ERCOT Technical Advisory Committee Briefs: Sept. 19, 2024

Tom Kleckner | Source: RTO Insider | Posted 09/24/2024

Members Endorse Ancillary Services Methodology for 2025 ERCOT stakeholders have endorsed changes to the grid operator’s ancillary services methodology as part of the annual process to determine the minimum amount of products that will be procured in 2025. Staff’s proposed modifications, presented to the Technical Advisory Committee during its regular monthly meeting Sept. 19, include three revisions to ERCOT contingency reserve service (ECRS). ERCOT introduced ECRS last year, but it drew opposition from the Independent Market Monitor, which said the service produced “massive” inefficient market costs totaling more than $12 billion in 2023. (See ERCOT Board of Directors Briefs: Dec. 19, 2023.)


AI generated summary

ERCOT stakeholders have endorsed changes to the grid operator's ancillary services methodology for 2025, following proposed modifications including revisions to ERCOT contingency reserve service (ECRS) presented during the Technical Advisory Committee meeting. The changes are aimed at reducing inefficiencies and costs associated with ECRS, which drew opposition from the Independent Market Monitor in the past year. The Monitor is working on a report due by October for the Texas Legislature, with recommendations that could inform future methodology processes.

Staff proposals also include adjustments to non-spin, regulation service, and responsive reserve service, with a focus on optimizing procurement targets while maintaining reliability. Members discussed potential impacts of the upcoming transition to real-time co-optimization (RTC) on ancillary services procurement, with ERCOT's director of operations planning indicating that the fundamental operational risks driving service requirements will remain constant. The proposed changes to the ancillary services methodology for 2025 were supported by TAC members, with a few abstentions and one dissenting vote, and will now undergo review by ERCOT's Board of Directors and the Texas PUC.



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