NOTICE DATE: December 16, 2022

NOTICE TYPE: M-A121622-01 General

SHORT DESCRIPTION: ERCOT has received the first payment from Brazos Electric Power Cooperative, Inc. under the court-approved Amended Chapter 11 Plan of Reorganization

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: December 15 and 20, 2022

LONG DESCRIPTION: Yesterday, December 15, 2022, ERCOT received the first payment in the amount of approximately $1,151.4 million from Brazos Electric Power Cooperative, Inc. (Brazos) under the court-approved Amended Chapter 11 Plan of Reorganization, dated October 27, 2022 (the Plan).  The Plan includes the terms of the ERCOT settlement that resolved the Brazos Adversary Hearing.

As previously discussed in a letter to the Public Utility Commission of Texas (PUCT), dated November 2, 2022, and in a presentation given to the PUCT at an open meeting held on November 3, 2022, the funds received in the first payment are owed to 1) fully replenish $599.7 million for Congestion Revenue Rights (CRRs) funds that were temporarily used by ERCOT to reduce the amount of the market shortfall immediately following Winter Storm Uri that was attributable to Brazos's short-pay and 2) begin paying eligible Market Participants for their allocable portion of the Brazos Short Pay Claim.  The timing and amount of payments to an eligible Market Participant are determined by the payment option they elected or to which they were assigned if the Market Participant failed to elect a payment option or selected more than one.  ERCOT plans to distribute each Market Participant's Effective Date Payment per the Settlement Agreement on Tuesday, December 20, 2022.

Regarding the CRR funds, ERCOT shall apply $599.7 million as follows:

Regarding the Brazos Short Pay Claim payments, ERCOT shall send Miscellaneous Invoices within 5 business days to all eligible Market Participants for their entire Effective Date Payment, as reflected in the Exhibit 10 to the Declaration of Sean Taylor in Support of ERCOT Settlement, the ERCOT Recovery Appendix, filed with the presiding federal bankruptcy court on November 10, 2022.  The declaration, including the ERCOT Recovery Appendix, is also available under “Key Documents” in the Proposed Brazos and ERCOT Bankruptcy Settlement section of the website at

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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