Fee Verification for Nodal Settlement Handbook 2016
Understand the ERO fee verification process for the Nodal Settlement Handbook from April 2016, including details on the budget costs and responsibilities of entities involved in ensuring electricity reliability.
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ERO Fee Verification for the Nodal Settlement Handbook April 18, 2016
ERO Fee: 2016 Budget costs Electric Reliability Organization Authority (NERC) By certifying the North American Electric Reliability Corporation (NERC) as the Electric Reliability Organization (ERO), the Federal Energy Regulatory Commission (FERC) granted NERC s proposal to allocate its annual reliability program costs among load serving entities on the basis of net energy for load (NEL). The Federal Power Act requires that FERC s certification of NERC include establishment of rules allowing for allocation of fees and charges to end-users. NERC Budget (filed annually with FERC): $9,560,448 for FY2016 (Search FERC website for Filing of NERC YYYY Business Plan and Budget) Texas Regional Entity (TRE) is authorized by its Delegation Agreement with the North American Electric Reliability Corporation (NERC) to develop, monitor, assess, and enforce compliance with NERC Reliability Standards, in the ERCOT region TRE Budget approved annually by NERC: $4,416,501 for FY2016 (Search TRE website for final budget accepted by NERC) TOTAL 2016 charge to NEL: $13,976,949 2
Net Energy for Load mis.ercot.com/pps/tibco/mis/Pages/Market+Information/Data+Aggregation Load cuts are from two years prior. This decision was made at market open to reduce the likelihood of significant adjustment to the load cut. So, 2016 for example, uses the AML from 2014. The AML is the only disputable portion of the calculation. It should be verified for the year as soon as ERCOT publishes: EMIL ID EMIL Name Content Frequency Traceability Annual report for total adjusted meter load by LSE that includes total aml for ercot and inactive LSEs. Chron - Annually; Quarterly ERO Fee Assessment & Collection Guide 3.2 NP1.1(2)(a) NP12.3(b) ERO Fee Assessment LSE Share Report COMS-805-M 6/7/2025 3
Calculation of EROF EROFq = LOADq * (NERCC + NERCC ADJ) LOADt DETERMINANT Unit Definition Determinant or Source EROFq $ Market Participant s quarterly share of the next fiscal year s NERC charges 2016 Texas Regional Entity Budget and NERC Filing on FERC website Total Budget$ for the Quarter of Next Fiscal Year The total NERC charges for the next fiscal year (as shown on NERC website, as it may differ from TRE proposed budget) Budget $ $ The total NERC charges for the appropriate quarter of the next fiscal year NERCC The total Load Obligation (including: (i) distribution losses, (ii) transmission losses and Unaccounted for Energy and excluding: (i) Direct Current (DC) Tie exports and (ii) Load represented by LSEs no longer transacting in the ERCOT Market) of all LSEs represented by the REP or QSE for the calendar year (or part thereof) prior to the year in which ERCOT performs the calculation, at the time that ERCOT performs the calculation. (Only that Load for which MP is the LSE) On first invoice ERCOT uses LTOTQSE, divided by 4. MWh LOADq LREPUFE or LTOTQSE The total Load Obligation (including: (i) distribution losses, (ii) transmission losses and Unaccounted for Energy and excluding DC Tie exports) in the ERCOT Region for the calendar year prior to the year in which ERCOT performs the calculation, divided by 4. LTOTERCOT_4CP - DEF_LSES_NEL MWh LOADt q none quarterly $ When necessary, unpaid EROF amounts from a previous period. NERCCADJ Provided by ERCOT Total ERCOT CY Load - most recent settlement LTOTERCOT_4CP LTOTERCOT_4CP Provided by ERCOT for the verification of Net Energy for Load. DEF_LSES_NEL MWh Prior year total of NEL for REP's no longer transacting in the ERCOT market Load Ratio Share none VERIFY and DISPUTE within 15 days after ERCOT posts AML (NEL) for Calendar Year 5
Invoice posts on MIS (Market Notice notifies when posted) mis.ercot.com/pps/tibco/mis/Pages/Reports/Reports ERCOT must pay NERC the quarterly NERC charges on January 1st, April 1st, July 1st and October 1st. ERCOT s Finance Department will issue to QSEs (via email) four EROF Invoices each year, issuing each invoice no less than thirty calendar days prior to the date on which ERCOT must pay NERC the quarterly NERC charges. ERO Fee Invoices Market Participants before: December 1 (Q1) March 1 (Q2) June 1 (Q3) September 1 (Q4) The EROF Invoices shall be due and payable within ten calendar days of the date on which ERCOT issues the invoice. 6/7/2025 6
EROF User Guide and Data Transparency TAC maintains the guide www.ercot.com/services/mdt/userguides/ERO Fee Guide V1 Data Transparency EMIL ID EMIL Name Content Frequency Traceability ERO Fee Assessment LSE Share Report Annual report for total adjusted meter load by LSE that includes total aml for ercot and inactive LSEs. ERO Fee Assessment & Collection Guide 3.2 NP1.1(2)(a) NP12.3(b) Chron - Annually; Quarterly COMS-805-M 11/12/2013 7
