ERCOT Settlement and Billing
Key Takeaway
How ERCOT settles wholesale transactions — two-settlement system, statement timelines, preliminary and final settlement, uplift charges, and how to read settlement statements.
Quick Answer
ERCOT settles wholesale transactions using a two-settlement system (DAM + RTM). Preliminary statements issue within 3 business days. Final statements at approximately 55 days. True-up adjustments up to 180 days.
Two-Settlement System
Generator payment = (DAM scheduled × DAM price) + (RTM deviation × RTM price) + ancillary service payments - charges. Load payment = (DAM scheduled × DAM price) + (RTM deviation × RTM price) + uplift + transmission charges.
Statement Timeline
- Preliminary — ~3 business days after operating day
- Final — ~55 days after operating day
- True-up — Up to 180 days for corrections
Statement Components
- Energy charges (DAM + RTM)
- Ancillary service charges and credits
- CRD settlements
- Uplift charges (out-of-merit dispatch socialized costs)
- Transmission charges
Uplift
Out-of-merit dispatch costs (reliability must-run, voltage support, congestion management beyond market clearing) are socialized across load-serving participants as uplift charges.
Frequently Asked Questions
DAM scheduled energy × DAM price, plus RTM deviation × RTM price, plus ancillary service payments, minus charges.
Costs from out-of-merit dispatch for reliability (voltage support, congestion management) that cannot be recovered through market prices, socialized across load-serving participants.
Preliminary ~3 days, final ~55 days, true-up adjustments up to 180 days.