NOTICE DATE: February 25, 2022

NOTICE TYPE: M-D022522-01 NPRR

SHORT DESCRIPTION: Implementation Details of NPRR1114

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: March 2022, April 1, 2022

LONG DESCRIPTION: In March 2022, ERCOT expects to implement system changes to support Protocol language associated with Nodal Protocol Revision Request (NPRR) 1114, Securitization – PURA Subchapter N Uplift Charges. On April 1, 2022, Protocol language associated with NPRR1114 will be implemented, pending ERCOT Board and Public Utility Commission of Texas (PUCT) approval.

NPRR1114 establishes processes to assess and collect Uplift Charges to Qualified Scheduling Entities (QSEs) representing responsible Load Serving Entities (LSEs) pursuant to the Debt Obligation Order (DOO) issued in PUCT Docket No. 52322, Application of Electric Reliability Council of Texas, Inc. for a Debt Obligation Order Pursuant to Chapter 39, Subchapter N, of Public Utility Regulatory Act (PURA).

Although the systems enabling NPRR1114 functionality are expected to be migrated in late March 2022, ERCOT will not begin requiring escrow deposits or issuing Uplift Charge Invoices until later this year. Further updates on the implementation of the Uplift Charge Invoice process will be provided at stakeholder meetings and in Market Notices in the coming months.

Settlement Changes will include:

New Charge Type (Protocol Section 27.3, Securitization Uplift Charge): Charge for Load-Allocated Securitization Uplift Charge Amounts (LASUCAMT).

Once implemented, this new daily charge will allocate to QSEs representing responsible LSEs their share of the Securitization Uplift Charge Daily Amount (SUCDA) that is to be collected for the Operating Day. The charge for each QSE will be based on their Daily Non-Opted-Out LSE Load Ratio Share (DQSELSELRS), which is the ratio of the QSE’s Daily Non-Opted-Out LSE Real-Time Adjusted Metered Load to total Daily ERCOT Non-Opted-Out LSE Real-Time Adjusted Metered Load for the Operating Day.

LASUCAMT will be calculated with each RTM Settlement run but will not be included on the RTM Statement. LASUCAMT will be invoiced separately as described below.

New Billing Determinants beginning April 1, 2022:

Bill Determinant

Short Description

Extract

Extract Table

DQSELSELRS

Daily QSE Non-Opted-Out LSE Load Ratio Share

RTM CODE

AGGOUTPUTHEADER

AGGOUTPUTSCALAR

DERCOTQSELSERTAML

Daily ERCOT QSE Non-Opted-Out LSE Real-Time Adjusted Metered Load

RTM MODE

AGGOUTPUTHEADER

AGGOUTPUTSCALAR

DQSELSERTAML

Daily QSE Non-Opted-Out LSE Real-Time Adjusted Metered Load

RTM CODE

AGGOUTPUTHEADER

AGGOUTPUTSCALAR

LSERTAML

Non-Opted-Out LSE Real-Time Adjusted Metered Load

RTM CODE

AGGOUTPUTHEADER

AGGOUTPUTINTERVAL

PRELIMLSERTAML

Preliminary Non-Opted-Out LSE Real-Time Adjusted Metered Load

RTM CODE

AGGOUTPUTHEADER

AGGOUTPUTINTERVAL

MQSELSELRS

Monthly QSE Non-Opted-Out LSE Load Ratio Share

RTM CODE

AGGOUTPUTHEADER

AGGOUTPUTSCALAR

MERCOTQSELSERTAML

Monthly ERCOT QSE Non-Opted-Out LSE Real-time Adjusted Metered Load

RTM MODE

AGGOUTPUTHEADER

AGGOUTPUTSCALAR

MQSELSERTAML

Monthly QSE Non-Opted-Out LSE Real-Time Adjusted Metered Load

RTM CODE

AGGOUTPUTHEADER

AGGOUTPUTSCALAR

OPTOUTLSERTAML

LSE/QSE Real-Time Adjusted Metered Load for Opt-Out Transmission-Voltage Customers

RTM CODE

AGGOUTPUTHEADER

AGGOUTPUTINTERVAL

 

New Billing Determinants after invoicing process begins later this year:

Bill Determinant

Short Description

Extract

Extract Table

LASUCAMT

Load-Allocated Securitization Uplift Charge Amount

RTM CODE

RTMOUTPUTHEADER

RTMOUTPUTSCALAR

SUCDA

Securitization Uplift Charge Daily Amount

RTM MODE

RTMOUTPUTHEADER

RTMOUTPUTSCALAR

 

The implementation will introduce two new daily Settlement Invoices (Protocol Section 27.4, Securitization Uplift Charge Invoices):

Securitization Uplift Charge Initial Invoice  - New daily Invoice that will reflect Real-Time Market (RTM) Initial Load-Allocated Securitization Uplift Charge Amounts (LASUCAMT). Securitization Uplift Charge Initial Invoices will be issued on the same Business Day as the day that the RTM Initial Statements for Operating Days due to be invoiced are posted to the Market Information System (MIS) Certified Area. ERCOT will post the actual dates that it will issue the Securitization Uplift Charge Initial Invoices, including the scheduled payment due date, to the Settlement Calendar.  Payments to ERCOT for Securitization Uplift Charge Initial Invoices must be made to the new dedicated Securitization Subchapter N ERCOT account that will be listed on the Invoice.

Securitization Uplift Charge Reallocation Invoice  - New daily Invoice that will reflect the reallocation of Load-Allocated Securitization Uplift Charge Amounts (LASUCAMT) after Initial Settlement due to changes in Daily QSE Non-Opted-Out LSE Load Ratio Share (DQSELSELRS).  Securitization Uplift Charge Reallocation Invoices will be issued on the same Business Day as the day that the RTM Final, True-Up and Resettlement Statements for Operating Days due to be invoiced are posted to the MIS Certified Area. ERCOT will post the actual dates that it will issue the Securitization Uplift Charge Reallocation Invoices, including the scheduled payment due/payout dates, to the Settlement Calendar. Payments to ERCOT for Securitization Uplift Charge Reallocation Invoices must be made to the existing ERCOT account listed on the Invoice.

Information regarding the banking instructions applicable to Securitization Uplift Charge Invoices will be located in the MIS Secure Area under the "Requested Information" folder at a later date.

When ERCOT begins issuing Uplift Charge Invoices, the above referenced new Invoices will be published on the Market Information System (MIS) Securitization Uplift Charge Invoices link (EMIL ID: NP27-411-SG, Report Type ID: 21119) on the Markets, Settlements page.

Credit Changes will include:

Securitization Uplift Charge Reallocation Invoices will be included in the Outstanding Invoice Amounts for all the QSEs represented by the Counter-Party (OIAq) component of the Estimated Aggregate Liability (Sec 16.11.4.3 Determination of Counter-Party Estimated Aggregate Liability).

Available Credit Limit (ACL) Summary Report (EMIL ID: FNC-470-SG, Report Type ID: 11173) (Sec 16.11.4.7 Credit Monitoring and Management Reports) will include the following information:

  1. Securitization Default Charge Credit Exposure Summary
  2. Securitization Default Charge Escrow Deposit Balances and Transactions
  3. Securitization Uplift Charge Credit Exposure Summary
  4. Securitization Uplift Charge Escrow Deposit Balances and Transactions

Updates regarding implementation of the Uplift Charge Escrow Deposit process will be provided at future stakeholder meetings and in Market Notices.

ACTION REQUIRED: Impacted Market Participants should implement changes to their shadow systems to incorporate the Protocol revisions made by NPRR1114.

ADDITIONAL INFORMATION: 

NPRR1114 and its associated documents can be found on the ERCOT website.

Supplemental Information for settlement statements, invoices and extracts can also be found on the ERCOT website. This includes:

Mock Securitization Invoices

Statement Invoice XSDs

Statement Invoice XSL files

Settlements XSD v1.5 Securitization N

Extract Data Definitions

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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