Fri 03/05/2021 17:28 PM
During a Technical Advisory Committee meeting today, Electric Reliability Council of Texas, or ERCOT, market credit director Mark Ruane stated that the current short-pay total due from market participants, excluding any “activity” on March 4, is $2.5 billion. Ruane said that the short-pay balance includes 16 entities, three of which are due to incorrect meter readings. He added that five of the 16 entities have since been acquired or terminated activity in the ERCOT market. Ruane pointed out that there could be additional defaults among the remaining entities. Continue reading as our Americas Core Credit team analyzes and reviews the Electric Reliability Council of Texas short pay balance and Request a Trial for access to the linked documents as well as our analysis and reporting on hundreds of other stressed, distressed and performing credits.
Starting Monday, March 8, ERCOT will release a weekly market notice that identifies the names of short-paying entities that have paid previously identified short-pay amounts and provides an updated estimate of the aggregate outstanding short-pay amount.
Ruane also addressed the Brazos Electric Power Cooperative chapter 11 filing
. He noted that while ERCOT has seen “other bankruptcies that were prepackaged,” with Brazos “a lot more is up in the air.” Ruane said ERCOT did not have advance notice of the filing, and he did not have “any expectation” for how the bankruptcy estate would be disposed of.
You can watch the recording of the meeting HERE
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