Pace Global

Independent Power Generator Dispute with Power Purchaser

Clien Need
Client Need:
An independent gas-fired power generator located in the ERCOT region required expert services related to the operational and commercial value of its ancillary services as a result of a change in the ISO ruling for ancillary services.


Our Role
Our Role:
Pace Global provided expert witness support for arbitration challenging the ERCOT ISO’s change-of-market rules affecting ancillary services values. As part of the arbitration, Pace Global modeled the IPP’s full generating asset portfolio to determine the impact the rule had on the client’s gross margins. Pace Global provided detailed modeling of the ERCOT system and the value of ancillary services that the gas-fired generation portfolio could deliver, placing a damages estimate on the ISO rule change and justifying it as recoupable based on lack of consideration (i.e., efforts to get free-rider benefits in rule changes) by the power purchaser.


Results
Results:
A settlement was agreed to between the IPP and the Power Purchaser.
Pace Global