ERCOT Files Interim Surcharge Request For Nodal Program


The Electric Reliability Council of Texas (ERCOT), grid operator for most of Texas, has filed a request with the Public Utility Commission for an interim nodal surcharge of $0.38 per MWh to support continued work on the nodal market implementation.

ERCOT announced in May that the nodal market would not be ready to launch by the Jan. 1 deadline set by the commission in 2006. ERCOT has continued to work on the program but does not plan to announce a new implementation schedule or budget – at the request of the commission – until completion of a commission-directed cost-benefit analysis update. The commission expects to receive the report by Dec. 18.

The ERCOT board of directors approved the interim surcharge request at its monthly meeting. The request would increase the nodal surcharge rate to $0.38 per MWh, from $0.17, representing a 75% revenue contribution to new nodal program expenses. Project expenditures currently average $12 million per month.

The nodal surcharge is assessed to energy schedulers who represent generation resources.

The ERCOT filing also asks the commission for permission to postpone the nodal debt repayment, which was scheduled to begin next year.

In addition, the vote to approve PRR 777 – wind-powered generation resource qualified scheduling entity metric correction – did not pass.

SOURCE: Electric Reliability Council of Texas

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