Presentation of the 2024 Q3 Settlement Stability Report by Judy Luu from the ERCOT Settlements team.
No price changes for Q3.
Resettlements due to non-price errors caused by an EPS meter being incorrectly stopped from November 15th to December 12th, 2023.
100% of disputes up to Q3 have been resolved timely.
Percent changes between initial to final and final to true up settlements discussed.
Real-time and day-ahead market average, median, maximum, minimum, and total charges from 2011-2024 presented.
Load volume availability percentage for ESIID consumption data and ESIID count availability percentage highlighted.
Net allocation to load in millions for settlement areas from September 2023 to September 2024 discussed.
Securitization default and uplift charges for the last 13 months presented.
Discussion on the EPS meter issue and corrective measures taken, with Randy Roberts explaining the mistake and three measures implemented to prevent future occurrences.
5.3 - CDR Mockup and NPRR1219 Implementation - Pete Warnken
The mockup was presented at the Supply Analysis Working Group meeting, with main changes focusing on effective load carrying capabilities and the unit details table.
The executive summary will have a standard reporting format with both text and graphics, focusing on the first five years where data is more reliable.
CDR will only report for five years, and load forecasts beyond that will be separated as resource information is unreliable.
New format will divide resource reports into four seasonal tabs with separate peak load hour information.
New line items include distribution voltage reduction and restructured inverter-based resources information.
Planned unconfirmed retirements will now impact reserve margin calculations.
The unit details will now be presented in a flat file format, similar to the generation interconnection status report.
CDR status will use column markers to label resource statuses and new categories for mothballed units.
Plans include consolidating capacity reports into a single table for all seasons.
New tables will list resource additions and installed capacity by fuel or technology type, including a breakout for battery storage by duration.
Discussions about load forecasts are ongoing, with no firm decision yet regarding non-contracted loads.
Documentation will include acronym lists and a tab mapping counties in the ERCOT region to wind and solar regions.
A methodology document will be provided for additional details.
Attendees expressed appreciation for the work done and the improvements over the previous format.
6 - Congestion Management Working Group - Alex Miller
Presented SAWG’s agenda from October including long-term load forecast, discussion on NPRR1235, and NPRR1219 implementation / December CDR preparation.
Updates to load, economic, large flexible load, electric vehicle, and rooftop PV forecasts were discussed.
Discussion on timing of long term load forecast updates with a final release expected between March and early April.
Issues around NPRR1235 including using DRRS as a resource adequacy tool, with staff mentioning filing comments.
IMM's position on NPRR1235, including advocating for real-time procurement and co-optimizing DRRS.
DRRS designed as an operational reliability product rather than for resource adequacy.
Upcoming SAWG meeting on November 22nd to further discuss NPRR1235 and its components.
Potential delay of implementing DRRS until real-time co-optimization is feasible.
Mention of a need to satisfy statutory real-time procurement requirements and concerns regarding incentivization for offline units to stay offline.
Discussion on consideration of timeline extensions to meet statutory requirements.
Adverse Incentive in CARD Allocation Details: Concerns were raised about an adverse incentive in the CARD and CRR balancing account allocation methodology. Loads ramp up in peak intervals to capture more revenue.
Proposal Highlights Details: Three proposals from IMM, City of Georgetown Utilities, and Vistra were presented for consideration with a voting planned in December.
IMM Proposal Details: The IMM proposal suggests allocation based on the peak 500 hours each month, with pros being reduced incentives to change load consumption to increase CARD revenue and cons being a shift of revenue from residential to industrial loads.
City of Georgetown Proposal Details: Recommended using the same allocation as Transmission Cost of Services (TCOS), aligning CRR benefits with transmission cost incentives. The pros include alignment with transmission incentives, while cons include calculation lag and separation from transmission costs.
Vistra Proposal Details: Vistra suggests averaging the Load Ratio Share (LRS) realized in the top 60 hours for the month along with the top 4 hours of the top 15 peak days for the month, aimed at reducing change in load consumption incentives but considered more complex than the IMM approach.
Concerns and Suggestions Details: Several stakeholders expressed support for compromise solutions and debated the pros and cons of each proposal with specific attention to market price distortion and equity in allocation.
Next Steps Details: Engagement with ERCOT and IMM for further discussion, stakeholder examination of zonal allocation implications, and stakeholders acknowledged the hard work of proposal development.
9 - WMS Revision Requests Tabled at WMS - Eric Blakey
Discussion of WMS revision requests that are currently tabled.
Eric Blakey presented the status of these revision requests.
The focus of the discussion was on determining the next steps for these requests.
9.1 - SMOGRR028, Add Series Reactor Compensation Factors
The NOGRR28 has been at MWG.
There is a suggestion to keep the item tabled as the MWG has not met.
No additional comments were made on the agenda item.
9.2 - VCMRR042, SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations
Introduction of VCMRR042 regarding SO2 and NOx emission index prices.
9.3 - NPRR1242, Related to VCMRR042 SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations
VCMRR042 and related NPRR1242 were tabled and referred to RCWG (Reliability and Compliance Working Group).
The RCWG has not yet met, thus no action is required at this moment.
Comments will be filed in advance of the RCWG meeting.
The goal is to progress after the comments are filed and reviewed.
10 - Revision Requests Tabled at PRS and Referred to WMS - Eric Blakey
10.01 - NPRR1070, Planning Criteria for GTC Exit Solutions
NPRR1070 was previously discussed at PRS.
Eric Goff made comments regarding NPRR1070 at PRS.
Discussion focused on potentially removing the item.
Eric Goff requested input from the IMM.
Historical context mentioned an IMM report from two to three years ago, recommending action on NPRR1070.
Unclear future actions on NPRR1070; reviewing options.
Meeting participants asked to review the NPRR and provide feedback.
Decision pending further review and input.
10.02 - NPRR1200, Utilization of Calculated Values for Non-WSL for ESRs
NPRR1200 has been tabled for about 14 months, introduced to expand the usage of calculated values for certain energy storage resources.
The NPRR1200 proposes extending a provisional exception from 2020 to allow use for series reactors, considering complex layouts or high design costs.
The Metering Working Group showed preference for SMOGGR028, deemed a more technically sound approach compared to NPRR1200.
No scheduled meetings for MWG currently, but ongoing discussions are still active.
Some stakeholders believe a MWG meeting should occur to resolve and make progress on SMOGRR028 before potentially rejecting NPRR1200.
There were technical issues associated with NPRR1200, but it remains active in case SMOGGR028 discussions stagnate.
Kara Beckmann from Nextera expressed concerns about the timing and readiness of NPRR1200 for a vote without MWG discussions.
Plan suggested for MWG to meet, discuss NPRR1200 and SMOGGR028, and provide updates next month.
Following discussions, meetings may be scheduled possibly by December to advance the issues further.
Feedback expressed disappointment for the lack of urgency to resolve the matter, urging that discussions should happen to push forward.
10.03 - NPRR1202, Refundable Deposits for Large Load Interconnection Studies
Longhorn power desires to accelerate NPRR1202's approval.
TCPA supports the acceleration, while TIC raised concerns about Longhorn's suggestion aligning with cost causation principles.
Concerns about speculative interconnection requests making the queue unmanageable.
Longhorn's proposed fees may not match with costs needed to serve large loads.
Concerns over prioritizing interconnections based on commercial agreements, which may contradict non-discriminatory access principles.
Discussions are ongoing in legislative contexts rather than at the PUC.
No consensus reached; debate over pursuing the proposal aggressively versus waiting for policy direction.
ERCOT prefers NPRR1234, highlighting concerns with integrating fees and hiring staff due to budget constraints.
Alternatives like using funds for contractors during peak times have been suggested.
