Texas QSE To Pay $130,000 Under Settlement With PUC Staff -- EnergyChoiceMatters.com

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Texas QSE To Pay $130,000 Under Settlement With PUC Staff

July 28, 2023

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Reporting by Paul Ring • ring@energychoicematters.com

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Updated, 4:45 pm ET, 7/31

MP2 Energy provided the following statement concerning the matter:

MP2 Energy LLC takes its load responsibilities seriously. We appreciate working with the Public Utility Commission of Texas and have taken steps to address the items identified in the aforementioned settlement agreement.
--- Statement from MP2 Energy

7/28:

MP2 Energy, LLC would pay $130,000 under a settlement with Staff of the Public Utility Commission of Texas to resolve alleged violations ERCOT Nodal Protocols §§ 6.4.6(1), relating to resource status; 6.5.7.5(2), relating to ancillary services capacity monitor; and 8.1.1.3(3), relating to ancillary service capacity compliance criteria.

Among other things, the settlement states, on March 1, 2019, "During hour ending 8, ERCOT assigned a 215.2-megawatt (MW) responsive reserve service ancillary service supply responsibility to QMP2EN [a QSE operated by MP2]. QMP2EN assigned the supply responsibility to multiple load resources in its portfolio. At 07:00, the load resources responsible for QMP2EN’s RRS ancillary service supply responsibility were carrying only 188.9 MW of load, because seven load resources were carrying no load at all. Therefore, QMP2EN could not have provided the total required responsive reserve service capacity had its resources been dispatched. At 07:12, QMP2EN changed the resource status code for each of the seven load resources from ONRL to OUTL; but, QMP2EN did not reassign the RRS ancillary service resource responsibilities to other resources. This condition continued until the 08:00 SCED interval when QMP2EN’s RRS ancillary service supply responsibility decreased to 209.3 MW. Because QMP2EN assigned RRS ancillary service resource responsibility to load resources that were not carrying sufficient load at the beginning of the operating period, QMP2EN created a RRS ancillary service supply responsibility shortfall of 26.3 MW during hour ending 8."

Among other things, Staff alleges that, by not operating its load resources in a manner consistent with its ancillary service obligations, MP2 Energy violated ERCOT Nodal Protocols § 6.5.7.5(2)

For March 1, 2019, MP2 Energy asserts that MP2 Energy’s QSE met 88% of its performance obligation by providing 188.9 MWs of its 215.2 MW RRS obligation.

The settlement states, for March 25, 2019, for similar reasons to those described above, "Because QMP2EN assigned RRS ancillary service resource responsibility to load resources that were not carrying sufficient load at the beginning of the operating period, QMP2EN created a RRS ancillary service supply responsibility shortfall of between 10 and 10.5 MW during hours ending 13, 14, and 15."

For March 25, 2019, Staff alleges that by not operating its load resources in a manner consistent with its ancillary service obligations, MP2 Energy violated ERCOT Nodal Protocols § 6.5.7.5(2). Staff alleges that by not correcting the inaccurate telemetry of its ancillary service resource responsibility within ten minutes, MP2 Energy violated ERCOT Nodal Protocols § 8.1.1.3(3).

For March 25, 2019, MP2 Energy asserts that MP2 Energy’s QSE met 95% of its performance obligation by providing 215.7 MWs of its 226.2 MW RRS obligation.

The settlement states, for March 27, 2019, for similar reasons to those described above, "Because QMP2EN assigned RRS ancillary service resource responsibility to load resources that were not carrying sufficient load at the beginning of the operating period, QMP2EN created a RRS ancillary service supply responsibility shortfall of 18.8 MW during hours ending 14 and 15."

For March 27, 2019, MP2 Energy asserts that MP2 Energy’s QSE met 90% of its performance obligation by providing 176.8 MW of its 195.6 MW RRS obligation.

The settlement states, for April 3, 2019, "Because QMP2EN assigned RRS ancillary service resource responsibility to load resources that were not carrying sufficient load at the beginning of the operating period, QMP2EN created a RRS ancillary service supply responsibility shortfall of between 10.3 and 11.1 MW during hours ending 5, 6, 7, 8, and 9."

For April 3, 2019, MP2 Energy asserts that MP2 Energy’s QSE met 96% of its performance obligation by providing 248.6 MW of its 259.7 MW RRS obligation.

The settlement states, for April 5, 2019, for similar reasons to those described above, "Because QMP2EN assigned RRS ancillary service resource responsibility to load resources that were not carrying sufficient load at the beginning of the operating period, QMP2EN created a RRS ancillary service supply responsibility shortfall of 24.5 MW during hour ending 8."

For April 5, 2019, MP2 Energy asserts that MP2 Energy’s QSE met 90% of its performance obligation by providing 213.5 MW of its 238.0 MW RRS obligation.

The settlement states that, "MP2 Energy asserts that the alleged violations occurred in 2019 and MP2 Energy has proactively taken steps to develop a compliance program."

The settlement states that, "MP2 Energy asserts that since 2019, it has added personnel with extensive experience in retail electricity in ERCOT and expanded it [sic] regulatory and compliance department."

The settlement states, "This agreement represents a compromise of claims and allegations, and, unless explicitly stated, the execution of this agreement does not admit the truth or accuracy of any such disputed claims."

Docket 55289

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