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Meeting Summary - 08/19/24 Reliability and Markets Committee Meeting

Grid Monitor AI
08/21/2024

<a href="/sharing/?token=a34d121d-07a4-4cc5-a961-e87323263efc">1</a> - Call General Session to Order Chair <a href="/sharing/?token=763e4906-8942-4da5-b5c5-6e6e14245589">2</a> - Notice of Public Comment, if Any Discussion - Chair <ul> <li style="font-weight: 400;" aria-level="1">No public comment</li> </ul> <a href="/sharing/?token=0365aa2a-1b36-4df9-ac3f-1d9ca6b686a2">3</a> - June 17, 2024 General Session Meeting Minutes Vote - Chair <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve June 17, 2024 Meeting Minutes passed.</li> </ul> <a href="/sharing/?token=ae3da91c-8f70-4398-a376-f5791bdd1ccd">4</a> - Staff Response to Independent Market Monitor IMM 2023 State of the Market Report for the ERCOT Electricity Markets Discussion - Keith Collins Key Discussions: <ul> <li style="font-weight: 400;" aria-level="1">Review of 2023 IMM State of the Markets <a href="https://www.potomaceconomics.com/wp-content/uploads/2024/05/2023-State-of-the-Market-Report_Final.pdf">report</a>; overall positive assessment with useful market performance insights.</li> <li style="font-weight: 400;" aria-level="1">Focus on IMM recommendations: ERCOT's <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/4-staff-response-to-independent-market-monitor-imm-2023-state-of-the-market-report-for-the-ercot-electricity-markets.pdf">response</a> includes ongoing, completed, and future discussions for the recommendations.</li> <li style="font-weight: 400;" aria-level="1">Three primary areas for market improvement identified by IMM: real-time co-optimization (RTC+B), uncertainty reserve product, and multi-interval real-time optimization.</li> <li style="font-weight: 400;" aria-level="1">Four new recommendations from the IMM: Increase shadow price cap in real-time, modify proxy offer cap for renewables, improve requirements for firm fuel supply service, and improve procurement and deployment of ECRS.</li> <li style="font-weight: 400;" aria-level="1">Increase in shadow price cap in real-time has significant alignment between ERCOT and IMM position.</li> <li style="font-weight: 400;" aria-level="1">Firm fuel supply service concerns involve whether resources are generating and cost considerations which may require further stakeholder discussion.</li> <li style="font-weight: 400;" aria-level="1">Existing recommendations: Certain NPRRs already address some recommendations, others require further consideration or fall under PUC purview.</li> <li style="font-weight: 400;" aria-level="1">IMM's concerns with RTC: Concerned with demand curve values, fundamental issues with AS design, and the linked versus nested/cascading approach for ancillary services.</li> <li style="font-weight: 400;" aria-level="1">Ongoing engagement with IMM and stakeholders to address these concerns and potential implications for project timelines.</li> </ul> Actions and Next Steps: <ul> <li style="font-weight: 400;" aria-level="1">Continue full steam ahead with RTC implementation while addressing IMM's concerns.</li> <li style="font-weight: 400;" aria-level="1">Stakeholder discussions to refine ancillary service demand curves.</li> <li style="font-weight: 400;" aria-level="1">Potential policy decisions to update Emergency Condition/Resource Strategies (ECRS).</li> <li style="font-weight: 400;" aria-level="1">Further analysis by IMM expected within a month to evaluate linked versus nested approach impacts and provide more tangible recommendations.</li> </ul> Stakeholder Process: <ul> <li style="font-weight: 400;" aria-level="1">IMM involvement in the stakeholder process is confirmed and ongoing.</li> <li style="font-weight: 400;" aria-level="1">Additional public and stakeholder discussions of IMM's concerns are anticipated soon.</li> </ul> <a href="/sharing/?token=f04872d6-fde2-4f78-96b7-1da39c403b01">5</a> - Board-Tabled Revision Request Vote - Chair <a href="/sharing/?token=6145220e-e411-4327-b328-a494a66a656a">5.1</a> - NOGRR245, Inverter-Based Resource IBR Ride-Through Requirements – URGENT Vote - Chair <ul> <li style="font-weight: 400;" aria-level="1">Motion made to recommended approval of NOGRR245 as recommended by TAC in the 6/7/24 TAC report as amended by ERCOT 8/16/24 comments with recommended priority of 2025 and rank of 3515</li> <li style="font-weight: 400;" aria-level="1">Motion passed unanimously.</li> </ul> <a href="/sharing/?token=62955c1f-8e98-482a-a9ce-9fee9a9f05df">5.1.1</a> - ERCOT Comments on NOGRR245 Discussion - Chad V. Seely / Woody Rickerson <ul> <li style="font-weight: 400;" aria-level="1">ERCOT filed two sets of comments on <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/5-1-1-ercot-comments-on-nogrr245.pdf">August 12</a> and <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/16/5-1-1-ercot-comments-on-nogrr245.zip">August 16</a>.</li> <li style="font-weight: 400;" aria-level="1">A PowerPoint presentation was used to explain the developments.</li> <li style="font-weight: 400;" aria-level="1">Joint commenters who raised concerns are now supportive of the comments.</li> <li style="font-weight: 400;" aria-level="1">Two major differences between the versions filed on the 12th and the 16th.</li> <li style="font-weight: 400;" aria-level="1">Recommendation to move forward with the August 16 version.</li> <li style="font-weight: 400;" aria-level="1">Since June, ERCOT worked extensively with joint commenters.</li> <li style="font-weight: 400;" aria-level="1">Revised NOGRR version submitted on August 16 includes non-objection from joint commenters.</li> <li style="font-weight: 400;" aria-level="1">ERCOT aims to retain the benefits and remove certain exemption criteria for subsequent discussion.</li> <li style="font-weight: 400;" aria-level="1">Clarifications, removal of redundancy, and typo fixes were made.</li> <li style="font-weight: 400;" aria-level="1">Proposal to bifurcate NOGRR into phase one and phase two.</li> <li style="font-weight: 400;" aria-level="1">New inverter-based resources must meet IEEE 2800 requirements post-August 2024.</li> <li style="font-weight: 400;" aria-level="1">Legacy IBRs must maximize software settings by December 31, 2025.</li> <li style="font-weight: 400;" aria-level="1">Requirement to submit notice of intent for exemption under phase two.</li> <li style="font-weight: 400;" aria-level="1">Changes between August 12 and 16 versions include memory card clarification and notice of intent terminology.</li> <li style="font-weight: 400;" aria-level="1">Tracking of compliance and exemptions to be reported quantitatively to the board.</li> <li style="font-weight: 400;" aria-level="1">Impact assessment update: FTE potential increase from 7-8 to 7-10.</li> <li style="font-weight: 400;" aria-level="1">Project priority year suggested as 2025 with a rank of 3515.</li> </ul> <a href="/sharing/?token=5b3a1036-5e0a-4de9-8f47-ae89506791a6">5.1.2</a> - Other Comments on NOGRR245, if any Discussion - Commenters Other Comments on NOGRR245, if any Discussion - Commenters <ul> <li style="font-weight: 400;" aria-level="1">Discussed the need for the board to designate NOGRR245 as a priority for February.</li> <li style="font-weight: 400;" aria-level="1">Mentioned the challenges in policy discussions among stakeholders regarding exemption processes and hardware.</li> <li style="font-weight: 400;" aria-level="1">Emphasized the importance of keeping the committee and board updated on the NOGRR process.</li> <li style="font-weight: 400;" aria-level="1">Suggested that such updates would help identify key issues between ERCOT staff and stakeholders.</li> <li style="font-weight: 400;" aria-level="1">Expressed satisfaction with agreement and implementation of discussed items.</li> </ul> <a href="/sharing/?token=cf72edff-d06b-4f05-9ea2-434f4e74aadd">5.2</a> - TAC Report regarding R&M Committee-Charter Revision Requests Discussion - TAC Chair The transcript summary is as follows: <ul> <li style="font-weight: 400;" aria-level="1">Caitlin Smith, the TAC Chair, presented the <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/5-2-tac-report-regarding-r-m-committee-charter-revision-requests.pdf">TAC report</a>.</li> </ul> <a href="/sharing/?token=495b6d5b-489d-4450-9f4e-ee9111a03127">5.2.1</a> - NPRR1190, High Dispatch Limit Override Provision for Increased Load Serving Entity Costs Vote - Chair <ul> <li style="font-weight: 400;" aria-level="1">NPRR1190 discussed provisions for recovery of financial loss from a manual high dispatch limit (HDL) override, focusing on issues when real power output is reduced but intended to meet QSC load obligations.</li> <li style="font-weight: 400;" aria-level="1">Current protocol allows compensation for losses on day-ahead market obligations and bilateral contracts affected by HDL override, but doesn't account for losses within service territory obligations.</li> <li style="font-weight: 400;" aria-level="1">The revised language in NPRR1190 permits compensation for concrete realized loss, not merely opportunity cost.</li> <li style="font-weight: 400;" aria-level="1">TAC voted on June 24 with six opposing votes from the consumer segment and one abstention from the independent retailer segment.</li> <li style="font-weight: 400;" aria-level="1">Opponents argued the proposal contradicts nodal market design, rewards overscheduling of undeliverable power, and disrupts proper dispatching incentives and new generation siting.</li> <li style="font-weight: 400;" aria-level="1">ERCOT supported NPRR1190 as approved by TAC and provided data and historical context on HDL override payments.</li> <li style="font-weight: 400;" aria-level="1">Motion to approve NPRR1190 as recommended by TAC faced a hurdle due to the six opposing votes, resulting in further discussion without immediate approval.</li> </ul> <a href="/sharing/?token=8d6ff681-23aa-4b79-b849-33cfc0b7093a">5.2.2</a> - NPRR1215, Clarifications to the Day-Ahead Market DAM Energy-Only Offer Calculation Vote - Chair <ul> <li style="font-weight: 400;" aria-level="1">NPRR1215 clarifies the day-ahead market energy-only offer credit calculation.</li> <li style="font-weight: 400;" aria-level="1">It zeros out negative values in the exposure calculation.</li> <li style="font-weight: 400;" aria-level="1">It uses the absolute value of negative prices to increase exposure when prices are negative.</li> <li style="font-weight: 400;" aria-level="1">Motion made for RNM Committee to recommend the board remand NPPRR1215 back to TAC</li> <li style="font-weight: 400;" aria-level="1">Motion passed unanimously.</li> </ul> <a href="/sharing/?token=0e784809-8502-4d3f-8802-ad6c802dda1f">5.2.2.1</a> - ERCOT Comments on NPRR1215 Discussion - Austin Rosel <ul> <li style="font-weight: 400;" aria-level="1">ERCOT filed comments on August 1 to correct a formula error.</li> <li style="font-weight: 400;" aria-level="1">ERCOT discussed their plan to file comments on July 31 during the TAC meeting, with no concerns raised by TAC members.</li> <li style="font-weight: 400;" aria-level="1">Austin Rosel reiterated that the NPRR version aimed to capture an "as built" and not introduce any policy change.</li> <li style="font-weight: 400;" aria-level="1">A formula error inadvertently caused a policy change, discovered after TAC voted.</li> </ul> <a href="/sharing/?token=69038f1e-7e17-4365-8452-80cd864f0ac9">5.2.3</a> - NPRR1219, Methodology Revisions and New Definitions for the Report on Capacity, Demand and Reserves in the ERCOT Region CDR – URGENT Vote - Chair <ul> <li style="font-weight: 400;" aria-level="1">NPRR1219 changes the methodologies for preparing the CDR report.</li> <li style="font-weight: 400;" aria-level="1">Incorporates a report release schedule and requires switchable generation resource owners to provide information on unavailable units for all seasons, not just summer and winter.</li> <li style="font-weight: 400;" aria-level="1">Efforts to update the CDR are in response to Winter Storm Uri.</li> <li style="font-weight: 400;" aria-level="1">Switch to ELCCs and reporting loads/resources during the forecasted peak net load hour instead of just peak load.</li> <li style="font-weight: 400;" aria-level="1">At the 7/31 meeting there were two opposing votes from the consumer segment, and four abstentions from the consumer, independent generator, and independent power marketer segments.</li> <li style="font-weight: 400;" aria-level="1">Opposition was due to the need for more time to review ELCC calculations and policy implications with the Public Utility Commission and Legislature.</li> <li style="font-weight: 400;" aria-level="1">Support from stakeholders for implementing changes in the December CDR due to associated urgency.</li> <li style="font-weight: 400;" aria-level="1">Debate over ELCC application to renewables but not thermal generation, and the complexity of calculations.</li> <li style="font-weight: 400;" aria-level="1">Continued collaboration with stakeholders to improve CDR processes.</li> <li style="font-weight: 400;" aria-level="1">Capturing the availability of switchable generation in CDR reports is viewed as crucial, particularly for understanding seasonal availability.</li> <li style="font-weight: 400;" aria-level="1">Account for battery energy storage in CDR, as its current contribution is listed as zero despite increasing megawatts added.</li> <li style="font-weight: 400;" aria-level="1">Motion made to recommend approval of NPRR1219 as recommended by TAC passed unanimously. </li> </ul> <a href="/sharing/?token=e9cfa336-13b5-4a4d-bf4e-4ad8e4e04127">5.2.4</a> - NPRR1230, Methodology for Setting Transmission Shadow Price Caps for an IROL in SCED – URGENT Vote - Chair <ul> <li style="font-weight: 400;" aria-level="1">Discussed methodology for setting transmission shadow price caps for interconnection reliability operating limits (IROLs) and security constrained economic dispatch, deemed urgent.</li> <li style="font-weight: 400;" aria-level="1">NPRR1230 will allow ERCOT to manage power flows within IROLs using existing tools instead of manual intervention, reducing operational risk during stress conditions.</li> <li style="font-weight: 400;" aria-level="1">Mentioned the issue that occurred during the September 6 EEA event.</li> <li style="font-weight: 400;" aria-level="1">Implementation was delayed initially to avoid market uncertainty; now planned for next summer.</li> <li style="font-weight: 400;" aria-level="1">At the 7/31 TAC meeting there were two opposing votes (cooperative and municipal segments) and four abstentions (cooperative and independent retail provider segments) due to cost concerns.</li> <li style="font-weight: 400;" aria-level="1">Opposing vote cited increased market costs shown in ERCOT’s analysis, ranging from $0.5 to $1.6 billion over 20 days.</li> <li style="font-weight: 400;" aria-level="1">ERCOT's South Texas export GTC exit strategy indicates resolution by 2027, reducing the need for the NPRR.</li> <li style="font-weight: 400;" aria-level="1">Discussion on how NPRR1230 mitigates high dispatch limit overrides in NPRR1190, improving market process by automating dispatch limits.</li> <li style="font-weight: 400;" aria-level="1">Motion made for the RNM committee to recommend approval of NPRR1230 as recommended by TAC passed unanimously.</li> <li style="font-weight: 400;" aria-level="1">Discussion then shifted back to NPRR1190 regarding concerns about the increased eligibility for makehold payments and the broader issue of out-of-market payments.</li> <li style="font-weight: 400;" aria-level="1">Acknowledged the small number of instances vs. potential impacts.</li> <li style="font-weight: 400;" aria-level="1">Clarified the ERCOT comments on NPRR1190 and provided quantification of impacted resources and historical data.</li> <li style="font-weight: 400;" aria-level="1">Decision to table NPRR1190 for more information, to be revisited in October.</li> <li style="font-weight: 400;" aria-level="1">Motion to table NPRR1190 made and seconded; approved unanimously.</li> </ul> <a href="/sharing/?token=68df7535-57eb-4fe1-8bc9-ad0749c941d8">6</a> - Recommendation regarding Oncor Temple Area Regional Planning Group RPG Project Vote - Kristi Hobbs <ul> <li style="font-weight: 400;" aria-level="1">ERCOT Staff is <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/6-recommendation-regarding-oncor-temple-area-regional-planning-group-rpg-project.pdf">endorsing</a> the Oncor Temple Area project and seeking board endorsement.</li> <li style="font-weight: 400;" aria-level="1">Projects over $100 million require board endorsement.</li> <li style="font-weight: 400;" aria-level="1">The Oncor Temple Area project addresses reliability needs including thermal overloads on 18 miles of transmission lines and 31 voltage violations in Bell County.</li> <li style="font-weight: 400;" aria-level="1">Option 5A was unanimously endorsed by TAC.</li> <li style="font-weight: 400;" aria-level="1">Two main criteria for the recommendation: loss of a transformer followed by a single transmission element, and contingency loss of a single transformer followed by a single transmission element or a common tower outage.</li> <li style="font-weight: 400;" aria-level="1">Option 5A was the least costly solution, required the least amount of new right-of-ways, and improved long-term load carrying capacity compared to other options.</li> <li style="font-weight: 400;" aria-level="1">Motion made for the board to endorse the need for the Tier 1 Oncor Temple Area project, option 5A, passed unanimously. </li> </ul> <a href="/sharing/?token=aec8b473-fdc4-44da-99bd-6882363a29f6">7</a> - Independent Market Monitor IMM Report Discussion - IMM <ul> <li style="font-weight: 400;" aria-level="1">Market activity <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/7-independent-market-monitor-imm-report.pdf">report</a> covers June and July.</li> <li style="font-weight: 400;" aria-level="1">Aside from electrical issues from the July hurricane, the period was uneventful.</li> <li style="font-weight: 400;" aria-level="1">Wholesale energy prices were low in June and July.</li> <li style="font-weight: 400;" aria-level="1">Lower prices driven by mild temperatures and a 14% decrease in natural gas prices compared to 2023.</li> <li style="font-weight: 400;" aria-level="1">Wholesale electricity prices dropped by 53% compared to last year.</li> <li style="font-weight: 400;" aria-level="1">Last summer saw high prices due to reserve deployment issues, now modified.</li> <li style="font-weight: 400;" aria-level="1">Very low congestion between zones, indicated by comparable monthly average prices across zones.</li> <li style="font-weight: 400;" aria-level="1">July 2024 had much lower load due to mild temperatures compared to 2022 and 2023.</li> <li style="font-weight: 400;" aria-level="1">Ancillary service costs were lower in June and July due to lower energy costs.</li> <li style="font-weight: 400;" aria-level="1">Resource mix showed a slight increase in wind generation, with otherwise stable production mix.</li> <li style="font-weight: 400;" aria-level="1">Congestion costs followed energy prices, with lower costs due to reduced energy prices and congestion compared to prior years.</li> </ul> <a href="/sharing/?token=bb6ec60f-d5a5-4c87-a5bb-d1204bc0b820">8.1</a> - System Planning and Weatherization Update Discussion - Kristi Hobbs <ul> <li style="font-weight: 400;" aria-level="1">Kristi Hobbs presented the System Planning and Weatherization <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/8-1-system-planning-and-weatherization-update.pdf">update</a>.</li> <li style="font-weight: 400;" aria-level="1">Transmission Project Options</li> <ul> <li style="font-weight: 400;" aria-level="2">Several options considered; shortlisted to three.</li> <li style="font-weight: 400;" aria-level="2">One option not meeting NERC and ERCOT criteria was discarded.</li> <li style="font-weight: 400;" aria-level="2">Selected option cost: $272 million, another option: $329 million.</li> </ul> <li style="font-weight: 400;" aria-level="1">Summer Inspection Program</li> <ul> <li style="font-weight: 400;" aria-level="2">Goal: 300 generation resources and 300 transmission facilities.</li> <li style="font-weight: 400;" aria-level="2">Achieved: 288 resources and 247 transmission facilities inspected as of mid-August.</li> </ul> <li style="font-weight: 400;" aria-level="1">Permian Basin Reliability Plan</li> <ul> <li style="font-weight: 400;" aria-level="2">Plan filed with PUC includes a $4.02 billion subset of projects for local transmission needs.</li> <li style="font-weight: 400;" aria-level="2">Options considered for power import paths: 345kV, higher voltage (EHV).</li> <li style="font-weight: 400;" aria-level="2">Total cost varies: $13 billion to just under $14 billion.</li> </ul> <li style="font-weight: 400;" aria-level="1">EHV Transmission Planning</li> <ul> <li style="font-weight: 400;" aria-level="2">Ongoing study to be completed by the end of the year.</li> <li style="font-weight: 400;" aria-level="2">Stakeholder feedback will be incorporated through monthly RPG meetings and additional workshops.</li> </ul> <li style="font-weight: 400;" aria-level="1">Large Load Growth</li> <ul> <li style="font-weight: 400;" aria-level="2">Significant increase in large load interconnection requests.</li> <li style="font-weight: 400;" aria-level="2">Current projection: over 49,000.</li> </ul> <li style="font-weight: 400;" aria-level="1">Resource Adequacy for Upcoming Months</li> <ul> <li style="font-weight: 400;" aria-level="2">Highest risk period: evening hours as solar sets.</li> <li style="font-weight: 400;" aria-level="2">September risk less than August; October higher due to maintenance outages.</li> </ul> <li style="font-weight: 400;" aria-level="1">Reliability Standard and Cost Studies</li> <ul> <li style="font-weight: 400;" aria-level="2">Commission to take action on the reliability standard by the end of the month.</li> <li style="font-weight: 400;" aria-level="2">Value of lost load survey results to be published soon.</li> <li style="font-weight: 400;" aria-level="2">Cost of new entry study updated; commission approved a cone of 140 kilowatt-hours per year.</li> </ul> </ul> <a href="/sharing/?token=c1bfe23a-5440-465f-a1f8-055298654a08">8.2</a> - System Operations Update Discussion - Dan Woodfin <ul> <li style="font-weight: 400;" aria-level="1">Dan Woodfin presented the System Operation <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/8-2-system-operations-update.pdf">update</a>.</li> <li style="font-weight: 400;" aria-level="1">Hurricane Beryl</li> <ul> <li style="font-weight: 400;" aria-level="2">Initial forecasts predicted the hurricane would hit south of Brownsville, Mexico; it eventually hit Matagorda County, South of Houston.</li> <li style="font-weight: 400;" aria-level="2">Caused significant load loss in Houston due to distribution outages.</li> <li style="font-weight: 400;" aria-level="2">ERCOT managed transmission and generation well, with high online reserves throughout the event.</li> <li style="font-weight: 400;" aria-level="2">Adjustments to load forecasts were necessary.</li> <li style="font-weight: 400;" aria-level="2">RFIs will be sent to entities with outages for continuous improvement insights.</li> </ul> <li style="font-weight: 400;" aria-level="1">Ancillary Services</li> <ul> <li style="font-weight: 400;" aria-level="2">ERCOT Contingency Reserve Service updates rejected by Commission but operational procedures have been adjusted since August 1.</li> <li style="font-weight: 400;" aria-level="2">Changes to ancillary services quantities for 2025 have been approved; will be endorsed in October and implemented after further workshops.</li> <li style="font-weight: 400;" aria-level="2">Legislature-required, 87R-SB3, ancillary service study in progress; recommendations to be discussed on August 28.</li> </ul> <li style="font-weight: 400;" aria-level="1">DRRS Dispatchable Reliability Reserve Service</li> <ul> <li style="font-weight: 400;" aria-level="2">NPRR1235 proposal will be implemented post-RTC (Real-Time Co-optimization for Ancillary Services and Local Congestion Management), anticipated at a later date.</li> </ul> <li style="font-weight: 400;" aria-level="1">PUC Ancillary Service Study</li> <ul> <li style="font-weight: 400;" aria-level="2">Two main areas for potential changes: frequency response bucket and resource commitment adequacy.</li> <li style="font-weight: 400;" aria-level="2">Recommendations include adopting probabilistic analysis methods and setting ancillary service quantities closer to real time.</li> </ul> <li style="font-weight: 400;" aria-level="1">NPRR1149 Implementation</li> <ul> <li style="font-weight: 400;" aria-level="2">Tracking QSE capacity shortages monthly, finding a low shortage percentage in July.</li> <li style="font-weight: 400;" aria-level="2">Tracking the ability of energy storage resources to maintain ancillary service provision throughout their deployment duration.</li> </ul> <li style="font-weight: 400;" aria-level="1">Survey on Inverter-Based Resources (IBRs)</li> <ul> <li style="font-weight: 400;" aria-level="2">Survey found that about 30 gigawatts of IBRs plan to maximize ride-through capability improvements, with others still assessing or awaiting more guidance.</li> </ul> <li style="font-weight: 400;" aria-level="1">Questions from Julie</li> <ul> <li style="font-weight: 400;" aria-level="2">Requirements to compare ancillary service costs and reliability for summer 2023 versus summer 2022 will be addressed in the next meeting.</li> </ul> </ul> <a href="/sharing/?token=d45f000f-b6c3-4384-9a26-fc2511b1d9a6">8.3</a> - Commercial Markets Update Discussion - Gordon Drake <ul> <li style="font-weight: 400;" aria-level="1">Gordon Drake presented the commercial markets <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/8-3-commercial-markets-update.pdf">update</a>.</li> <li style="font-weight: 400;" aria-level="1">Objectives: Highlight notable market trends, discuss market evolution work, and key stakeholder conversations.</li> <li style="font-weight: 400;" aria-level="1">Hurricane Beryl impact: Mild pricing outcomes system-wide, localized price separations, price oscillations between $0 and $75, and peak demand reduction of approximately 15.5-16GW.</li> <li style="font-weight: 400;" aria-level="1">Observed localized effects included significant price separation between the Houston zone and south load zones, with Houston prices occasionally reaching negative values.</li> <li style="font-weight: 400;" aria-level="1">Discussed current market initiatives including the Performance Credit Mechanism (PCM), Dispatchable Reliability Reserve Service (DRRS), and the ADER pilot.</li> <li style="font-weight: 400;" aria-level="1">PCM: Workshop held on July 25, next steps include publishing a ‘straw man’ and a cost and market effects analysis in the next few days.</li> <li style="font-weight: 400;" aria-level="1">DRRS: Multi-stage approach focusing first on offline resources, with future steps involving energy storage resources and controllable load resources.</li> <li style="font-weight: 400;" aria-level="1">ADER Pilot: Evaluating current performance and new participation models, working closely with stakeholders and the PUC.</li> <li style="font-weight: 400;" aria-level="1">Questions raised about the implementation timeline of the PCM, with estimates suggesting 2025 following the necessary rulemaking processes.</li> </ul> <a href="/sharing/?token=663fcab6-f357-4fc9-b9b8-7ed02f63feda">8.3.1</a> - Real-Time Co-optimization Update Discussion - Matt Mereness <ul> <li style="font-weight: 400;" aria-level="1">Matt Mereness presented the RTC <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/16/8-3-1-real-time-co-optimization-update-revised.pdf">update</a>.</li> <li style="font-weight: 400;" aria-level="1">Discussed the ongoing work and collaboration with the vendor on RTC integration points.</li> <li style="font-weight: 400;" aria-level="1">Emphasized planning for testing and going live, interdependencies like system operator training.</li> <li style="font-weight: 400;" aria-level="1">Highlighted market readiness focus with technical deep dives and a market trials plan.</li> <li style="font-weight: 400;" aria-level="1">Explained the process of updating and aligning RTC protocols and the single model.</li> <li style="font-weight: 400;" aria-level="1">Provided status on the queasies' attestations, including feedback and tracking of submissions.</li> <li style="font-weight: 400;" aria-level="1">Reviewed the preparations for market trials, QSEs engagement, and necessary system changes.</li> <li style="font-weight: 400;" aria-level="1">Addressed the readiness of different QSEs, noting 106 with resources and respective attestations.</li> <li style="font-weight: 400;" aria-level="1">Outlined next steps, including running simulations and stress tests starting in late September.</li> <li style="font-weight: 400;" aria-level="1">Discussed policy constraints related to ORDC curve and possible shifts within the ORDC framework.</li> <li style="font-weight: 400;" aria-level="1">Confirmed that current scope is locked, and any design changes would delay implementation.</li> <li style="font-weight: 400;" aria-level="1">Responded to questions about testing and feedback, confirming iterative scorecards for different testing stages.</li> </ul> <a href="/sharing/?token=430abcdb-b81e-4af7-8b94-3b524876f268">8.4</a> - Market Credit Update Discussion - Austin Rosel <ul> <li style="font-weight: 400;" aria-level="1">Austin Rosel provided the <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/8-4-market-credit-update.pdf">update</a>.</li> <li style="font-weight: 400;" aria-level="1">Noted that the NPRR1215 request had already been handled by the committee.</li> <li style="font-weight: 400;" aria-level="1">Due to mild prices, there were no major credit developments to report.</li> <li style="font-weight: 400;" aria-level="1">No defaults or uplifts to the market were observed.</li> <li style="font-weight: 400;" aria-level="1">Total potential exposure remained flat throughout the summer, maintaining around 2 billion dollars.</li> <li style="font-weight: 400;" aria-level="1">Comparison with previous years showed a significant decrease in potential exposure.</li> <li style="font-weight: 400;" aria-level="1">NPRR1205 was approved by the PUC on June 13, which included increased issuer limits for banks and higher quality standards.</li> <li style="font-weight: 400;" aria-level="1">On July 1, the first phase of NPRR1205 was implemented, doubling issuer limits.</li> <li style="font-weight: 400;" aria-level="1">There were no issues with banks breaching their revised limits.</li> <li style="font-weight: 400;" aria-level="1">NPRR1215 had been remanded back to TAC as requested.</li> </ul> <a href="/sharing/?token=ee6972e5-b269-49f4-b299-bbcff837f29b">8.5</a> - Revision Request Status Update Discussion - Ann Boren <ul> <li style="font-weight: 400;" aria-level="1">Ann Boren provided the Revision Request Status <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/12/8-5-revision-request-status-update.pdf">update</a>.</li> <li style="font-weight: 400;" aria-level="1">14 revision requests for consideration at the board meeting tomorrow</li> <li style="font-weight: 400;" aria-level="1">5 revision requests already reviewed today</li> <li style="font-weight: 400;" aria-level="1">9 remaining revision requests on the consent agenda</li> <li style="font-weight: 400;" aria-level="1">58 revision requests currently in process</li> <li style="font-weight: 400;" aria-level="1">18 new revision requests submitted since June board meeting</li> <li style="font-weight: 400;" aria-level="1">12 aging revision requests tabled for over 7 months</li> <li style="font-weight: 400;" aria-level="1">1 aging revision request (NPRR1188) removed after being tabled for almost a year.</li> <li style="font-weight: 400;" aria-level="1">45 revision requests approved to date through the stakeholder process</li> </ul> <a href="/sharing/?token=6ba086d7-6d05-44ab-b3c7-f09a5d2ccb83">12</a> - Adjournment Chair <ul> <li style="font-weight: 400;" aria-level="1">Meeting was officially adjourned by Chair Gleeson.</li> </ul>