charges. Some of these charges went from less than $10 to over $13,000 per megawatt in a matter of days. We've been working with ERCOT on continuing to cover these charges while ensuring that these unprecedented spikes don't affect customers. We've agreed to a payment plan for the coming weeks but, more importantly, we'll keep focusing on serving our members and working with the industry to make sure it works for Texans."

--- Statement from Bulb spokesperson

The payment plan provides that, "Upon entering into the payment plan agreement described herein ('Payment Plan'), Electric Reliability Council of Texas, Inc. ('ERCOT') will provide Bulb US LLC ('Market Participant') with a notice of material breach under the Standard Form Market Participant Agreement ('SFA') between Market Participant and ERCOT. Upon execution of this Payment Plan, ERCOT will use its discretion under Public Utility Commission of Texas ('PUCT') Order Directing ERCOT to Take Action and Granting Exception to ERCOT Protocols, in PUCT Project No. 51812 (February 21, 2021) to suspend the deadline by which Market Participant must cure the material breach until final payment date under the Payment Plan, unless ERCOT terminates the Payment Plan earlier for Market Participant’s failure to satisfy obligations under the Payment Plan, ERCOT Protocols or the SFA. This Payment Plan does not waive or otherwise preclude enforcement activity against Market Participant by the PUCT for any reason, and Market Participant assumes all risks associated with any enforcement action taken by the PUCT."

Upon completion of the Payment Plan, Market Participant will have cured the 'Payment Breach' under the ERCOT Protocols, but such 'Payment Breach' will be considered Market Participant’s first 'Late Payment' in a rolling 12-month period

Market Participant will post cash collateral with ERCOT in the amount of $65,000.00 prior to the first payment date set forth in this Payment Plan, which will satisfy compliance with Level I Enforcement action taken by ERCOT for Market Participant’s 'Late Payment' under ERCOT Protocol Section 16.11.6.2.5. This payment has been made

Aside from the cash collateral noted above, the payment plan includes the following schedule for payments due:

• Wednesday, March 24, 2021 - $2,000,000.00 (PAID 03/24/2021)

• Wednesday, March 31, 2021 - $2,000,000.00

• Wednesday, April 7, 2021 - $2,000,000.00

• Wednesday, April 14, 2021 - $2,622,013.00

Failure by Market Participant to make any payment in accordance with the Payment Plan, or otherwise violate the terms of this Payment Plan or the ERCOT Protocols will result in immediate Default and termination of Market Participant’s SFA

The plan notes that Market Participant does not have any outstanding payments due to any Transmission and Distribution Utility ('TDU') and will remain in good standing with any TDU throughout the term of this Payment Plan

This is the first formal payment plan with a REP posted by ERCOT, but another REP, GridPlus, has said it is in negotiations with ERCOT for a payment plan