NPRR1018  Clarifications Regarding ERCOT Suspension or Termination of a QSE and Participation by a Virtual or Emergency QSE

This Nodal Protocol Revision Request (NPRR) clarifies several provisions regarding termination and suspension of a QSE and the ability of a Load Serving Entity (LSE) or Resource Entity to act as a “Virtual QSE” or “Emergency QSE”. The proposed revisions include: • Clarifying that the prohibition against an LSE or Resource Entity acting as an Emergency QSE applies when the LSE’s or Resource Entity’s QSE has been terminated or suspended. • A revised definition for “Virtual QSE” that better describes its function and how it is designated. • Aligning paragraph (2) of Section 16.2.6.1 with paragaraph (3) by adding “and operate as an Emergency QSE as described below” to item (b) (i.e., satisfying all necessary creditworthiness requirements for QSEs). • Clarifying that the ability of an LSE or Resource Entity to be designated as a Virtual QSE applies where ERCOT has given Notice of the LSE’s or Resource Entity’s QSE’s termination or suspension. • Aligning paragraphs (3)(b) and (4) of Section 16.2.6.1 with paragraph (2) of Section 16.2.5 by clarifying that the option to become an Emergency QSE does not apply to an LSE or Resource Entity that is the same Entity as a terminated or suspended QSE. • Clarifying that the cure period for a “QSE Affiliation Breach” as set forth in the Standard Form Market Participant Agreement applies before ERCOT shall, after notice as specified in Retail Market Guide Section 7.11, Transition Process, initiate a Mass Transition of an LSE’s Electronic Service Identifiers (ESI IDs) pursuant to Section 15.1.3, Transition Process. • Clarifying that an Emergency QSE or Virtual QSE that is a Resource Entity is not limited to being a buyer in energy, capacity or Ancillary Service trades or to submitting Day-Ahead Market (DAM) Energy Bids, but may only submit transactions that are wholly provided by the Resource Entity’s Resource(s).