ERCOT Reports $2.1 Billion In Short Payments (Invoices Due For 2/26 Payout), Uses $800M In CRR Funds As Partial Reduction)

February 26, 2021

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Reporting by Paul Ring • ring@energychoicematters.com

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ERCOT said in a Feb. 26 market notice that short payments related to Settlement Invoices due for payout on February 26, 2021 totaled over $2.1 billion, and it used $800 million from CRR Auction revenue funds to partially reduce the short-payment

Specifically, ERCOT said in the notice that,"Qualified Scheduling Entities (QSEs) and Congestion Revenue Right Account Holders (CRRAHs) that are owed monies from ERCOT on Settlement Invoices due for payout on February 26, 2021, will notice that the amount of funds transferred is short of the balance payable on the Settlement Invoices. This Notice is intended to advise Market Participants that ERCOT will follow the short payment procedure in accordance with Protocol Section 9.19, Partial Payments by Invoice Recipients."

"The short payment procedure is being followed because some Market Participants failed to make full payments for Settlement Invoices that were due on February 25, 2021. In accordance with Protocol Section 9.19, ERCOT has initiated the process of drawing from available Financial Security provided by short-paying Market Participants. Funds received from available Financial Security will be allocated to short-paid Invoice recipients as soon as possible. Note that the total amount of short-payments has been reduced by the application of $800 million from CRR Auction revenue funds held by ERCOT, as authorized under the authority granted to ERCOT by Commission order on February 21, 2021, in Project No. 51812," ERCOT said in the notice

"Per Protocol Section 9.19, ERCOT will deduct any applicable ERCOT Administrative fees, payments for Reliability-Must-Run (RMR) services, and the CRR Balancing Account from the amount received, and then reduce payments to all Invoice recipients that are owed monies. The reductions will be made on a pro rata basis of monies owed to each ERCOT creditor for this Invoice to the extent necessary to clear ERCOT's accounts on the payment date to ensure revenue neutrality for ERCOT," ERCOT said in the notice

ERCOT in the notice provided the following details:

Invoice Payout Date: February 26, 2021

Operating Dates: DAM 2/18/2021 through 2/21/2021; RTM Initial 2/15/2021 through 2/18/2021; RTM Final 12/27/2020 through 12/30/2020; RTM True-Up 08/24/2020 through 8/27/2020

Total Amount Short Paid: $2,116,581,108.43

Application of CRR Auction Revenue Funds: $800,000,000.00

Net Amount Short Paid: $1,316,581,108.43

Total Amount Paid Out to Market: $12,554,389,666.81

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