▶️ 3 - Technical Advisory Committee TAC Update Eric Blakey
TAC approved several protocol changes including NPRR1180 (inclusion of forecasted load in planning analysis) and NPRR1247 (incorporation of congestion cost savings test in the economic evaluation of transmission projects).
There was a discussion about ERCOT board and stakeholder engagement over the past year and steps to increase stakeholder communications with PUC and ERCOT.
PUC staff is now attending the TAC meetings, and more information is included in TAC reports for revision requests.
ERCOT Board Chairman Bill Flores attended the meeting, expressed appreciation for stakeholder input and intends to attend TAC meetings more often.
The ERCOT Board has started a process to get to know each TAC member to better understand their needs and improve the protocol process.
▶️ 3.1 - Review concept of Annual Settlement Trigger related to NPRR1190, High Dispatch Limit Override Provision for Increased Load Serving Entity Costs
The proposal was approved and first brought to TAC, then to the Board, but was tabled in August and remanded to TAC in October 2023.
Bill Barnes proposed new language to address consumer concerns about potential dramatic increases in HDL override payments.
The proposed language includes an annual settlement trigger for HDL override payments exceeding $10 million, prompting a review by ERCOT of operational costs and reliability, as well as financial loss criteria.
The $10 million trigger was set high, based on historical data and specific events like URI, to signify an exceptional event.
The usual amount of HDL override payments is typically under $1 million, and the trigger amount is considered a low threshold in the larger market context.
Stakeholders are encouraged to review the proposal and provide feedback at an upcoming WMWG meeting scheduled for December 10th.
There was support for referring the proposal to WWG for further discussion, and appreciation was expressed for the continued effort to move the proposal forward.
Motion to request PRS continue to table NPRR1256 for further review by the WMWG added to the combo ballot.
NPRR1256 addresses the settlement of Must-Run Alternatives (MRA) of Energy Storage Resources (ESRs), focusing on the absence of fuel costs but inclusion of charging costs.
Protocols do not currently allow settling ESRs as MRAs, necessitating changes for alignment with past RFP methodologies.
Compensation for MRAs involves standby, deployment, and variable payments using the same structure as for other resources like generation and demand response.
Concerns raised about how duration components and testing determine qualified capacity for MRAs, and how deployment impacts are reflected in pricing.
Discussion surfaced around testing methodologies for storage resource capacities, with a suggestion to bring in experts from the testing group.
The NPRR1256 was tabled and recommended for further examination by the WMWG due to unresolved discussions on pricing impacts and testing procedures.
Clarification sought on whether MRAs would have the same pricing impacts as RMRs and considerations for how these are captured in system protocols.
General agreement on the need for more comprehensive discussion and analysis, with plans to bring up these points in upcoming working group meetings.
▶️ 6 - Revision Requests Tabled at PRS and Referred to WMS - Possible Vote - Eric Blakey
▶️ 6.1 - NPRR1070, Planning Criteria for GTC Exit Solutions
NPRR1070 is under review, awaiting ROS language.
The item was referred by PRS to both WMS and ROS for feedback.
Eric Goff provided comments recently, bringing the market monitor up to speed.
Joint commenters filed comments on PGRR119, related to NPRR1070.
Efforts are underway to revise and simplify NPRR1070, removing completed sections.
A preamble is being prepared to provide historical context and streamline future discussions.
Revised documents are expected before the next meeting.
▶️ 7 - Congestion Management Working Group - CMWG - Alex Miller
CMWG met on November 19th with discussions on several heavy topics.
Update on CRR long-term option solutions which include administrative guardrails to avoid delays in market operations and auction limits.
NPRR1261 addresses operational flexibility for CRR auction limits to avoid conservative limits and allow more stakeholder flexibility.
TAC approved reducing the limit to 3000 per CRR account holder, effective from the recent auction in November, to assist in reducing large numbers of bids.
Market redesign study is ongoing for moving the multi-month product; preliminary results are promising.
Exploration of options to reduce participation by working with vendors on a pricing report for transparency.
Development of a new time-of-use product covering the solar peak period, expected for discussion in January.
Stakeholders requested additional details on auction solution times and hardware performance improvements, to be discussed in the next meeting.
NPRR1230 methodology discussion for setting transmission shadow price caps with periodic updates to stakeholders.
Recent event analysis showed temporary high peak shadow prices preventing flow violations and was successful.
ERCOT provided a counterfactual analysis proving the necessity of higher shadow price caps in specific situations.
▶️ 7.1 - NPRR1214, Reliability Deployment Price Adder Fix to Provide Locational Price Signals, Reduce Uplift and Risk - CMWG - Possible Vote
ERCOT staff and sponsors are working on language revisions for NPRR1214, including data source changes from metering to telemetry.
Additional sections are needed to incorporate the locational adder, with a minor change to restore an item moved to post RTC.
Discussion to continue as new comments from sponsors are expected.
Review of parking lot items assigned to CMWG, one being increasing transparency on GTCs and curtailments, with a consensus to keep it after slight name adjustments.
Recommendation to remove the item on creating smaller load zones for aggregation due to lack of sponsor, interest, and ongoing changes.
Concerns were raised about the complexity and impact on retail markets if load zones increase materially.
Discussion on the need for a valley load zone, opposed by some due to lack of large flexible loads.
CMWG suggested keeping the first parking lot item and removing the second with agreement from the stakeholders.
Planned revisit of NPRR1214 discussion in December, post reception of additional comments.
Ppending comments for NPRR1214 to be shared shortly, with a focus on administrative settlement point expansions.
Agreement to update the agenda for further discussion of the points raised.
▶️ 8 - Demand Side Working Group - DSWG - Mark Patterson
The meeting was held on November 18 without the chair or vice chair present.
Key issue discussed was changes in RIOO related to load resources.
Updates made include shortening the modeling timeline for load resources from 45 days to 30 days.
Created documentation to aid market participants in RIOO registration, available on ERCOT's website.
Updated on NPRRs, specifically NPRR1226 (demand response monitor) and NPRR1253 (forecast/estimate 4CP interval).
Comments for NPRRs in stakeholder process for over three months, with PRS comments planned for next week.
NPRR1260 mentioned as a cleanup of protocol language rolled out in June.
Discussion on NPRR1253 comments filed yesterday, with substantive changes expected next week.
David Detelich asked a question related to load forecast and ESR charge; Blake Holt responded with a planned meeting on December 10 with Sam Morris for further discussion.
Leadership update: Karan Sudhu from RWE Renewables is anticipated to become the chair for 2025.
No December meeting is scheduled.
Leadership roles will be voted on in February.
▶️ 11.1 - NPRR1251, Updated FFSS Fuel Replacement Costs Recovery Process - RCWG - Possible Vote
Motion to endorse NPRR1251 as revised by WMS added to the combo ballot.
ERCOT presented new language allowing Qualified Scheduling Entities (QSEs) to restock either from existing inventories or through new fuel purchases.
The recovery costs can be documented based on new fuel purchases within 30 days post-approval or the price index of fuel oil on the operation day plus a transportation cost adjustment.
RCWG supports the proposed language and recommends approval.
A minor textual change was proposed for clarity, changing 'deployment' to 'each deployment' for consistency.
The current discussion included approval of desktop edits without additional comments from other groups.
▶️ 11.2 - VCMRR042, SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations - RCWG - Possible Vote
Motion to recommend approval of VCMRR042 as amended by the 11/11/24 Luminant comments added to the combo ballot.
Luminant proposed using annual index prices for SO2 and seasonal index prices for NOx, particularly from April through August for the ozone season.
ERCOT will calculate monthly averages using index prices from the first 15 days of the prior month.
A gray box feature was added for future use of daily index prices when ERCOT systems are automated.
RCWG supports Luminant's November 11th comments and recommends approval.
Discussion on adding the item to the combo ballot without a formal motion.
Eric noted necessary system changes and a future impact analysis but mentioned current manual processes will continue.
▶️ 12 - Wholesale Market Working Group - WMWG - Blake Holt
Discussion on CARD allocation proposals with no consensus on a single proposal.
Multiple proposals considered from IMM, City of Georgetown, and Luminant, with City of Georgetown suggesting a system-wide allocation.
Acknowledgment of the work put into proposals; this is a preliminary step before the formal protocol process.
Agreement to proceed with a straw poll instead of a formal vote to avoid triggering ERCOT requirements.
Need for ERCOT's input on the best implementation solution before voting.
Concerns over the impact of zonal allocation and the potential distortion of price signals in different regions.
Discussion on the need for further analysis by ERCOT to understand the price impacts of different proposals, particularly on the West zone.
Recommendation for a system-wide allocation instead of zonal to avoid price distortions.
Acknowledgment that continued zonal allocations could result in distortions in west zone pricing.
A general acknowledgment that while people have preferences, more analysis is needed before any vote.
Discussion of other proposals and their potential unintended consequences and complexities.
Decision to revisit the issue at a WMS or WMWG meeting with additional analysis and more data requested.
▶️ 12.2 - NPRR1202, Refundable Deposits for Large Load Interconnection Studies - WMWG - Possible Vote
Discussion on NPRR1202 has concluded and it can be removed from the list.
Other items are to remain on the list for further action.
▶️ 12.3 - NPRR1229, Real-Time Constraint Management Plan Energy Payment - WMWG - Possible Vote
STEC provided new comments on November 4th, based on ERCOT and WMWG feedback.
Proposed changes included reducing the maximum days for payments, setting a cost cap of 500,000, altering recovery provisions, and disqualifying certain resources from fund recovery.
ERCOT agreed that these comments addressed many concerns, though further language adjustments were needed.
Eric Goff requested clarification on the alignment of NPRR1229 with NPRR1190's proposed resolution.
Discussion is expected to continue in the next meeting on the 10th.
▶️ 12.4 - NPRR1238, Voluntary Registration of Loads with Curtailable Load Capabilities - WMWG - Possible Vote
Luminant comments filed 12.03.24
▶️ 12.5 - NPRR1241, Firm Fuel Supply Service FFSS Availability and Hourly Standby Fee - WMWG - Possible Vote
Comments have been filed on NPRR1241 and will be discussed in the next WMW meeting.
Addressed open action items from CMWG and WMWG, emphasizing the importance of updates and efficiency.
Katie complimented the format of the agenda and expressed hope for its continuation in the following year.
Recognition of Eric's leadership as the WMS chair over the last two years, highlighting his dedication to understanding the wholesale market.
Acknowledged the contributions of individuals and support services; special thanks to Brittany, Susie, Pamela, Matt, Dave, and Jim for their assistance.
Expressed gratitude for the opportunity to chair the group and optimism for its future success.
Point of order raised regarding committee procedural rules about chair membership.
