Aspire Commodities, LLC filed a Motion for Summary Judgment with the Texas PUC seeking a decision directing ERCOT to reprice the 14:50 May 30, 2019 SCED interval, as Aspire Commodities, in a complaint filed with the PUC, alleged that the ERCOT Protocols require such re-pricing

As previously reported, Aspire has alleged that the event which led to the spike, a Qualified Scheduling Entity (Calpine) wrongly setting the HSL and LSL levels for certain generation it represented at 0, does not reflect a valid market solution. The input error led prices for the interval to reach $9,000 per MWh. ERCOT issued a market notice on May 30, 2019 stating that it would not be performing a price correction for interval 14:50. See more background here

As previously reported, ERCOT says that the Protocols do not require such re-pricing

In summarizing ERCOT's argument against re-pricing, Texas PUC Staff have said, "According to ERCOT, the 'ERCOT Protocols do not give express guidance on what constitutes an invalid market solution . . . .' Furthermore, ERCOT states that, although ERCOT Protocol 6.3(4)(a) provides that a 'data input error' may be a condition that results in an invalid market solution or prices, 'ERCOT has consistently interpreted this language as applying only to internal data input errors caused by ERCOT, and not to external data errors caused by ERCOT Market Participants.' ERCOT interprets 'data input error' language in this manner because ERCOT Protocols require that ERCOT to use a Market Participant's telemetered data in SCED. Furthermore, ERCOT explains that ERCOT Protocols require a QSE, like Calpine in this matter, is responsible for providing ERCOT with accurate telemetry. Overall, ERCOT argues that since that data input error was external, the market solution for the 14:50 SCED interval was not determined to be invalid. Therefore, ERCOT should not be required to re-price the interval under ERCOT Protocol 6.3(4)."

As previously reported, Texas PUC Staff have said that the ERCOT Protocols do not require re-pricing of the May ERCOT price spike caused by the QSE input error

In the newly filed Motion for Summary Judgment, Aspire Commodities, LLC said, "The [ERCOT] Protocols require a price correction when the input of erroneous data into a market application leads to an invalid price or an invalid market solution, no matter if the data is input by ERCOT or a third party."

Aspire Commodities, LLC said, "In its defense against the Complaint, ERCOT attempts to avoid this responsibility by reading into the Protocols a requirement that a price correction is only required when a data input error is caused by a third party and not ERCOT itself."

Aspire Commodities, LLC alleged, "Not only does this language artificially limit the plain language meaning of the Protocols, it is an informally adopted interpretation, and it is an unreasonable one that does not fit within the Protocols."

Aspire Commodities, LLC alleged, "ERCOT's opposition is based on a tortured, appalling, and erroneous Clintonian 'It depends on the meaning of what 'is' is' approach to statutory interpretation. But thankfully, when presented with similar overreach by state agencies, both the Texas Supreme Court and the Public Utility Commission have held that when faced with a clear and unambiguous statute, an ad hoc, self-serving interpretation like ERCOT's must be overruled. Through its Complaint and this Motion for Summary Decision, this is the sole relief Aspire requests of this Court."

See more details in Aspire's motion here

Docket 49673

Tags:
ERCOT   Texas   Wholesale   Pricing  

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