Corpus Christi manufacturing client switched to TXU Energy last year. New line item appeared: "Ancillary Services Recovery" at $0.004/kWh. This wasn't in the original contract. REP says it's a pass-through from ERCOT. Seems high compared to other Texas clients. Anyone familiar with this charge?
Texas ERCOT - mysterious "ancillary services" charges
Connie - ancillary services are real ERCOT charges but $0.004 seems excessive. Historical average is around $0.0015/kWh. Check your REP contract for language about "regulatory cost recovery" or similar clauses. They might be marking it up.
Jim's right about the markup. I found a Phoenix client being charged 3x the actual ancillary services cost. REP was pocketing the difference as profit. File complaint with Texas PUC if contract doesn't allow markup.
In deregulated markets, always verify pass-through charges against actual ISO/RTO tariffs. REPs commonly inflate these fees as hidden profit centers. Compare your ERCOT charges to the actual settlement data published monthly.