NOTICE DATE: February 2, 2024

NOTICE TYPE: M-A020224-01 CRR

SHORT DESCRIPTION: CRR Auction credit requirement issue for 2024.2nd6.AnnualAuction.Seq2

INTENDED AUDIENCE: CRR Account Holders and Counter-Parties

DAYS AFFECTED: November 9, 2023

LONG DESCRIPTION: During the execution of the 2024.2nd6.AnnualAuction.Seq2 in November 2023, an issue was identified with ERCOT’s posting of the historical Effective Auction Clearing Prices (EACPs) where null values were posted for some Congestion Revenue Rights (CRR) paths that should have had non-null values. The net effect of the missing EACP values in the auction was that less credit was held for CRR Account Holders (CRRAHs) than should have been held, and CRRAHs were potentially awarded more CRR value than they locked credit for. This issue, isolated to the 2024.2nd6.AnnualAuction.Seq2, affected less than 1% of the bids submitted into the system, and all affected CRRAHs were successful in paying for their awarded CRRs.

The issue occurred when, on July 5, 2023, ERCOT experienced a data processing issue that disrupted the transfer of auction results data from the CRR system to the Credit Monitoring and Management (CMM) System for the 2024.2nd6.AnnualAuction.Seq3. As a result, some EACP values posted on November 9, 2023, in the 2024.2nd6.AnnualAuction.Seq2 Path Specific Adders Report, were incorrectly null.

To remedy this issue, the corrected EACP values have been uploaded to the CMM system, and all future auctions for 2024.2nd6 periods will have the corrected EACP values. The root cause of the data transfer disruption on July 5, 2023, has been linked to an emergency software release that was deployed during the normal data transfer process. ERCOT has implemented procedures to prevent this from happening in the future.

The credit required for Point-to-Point (PTP) Obligation bids was impacted only in months where the EACP and the A_ci99 were both less than zero. The corrected EACP may have altered the dominant factor in the “min(0, A_ci99, ACP)” credit term.

The attached spreadsheet contains the full set of correct EACP values. Out of 373,603 bids, there were 274 PTP Obligation bids (186 unique paths) that had at least one impacted EACP factor.

ADDITIONAL INFORMATION: For details about how to calculate the credit requirement for PTP Obligation bids using the EACP and A_ci99 factors, please refer to the CRR Credit FAQ located on the CRR webpage.

CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at [log in to unmask].

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