Settlement Timeline
Driving Factors for Change
Availability of Actual IDR & NIDR Data Estimation Routines Credit Implications Length of time between Final & True-Up SCR 727 data transparency
IDR Data Availability
Non-IDR Data Availability
Percent of Actual Non-IDR Data from November 30, 2003 Batch Process
Initial (11/15/2003) - 15 days after Final (10/04/2003) - 57 days after Interim (04/23/2003) - 221 days after
100% 100% 100% 90% 80% 70% 60% 50% 40% 38% 30% 20% 10% 0% 0% CenterPoint ONCOR TNMP CPL WTU Sharyland Market 31% 36% 35% 35% 36% 99% 99% 99% 99% 99% 99% 98% 98% 99% 99%
82% 77%
Considerations with Timeline
Quality of data used in Settlements Time to submit disputes Reduced and more predictable schedules for resettlements Credit impact Payments/cash flow Impact to staffing Certainty on closing an operating day
Proposed Timeline
Data Extract Variance Process (75 Day resolution period)
Operating Day
Initial Settlement
Final Settlement
Scheduled Resettlement (if needed)
Interim Settlement
True-Up Settlement
Day 0
Day 10
Day 45
Day 90 Day 100 (Only run if granted timely dispute on final or granted dispute on initial meets threshold for Deadline for Dispute on Initial resettlement) or Final
Day 130
Day 180 (Only run if granted dispute from Interim)
10 Business Days
10 Business Days
20 Business Days
Timely Dispute Deadline
Dispute Deadline (includes Timely)
10 Business Days
Assumptions
IDR compliance for True-Ups (99% available) would be applied to the Interim Settlement Data Extract Variances (DEV) will be filed immediately after transactions flow or after the final settlement (10 calendar days to review data after final settlement and file a DEV) Market Participants (including ERCOT) will resolve DEV within 75 calendar days (to ensure corrected data available for Interim settlement) If a DEV is not resolved by the Interim Settlement, a dispute can be filed on the Interim settlement for the retail data issue No change to the current invoicing/payment schedules All settlement disputes must be tied to specific settlement statements for a given operating day and charge type Timely and granted disputes will be addressed at the next settlement run ERCOT will make reasonable attempts to resolve all disputes within ten (10) Business Days after the dispute filing deadline
Assumptions (continued)
Disputes on any settlement statement (other than initial) will be limited to incremental changes between the current statement and the previous statement (i.e. Disputes on a final statement can not be for charges that have not changed since the initial statement) Any dispute on an initial or final must be submitted by Day 100 at the latest to be valid A scheduled resettlement will be performed at 90 days only in the case where a granted timely dispute from a final or a granted dispute from an initial meets the threshold for resettlement (the greater of $100 or 2% of the charge type for the Market Participant) Disputes on interim settlement statements will be valid only if the dollar amount of the dispute is at least $100 True-Up Settlements would only be performed if there is a granted dispute from the Interim Settlement If a QSE is not satisfied with a Denied dispute, the QSE may proceed to Alternative Dispute Resolution (ADR) If after thirty (30) days, the QSE does not begin ADR, the dispute will be closed ERCOT will produce a dispute report to notify the Market of the nature and resolution of all disputes (type, dollar amount, dates, etc)
Benefits
Shortened timeframe for initial and final settlements will aid in cash flow for Market Participants
AS obligations will be determined on a more recent LRS than exists today (currently 3 week old LRS, proposed would be 2 week old LRS)
Timeline incorporates the Data Extract Variances to allow for time to correct underlying ESI ID data issues that impact the accuracy of the load settlement Proposed publication of dispute information will allow Market Participants to have knowledge regarding the outstanding days in dispute as it impacts their financial record keeping