PUC had open meetings on June 27, July 11, and July 25.
On July 25, all revision requests were approved except for NPRR1224, which was rejected.
PUC directed ERCOT on operational course of action to start August 1 related to NPRR1224.
Jeff Billow provided an update on NPRR1224 rejection and expressed support for releasing ECRS when triggers described in NPRR1224 occur.
Real-time desk procedures updated with triggers from NPRR1224 to release ECRS with under gen of at least 40 MW for more than ten minutes, effective operating date tomorrow.
Bulletin sent regarding updated desk procedures, no market notice sent yet.
NPRR1232 has been withdrawn due to similar concerns with offer floor concept and stakeholder feedback.
IMM was agreeable to the withdrawal of NPRR1232.
4 - Review of Revision Request Summary/ERCOT Market Impact Statement/Opinions - Ann Boren/IMM
ERCOT sponsored all the revision requests this month and supports all of them.
Positive market impacts were identified for all the revision requests.
The CFSG reviewed all requests for credit impacts and found none.
The IMM supports NPRR1230 and NPRR1233
Jeff McDonald from IMM reaffirmed support for pulling the standing deployment NPRR and confirmed the support for two pending NPRRs, with no opinions on the rest.
5 - PRS Report - Vote - Diana Coleman
5.1 - NPRR1217, Remove VDI Requirement for Deployment and Recall of Load Resources and ERS Resources
Recommendation to approve NPRR1217 as advised by PRS in the 7/18 PRS report.
NPRR1217 added to combo ballot
5.2 - NPRR1219, Methodology Revisions and New Definitions for the Report on Capacity, Demand and Reserves in the ERCOT Region - CDR
A revised impact analysis was filed on Monday, with costs less than $20,000 absorbed by the O&M budget. Voted with 91% in favor, 8% opposed, and five abstentions.
Some concern from PRS members about the urgency of the vote and lack of notice given prior to the Webex meeting in July.
Specific concerns raised about using Effective Load Carrying Capability (ELCC) for renewable resources and its advisory role, not leading to mandated reserve margins.
Questions about why WMS didn’t vote on this NPRR before it was classified as urgent.
Need to implement changes by December 2024 for the CDR report, implying required TAC approval.
Concerns raised over the process being rushed and potential implications of changing the reporting methodology.
Comparison between the CDR and the broader reliability standard being established by the commission.
Potential confusion and differences in reliability metrics reported in the CDR versus the new reliability standard.
Discussion on the frequency of ELCC calculation and its potential inaccuracy if updated only every three years.
Plan to phase in the most consequential changes immediately while moving less urgent changes to a future NPRR.
Concerns about the potential policy implications of the CDR numbers if they conflict with new reliability standards.
5.3 - NPRR1227, Related to RMGRR181, Alignment of Defined Term Usage and Resolution of Inconsistencies
NPRR1227 will remain tabled.
The decision allows the RMGRR181 to catch up to NPRR1227.
5.4 - NPRR1231, FFSS Program Communication Improvements and Additional Clarifications
ERCOT introduced improvements and clarifications to the firm fuel supply service.
Cost for these improvements is less than $5000, which will be covered by the O&M budget.
No new project required for NPRR1231.
Current motion involves waiting for RMGRR181 for other NPRRs.
Recommendation to approve NPRR1231 as advised by PRS in the 7/18 PRS report.
NPRR1231 added to combo ballot.
5.5 - NPRR1233, Modification of Weatherization Inspection Fees on the ERCOT Fee Schedule
NPRR1233 was unanimously approved by PRS with no impact.
NPRR1233 added to combo ballot.
6 - Revision Requests Tabled at TAC (Possible Vote) Caitlin Smith
6.1 - NPRR1230, Methodology for Setting Transmission Shadow Price Caps for an IROL in SCED
Presentation by Gordon Drake on market-based mechanism analysis applied to selected 2023 operating days.
NPRR1230 aims to manage transmission flows via market mechanisms instead of manual control room interventions.
Objective to free control room operators from manual interventions and provide market transparency.
Proposal to increase shadow price caps for certain IROLs.
Analysis showed a range of potential market impacts, highlighting significant cost differences.
Discussion around methodology, including limitations, assumptions, and static vs. dynamic constraints.
Comments on the reliability benefits, reduction in violations, and potential cost increases.
Overall support expressed for NPRR1230 due to its market-based approach and operational efficiency.
Concerns raised about increased cost to load, balanced with operational and reliability improvements.
Motion to endorse NPRR1230 with ERCOT May 29, 2024 comments and desktop edits passed with 92% in favor.
6.2 - OBDRR046, Related to NPRR1188, Implement Nodal Dispatch and Energy Settlement for Controllable Load Resources
OBDRR046 remains tabled.
NPRR1188 is still under PRS review.
7 - OBDRR051, Related to NPRR1216, Implementation of Emergency Pricing Program – Impact Analysis - Vote - Ann Boren
Previous vote on OBDRR051 was done in the last meeting but impact analysis was not voted on.
The focus of this item was on the implementation of the emergency pricing program.
Unanimous recommendation for approval was given at the June TAC.
Motion to approve 01/23/24 impact analysis added to combo ballot.
WMS meeting held on July 10 discussed key topics including Auction Revenue Distribution (CARD), CRR balancing account (CRRBA), and IMM CARD analysis.
Identified potential issue with flexible price responsive loads increasing load to maximize CARD revenue.
ERCOT outlined three options for modifying current methodology; further discussion scheduled for next WMS meeting.
Report template to track performance issues relating to insufficient state of charge was discussed.
Voting item: VCMRR040 methodology for calculating fuel adders for coal-fired resources.
NPRR1229 was tabled and referred to WMWG; NPRR1232 has been withdrawn; NPRR1235 referred to SAWG and WMWG.
Mention of leadership changes: Kevin Hanson moved to Black Mountain Energy Storage, Blake Holt assumed chair position at WMWG, Amanda Frazier from Treaty Oak Clean Energy appointed vice chair WMWG
Upcoming meeting on August 7 with IMM invited to discuss the annual scope report.
10.1 - VCMRR040, Methodology for Calculating Fuel Adders for Coal-Fired Resources
Eric Goff raised a comment about the market monitor's question on DRRS and the quantity ERCOT might procure, noting ERCOT to address it in the annual methodology.
Recommendation for approval of VCMRR040 as indicated in the 7/10 WMS report.
Decision to put the approval of VCMRR040 on the combo ballot.
11 - Credit Finance Sub Group Report Brenden Sager
NPRR1205 approved by PUC July, 2024.
Continued discussion of estimate aggregate liability (EAL) and collateral requirements.
Evaluation of the impact of double top spikes on EAL due to extreme weather events and their financial implications.
ERCOT credit group developed several scenarios to mitigate EAL spikes.
Discussion of potential solutions including caps on forward adjustment factors.
Brief mention of PCM proposal discussion and ERCOT's collaboration with consultancy on this matter.
Reviewed NPRRs considered operational without credit impacts and their voting outcomes.
Important Details:
NPRR1205 will impact up to six banks with new requirements to be implemented in November.
Market participants advised to stay informed about CFSG discussions as changes will affect them.
"Double top" spikes frequently occur, leading to increased collateral obligations during volatile periods.
Data from historical events used to develop more accurate EAL calculations.
Concluding Remarks:
No unusual collateral call activities reported.
Year-to-date overview indicating quieter summer compared to the previous year.
12 - Large Flexible Load Task Force - LFLTF - Report - Bill Blevins
NPRR1234 and PGRR115 have been moved from ROS to PLWG
Discussions in OWG related to LFL work on Golden Spread voluntary load curtailment.
Hopes to hibernate the task force after resolving some issues in the next meeting.
Monthly updates on the scheduled meetings will continue to be posted.
Reported over 5GW of load authorized, waiting to energize.
Concerns raised about dissolving the group due to the value of interconnection queue updates.
Potential to create a large load type landing page on ERCOT website for updates.
Added two items under other business: NDCRC update and NPRR1215 update.
The update was necessary because there was a discrepancy between operational load data and the published demand and energy report for June.
Operational load suggested the peak would be on June 27th, but the demand and energy report showed it peaked on June 30th.
The discrepancy was due to the exclusion of charging load for ESRs (Energy Storage Resources) in the settlement calculation but not in the operational load data.
Discussion on potential protocol changes to better align operational load information with settlement calculations.
Bill Barnes touched upon the unpredictability of 4-CP as battery capacity increases.
Bob Wittmeyer and other members emphasized the importance of making calculations easier for market participants and the need for real-time data.
There were suggestions to publish real-time settlement 4-CP load and to make appropriate adjustments where necessary.
ERCOT representatives were encouraged to develop a signal mimicking the settlement calculation for better market visibility.
There was a proposal for ERCOT to explore publishing real-time WMS data and other relevant information on accessible platforms like their dashboard or a market notice.
Continuing discussions at DSWG and planning for a review post-summer were agreed upon.
The need for internal ERCOT discussions to resolve some of the data and reporting issues before discussing at DSWG was emphasized.
It was agreed that Randy Roberts will return in September or October for a review of the summer and to provide high-level direction based on their findings.
14.3 - Oncor Temple Area Project Possible Vote - Prabhu Gnanam
Project submitted by Oncor with an initial cost of $120 million not requiring a CCN, later expanded to $272 million, requiring a CCN.
The project addresses thermal and voltage issues in Temple, Killeen, and Bell County areas.
Independent review led to the recommendation of option 5A, the least-cost option meeting all reliability criteria, involving 15.4 miles of new right of way, to be completed by December 2028.
Review found no adverse subsynchronous resonance impacts or new system congestion.
The project involves adding auto transformers and new 138 kV lines, connecting several new and existing stations with significant upgrades to support reliability.
Expanded project scope due to additional identified thermal and voltage issues in Temple and surrounding areas.
Confirmed option 5A meets ERCOT NERC reliability criteria despite being higher in cost than initially proposed.
Voting item: to endorse the Oncor Temple Area Regional Planning Project as recommended by ERCOT (Option 5A), added to combo ballot.
The proposed timeline aims to present the methodology to the October 10 board.
This timeline allows sufficient time for the PUC to review, approve, and address any remands before the end of December.
PUC Coordination:
Discussions with PUC staff confirmed the timeline is adequate for their review process.
ERCOT will coordinate with PUC staff before October to address any concerns proactively.
Contingency Plan:
If the 2025 methodology approval is delayed past December, the current methodology approved last December will continue to be used.
Workshop Reminder:
A workshop on the PUC and soy services study will be held after the August TAC meeting.
Feedback for the workshop agenda should be sent to the speaker, who will pass it on to the PUC staff.
14.5 - Post NPRR1186 SOC Reporting requested by TAC
Provided an update on report templates shared with WMS and WMWG.
PUC's interest in sufficiency of state of charge from storage resources designated for ancillary services.
Discussed high-level approach for state of charge reporting in response to PUC's conversation.
R&M requested regular reporting on resource types meeting ancillary service obligations in real time.
Developed a template to monitor shortfalls in ancillary services due to insufficient SOC and inadequate response.
Presented the template to WMS and WMWG, inviting feedback and planning monthly updates.
Introduced an additional template for R&M updates showing total as capacity shortfalls (MW) and their percentages.
Effective from 6/28, partial data for June and July.
Highlighted importance of real-time aggregate state of charge reporting for performance monitoring and market situational awareness.
ERCOT operations group is considering mechanisms to share aggregate SOC information.
The commission never instructed ERCOT to report on SOC but emphasized using SOC information for studies and models to maximize battery value
SOC reporting should be for systemic issues, not isolated cases.
ERCOT proposes reporting on insufficient SOC for ancillary service responsibilities, despite lacking authority to penalize for it.
ERCOT's proposed reporting was viewed as fragmentary and providing limited market value.
Discussion on the presentation and access to an aggregated SOC dashboard presented by Dan Woodfin. Need for a review process for new reports and dashboards.
Importance of transparency regarding SOC to ensure customers get value for services. Need for granular data, not just aggregate numbers.
Historical context and current issues with ERCOT website data updates lacking stakeholder review process.
TAC's desire for SOC reporting stemmed from operational impacts of insufficient SOC on ancillary services.
Monitoring if reporting indicates a need for ERCOT to make costly operational changes.
ERCOT received feedback from market participants on QSE access to NDCRC.
NDCRC changes were rolled out for QSE testing, with plans to allow QSEs to log in using their own certificates within the next few weeks.
Parallel operation is planned for September, with a potential go-live date of October 1.
Market participants can submit unit test requests
During the testing period, any encountered issues will be addressed before the changes become effective.
Andy Nguyen appreciated the extension of deadlines and emphasized the importance of the changes for entities submitting unit test requests.
Stakeholders like Constellation, LCRA, Tenaska, and NRG have shared concerns and feedback on the user interface.
Andy Nguyen suggested comparing ERCOT's interface with user interfaces from other RTOs and continuing stakeholder engagement.
Jeremy Carpenter inquired about the availability of an API for submissions and was informed that submissions would require manual input through the UI.
An API capability is not currently on ERCOT's roadmap but may be considered in the future.
NPRR1215 clarifications to the day-ahead market energy-only offer calculation were unanimously approved by TAC and scheduled for the August board meeting.
An error was identified in the protocol language that needs to be resolved before presenting it to the board.
The error introduced an unintended change in the E2 credit formula, adding a price variable not originally part of the system design.
Instead of making corrections directly and filing comments, it was recommended to remand NPRR1215 back to TAC for correction and another vote.
The corrected NPRR will then be taken to a subsequent board meeting, probably in October.
A market notice explaining the corrections will be sent out to ensure no surprises at the board meeting.
Comments will be filed on NPRR1215 to address the error.
Attendees appreciated the approach to address the issue and confirmed no objections to the plan.
15.1 - TAC Representatives at Annual Membership Meeting
No requirement for ERCOT members to speak unless there are questions.
Annual membership meeting scheduled for December 2 or December 3, after December board meeting.
Preference for a member to speak for 10-15 minutes.
Suggestions sought for a process to alternate or vary viewpoints year to year.
15.2 - Stakeholder Process Improvements Discussion
At the Open Meeting, Chairman Gleeson requested attendees to think about improvements to the stakeholder process.
David Kee
Problem with parties introducing new information after TAC majority decisions.
Need for subcommittees and working groups to file comments to ensure issues are on record and are part of formal discussions.
Eric Goff
Disagreed with the phrase suggesting parties act ‘behind our backs’, highlighted the importance of feedback loops for market success, and acknowledged frustration expressed by higher bodies in the process.
Prior to the June 17 R&M committee meeting, joint commenters opposed the TAC-recommended version of NOGRR245 and indicated their intent to appeal if the ERCOT board approved it.
Concerns arose that the appeal would delay the immediate system reliability benefits of NOGRR245.
On June 16, ERCOT requested the R&M committee to table NOGRR245 until the August board meetings, allowing time to address the joint commenters' concerns.
The ERCOT board tabled NOGRR245 on June 18, and since then, ERCOT has been working with joint commenters on revisions.
Revisions and Bifurcation
The revisions aim to retain the near-term system reliability benefits by improving software, firmware, and parameterization while bifurcating the exemption process for units unable to meet new standards.
ERCOT identified issues such as redundancies, errors, and typos in the initial version, which they plan to correct before the August board meeting.
Next Steps
ERCOT plans to file comments detailing the specific reasons for all changes before the August board meeting.
ERCOT will recommend prioritizing a subsequent NOGRR to develop exemption criteria, targeting an effective date no later than April 1, 2025.
Upcoming discussions on NOGRR245 are scheduled for August 19 R&M and August 20 (ERCOT board).
Concerns and Process Issues
There was frustration over the timing and communication regarding a slide deck posted without prior notice to TAC members, leading to concerns about the relevance and process.
Some TAC members expressed dissatisfaction with how information was being shared and handled, particularly regarding issues not currently in front of TAC.
Final Remarks
ERCOT acknowledged that they have already begun working on the subsequent NOGRR to develop exemption criteria and are not waiting passively.
The discussion emphasized the importance of early and clear communication, with some members expressing appreciation for the progress made on specific issues.
