PRR700

Title:	Creation of Interim Measure for Collecting the ERO/TRE Fee
Next Group:
Next Step:
Status:	Approved on 12/12/2006
Effective Date:	01/01/2007

Date	Gov Body		Next Steps
12/12/2006	Board of Directors	Approved
12/01/2006	TAC	Recommended for Approval	Board consideration
11/16/2006	PRS	Recommended for Approval	TAC consideration
11/16/2006	PRS		Urgency vote and language consideration

Date	Gov Body	Motion	Result	Against	Abstentions
12/12/2006	Board of Directors	To approve as recommended by TAC.	Passed	0	0
12/01/2006	TAC	To recommend approval of PRR700 as recommended by PRS; TAC also directed PRS to research and develop alternative funding mechanisms to relieve Load that comply with state and federal law.	Passed	2 IOU and IG	1 IPM
11/16/2006	PRS	To recommend approval of PRR700 as submitted with two abstentions from the Consumer segment.	Passed		2 Consumer

Status:	Approved
Date Posted:	11/15/2006
Sponsor:	ERCOT Staff
Urgent:	Yes
Sections:	2.1, 9.7.1
Description:	Revise the ERCOT System administration fees to include the FERC-mandated fee for the ERCOT Regionā??s share of the new Electric Reliability Organization (ERO) and the new Texas Regional Entity (TRE) for the ERCOT Region. The ERO/TRE fee will be $0.0169 per MWh. FERC approved a ERO/TRE budget for the ERCOT Region which results in a fee of $0.021 per MWh; however, a portion ($900, 000) of the ERO/TRE fee will be collected via the PUCT-approved ERCOT System administration fee of $0.4171 per MWh.
Reason:	To provide for collection of the mandated fees required by the Electricity Modernization Act of 2005 (of the Energy Policy Act of 2005) as implemented by the FERC and NERC, the ERO. This proposed PRR is intended as an interim measure for collecting the ERO/TRE fee starting in 2007, until it can be implemented as a separate charge. NERC requires that Load in the various regions not be double-counted in fee assessment; therefore, Load Serving Entities should only be assessed fees for Load consumed within the region. Because ERCOTā??s current System administration fees include DC Tie exports, ERCOT will require a project to automate a Load-based fee which excludes DC Tie exports from fee assessment. In the interim, ERCOT has provided an option in the PRR to dispute assessments of the ERO/TRE fees to DC Tie exports and request reimbursement.