NOTICE  DATE: September 29, 2026

NOTICE TYPE: W-A092926-01 Settlements

SHORT DESCRIPTION: Notice of final 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: September 29, 2026

LONG DESCRIPTION: In Docket No. 57437, Settlement Agreement Relating to Tenaska Power Services Co.'s Alleged Violations of 16 TAC Section 25.503(e) and (f), and ERCOT Nodal Protocols Sections 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, returned its portion of disgorged funds to ERCOT because it could no longer satisfy the statutory requirement to use those funds to reduce costs or fees incurred by retail electric customers, as required by Texas Utilities Code Section15.025(e) (the "returned disgorged funds"). In Docket No. 57722, Compliance Filing for Docket No. 57437 (Settlement Agreement Relating to TPS's Alleged Violations of 16 TAC Sections 25.503(e)(3), (f)(2), (f)(6) and (f)(8); and Electric Reliability Council of Texas (ERCOT) Nodal Protocols Sections 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's 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.

After ERCOT's redistribution, two additional affected QSEs, Direct Energy, LP (Direct Energy) and BP Energy Retail Company, LLC (BPERC), returned $94,023.95 and $15,293.89, respectively, of the disgorged funds they received to ERCOT as they also could no longer satisfy the requirement set forth in Texas Utilities Code Section 15.025(e) (the "additional returned disgorged funds").

Again, in Docket No. 57722, ERCOT and Commission Staff proposed that the additional disgorged funds returned to ERCOT should be redistributed to the affected QSEs, excluding MidAmerican, Direct Energy, and BPERC as applicable, using the distribution method approved by the Commission's Interim order identified above. The Commission ALJ granted ERCOT's and Commission Staff's proposal to redistribute the additional returned disgorged funds in Order No. 7, which is accessible at this LINK.

ERCOT is redistributing the returned disgorged funds on September 29, 2026, in accordance with the Commission ALJ's Order No. 7 through the issuance of Miscellaneous Invoices to all affected QSEs except MidAmerican, Direct Energy, and BPERC as applicable. 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 and the Commission ALJ's Order No. 11 in Docket No. 57722, which is accessible at this LINK, 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.

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.

dg