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Under Proposed Settlement Agreement With TPUC Staff, Rainbow Energy Marketing Corporation Agrees To Pay $475,000
Rainbow Energy Marketing Corporation (REMC) under proposed settlement with Texas Public Utility Commission (TPUC) agrees to pay $475,000 to resolve alleged violations 16 Texas Administrative Code (TAC) § 25.503(e)(2), related to ethical standards of market participants
Excerpts from Proposed Settlement Agreement:
“During the 38-month period between June 2017 and July 2020, REMC scheduled uneconomic DC tie exports during the peak intervals of 19 separate months, collecting substantial CARD revenue and CRRBA surpluses in the process.”
“REMC was aware of the above-described flaw in the CARD and CRRBA allocation methodologies as early as September 2017, yet despite its awareness, routinely exploited the flawed methodologies and scheduled uneconomic DC tie exports to non-ERCOT regions during predicted peak intervals prior to, and even after ERCOT, issued notice of the flaw in the CARD and CRRBA methodologies.”
“REMC has ceased, and will continue to refrain from, scheduling uneconomic DC tie load exports during peak intervals.”
“This agreement represents a compromise of claims and allegations, and the execution of this agreement does not admit the truth or accuracy of any such disputed claims.”
Staff alleges that REMC violated 16 TAC § 25.503(e) by scheduling direct current (DC) tie load exports in a manner inconsistent with ERCOT procedures to support the efficient and reliable operation of the ERCOT electric system.
Under 16 TAC § 25.503(c)(2), “efficient operation of the market” is defined as operation of the markets administered by ERCOT, consistent with reliability standards, that is characterized by the fullest use of competitive auctions to procure ancillary services, minimal cost socialization, and the most economical utilization of resources, subject to necessary operational and other constraints.
Under 16 TAC § 25.503(e)(2), a market participant is expected to schedule, bid, and operate its resources in a manner consistent with ERCOT procedures to support the efficient and reliable operation of the ERCOT electric system.
As background in August 2020, the ERCOT board of directors approved NPRR 1030 which contained amendments to ERCOT Nodal Protocols § 4.4.4(17) prohibiting market participants from engaging in Direct Current (DC) tie export transactions that are reasonably expected to be uneconomic in consideration of all costs and revenues associated with the transaction, excluding Congestion Revenue Right (CRR) Auction Revenue Distribution (CARD) and CRR Balancing Account (CRRBA) allocations.
Settlement Agreement And Report To The Commission (06/11/2024)
56673 (06/11/2024)
(Settlement Agreement And Report To The Commission Regarding Rainbow Energy Marketing Corporation’s Violations Of 16 TAC § 25.503(E)(2), Related To Ethical Standards Of Market Participants)
