ERCOT Board Approves Price Correction For Feb. 15 That Will Raise Price Adder By Up To $1,200 Per MWh

The ERCOT Board has approved ERCOT's request to correct prices for operating day February 15, 2021 due to what was termed a software error affecting the calculation of Real-Time On-Line Reliability Deployment Price Adders (RTORDPAs).

Specifically, at a recent meeting, the Board reviewed RTORDPAs, Real-Time On-Line Deployment Prices (RTRDPs), Real-Time Settlement Point Prices (RTSPPs), and Real-Time Prices for Energy Metered for Resources (RTRMPRs), and determined, as described by ERCOT in a market notice, "that these prices were significantly affected by a software error."

The Board directed ERCOT to implement the appropriate price corrections pursuant to ERCOT Protocol Section 6.3(7).

Board approval of these price corrections necessitate the issuance of RTM Resettlement Statements. A Market Notice will be posted for the RTM resettlement in accordance with ERCOT Protocol Section 9.5.7, ERCOT said in a market notice

In originally notifying the market of the potential for price corrections related to this issue, ERCOT had said in a March 17 market notice that the changes to the RTORDPA that results from correcting the errors ranges from an increase of $0.01/MWh to an increase of $1,241.68/MWh, with an average increase of $58.36/MWh

In a presentation to the Board, ERCOT said that the change in the sum of all statements due to ERCOT as a result of the price corrections is $6.2 million, with the maximum impact to a counter-party being about $850,000

In the original March 17 market notice, ERCOT had said that, "ERCOT has discovered that its Market Management System (MMS) software contained programming errors that resulted in an incorrect MW amount being used for the estimated deployed ERS component of the RTORDPA for certain Security-Constrained Economic Dispatch (SCED) intervals on OD February 15, 2021."

Further specifics of the issue were described in our prior story here

The corrected prices will be posted in both CSV and XML formats in the RTM Price Corrections folder located on the Market Prices on the ERCOT website