NOTICE DATE:  February 20, 2009
NOTICE TYPE:  W-A022009-01 Operations
SHORT DESCRIPTION:  Treatment of QSEs without Resources under Protocol Section 6.5.2.1(4).
INTENDED AUDIENCE:  All Qualified Scheduling Entities (QSEs)
DAY AFFECTED:  February 20, 2009

LONG DESCRIPTION:



Pursuant to Protocol Section 6.5.2.1, Balancing Energy Service Bids from Bilateral Contracts, Market Participants may enter into bilateral contracts which allow one QSE rights to submit Balancing Energy bids (bidding QSE) to ERCOT and identify another QSE as the Balancing Energy Service provider for purposes of bid deployment (deploying QSE). In addition, paragraph 4 of this Protocol Section provides:



            "ERCOT will provide Notice via the Messaging System to the bidding QSE and the deploying QSE of the awards for Balancing Energy Service identifying the bidding QSE and the deploying QSE."

ERCOT has provided QSEs the means to set up this type of arrangement in accordance with Protocol Section 6.5.2.1.  However, ERCOT recently discovered that the "bidding QSE" who is a QSE WITHOUT Resources will not receive a Notice via the Messaging System when its Balancing Energy Service bid has been struck; only the "deploying QSE" will receive the Notice via the Messaging System.



To assist QSEs WITHOUT Resources in this circumstance, ERCOT will manually extract the deployment information on a periodic basis and deliver it to those QSEs without Resources who are the "bidding QSEs."



ERCOT is currently researching solutions to correct the situation and will update all QSEs as soon as a solution is confirmed.

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 e-mail at [log in to unmask]<mailto:[log in to unmask]>.

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