The board of directors of the Electric Reliability Council of Texas (ERCOT), grid operator for most of the state, approved a budget that is not to exceed $658.7 million for the nodal market redesign and expanded the schedule with a go-live date of December 2010.
CEO Bob Kahn expressed his confidence in the new schedule and the changes that have been made since ERCOT announced last May that the nodal market would not be ready by the Public Utility Commission's (PUC) Jan. 1 target.
The board's actions are subject to approval from the PUC, which has regulatory oversight over ERCOT. PUC members indicated that they would address the schedule and nodal surcharge at the commission's Feb. 26 open meeting.
In January, the PUC authorized ERCOT to continue collecting the nodal surcharge of $0.169 per MWh through February. The nodal surcharge is assessed to generation resources.
Along with the budget, the board also approved a flat-fee funding option to recover the remaining nodal costs with a flat surcharge from January 2010 to December 2014. The amount of the flat rate is projected to be between $0.273 and $0.285 per MWh, depending on whether the commission authorizes a surcharge increase for the remainder of the year to $0.226 per MWh (the amount requested in a non-unanimous filing last month by ERCOT and others, including market participants and consumers).
SOURCE: Electric Reliability Council of Texas