NOTICE DATE: July 28, 2023
NOTICE TYPE: M-D072823-01 Settlement
SHORT DESCRIPTION: Notice of Proposed Alternative Method to Distribute Disgorged Excess Revenues in PUC Docket No. 54985
INTENDED AUDIENCE: All Qualified Scheduling Entities (QSEs)
DAYS AFFECTED: February 15, 2021-February 18, 2021
LONG DESCRIPTION: On June 15, 2023, the Public Utility Commission of Texas issued an order in PUC Docket No. 54957 requiring the disgorgement of $23,462.53 in excess revenues received by City of Austin dba Austin Energy in its capacity as a Qualified Scheduling Entity (QSE) for Operating Days February 15, 17, and 18, 2021.
Commission rule 16 Texas Administrative Code §22.246(k) describes the default method by which ERCOT should distribute disgorged revenues, but also provides that the Commission may authorize a different distribution method if it determines such a method is appropriate. The Commission, in its June 15, 2023 order, determined that a distribution method that differs from the default method is appropriate and directed Commission Staff to open PUC Docket No. 54985 and propose an appropriate method of distribution.
Commission Staff, in consultation with ERCOT Staff, has recommended an alternative distribution methodology that is more consistent with ERCOT’s current resettlement practices of Operating Days. The proposed alternative distribution method calls for ERCOT to:
(i) identify the Load Ratio Share from the most recent market settlement that was utilized for the issuance of invoices for the impacted intervals of the Operating Days;
(ii) calculate the amount due to each QSE by multiplying the disgorged dollar amount for each interval by the Load Ratio Share for that interval;
(iii) send a Miscellaneous Invoice to all affected QSEs; and
(iv) pay the amounts owed to the affected QSEs as reflected on the invoices.
If a QSE that is eligible for a distribution, or the Counter-Party for that QSE, has failed to timely pay any payment or Financial Security obligation owed to ERCOT or its designee, if applicable, then ERCOT will withhold the distribution payment and apply it towards the amounts owed by the QSE or the Counter-Party for the QSE.
ACTION REQUIRED: Market Participants and other interested persons who wish to intervene in or comment on these proceedings must file a motion to intervene or a statement of position in PUC Docket No. 54985 by the stated deadline. Filings may be submitted online through the PUC’s Interchange Filer application (https://interchange.puc.texas.gov/filer) or by mailing a copy of the pleading to Public Utility Commission of Texas at 1701 N. Congress Ave., P.O. Box 13326, Austin, Texas 78711-3326. The pleading must reference PUC Docket No. 54985 and must be received by the PUC no later than 3:00 pm on September 1, 2023.
Further information may also be obtained by calling the Public Utility Commission at (512) 936-7120 or (888) 782-8477. Hearing and speech-impaired individuals with text telephone (TTY) may contact the Commission at (512) 936-7136.
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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