NPRR596  External Load Serving Entities

This Nodal Protocol Revision Request (NPRR) proposes the creation of a new type of Load Serving Entity (LSE) called an "External Load Serving Entity" (ELSE). The addition of this new LSE type is intended to ensure appropriate Settlement treatment of consumption by Customers who are physically connected to the ERCOT System through a Transmission and/or Distribution Service Provider (TDSP) point of interconnection but are located in an electric utility’s, Municipally Owned Utility’s (MOU’s), or Electric Cooperative’s (EC’s) service area in which that electric utility, MOU or EC has the exclusive right to serve the Customer and does not own or operate any Facilities connected to the ERCOT System. The NPRR will correct past instances in which Entities did not meet the Protocol definition of LSE and therefore created alignment issues in properly accounting for the Load of certain Customers, but will also address new situations in which Generation Resources connect to Competitive Renewable Energy Zone transmission lines and the location of the Resource Entity’s asset is physically located in an electric utility’s, MOU’s or EC’s service area in which that electric utility, MOU or EC does not own or operate any Facilities connected to the ERCOT System. The NPRR is also meant to establish the Comision Federal de Electricidad (CFE) as an ELSE since AEP Energy Partners, Inc. has been authorized to serve Customers in El Mulato, Mexico using ERCOT Generation Resources.