NOTICE DATE: February 23, 2021

NOTICE TYPE: M-A022321-01 Financial/Credit

SHORT DESCRIPTION: ERCOT Discretion to Resolve Financial Obligations

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: February 23, 2021 until further notice

LONG DESCRIPTION: On February 21, 2021, the PUCT issued an order granting ERCOT the authority to use its sole discretion in taking actions under the ERCOT Protocols to help resolve financial obligations between Market Participants and ERCOT. See http://interchange.puc.texas.gov/Documents/51812_7_1111445.PDF.

ERCOT is continuing to use its discretion authority under that order to help protect the overall integrity of the financial electric Market in the ERCOT Region. For example, ERCOT will begin utilizing up to $400 Million in undistributed Congestion Revenue Right (CRR) auction revenue to assist in covering short-paying Invoice Recipients.

While the Commission has provided ERCOT with discretion to take actions to help mitigate financial defaults and Market uplift resulting from short-paying Market Participants, such actions by ERCOT will only provide limited financial support to address the Market’s current liquidity issues. ERCOT encourages Counter-Parties and their represented Resource Entitles and Load Serving Entities to explore all available financial and/or business transition options at this time.

CONTACT: If you have any questions, please contact ERCOTCredit@ercot.com or your ERCOT Account Manager. 

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