FERC last week granted SPP’s request to resettle past bills outside of the 365-day limit in its Tariff (ER16-636).
SPP asked to waive the time limit, citing software-design flaws and the commission’s timing in accepting previous Tariff changes. FERC said it granted SPP’s request because “the underlying error was made in good faith” and the fix caused no “undesirable consequences.”
The problem dates back to the launch of the RTO’s Integrated Marketplace in March 2014. SPP said between March 1 and May 2014, software and/or input errors forced it to recalculate LMPs and market clearing prices in the real-time balancing market. The RTO said a second software error affected settlements for 15 operating days in 2014, and a third error resulted in it undercharging market participants for reliability unit commitment make-whole payment distribution charges.
SPP said some of the errors were discovered more than a year after the operating day. The RTO said software developers could not correct the design flaws in time to adjust all the required market settlements within the 365-day window prescribed in Tariff Attachment AE.
All told, the resettlements represent more than $53,000 in underpayments or overpayments.
– Tom Kleckner
