***** EXTERNAL email. Please be cautious and evaluate before you click on links, open attachments, or provide credentials. *****

NOTICE DATE: July 1, 2021

NOTICE TYPE: M-C041621-02 - Legal

SHORT DESCRIPTION: City of Denton v. ERCOT et al. – Dismissal of Claims


DAYS AFFECTED: July 1, 2021

LONG DESCRIPTION: On April 15, 2021, ERCOT filed a Plea to the Jurisdiction and Alternative Plea in Abatement in the civil action initiated against ERCOT by the City of Denton (Denton). On June 4, 2021, the Travis County District Court issued an order granting ERCOT's Plea to the Jurisdiction and dismissing Denton's claims against ERCOT. A copy of the order is attached. Consequently, the Temporary Restraining Order (TRO) under which Denton was not assessed short payments was dissolved, and ERCOT has stopped reallocating Denton’s share of short payments to other Market Participants.

Furthermore, ERCOT has issued invoices to Denton totaling $9,389,776.92 for short payments previously not allocated to Denton in accordance with the TRO. Of this amount, as previously disclosed in Market Notice W-C041221-01, $73,410.46 was initially paid from ERCOT operating funds, and then later charged to QSEs and CRRAHs through Miscellaneous Invoices. On July 6, 2021, ERCOT will issue additional Miscellaneous Invoices to reimburse these QSEs and CRRAHs for their shares of the $73,410.46.

As disclosed in Market Notice W-B030121-01, on March 1, 2021, ERCOT applied $800 million of Congestion Revenue Right (CRR) Auction revenue funds to reduce short payments to ERCOT Market Participants. Proceeds of the Denton invoices after invoicing of the $73,410.46 will be used to partially replenish ERCOT’s CRR Auction Revenue account.

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].

If you are receiving email from a public ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.