NOTICE DATE: June 23, 2023

NOTICE TYPE: M-C062323-01 Settlements

SHORT DESCRIPTION: Implementation Details of NPRR1103 and NPRR1125 (Settlement-related)

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: August 1, 2023, and August 9, 2023

LONG DESCRIPTION: On August 1, 2023, Settlement-related Protocol language associated with Nodal Protocol Revision Request (NPRR) 1103, Securitization – PURA Subchapter M Default Charges, and NPRR1125, Use of Financial Security for Securitization Default Charge and Securitization Uplift Charge Invoices and Escrow Deposit Requests, will be implemented.

NPRR1103 introduces the following Settlement-related changes to the following Protocol Sections:

NPRR1125 introduces the following Settlement-related changes to the following Protocol Sections:

NPRR1103 establishes processes to assess and collect Default Charges to Qualified Scheduling Entities (QSEs) and Congestion Revenue Right (CRR) Account Holders pursuant to the Debt Obligation Order (DOO) issued in Public Utility Commission of Texas (PUCT) Docket No. 52321, Application of Electric Reliability Council of Texas, Inc. for a Debt Obligation Order Pursuant to Chapter 39, Subchapter M, of the Public Utility Regulatory Act (PURA).

NPRR1125 clarifies how ERCOT may utilize Financial Security in the event of securitization Payment Defaults.

Securitization Default Charge Invoices (EMIL ID: NP26-330-SG, Report Type ID: 23273) will be issued monthly, on the 7th Business Day of each month and will be posted to the Market Information System (MIS) Certified Area on the Markets, Settlements page. The first monthly Securitization Default Charge Invoices will be posted on August 9, 2023. ERCOT will post the dates that it will issue Securitization Default Charge Invoices, including the scheduled payment due date, to the Settlement Calendar Extract.

Payments to ERCOT for Securitization Default Charge Invoices must be paid into the Subchapter M Invoice bank account ending in xxxxx6916 that will be listed on the Invoice.

ACTION REQUIRED: Impacted Market Participants should implement changes to their shadow systems to incorporate the Protocol revisions made by NPRR1103.

ADDITIONAL INFORMATION: Please reference the attached MIS eService Dispute process.

NPRR1103 and NPRR1125 and their associated documents can be found on the ERCOT website.

Supplemental Information for Securitization Default Charge Invoices can also be found on the ERCOT website. This includes:

Mock Securitization Invoices

Statement Invoice XSDs

Statement Invoice XSL files

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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