Meeting Summary - 08/28/24 TAC Meeting

1 - Antitrust Admonition - Caitlin Smith

2 -  Approval of TAC Meeting Minutes - Caitlin Smith

• Approval of July 31 meeting minutes on the combo ballot.

3 - Meeting Updates 

August Board/PUCT Meetings - Caitlin Smith

• Board approved most revision requests recommended by TAC.
• NPRR1190 tabled at the board; 
• Concerns raised over ERCOT taking on roles traditionally managed by TAC and how ERCOT plans to represent stakeholders.
• Plans to allow stakeholders to present their positions directly to the board were highlighted.
• Future workshops to flesh out process details and stakeholder input.
• Discussions on the existing comprehensive records available to the board for reference.

3.1 - IBR Bifurcated NOGRR Related to NOGRR245

• NOGRR245 was approved by the board after comments from ERCOT and joint commenters.
• The board designated a subsequent NOGRR as a priority to address exemption process details and hardware requirements.
• ERCOT is waiting for commission approval of NOGRR245 before filing the subsequent NOGRR.
• Possibility that the subsequent NOGGR will be a rulemaking instead, PUC to discuss on September 26, 2024.

3.2 - Board Remand of NPRR1215, Clarifications to the Day-Ahead Market - DAM - Energy-Only Offer Calculation - Vote

• Austin Rosel mentioned that questions came up after sending NPRR1215 back to the board after finding the formula error, furthering investigation into those questions.
• Motion to table NPRR1215 added to combo ballot

4 - Review of Revision Request Summary/ERCOT Market Impact Statement/Opinions - Ann Boren/ IMM

• Revision Request Summary
• Eight revision requests on the TAC agenda this month.
• ERCOT supports all revision requests with positive market impact statements.
• IMM has no opinion on the revision requests.
• CFSG has reviewed them and found no credit implications.
• Five relate to general system process improvements.
• Two are due to regulatory requirements.
• One request is a board and PUC directive.

5 - PRS Report - Vote - Diana Coleman

• Diana Coleman provided the August PRS report.

5.1 - NPRR1221, Related to NOGRR262, Provisions for Operator-Controlled Manual Load Shed

• Motion to recommend approval of NPRR1221 as recommended by PRS in the 8/8/24 PRS Report added to combo ballot.

5.2 - NPRR1236, RTC+B Modifications to RUC Capacity Short Calculations

• Motion to recommend approval of NPRR1236 as recommended by PRS in the 8/8/24 PRS Report added to combo ballot.

• NOTE: ERCOT ISO's final readiness process update given by Shane Herrera relating to NERC reliability standard EOP 11 Version 4, R2 part 2.2.9, enforceable from October 1, 2024.
• Notice to be directed to NERC TOPs within the ERCOT interconnection.

6 - Revision Requests Tabled at TAC - Possible Vote - Caitlin Smith.

6.1 - OBDRR046, Related to NPRR1188, Implement Nodal Dispatch and Energy Settlement for Controllable Load Resources

• OBDRR046 remains tabled.

6.2 - NPRR1227, Related to RMGRR181, Alignment of Defined Term Usage and Resolution of Inconsistencies

• Recommendation to approve NPRR1227 as per PRS's recommendation in the July 18 PRS report
• Suggestion to handle RMGRR181 concurrently as recommended by RMS in the 86 RMS report
• Motion to recommend approval of NPRR1227 as recommended by PRS in the 7/18/24 PRS Report, and o recommend approval of RMGRR181 as recommended by RMS in the 8/6/24 RMS Report, added to the combo ballot

7 - OBDRR052, Related to NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era - Vote

• Motion to table OBDRR052 added to combo ballot.

8 - RMS Report

RMGRR181, Alignment of Defined Term Usage and Resolution of Inconsistencies - Debbie McKeever

• RMGRR181 was unanimously approved.
• RMGRR181 and NPRR are companion pieces, not changing any processes, just removing some definitions and aligning language with ERCOT protocol 2.1.
• RMGRR181 placed on the combo ballot.
• Debbie McKeever briefed on Texas SET 5.0 and MarkeTrak SCR817, set to implement on November 9.
• The primary benefit of Texas SET 5.0 and MarkeTrak changes is the improvement in managing inadvertent gains, reducing manual processing and providing better logging and tracking.
• County codes will improve weather moratorium processes by providing additional data, enhancing visibility in extreme weather.
• New service handling codes introduced to better communicate during major weather incidents.
• LP&L transition completed months ago, but billing and usage processes still under weekly review.
• The task force for the transition will continue until the end of the year to incorporate lessons learned and manage Texas SET 5.0 upgrade.

9 - ROS Report

NOGRR262, Provisions for Operator-Controlled Manual Load Shed- Katie Rich

• Motion to recommend approval of NOGRR262 as recommended by ROS in the 8/1/24 ROS Report added to combo ballot.

10 - WMS Report - Eric Blakey (click here for Grid Monitor WMS Summary)

• WMS met on August 7, where several reports were given.

Reports

• Jeff McDonald provided the Annual update from the IMM on the state of the market report and recommendations.
• 2024 Q2 Settlement Stability Report showed price changes, resettlements disputes, cost allocation, winter storm Uri securitization monthly uplift charges.
• 2024 Q2 Unregistered DG Report showed a total of 2,643 MW of unregistered DG, new DG battery storage information from ERCOT.
• Auction Revenue Distribution Card and CRR Balancing Account (CRRBA) showed ERCOT and IMM concern on potential uneconomic behavior, discussion to be continued at WMWG's September 24 meeting.
• HDL-LDL Override Report highlighted solar generation range during April 8 eclipse 13,792 MW - 734 MW.
• Large Load Interconnection Report showed the interconnection queue status stands at more than 52,000 MW, an increase of 4,636 MW since July update.

Revision Requests

• VCMRR041: Rejected in favor of VCMRR042, proposed by Luminant, which is tabled and referred to RCWG.
• NPRR1242: ERCOT has concerns over setting precedents for parsing out fees.
• NPRR1226: WMS endorsed despite concerns about new dashboards.
• NPRR1238: Tabled and referred to WMWG.

11 - Credit Finance Sub Group Report - Vote - Brenden Sager

• Discussed estimate aggregate liability change proposals and administrative update on NPRR1215.
• NPRR1215 had a formula error, specifically in the e2 parameter of the credit formula.
• Clarified e1 parameter in NPRR1215; no vote was taken.
• Focused on changes to the estimated aggregate liability, part of collateral requirements for market participants.
• Explained max exposure calculation over a 40-day look back period.
• Highlighted the forward adjustment factors and their role in collateral requirements; weighted ratio of forward north hub prices over settlement prices.

• Discussion on ERCOT's current system: real-time component, 40-day look-back period for real-time liability, real-time forward adjustment factor, day-ahead liability, and forward adjustment factors.
• Consideration of netting real-time and day-ahead invoices and the implications.
• Review of six different scenarios impacting the credit form, focusing on under-collateralization and overcollateralization to reduce market costs.
• Potential adjustments: shorten the 40-day look-back period, implement caps and floors on forward adjustment factors, aiming to reduce volatility and liquidity jumps.
• Discussed whether smaller, easy adjustments could be implemented early, while larger changes like netting are more complex.
• Presentation of data on forward adjustment factors and the justification for caps and floors.
• Review of three new NPRRs, deemed operational with no changes required for credit monitoring or liability calculations.
• Monthly highlights: decrease in TPE from 2.18 billion to 1.81 billion, decrease in discretionary collateral from 4.23 billion to 4.15 billion.
• Allocation of credit instruments to ERCOT, predominantly letters of credit, cash, and a few surety bonds.
• Discussion on discretionary collateral and the priority to avoid over and under-collateralization in the market.
• Update on ERCOT's credit limit issuer problems, noting an improvement in the number of issuers in the warning category.
• Vote on addition to the membership of CFSG to be added to the combo ballot.

12 - RTC+B Task Force Report - Matt Mereness

• ERCOT is finalizing the project schedule, emphasizing the importance of aligning dates for market trials and resolving outstanding issues.
• There is a possibility of going live by the end of 2025, but not later than September 2026.
• Ongoing work on aligning business requirements with current protocols and updating technical specifications.
• ERCOT's RTC simulator is nearing completion and will be used to run historical data to study price convergence.
• Market readiness and trials plan include comments on the load frequency control test and the attestation scorecard showing significant engagement.
• Discussion on deferring NPRR1245 and NPRR1246 for additional review due to numerous small changes.
• Upcoming review of proxy offer curves, market readiness, training modules, and potential changes to AS demand curves.
• The simulation tool won't be accessible to market participants initially but will publish price formations.
• Stakeholders expressed the need for more comprehensive data and analysis from ERCOT simulations.
• Confirmation that TAC approval and NPRR submission will be required for changes to AS demand curves.

13 - ERCOT 2025 Membership Application and Agreement Updates - Katherine Gross

• Application process begins September 20 and ends November 20.
• Last year switched to online applications; addressed issues like viewing submitted forms, confusion with question marks, and payment process.
• Clarified that the person filling out the application can't be the AR or BAR due to technical issues.
• Emails and market notices will be sent to current participants; instructions will be included.
• Important to register and verify email if you're a new member.
• Applicants must use their own email and correctly fill out the entity's legal name and other required fields.
• Option to download the submitted application and instructions on how to pay the fee provided.
• Issues like naming conventions and finance acceptance of email notifications noted.
• Plan to process applications and notify issues weekly.

14 - 9/5/24 TAC Workshop for Stakeholder Process - Caitlin Smith

• Discussed the successful expansion from 300,000 to 400,000 bids but identified performance issues with the 10% network model.
• ERCOT is exploring solutions to the performance issues, including minimum bid prices and the impact of price discovery bids.
• Highlighted the upcoming September 5 TAC workshop, feedback on WebEx versus in-person, and potential follow-up workshop.
• Consensus for an in-person meeting and the need for a clear agenda was emphasized.

15 - Combo Ballot - Vote - Caitlin Smith

• Motion to approve combo ballot carries unamiously

16 - Adjourn