NOTICE DATE:  February 16, 2021

NOTICE TYPE:  M-C021521-02 Legal

SHORT DESCRIPTION:  Update: Public Utility Commission Emergency Orders Affecting ERCOT Market Prices

INTENDED AUDIENCE:  ERCOT Market Participants

DAY AFFECTED:  February 15 and 16, 2021

LONG DESCRIPTION:  On February 16, 2021, the Public Utility Commission of Texas (Commission) issued a Second Order Directing ERCOT to Take Action and Granting Exception to Certain Commission Rules (Second Order), which served to revise the original Order issued by the Commission on February 15, 2021 (February 15 Order). More specifically, the Second Order rescinded the Commission’s “directive to ERCOT in its order dated February 15 to … correct any past prices to account for load shed in EEA3.”  Accordingly, ERCOT will not be correcting prices for past SCED intervals to account for EEA3 Load shed.

As required by the Commission’s February 15 Order and communicated by Market Notice issued the same day, ERCOT has implemented a system change to ensure that, on a going-forward basis, Real-Time prices for each SCED interval ensure that firm Load that is being shed in EEA3 is accounted for in ERCOT’s scarcity pricing signals. This system change was effective as of the 22:15 SCED interval on February 15, 2021.

Additionally, please note that ERCOT will reach the Peaker Net Margin revenue threshold established in PUC Rule 25.505(g)(6) today, Operating Day February 16, 2021.  However, as required by the February 15 Order, ERCOT is required to suspend use of the Low System-Wide Offer Cap (LCAP) until after the Commission’s next regularly-scheduled open meeting.  Until that time, ERCOT will continue to use the $9,000/MWh High System-Wide Offer Cap (HCAP) as the System-Wide Offer Cap.

ADDITIONAL INFORMATION:  The PUC’s February 16, 2021, Order is available at this link. 

Due to an outage on the e-mail list management system used by ERCOT (ListServ), ERCOT is unable to send Market Notices to publicly subscribed e-mail distribution lists.  Please forward this Market Notice to appropriate personnel in your organization to whom Market Notices would normally be distributed.

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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dg/mm