Riot

In February 2021 and throughout 2022, Riot voluntarily reduced their operations and curtailed their energy consumption to allow their energy provider to redirect their power allotment back into the Electric Reliability Council of Texas (“ERCOT”) market during extreme weather events.

 

By taking such actions, they immediately helped to stabilize the grid by allowing their power allotment to be delivered to the areas of greatest need, such as heating homes and powering hospitals.

 

Overall, their operations incentivize new power generation development and their actions help to reduce the frequency and impact of power failures and electricity price surges. In exchange for powering down their systems in response to high electricity demand, they receive benefits associated with the difference between their contractual cost of power and the price at which such power is sold on the ERCOT market (less any applicable fees payable to their consultants who assist with their participation in the ERCOT Demand Response Services Program).

 

Additionally, they voluntarily participate in load response programs operated by
ERCOT, whereby they temporarily give ERCOT the right to curtail a set portion of their power load at their discretion in exchange for a fee. Ultimately, these benefits are shared between them, other consumers participating in the ERCOT market, and the overall health of the Texas grid.