Dave Maggio discusses the ADER Pilot Program which started in late 2022 and is currently in Phase 2, with discussions ongoing about moving to Phase 3.
Three ADERs are actively participating and have been growing in size.
An additional 8 ADERs have been approved and are in various stages of registration.
The total capacity includes over 25 MW for energy, 11 MW for non-spin, and 8.8 MW for ECRS.
Phase 3 proposes moving ADERs to a participation model similar to non-controllable resources to facilitate smoother integration.
There was a recommendation to allow third-party aggregators to participate when individual premises exceed 100 kW, creating a compromise between increased competition and consumer protection.
The pilot participation limit is proposed to be doubled from 80 MW to 160 MW for energy and from 40 MW to 80 MW for ancillary services.
Two non-consensus items were identified: direct participation of third-party aggregators and flexibility in pilot limits.
Discussions around the governance document have highlighted consumer protection concerns and the implications for the load-serving entities.
Stakeholders, including TAC, are considering where discussions and decisions regarding the ADER pilot should reside within the broader ERCOT stakeholder process.
The proposed changes and discussions will be moved to WMS for further discussions and resolutions.
The ADER governance document with proposed changes will be shared with stakeholders for review.
NPRR1241: Falls under general system process improvement with no impact. ERCOT supports approval with a positive market impact statement. No credit impacts. IMM supports it.
VCMRR042: Aligns with strategic plan objective two, with a 90k to 120k impact. ERCOT supports approval with a positive market impact statement. IMM supports it.
NPRR1190: Tabled for TAC review; involves general system process improvements with no impact. ERCOT supports it, but is revisiting their opinion based on comments. A finalized position is expected in one to two weeks.
IMM Feedback: Supports more granular, accurate pricing for emissions costs in verifiable cost calculation. Supports the move away from a knife-edge approach to clawback reflecting noncompliance extent.
Motion to recommend approval of NPRR1190 as recommended by TAC in the 6/24/24 TAC Report as amended by the 2/26/25 ERCOT comments passed with 26 ayes, 4 nays, and no abstentions.
Reliant, ERCOT, and residential consumers filed comments regarding NPRR1190.
Reliant proposed an annual settlement cost trigger of $10 million to prompt a review if exceeded.
WMS discussions revealed mixed support for the proposal; however, some stakeholders are fundamentally opposed.
ERCOT filed comments suggesting the $10 million threshold may be too high and proposed lowering it.
Residential consumers expressed opposition based on underlying policy concerns, but acknowledged the stakeholder efforts.
The TAC voted on compromise, with most votes favoring approval, despite some opposition from consumer representatives.
The motion was passed and will be recommended to the April board, with a need for further discussion of the underlying principles.
▶️7.2 - NOGRR264, Related to NPRR1235, Dispatchable Reliability Reserve Service as a Stand-Alone Ancillary Service
NOGRR264 is currently tabled, pending NPRR1235 developments.
A workshop related to the items is scheduled for the following day.
Blake Holt provided highlights from the February 5 meeting.
Focus on transitioning goals to align with the TAC approach of strategic objectives.
Further discussions on strategic objectives planned for the next meeting.
A solution was reached after numerous discussions.
▶️10.1 - VCMRR042, SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations
Motion to recommend approval of VCMRR042 as recommended by WMS in the 2/5/25 WMS Report added to the combo ballot.
VCMRR042 introduces seasonal pricing for NOx emissions during May through September and retains annual index prices for SO2 throughout the year.
The item was forwarded to TAC for a vote.
Clarification was made that SO2 applies every month while NOx only applies during the summer.
WMS recommended approval of VCMRR042, integrating these costs into the marginal cost of burning fuel.
Related items discussed include PGRR028, which extends guidelines for loss compensation to include limiting reactors, NPRR1256 introducing ESRs as must-run alternatives, and NPRR1200 was withdrawn.
NPRR1238 is still being discussed by ROS, but market-related discussions have concluded.
NPRR1202 introduces refundable deposits and fees for large load interconnections; ERCOT is considering incorporating these into NPRR1234.
Preview of RTC+B was mentioned during PRS, highlighting a detailed discussion about the timeline towards the April board for implementation.
Emphasis on the importance of upcoming meetings: RTC+B next week, PRS the following, and March TAC two weeks later, targeting April board approval for timely go-live implementation.
Detailed presentation on NPRR1268 and NPRR1269, with additional discussion planned if needed.
Introduction of a new sandbox testing area for vendors, IT shops, and market participants, with real-time trials planned for May.
Discussion of integration and impact of various NPRRs, especially NPRR1268, NPRR1269, NPRR1270, on the ERCOT systems, emphasizing no interface perspective changes.
Resolution of 3 key policy issues: proxy offers, scaling factors, AS ramping with energy sharing, and implementation of AS demand curves in RUC.
Completed and pending handbooks for market trials discussed to ensure readiness with active task force management.
Detailed discourse on NPRR1268, discussing modified AS demand curves and clarifying comments from IMM and ERCOT.
Open discussion on NPRR1269 stating issues of AS proxy offers and the reduced risk due to elimination of automatic offers for some services.
Comments from various stakeholders such as TCPA, IMM, and others, about NPRR1268, NPRR1269, and the methods of prorating demand for reliable operations.
Reiteration of a coordinated approach between PRS and TASK leadership to strategize planning, with the possibility of additional meetings if necessary.
