Credit; CRR; Settlements

Tue, Mar 09, 2021 04:07 PM

W-B030121-03 Update: Short Payments & Settlement Invoices with payout dates of February 26, 2021, and March 1, 2021


NOTICE DATE: March 9, 2021

NOTICE TYPE: W-B030121-03 Settlements

SHORT DESCRIPTION: Update: Short Payments & Settlement Invoices with payout dates of February 26, 2021, and March 1, 2021

INTENDED AUDIENCE: QSE and CRRAH Settlement Personnel

DAYS AFFECTED: February 26, 2021 and March 1, 2021

LONG DESCRIPTION: As noted in Market Notice W-B030121-01, ERCOT used undistributed Congestion Revenue Right (CRR) Auction revenue funds held by ERCOT and netted some Settlement Invoices to help protect liquidity in the ERCOT market. This resulted in adjustments to some Settlement Invoices dated February 26, 2021.

To shadow settle an entity’s overall short-paid amount, Qualified Scheduling Entities (QSEs) and Congestion Revenue Right Account Holders (CRRAHs) should consider the following three sets of Invoices collectively:

  • Invoices with a payout date of February 26, 2021;
  • Invoices with a payout date of March 1, 2021; and
  • Miscellaneous Invoices issued on March 2, 2021 (see Market Notice W-B030121-02).

ERCOT has reconciled the short-paid amounts across these Invoices and will post additional detail for each affected QSE/CRRAH on the MIS Secure Area, in the "Requested Information" folder. 

For Invoices with a payout date of February 26, 2021, some QSEs/CRRAHs were paid closer to the full amount of their Invoice(s) due—i.e., they were “under-shorted.” Therefore, ERCOT calculated and used the under-shorted amount to reduce refunds due to the QSE/CRRAH on the March 1, 2021 payout date. ERCOT was unable to recover all under-shorted amounts on Invoices with a payout date of March 1, 2021, requiring further short pays of amounts. In order to recover the remaining under-shorted amounts, ERCOT issued Miscellaneous Invoices on March 2, 2021.  

Please be advised that attempting to use a ratio of the short-paid amount divided by the amount due from ERCOT to shadow calculate a QSE/CRRAH’s short-paid amounts will be inaccurate due to adjustments made for Invoices with a payout date of February 26, 2021. The table below outlines ratios that can be used to estimate overall short pay at a QSE or CRRAH level.

 

Invoice Payout Date

Short Pay Allocation Estimate

02/26/2021

89.468%

03/01/2021 (before recovery)

80.009%

03/01/2021 (additional due to unrecovered under-shorted amounts)

15.158%

 

CONTACT: For assistance 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 ClientServices@ercot.com.

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