Readers could have seen your ad here when reading this story. Email
       Events        Jobs        Contact        Migration Stats        Supplier Lists        Municipal Aggregation

SHOCK: Power Developer Sues ERCOT Over Allegedly "Misleading" CDR Report

March 23,2016

Panda Power Funds and various affiliates have filed a lawsuit against ERCOT over the Capacity, Demand, and Reserves report, as Panda Power Funds alleged that it relied on certain CDR reports in making generation investments, and further alleged that ERCOT engaged in negligent misrepresentation or "fraud" due to changes in the CDR reports

In the suit, Panda Power said that it, "relied on Defendant’s [ERCOT's] representations [in the CDR] to invest nearly $2.2 billion to build three power plants."

This stands in stark contrast to nearly every other generator in the ERCOT market who have assured the Public Utility Commission -- in opposing continuation of an energy-only market -- that no investor would invest based on the year-to-year changes in the CDR, since they are not guaranteed.

Indeed, Panda alleges in its suit that, "in an energy-only market like ERCOT, the CDRs or similar reports form the basis of investment analysis and drive the investment."

Panda in its suit takes aim at changes to the various methodologies used in the CDR, which led to a showing of a capacity shortfall turning into surplus in subsequent CDRs

Panda alleged, "only after [its] investments closed and the plants were substantially under construction, ERCOT published new CDRs using different data and a different methodology, one depicting a far different energy market."

"Information slowly surfaced showing that ERCOT’s methodology and data points used in the 2011 and 2012 CDRs were either seriously flawed or rigged," Panda alleged

Panda alleged ERCOT's actions with respect to the CDR amounted to negligent misrepresentation, fraud, and breach of duty

ERCOT provided the following statement:

"The lawsuit is based on a misunderstanding of the purpose of ERCOT's Capacity, Demand & Reserves (CDR) reports, how the reports are prepared in accordance with the methodology in the ERCOT Protocols, and the open and public stakeholder discussion ERCOT goes through before changing components of the CDR. ERCOT will vigorously defend its position when it responds to the lawsuit. "

Panda Power Funds provided the following statement:

"Out of respect for the court, Panda Power Funds does not comment on active litigation. Our position — as stated in Panda’s petition filed on February 29 and amended on March 15, 2016 in the state court of Grayson County, Texas — speaks for itself."

See the Panda complaint here

Initial complaint

Amended complaint

The case was filed in Grayson County, Texas district court, CV-16-0401

--Reporting By Paul Ring

ERCOT   Texas   Panda Power  

Comment on this story

NEW Jobs on
Sales-Analyst-Senior-Level -- Retail Supplier -- New York - New York City Metro
Sales-Quality-Training-Manager -- Other -- Pennsylvania
Regulatory-Compliance-Analyst -- Retail Supplier -- Connecticut
Business-Development-Manager -- Retail Supplier -- Texas - Houston
Business-Development-Manager -- Agent, Broker, Consultant -- New Jersey

More Stories on
Final Texas Electric Scope Of Competition Report Filed
ERCOT Posts Draft Coordination Plans With SPP, MISO
Energy Advisory Firm 5 Named to Entrepreneur 360 List of Top Companies in the U.S.
Crypto-Focused Grid+ Notes Bureaucratic Challenges Facing Its Retail Model, Updates On Testing
Texas Staff Outline Legal, Policy Issues On TDU Use, Ownership of Storage; Suggest Next Steps

comments powered by Disqus

Advertise here:

Events Jobs Contact Migration Stats Supplier Lists Municipal Aggregation

About Disclaimer Privacy Terms of Service


Developed by: Avidweb Technologies inc.