Common use of Exhibit E: TRE Funding Clause in Contracts

Exhibit E: TRE Funding. 254. Exhibit E to the TRE Delegation Agreement adopts the pro forma Exhibit E, subject to deviations. Specifically, the TRE Exhibit E provides that: (i) either ERCOT or TRE, not NERC, be given the responsibility for submitting invoices;143 (ii) NERC will be required to fund TRE’s statutory costs on a quarterly basis, within two business days after receipt of the remittance;144 and (iii) NERC will fund TRE’s statutory costs based on TRE’s approved annual budget.145 255. We accept Exhibit E of the TRE Delegation Agreement. We also identify modifications to be addressed by NERC and TRE. In the ERO Certification Order, the Commission approved XXXX’s proposal to delegate billing and collection functions to Regional Entities.146 However, the Commission required that appropriate safeguards be adopted in the delegation agreement to ensure that: (i) the Regional Entity will transfer the money it collects to NERC in a timely manner; and (ii) the Regional Entity will not use its position as a billing and collection agent to unduly influence NERC’s decisions. The TRE Exhibit E does not address these required safeguards. Accordingly, we direct NERC and TRE to address this matter.