Introduction of Keith Collins, Vice President of Commercial Operations, and his discussion on ERCOT's market design framework.
Reference to a previous discussion at the August board meeting led by Pablo regarding market design.
Emphasis on key concepts from ERCOT’s mission and vision statements such as reliability, efficiency, open access, and retail choice.
Review of strategic objectives from a strategic plan document issued in 2023, highlighting goals like grid reliability and enhancing regional economic competitiveness.
The importance of using the right tools for the job to achieve efficiency in market design.
Explanation of how different tasks require different tools and alignment of these tools to accomplish strategic objectives reliably and affordably.
Focus on avoiding inefficiencies and unintended consequences by using appropriate tools for each task within market operations, drawing analogies with tools like shovels and rakes.
5.1 - ERCOT’s Framework for Evaluating Market Design - as discussed at August Board - Keith Collins
Introduction of a framework to guide ERCOT's market design focused on dependability, efficiency, and resiliency, aligning with reliability and affordability goals.
Emphasized that discussion of various market elements such as ECRS, DRRS, and PCM should focus on what attributes support reliability and affordability.
Discussion of the key framework attributes of various market elements..
Importance of flexibility in resources to adjust to system demands, and the value of DRRS as a tool for flexibility.
Discussion on dependability and availability, emphasizing the role of weatherization and PCM in promoting resource availability.
Introduction of resiliency tools like ECRS, and how it compares to other regional systems such as SPP.
Consideration of resource qualities such as nuclear energy value, and federal incentives for wind and solar as key aspects.
RTC as an example of an efficiency tool, with a target go-live date set for December 5 of the next year.
The value of locational proximity of resources, and the role of transmission in optimizing that value.
Stakeholder feedback highlighted the necessity of resource adequacy and how it integrates with other framework attributes.
Formalizing feedback processes was considered, with emphasis on setting timelines and metrics for evaluating resource adequacy and availability.
Acknowledgment of ongoing assessment and refinement of the proposed framework to ensure alignment with ERCOT's reliability and affordability objectives.
6 - Congestion Management Working Group - CMWG - Alex Miller
Dispatchable Resource Reserve Service (DRRS) NPRR1235
Katie Rich Vistra presented on DRRS.
Commenters suggested DRRS as a resource tool is a policy issue for the commission to address.
ERCOT plans to file comments on NPRR1235.
NPRR is expected to return for further discussions in the next SAWG meeting.
Long Term Load Forecast (LTLF)
Discussion on incorporating large load forecasts into the LTLF for the CDR to determine reserve margins.
Internal meeting planned to address how to handle the load forecast presentation, considering different scenarios for large loads.
Future Meetings
Next SAWG meeting scheduled for October 25.
Intent to present on load forecasts, CDR updates, and NPRR1219.
Resource Adequacy and DRRS
Concerns expressed about using DRRS primarily for resource adequacy instead of as an operational tool.
Comments filed regarding the design of the demand curve and its importance.
Commission and Stakeholder Involvement
Commission requested stakeholders to develop counterarguments if any exist regarding NPRR and DRRS.
Luminant comments on NPRR were recently filed, requiring further consideration.
8 - Wholesale Market Working Group - WMWG - Blake Holt
Discussion Points:
NPRR1229 was discussed. Its aim is to add financial protection for resources operating in a mandatory CMP if they are tripped offline uncontrollably. There were concerns about excessive coverage.
The IMM suggested a sloped demand curve for the product. There was discussion on whether to consolidate these discussions at SAWG.
Calpine discussed a combined cycle concept with ERCOT, but the discussion is not yet ripe for WMWG.
Consensus to move discussions on resource adequacy and demand curves to SAWG, with a focus on other issues at WMWG if needed.
No vote on NPRR1238 was suggested as it was not deemed ready.
NPRR1241 introduces a potential clawback mechanism for firm fuel supply which will require further discussion next month.
CRR Auction Revenue Distribution (CARD) allocation discussion suggested potential exploitation by large flexible loads. Three methods were proposed by entities including IMM, Georgetown, and Luminant.
The complexity of the methods for card allocation could cause reallocation concerns. Further discussion planned for October 18.
Next Steps and Actions:
Keep NPRR1229 in the discussion queue for further consideration next month.
Continue discussions on card allocation methods in the next meeting set for October 18.
Seek further input on resource adequacy and demand curve issues at SAWG meetings.
Prepare to file an NPRR after compiling feedback from next month's discussions.
8.1 - Break
9 - WMS Revision Requests Tabled at WMS - Possible Vote - Eric Blakey
9.1 - SMOGRR028, Add Series Reactor Compensation Factors - MWG
SMOGRR028 is still under consideration within the working group (MWG).
No significant progress or meetings have occurred regarding this item.
The decision is to keep this item tabled for now.
9.2 - VCMRR042, SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations - RCWG
VCMRR042 is still awaiting discussion at RCWG.
Item will remain tabled.
9.3 - NPRR1242, Related to VCMRR042 SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations - Possible Vote
NPRR1242 is still pending discussion at RCWG.
No further discussion or comments were made on NPRR1242 during the meeting.
Item will remain tabled.
10 - New Protocol Revision Subcommittee - PRS - Referrals - Vote - Eric Blakey
Introduction to new protocol revision referrals.
Referrals were submitted by PRS for review and voting.
10.1 - NPRR1250, RPS Mandatory Program Termination
A motion was approved to table NPRR1250 with unanimous support until further notice.
NPRR1250 discusses the termination of the Renewable Portfolio Standard (RPS) mandatory program in compliance with HB 1500.
ERCOT commented on the transition from a mandatory to a voluntary renewable energy credit trading program.
Implementation of changes will not occur until September 1, 2025.
Comments were filed by ERCOT in response to input from the Solar Energy Industries Association.
Discussion on possible tabling of the proposal to allow for additional NPRR revisions.
Concerns were raised about the overlap with another NPRR concerning voluntary REC attributes.
Agreement to potentially table the decision until further discussions and revisions can be completed.
Clarification sought on effective dates and protocol modifications with use of gray boxes for transitions.
10.2 - NPRR1251, Updated FFSS Fuel Replacement Costs Recovery Process
Motion to request PRS continue to table NPRR1251 for further review by the RCWG added to the combo ballot.
ERCOT aims to clarify the process for resources providing fuel supply services to restock reserved fuel using existing fuel inventories.
Compensation is provided for fuel utilized, either through new purchases within 30 days or based on the fuel oil price, which includes a five-cent per gallon transportation cost.
Katie Rich suggested referring the item to the Resource Cost Working Group (RCWG) for further review.
There was no opposition, and the proposal was moved to a combo ballot to be referred to RCWG.
11 - Revision Requests Tabled at PRS and Referred to WMS - Possible Vote - Eric Blakey
Discussion focused on the status of current revision requests tabled at the Protocol Revision Subcommittee (PRS).
Eric Blakey emphasized the necessity to review each request in detail to understand the impact on market operations.
Debate over the priority of revision requests that have been referred to the Wholesale Market Subcommittee (WMS).
Consideration of feedback from stakeholder engagements and its influence on decision-making.
Potential vote on whether to advance revision requests from tabled status depending on WMS recommendations.
11.1 - NPRR1070, Planning Criteria for GTC Exit Solutions
No new updates were provided for NPRR1070.
11.2 - NPRR1200, Utilization of Calculated Values for Non-WSL for ESRs - MWG
No new updates were provided for NPRR1200.
11.3 - NPRR1202, Refundable Deposits for Large Load Interconnection Studies - WMWG
WMWG's involvement with NPRR1202 has been removed.
Currently waiting on updates from the large load task force.
Item to remain tabled at WMS.
11.4 - NPRR1214, Reliability Deployment Price Adder Fix to Provide Locational Price Signals, Reduce Uplift and Risk - CMWG
Discussed in the report by Alex.
Recommendation was to keep the item tabled.
Red lines to be discussed at the next meeting.
11.5 - NPRR1229, Real-Time Constraint Management Plan Energy Payment - WMWG
Discussions are ongoing between STEC and ERCOT regarding NPRR1229.
A report or update will be presented next month.
There were no further discussions or comments during this meeting.
11.6 - NPRR1235, Dispatchable Reliability Reserve Service as a Stand-Alone Ancillary Service - SAWG and WMWG
SAWG and WMWG had in-depth discussions on NPRR1235.
Consensus reached to consolidate discussions at SAWG instead of WMWG.
Pending policy issues need addressing before proceeding or presenting to the commission.
Michael Jewell emphasized addressing DRRS as a resource adequacy tool by the commission first.
Some concerns raised about taking preemptive actions without policy clarity.
Stakeholder process improvements needed for board input, ensuring feedback inclusion.
Caitlin Smith highlighted the importance of recognizing ongoing discussions in board presentations.
John Ross Hubbard emphasized policy issues should be addressed by the commission, not stakeholders.
WMS will continue monitoring SAWG discussions and looking for policy-related opportunities.
11.7 - NPRR1238, Voluntary Registration of Loads with Curtailable Load Capabilities - WMWG
NPRR1238 was mentioned in the WMWG report.
There is a request for NPRR1238 to remain tabled.
Comments from ERCOT are pending regarding NPRR1238.
11.8 - NPRR1241, Firm Fuel Supply Service FFSS Availability and Hourly Standby Fee - WMWG
NPRR1241 was discussed by WMWG.
WMWG requested that NPRR1241 remain tabled for further discussion.
