Matt Mereness introduced the session, highlighting the importance of outreach to the demand side of the business in preparation for market trials on May 5.
Market trials offer a chance for questions and coordination via weekly calls.
Dave Maggio discussed the focus on real-time co-optimization (RTC) and provided a background on its financial benefits, including a reduction in costs ranging from $2.5 billion to $6.4 billion.
Importance of storage and battery resources was mentioned, with an installed net generation capacity of around 11 gigawatts.
Co-optimization was explained through examples, illustrating cost benefits and the prioritization of cheaper energy sources.
Transition from the Operating Reserve Demand Curve (ORDC) to Ancillary Service Demand Curves in RTC was discussed.
Real-time co-optimization introduces changes to market components, such as the integration of ancillary services in market clearing processes.
Education on the difference between current and post-RTC operations, emphasizing no post-process adder for reserve value in market clearing.
Explanation of ancillary service demand curves' role in price setting and priority in scarcity conditions.
Additional market and operational changes: reliability unit commitment (RUC) system, day-ahead market changes, and elimination of the supplementary ancillary service market.
Compliance implications include changes in deployment performance measures and base-point deviations, affecting QSE obligations and operations.
Financial implications of RTC for imbalance settlements were discussed.
Improvements in telemetry and data reporting between ERCOT and QSE, with modified reporting and compliance workflows.
Significant changes in telemetry requirements and resource statuses, moving toward simplified and more general resource categorization.
Financial incentive discussion highlighted imbalance charges and allocation of reliability make-whole costs.
Upcoming RTC+B training sessions, testing phases, and market notice information towards full system implementation were outlined.
Question and answer sessions addressed specifics about RTC+B's impact on current market operations, compliance, and telemetry requirements.
The focus is on a new residential demand response program to manage net load given ERCOT's growing capacity needs.
Residential demand response represents an untapped capacity which includes smart devices, thermostats, EVs, batteries, water heaters, and pool pump switches.
ERCOT aims to develop a program that enhances system reliability and complements existing programs without adding much overhead.
The framework focuses on quick development, simplicity in administration, popularity, and cost-effectiveness.
The program offers incentives to retail electric providers based on residential demand response during high demand periods, primarily in summer and winter.
Participation is at the household level and is voluntary, allowing REPs to use demand response capacity as needed.
Measurement of load reduction will be based on ESIID and meter data during peak net load hours.
Key design considerations include net load day allocation, incentive payment size, settlement parameters, and inclusion of municipally owned utilities and co-ops.
Next steps include discussions with stakeholders, internal reviews, dedicated workshops, and the first workshop scheduled for Friday, May 2nd.
Non-REP aggregators may play an indirect role, but direct participation is targeted towards electric providers.
The program's integration into forecasts will be refined through stakeholder input.
A review was provided on the current status of the ADER pilot and its participation models.
Discussions revolved around potential expanded frameworks within which resources can participate in the ADER program, specifically looking at non-controllable load resource (NCLR) models for “blocky” loads.
A nonconsensus issue arose regarding whether the same qualified scheduling entity (QSE) representing the ADER must be the same as the QSE representing the load-serving entity.
Three options for moving forward with the governing document were discussed:
Allowing third-party QSEs to participate for larger aggregations (100+ kW).
A compromise necessitating coordination between LSE and third-party QSE.
Maintaining the current requirement pending a future phase discussion.
It was emphasized that the pilot should aim for incremental changes and minimize complex adjustments due to resource constraints.
Concerns were raised about third-party aggregators potentially impacting the representative's ability to hedge against uncoordinated load shape changes.
James Langdon (Vistra) and Monica Batra-Shrader (Enchanted Rock) indicated a preference for option two, involving a coordinated acknowledgment between LSE and third-party QSE.
The importance of incorporating smaller resources like residential batteries in future discussions was emphasized, ensuring broad participation in demand response programs.
Agreement and willingness to collaborate with stakeholders like Voltus, Leap, and others to refine participation models in the upcoming WMS meeting were expressed.
▶️6 - Changes for Load Resources in the upcoming RIOO release
Questions were raised about ERCOT creating specific load profiles for certain load resources like data centers and crypto.
The ERCOT team is focused on registered load resources participating in ancillary services, not specifically on load profiles.
There was a clarification sought regarding load exemptions in registration requirements, specifically whether it applies to all loads or specific ones.
It's noted that current discussions are about load resources, not new or existing loads entering the market.
A similar process to load resource registration is being implemented on the ERS side for contract terms from June to September, requiring a load type for offer validation.
Updates about required fields for ERS contracts were discussed, ensuring necessary fields are validated.
Suggestions and topics for future meetings were encouraged, emphasizing the need for advance notice for planning purposes.
The next meeting is scheduled for May 12, where updates may be provided.
