NOTICE DATE: June 29, 2021

NOTICE TYPE: M-B041421-02 Settlements

SHORT DESCRIPTION: Deferral of Default Uplift Invoices

INTENDED AUDIENCE: QSE and CRRAH Settlement and Credit Personnel

DAYS AFFECTED: Not applicable

LONG DESCRIPTION: In Market Notice M-B041421-01, Notice of Planned Implementation of Default Uplift Invoice Process, ERCOT communicated that it did not plan to issue Default Uplift Invoices to Qualified Scheduling Entities (QSEs) and Congestion Revenue Right Account Holders (CRRAHs) for short-paid amounts related to the February 2021 extreme winter weather event until after the most-recent Texas legislative session, which concluded on May 31, 2021.

Two bills were passed by the Texas Legislature and signed into law by Texas Governor Greg Abbott that are expected to impact ERCOT’s Default Uplift Invoice process: Texas House Bill 4492, providing for securitization of certain electric market costs, and Texas Senate Bill 1580, relating to securitization for electric cooperatives.  Accordingly, ERCOT issues this Notice to inform stakeholders that it will continue to defer a decision on issuance of Default Uplift Invoices until after it completes the Subchapter M application process directed in HB 4492 and receives a Public Utility Commission of Texas (Commission) order requiring ERCOT to establish a debt financing mechanism to finance the short-paid amounts by competitive Counter-Parties. ERCOT anticipates filing the Subchapter M application in mid-July with the Commission.

Further, ERCOT will continue using a value of $30 million for the Potential Uplift (PUL) component of Total Potential Exposure (TPE) until ERCOT Protocol revisions are implemented that impact the PUL component of TPE or the overall market risk no longer requires use of the PUL component.

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 ClientServices@ercot.com.

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