Brazos Bankruptcy

The Gist Due to a mix of planned and forced outages during Winter Storm Uri Brazos Electric Co-op had essentially no generators operating during much of the $9000/MWh pricing, resulting in essentially $2B of charges from ERCOT.  Brazos declared bankruptcy and the matter is currently in court. Important Actions 3/3/22 ERCOT and Brazos agree to…

NPRR1088 Reduce Credit Requirements for Traders

The Gist NPRR1088 would adjust credit/collateral requirements.  A little background first.  The current (extremely complicated) calculations used to determine the collateral required to participate in the ERCOT market include Forward Adjustment Factors that are the average North Hub price in ICE for the next three weeks divided by the recent average price of the North…

Securitization N

The Gist Securitization N is a term used to describe a set of payouts and charges designed to lessen the economic impact of certain charges that were assessed to Load Serving Entities (LSEs) during Winter Storm Uri.  House Bill 4492 amended (among other things) Subchapter N of section 39, utilities code, to allow ERCOT to…

Securitization M

The Gist Securitization M is a term used to describe a set of payouts and charges designed to lessen the economic impact of the defaults of competitive (i.e. non public power) entities on their ERCOT invoices during Winter Storm Uri.  House Bill 4492 amended (among other things) Subchapter M of section 39, utilities code, to…

NPRR1124 Allow Full Fuel Cost Recovery for RUC’d Units

The Gist Prior to NPRR1124 the maximum amount that resources receiving Reliabiity Unit Commitment (RUC) instructions were allowed to recover for start up and minimum energy was capped by the fuel index price (FIP) times a multiplier.  This NPRR would allow the operator of a RUC’d resource with gas costs over the FIP/multiplier determined cap…

NPRR1108 Eliminates automatic approval for 45+ day in advance outage requests

The Gist NPRR1108 implements section 13(f) of Senate Bill 3 that states “The independent organization certified under Section 39.151 for the ERCOT power region shall review, coordinate, and approve or deny requests by providers of electric generation service described by Subsection (a) for a planned power outage during any season and for any period of…