NOTICE DATE:  March 24, 2020       

NOTICE TYPE: M-A022120-02 Settlements and Credit

SHORT DESCRIPTION:  ERCOT Market Payment Processes Update Workshop Feedback and Account Consolidation

INTENDED AUDIENCE:  CRRAH, QSE, Credit, TDSP, Accounts Payable/Accounts Receivable and Settlement personnel

DAY AFFECTED:  June 1, 2020

LONG DESCRIPTION:  On February 28, 2020, ERCOT hosted a Market Payment Processes Workshop to discuss several proposed changes to improve payment processes for ERCOT and Market Participants.  At the time, ERCOT requested feedback on the improvement proposals by March 24, 2020.  The presentation can be found on the Market Payment Process Update meeting page.

However, after considering comments at the Workshop and further internal discussions, ERCOT will defer all improvement proposals, except one –consolidating all cash held on deposit into one account – until after summer 2020.  This proposal only impacts Counter-Parties (Qualified Scheduling Entities and Congestion Revenue Right (CRR) Account Holders).

With this proposal, Treasury expects to consolidate all cash held on deposit into one account with a target date of June 1, 2020.  All funds held in a Counter-Party’s prepay account (flexible account) will be transferred into that Counter-Party’s collateral account or returned upon request. 

Further, ERCOT will file a Nodal Protocol Revision Request (NPRR) to remove grey-box language from NPRR702, Flexible Accounts, Payment of Invoices, and Disposition of Interest on Cash Collateral.  Additional information will be communicated to Counter-Parties that use the prepay account.

Benefits for the consolidation:

• Eliminates confusion between prepay and collateral accounts
• Bears interest for Counter-Party
• Reduces potential errors
• Streamlines payment process

For this one proposal, ERCOT requests feedback by Friday, April 10, 2020.  Please email any feedback, including questions, to Leslie Wiley at leslie.wiley@ercot.com.  ERCOT will update stakeholders about the feedback at upcoming Technical Advisory Committee (TAC) meetings before implementing on June 1, 2020. 

CONTACT: If you have any questions, please contact your ERCOT Account Manager or these resources:
ERCOT Client Services – (512) 248-3900 or ClientServices@ercot.com
ERCOT HelpDesk – (512) 248-6800 or (866) 870-8124 or HelpDesk@ercot.com

If you are receiving email from a public ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.

dg