Motion made by Bob Helton and seconded by David Key to waive notice on NPRR1239, NPRR1240, NPRR1246, NPRR1247, and NPRR1254 approved unanimously with no abstentions.
Confirmation that the notice is officially waived, allowing subsequent motions to be made regarding these NPRRs.
Agreement to handle unopposed revision requests before addressing more contentious issues.
Five proposed recommendations for tax consideration were discussed.
Two recommendations are unopposed and have no impact.
A proposal from ERCOT involves adding language related to energy storage resources.
5.1 - NPRR1239, Access to Market Information - Waive Notice
Motion to recommend approval of NPRR1239 as recommended by PRS in the 11/14/24 PRS Report added to the combo ballot.
Discussion of NPRR1239, which relates to access to market information.
This will not include any ECEII information.
NPRR1239 and NPRR1240 share a joint priority of 2025 and a rank of 4540.
Emphasis was placed on the close relation between the two items.
5.2 - NPRR1240, Access to Transmission Planning Information (Waive Notice)
Motion to recommend approval of NPRR1240 as recommended by PRS in the 11/14/24 PRS Report added to the combo ballot.
NPRR1240 involves moving certain transmission planning reports to the public section of ERCOT's website.
Both NPRR1239 and NPRR1240 have a project priority of 2025, rank 45 for NPRR1240 and 40 for NPRR1239.
Unanimous approvals noted: September 12 and November 14 endorsement of reports.
Concerns raised about potential impacts on pipeline projects during transition periods.
Clarification needed on upcoming network model dates to ensure no interference with current planning.
General agreement to include the approvals on the combo ballot.
5.3 - NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era Waive Notice
Motion to recommend approval of NPRR1246 as recommended by PRS in the 11/14/24 PRS Report added to the combo ballot.
The proposal aims to align provisions and requirements for energy storage resources with those already in place for generation and controllable load resources.
5.4 - NPRR1247, Incorporation of Congestion Cost Savings Test in Economic Evaluation of Transmission Projects – URGENT - Waive Notice
Motion to To recommend approval of NPRR1247 as recommended by PRS in the 11/14/24 PRS Report.
Motion passes with 89% in favor, 3 No’s, and 1 abstention
Incorporation of Consumer Energy Cost Reduction test for economic project evaluation was discussed, following recent Public Utility Commission amendments.
There were debates on including reference white papers in protocols and approval expediency.
Comments from Luminant, ERCOT, and others were presented, highlighting concerns with discount factors and test designs.
Various stakeholders expressed the need for detail in methodology and concerns about double counting benefits.
Discussions included the effectiveness of a proposed 0.25 multiplier on calculated congestion cost savings.
Differences of opinion were noted regarding the benefits and costs to consumers, particularly concerning congestion revenue distribution.
ERCOT clarified process and data challenges, emphasizing system-wide gross load test as optimal currently.
Motion to to table NPRR1247 failed
5.5 - NPRR1254, Modeling Deadline for Initial Submission of Resource Registration Data - Waive Notice
Motion to recommend approval of NPRR1254 as recommended by PRS in the 11/14/24 PRS Report with a recommended effective date of March 1, 2025 added to the combo ballot.
NPRR1254 is a proposal from ERCOT.
It requires resource entities to submit initial resource registration data.
For generator interconnection or modification projects to submit the initial resource registration data four months prior to target inclusion
6 - Revision Requests Tabled at TAC - Possible Vote - Caitlin Smith
6.1 - NPRR1180, Inclusion of Forecasted Load in Planning Analyses
Motion to recommend approval of NPRR1180 as recommended by PRS in the 10/17/24 PRS Report and the 10/28/24 Revised Impact Analysis added to the mini combo ballot.
Motion passed with four abstentions.
Discussion centered on NPRR1180, focusing on comments from various stakeholders, including OPUC, Oncor, and others.
OPUC highlighted the importance of accurate load projections to avoid unnecessary costs from overbuilding transmission infrastructure.
There's consensus on the need for validation and substantiation of forecasted load growth, with quantifiable evidence required under commission rules.
Some members, like Mark and Bob, expressed support for moving forward with the NPRR, emphasizing the need for a follow-up revision to address validation process details.
Concerns were raised regarding transparency and standardization in projecting loads, specifically related to TDSP attestations.
Oncor and other TDSPs committed to increasing transparency and standardizing the attestation process, planning to develop a strawman proposal for another NPRR.
There was a collective acknowledgment of significant load growth and the challenges it poses, with emphasis on the need for forecast transparency to aid market participants in decision-making.
The motion to move NPRR1180 forward as recommended by PRS was accepted, accompanied by a related PGRR107 as recommended by ROS, with four abstentions recorded.
6.2 - NPRR1190, High Dispatch Limit Override Provision for Increased Load Serving Entity Costs
NPRR1190 was remanded from the board and tabled at the October TAC meeting.
A discussion focused on the need for a mechanism to prevent high dispatch limit (HDL) overrides from becoming prevalent in the market.
A concept was proposed for an annual settlement trigger. If ERCOT exceeds a certain dollar amount in HDL override payments, a review of the language will be triggered.
The review would aim to tighten contracts eligible for HDL settlements, ensuring these payments remain rare and do not lead to increased costs.
It was suggested to refer the discussion to WMS or a working group for further development of the proposal details.
There was a general consensus that this issue needs more discussion and details should be worked out at a subgroup level.
Different stakeholders, including Blake Holt and John Russ Hubbard, expressed varying levels of concern and interest in the proposal.
Formal comments and further discussions at WMS were recommended before taking official action.
6.3 - NOGRR264, Related to NPRR1235, Dispatchable Reliability Reserve Service as a Stand-Alone Ancillary Service
Decision to keep NOGRR264 tabled, awaiting NPRR1235
6.4 - NOGRR266, Related to NPRR1239, Access to Market Information
Motion to recommend approval of NOGRR266 as recommended by ROS in the 10/3/24 ROS Report added to the combo ballot.
6.5 - NOGRR267, Related to NPRR1240, Access to Transmission Planning Information
Motion to recommend approval of NOGRR267 as recommended by ROS in the 10/3/24 ROS Report added to the combo ballot.
6.6 - OBDRR052, Related to NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era
Motion to recommend approval of OBDRR052 as amended by the 10/14/24 ERCOT comments; and the 7/31/24 Impact Analysis added to the combo ballot
ERCOT has comments on OBDRR052 specifically to clarify the use of Energy Storage Resource.
The comments are primarily clarifications, without substantial changes.
ERCOT had attempted to introduce ESR terminology extensively, but on further review with legal advisors, concluded that existing language was adequate.
Similar comments were addressed in NPRR1246, and PRS had included these in their report.
ERCOT proposed to back out some changes in NPRR and PGRR that ROS and PRS voted on to rely on existing language.
Additional edits for OBDRR were proposed to adjust the extensive use of ESR terminology.
ERCOT agreed to add four items to the combo ballot.
6.7 - PGRR116, Related to NPRR1240, Access to Transmission Planning Information
Motion to recommend approval of PGRR116 as recommended by ROS in the 10/30/24 ROS Report added to the combo ballot.
Successful implementation of Texas 5.0 and Market Track SCR817 over the weekend of November 9th and 10th.
Seven market rules needed for implementation, including BRR, 2 system change requests, 4 retail mark guide revision requests, and tons of Texas SET change controls.
Numerous Texas set change controls were involved, previously presented for TAC approval.
All existing TDSPs and REPs migrated successfully; 24 new REPs, primarily DUNS plus fours.
Initial transactional issues were encountered but mostly resolved; ongoing work with some parties to fix remaining issues.
Acknowledgement of extensive effort and support from ERCOT, especially Dave Michelson and his team.
It had been 12 years since the last Texas SET version release.
The meeting discussed operational NPRRs with no credit impact, EAL change proposals, system reporting and enhancements, credit updates, and regular credit exposures.
ERCOT credit is implementing 1184 for managing interest collateral, changing from annual to monthly.
Formatting changes in ERCOT reports are expected; users should be aware if they copy/paste from these reports.
Discussion of automated emails for counterparty credit contacts regarding changes in LCs or surety bonds.
Emphasis on a new form for estimating aggregate liability, driven by forward adjustment factors applied to netted real-time and day-ahead factors.
A proposal was made for a simplified method to avoid over-collateralization by taking the highest combination of related values rather than separate max values.
Recognizing over-collateralization issues where market participants over collateralized by tens of millions of dollars above actual exposure.
Primary goal: avoid under collateralization while preventing unnecessary over collateralization.
ERCOT evaluated multiple scenarios to prevent both over and under collateralization with priority given to preventing under collateralization.
A practical and expedited implementation strategy was discussed to reduce complexities and cater to ERCOT's limited resources.
Highlighting the need to expedite this strategy before another major pricing event like summer 2023.
Vote planned in support of the committee with ERCOT Credit presenting further in January.
Monthly highlights: total expense potential exposure remains at 1.73 billion, minor drop in discretionary collateral ($3.92 to $3.82 billion), no unusual calls, adequate historical collateral postings.
ERCOT resolved compliance issues by increasing LC limits.
The price correction is intended to be presented to the December R&M committee and board meeting for approval.
An issue was identified where a routine weekly database load failed, affecting real-time intervals from 12:00am to 12:30pm on November 1st.
Market notices were issued on November 8th and November 12th to inform about the investigation and intent for approval.
The price correction evaluation criteria involve a 2% relative impact and a $20,000 absolute impact, or a 20% or greater impact and $2,000 impact to a single counterparty.
Two counterparties were impacted under the second criteria, with one having a maximum exposure of $2,758, equating to a 45% impact.
The overall impact on ERCOT market settlement was $1,977, considered a very small market impact.
The price correction will be brought to the Reliability Markets Committee on December 2 for a recommendation to the board for approval on December 3.
12.3 - Oncor Delaware Basin Stages 3 and 4 RPG Project – EIR Possible Vote - Prabhu Gnanam
Motion to endorse the Oncor Delaware Basin Stages 3 and 4 Project to address reliability needs in the Culberson, Loving, Reeves, and Ward Counties in the Far West Weather Zone added to the combo ballot.
Presentation by Prabhu Gnanam on the Oncor Delaware Basin Stage 3 and 4 RPG projects.
Project submitted by Oncor estimated at $202.2 million requiring CCN.
Addresses reliability issues in Culberson, Loving, Reeves, and Ward counties in Far West Texas.
Originated from the 2019 ERCOT Delaware Basin Study to handle load growth.
Incorporates local projects IDC L1, L3, and L5 for the 2024 Permian Basin reliability needs.
Project exceeds $100 million threshold, requiring ERCOT to present findings to TAC for board presentation.
Planning criteria highlighted voltage violations and power flow issues necessitating the project.
SSR screening showed no adverse impact on existing or planned resources.
Congestion and sensitivity analyses revealed no new congestion or impact from future projects.
ERCOT recommends board approval for the project to meet reliability needs.
Projected completion date is June 2027.
Key components include a new 345kV line from Riverton to Drill Hole and upgrades to existing lines.
12.4 - MDRPOC Update and Outage Performance Review - Fred Huang
An overview of 2023 outage performance was given, including aggregate resource outages and comparisons between calculated MDRPOC and approved plan outages.
The significant impact of the 2023 ice storm on outages was noted.
Comments from previous meetings were addressed, with a focus on tying the associated risk of MDRPOC to system reliability.
Reviewed the MDRPOC calculation versus planned thermal outages for each day in 2023.
Addressed the issue of plan outages exceeding MDRPOC and ensured continued support for approved outages.
Discussed long-term load forecast impacts on MDRPOC, noting significant growth that could reduce MDRPOC.
Emphasized the need to maintain sufficient capacity for real-time operations and future outage needs.
Proposed a probabilistic approach for future MDRPOC calculations to better quantify risk levels.
An ongoing project will quantify risk and refine the MDRPOC process with stakeholder input.
Several participants provided feedback and suggestions to improve transparency and efficiency in the MDRPOC process.
Plans to continue using the current MDRPOC methodology until new methods are approved and implemented.
Stakeholders expressed concerns over issues like the withdrawal of outages based on current approvals and advocated for improvements in the AAN process.
The probabilistic approach's potential for smoothing out MDRPOC volatility over time was discussed.
12.5* - Large Load Interconnection Status Update - Julie Smittman
