NOTICE DATE: March 16, 2026

NOTICE TYPE: M-B031626-01 Settlements

SHORT DESCRIPTION: Notice of redistribution of the disgorged funds relating to Tenaska Power Services Co.'s (Tenaska) enforcement proceeding that were returned to Electric Reliability Council of Texas (ERCOT).

INTENDED AUDIENCE: Affected Qualified Scheduling Entities (QSEs)

DAYS AFFECTED: March 17, 2026

LONG DESCRIPTION: In Docket No. 57437, Settlement Agreement Relating to Tenaska Power Services Co.'s Alleged Violations of 16 TAC 25.503(e) and (f), and ERCOT Nodal Protocols 3.9.1(2), 6.4.6(1), 6.5.5.2(3), 6.5.7.5(2), 6.5.7.9, and 8.1.1.1, the Commission ordered the disgorgement of $28,235,227.28 in excess revenues from Tenaska (the "disgorged funds"). As ordered by the Commission, ERCOT distributed the disgorged funds to the affected QSEs on October 10, 2025, using the alternative distribution method approved in Docket No. 54985, Proceeding to Determine Appropriate Method to Distribute Disgorged Funds from Docket No. 54957.

MidAmerican Energy Services LLC (MidAmerican), an affected QSE, received $134,853.61 for its portion of the disgorged funds. However, MidAmerican no longer serves customers and cannot use the disgorged funds to reduce costs or fees incurred by retail electric customers, as required by Texas Utilities Code 15.025(e). Therefore, MidAmerican returned its portion of the disgorged funds to ERCOT (the "returned disgorged funds").

In Docket No. 57722, Compliance Filing for Docket No. 57437 (Settlement Agreement Relating to TPS's Alleged Violations of 16 Texas Administrative Code (TAC) 25.503(e)(3), (f)(2), (f)(6) and (f)(8); and Electric Reliability Council of Texas (ERCOT) Nodal Protocols 3.9.1(2), 6.4.6(1), 6.5.5.2(3), 6.5.7.9, and 8.1.1.1), ERCOT and Commission staff proposed that the returned disgorged funds should be redistributed to the affected QSEs, excluding MidAmerican, using the distribution method approved in Docket No. 54985. The Commission approved ERCOT and Commission Staff's proposal and issued an Interim Order describing the distribution method ERCOT shall use to redistribute the returned disgorged funds, which is accessible at this LINK.

ERCOT is redistributing the returned disgorged funds on March 17, 2026, in accordance with the Commission's Interim Order through the issuance of Miscellaneous Invoices to all affected QSEs except MidAmerican. All returned disgorged funds received by the affected QSEs must be used to reduce costs or fees incurred by retail electric customers.

ACTION REQUIRED: ERCOT encourages each affected QSE to review the Commission's Interim Order to determine if it must comply with the following requirements: (1) any affected QSE that receives more than $10,000 of the returned disgorged funds is required to file an affidavit in Docket No. 57722 demonstrating how those funds were used to reduce the costs or fees incurred by retail electric customers; or (2) any affected QSE that is an Affiliate of Tenaska that receives a portion of the returned disgorged funds must file an affidavit under oath in Docket No. 57722, within 30 days of receiving said funds, certifying that it has distributed the returned disgorged funds directly to its retail customers.

In addition, ERCOT reminds the affected QSEs that the Commission ordered them to comply with identical requirements regarding the initial disbursement of the disgorged funds. Therefore, ERCOT encourages each affected QSE to review the Commission's Order in Docket No. 57437 to determine if it is required to file an affidavit addressing its use of the disgorged funds received in the initial disbursement.

ADDITIONAL INFORMATION: The Miscellaneous Invoices (EMIL ID COMS-746-SG, Report ID 11100) are available on the Market Information System (MIS) Certified Area.

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.

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.

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