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Meeting Summary - 08/28/24 TAC Meeting

Grid Monitor AI
08/29/2024

<img src="/storage/docs/2024/08/20240827TACHERO.png" width="570" height="428" /> <a href="/sharing/?token=37a7248f-03aa-4e3c-84ba-27f1d171394d">1 </a>- Antitrust Admonition - Caitlin Smith <a href="/sharing/?token=d7f1aa69-ebc5-41d3-89be-fe88986378d4">2 </a>-  Approval of TAC Meeting Minutes - Caitlin Smith <ul> <li style="font-weight: 400;" aria-level="1">Approval of July 31 meeting minutes on the combo ballot.</li> </ul> <a href="/sharing/?token=5cd012e0-00cd-448d-a081-01b03d81e865">3 </a>- Meeting <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/21/3-meeting-updates.zip">Updates</a>  August Board/PUCT Meetings - Caitlin Smith <ul> <li style="font-weight: 400;" aria-level="1">Board approved most revision requests recommended by TAC.</li> <li style="font-weight: 400;" aria-level="1">NPRR1190 tabled at the board; </li> <li style="font-weight: 400;" aria-level="1">Concerns raised over ERCOT taking on roles traditionally managed by TAC and how ERCOT plans to represent stakeholders.</li> <li style="font-weight: 400;" aria-level="1">Plans to allow stakeholders to present their positions directly to the board were highlighted.</li> <li style="font-weight: 400;" aria-level="1">Future workshops to flesh out process details and stakeholder input.</li> <li style="font-weight: 400;" aria-level="1">Discussions on the existing comprehensive records available to the board for reference.</li> </ul> <a href="/sharing/?token=90b7fa79-ecc0-4cfe-bafc-ddf8f33e2021">3.1</a> - IBR Bifurcated NOGRR Related to NOGRR245 <ul> <li style="font-weight: 400;" aria-level="1">NOGRR245 was approved by the board after comments from ERCOT and joint commenters.</li> <li style="font-weight: 400;" aria-level="1">The board designated a subsequent NOGRR as a priority to address exemption process details and hardware requirements.</li> <li style="font-weight: 400;" aria-level="1">ERCOT is waiting for commission approval of NOGRR245 before filing the subsequent NOGRR.</li> <li style="font-weight: 400;" aria-level="1">Possibility that the subsequent NOGGR will be a rulemaking instead, PUC to discuss on September 26, 2024.</li> </ul> <a href="/sharing/?token=5d2f2a15-be45-4797-afb2-1fc2b8409a1b">3.2</a> - Board Remand of NPRR1215, Clarifications to the Day-Ahead Market - DAM - Energy-Only Offer Calculation - Vote <ul> <li style="font-weight: 400;" aria-level="1">Austin Rosel mentioned that questions came up after sending NPRR1215 back to the board after finding the formula error, furthering investigation into those questions.</li> <li style="font-weight: 400;" aria-level="1">Motion to table NPRR1215 added to combo ballot</li> </ul> <a href="/sharing/?token=9e1fc349-f032-4c1f-ba6b-3a07278cdbdc">4 </a>- Review of Revision Request Summary/ERCOT Market Impact Statement/Opinions - Ann Boren/ IMM <ul> <li style="font-weight: 400;" aria-level="1">Revision Request <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/27/4-revision-request-summary.zip">Summary</a></li> <li style="font-weight: 400;" aria-level="1">Eight revision requests on the TAC agenda this month.</li> <li style="font-weight: 400;" aria-level="1">ERCOT supports all revision requests with positive market impact statements.</li> <li style="font-weight: 400;" aria-level="1">IMM has no opinion on the revision requests.</li> <li style="font-weight: 400;" aria-level="1">CFSG has reviewed them and found no credit implications.</li> <li style="font-weight: 400;" aria-level="1">Five relate to general system process improvements.</li> <li style="font-weight: 400;" aria-level="1">Two are due to regulatory requirements.</li> <li style="font-weight: 400;" aria-level="1">One request is a board and PUC directive.</li> </ul> <a href="/sharing/?token=0a03e371-9e4a-46d9-8215-907e7451e0a1">5 </a>- PRS Report - Vote - Diana Coleman <ul> <li style="font-weight: 400;" aria-level="1">Diana Coleman provided the August PRS <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/21/5-prs-report.zip">report</a>.</li> </ul> <a href="/sharing/?token=c6860b65-44a8-4eae-8be3-85cc1e7e4486">5.1</a> - NPRR1221, Related to NOGRR262, Provisions for Operator-Controlled Manual Load Shed <ul> <li style="font-weight: 400;" aria-level="1">Motion to recommend approval of NPRR1221 as recommended by PRS in the 8/8/24 PRS Report added to combo ballot.</li> </ul> <a href="/sharing/?token=0e57d05f-6a2f-4bc0-a26b-1d90509ef0ac">5.2</a> - NPRR1236, RTC+B Modifications to RUC Capacity Short Calculations <ul> <li style="font-weight: 400;" aria-level="1">Motion to recommend approval of NPRR1236 as recommended by PRS in the 8/8/24 PRS Report added to combo ballot.</li> </ul>   <ul> <li style="font-weight: 400;" aria-level="1">NOTE: ERCOT ISO's final readiness process update given by Shane Herrera relating to NERC reliability standard EOP 11 Version 4, R2 part 2.2.9, enforceable from October 1, 2024.</li> <ul> <li style="font-weight: 400;" aria-level="2">Notice to be directed to NERC TOPs within the ERCOT interconnection.</li> </ul> </ul> <a href="/sharing/?token=6920d1f7-2c04-4eac-8b8f-c69a24014263">6</a> - Revision Requests Tabled at TAC - Possible Vote - Caitlin Smith. <a href="/sharing/?token=d294bd1f-18a1-4106-8f2c-eb3b0ebbc970">6.1</a> - OBDRR046, Related to NPRR1188, Implement Nodal Dispatch and Energy Settlement for Controllable Load Resources <ul> <li style="font-weight: 400;" aria-level="1">OBDRR046 remains tabled.</li> </ul> <a href="/sharing/?token=919aa20e-b52c-4a11-af1c-f8c1ea5b8ca2">6.2</a> - NPRR1227, Related to RMGRR181, Alignment of Defined Term Usage and Resolution of Inconsistencies <ul> <li style="font-weight: 400;" aria-level="1">Recommendation to approve NPRR1227 as per PRS's recommendation in the July 18 PRS report</li> <li style="font-weight: 400;" aria-level="1">Suggestion to handle RMGRR181 concurrently as recommended by RMS in the 86 RMS report</li> <li style="font-weight: 400;" aria-level="1">Motion to recommend approval of NPRR1227 as recommended by PRS in the 7/18/24 PRS Report, and o recommend approval of RMGRR181 as recommended by RMS in the 8/6/24 RMS Report, added to the combo ballot</li> </ul> <a href="/sharing/?token=59772112-a71f-4663-a7fc-ff1f9cd03adb">7</a> - OBDRR052, Related to NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era - Vote <ul> <li style="font-weight: 400;" aria-level="1">Motion to table OBDRR052 added to combo ballot.</li> </ul> <a href="/sharing/?token=41572c10-095f-4c6b-b330-5d3a82b742c2">8</a> - RMS <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/26/8-rms-report.zip">Report</a> RMGRR181, Alignment of Defined Term Usage and Resolution of Inconsistencies - Debbie McKeever <ul> <li style="font-weight: 400;" aria-level="1">RMGRR181 was unanimously approved.</li> <li style="font-weight: 400;" aria-level="1">RMGRR181 and NPRR are companion pieces, not changing any processes, just removing some definitions and aligning language with ERCOT protocol 2.1.</li> <li style="font-weight: 400;" aria-level="1">RMGRR181 placed on the combo ballot.</li> <li style="font-weight: 400;" aria-level="1">Debbie McKeever briefed on Texas SET 5.0 and MarkeTrak SCR817, set to implement on November 9.</li> <li style="font-weight: 400;" aria-level="1">The primary benefit of Texas SET 5.0 and MarkeTrak changes is the improvement in managing inadvertent gains, reducing manual processing and providing better logging and tracking.</li> <li style="font-weight: 400;" aria-level="1">County codes will improve weather moratorium processes by providing additional data, enhancing visibility in extreme weather.</li> <li style="font-weight: 400;" aria-level="1">New service handling codes introduced to better communicate during major weather incidents.</li> <li style="font-weight: 400;" aria-level="1">LP&L transition completed months ago, but billing and usage processes still under weekly review.</li> <li style="font-weight: 400;" aria-level="1">The task force for the transition will continue until the end of the year to incorporate lessons learned and manage Texas SET 5.0 upgrade.</li> </ul> <a href="/sharing/?token=5331b032-faf2-4ea2-b4e3-45d104f00710">9</a> - ROS <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/21/9-ros-report.zip">Report</a> NOGRR262, Provisions for Operator-Controlled Manual Load Shed- Katie Rich <ul> <li style="font-weight: 400;" aria-level="1">Motion to recommend approval of NOGRR262 as recommended by ROS in the 8/1/24 ROS Report added to combo ballot.</li> </ul> <a href="/sharing/?token=c6b68ed4-77fa-4543-88c5-b80fcacd0ed8">10</a> - WMS <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/21/10-wms-report.zip">Report</a> - Eric Blakey (click <a href="/news/articles/?id=10280">here</a> for Grid Monitor WMS Summary) <ul> <li style="font-weight: 400;" aria-level="1">WMS met on August 7, where several reports were given.</li> </ul> <h3>Reports</h3> <ul> <li style="font-weight: 400;" aria-level="1">Jeff McDonald provided the Annual update from the IMM on the state of the market report and recommendations.</li> <li style="font-weight: 400;" aria-level="1">2024 Q2 Settlement Stability Report showed price changes, resettlements disputes, cost allocation, winter storm Uri securitization monthly uplift charges.</li> <li style="font-weight: 400;" aria-level="1">2024 Q2 Unregistered DG Report showed a total of 2,643 MW of unregistered DG, new DG battery storage information from ERCOT.</li> <li style="font-weight: 400;" aria-level="1">Auction Revenue Distribution Card and CRR Balancing Account (CRRBA) showed ERCOT and IMM concern on potential uneconomic behavior, discussion to be continued at WMWG's September 24 meeting.</li> <li style="font-weight: 400;" aria-level="1">HDL-LDL Override Report highlighted solar generation range during April 8 eclipse 13,792 MW - 734 MW.</li> <li style="font-weight: 400;" aria-level="1">Large Load Interconnection Report showed the interconnection queue status stands at more than 52,000 MW, an increase of 4,636 MW since July update.</li> </ul> <h3>Revision Requests</h3> <ul> <li style="font-weight: 400;" aria-level="1">VCMRR041: Rejected in favor of VCMRR042, proposed by Luminant, which is tabled and referred to RCWG.</li> <li style="font-weight: 400;" aria-level="1">NPRR1242: ERCOT has concerns over setting precedents for parsing out fees.</li> <li style="font-weight: 400;" aria-level="1">NPRR1226: WMS endorsed despite concerns about new dashboards.</li> <li style="font-weight: 400;" aria-level="1">NPRR1238: Tabled and referred to WMWG.</li> </ul> <a href="/sharing/?token=eb30f4c5-63dd-486c-b6ba-4ea7e1b86278">11</a> - Credit Finance Sub Group <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/27/11-cfsg-report.zip">Report</a> - Vote - Brenden Sager <ul> <li style="font-weight: 400;" aria-level="1">Discussed estimate aggregate liability change proposals and administrative update on NPRR1215.</li> <li style="font-weight: 400;" aria-level="1">NPRR1215 had a formula error, specifically in the e2 parameter of the credit formula.</li> <li style="font-weight: 400;" aria-level="1">Clarified e1 parameter in NPRR1215; no vote was taken.</li> <li style="font-weight: 400;" aria-level="1">Focused on changes to the estimated aggregate liability, part of collateral requirements for market participants.</li> <li style="font-weight: 400;" aria-level="1">Explained max exposure calculation over a 40-day look back period.</li> <li style="font-weight: 400;" aria-level="1">Highlighted the forward adjustment factors and their role in collateral requirements; weighted ratio of forward north hub prices over settlement prices.</li> </ul> <ul> <li style="font-weight: 400;" aria-level="1">Discussion on ERCOT's current system: real-time component, 40-day look-back period for real-time liability, real-time forward adjustment factor, day-ahead liability, and forward adjustment factors.</li> <li style="font-weight: 400;" aria-level="1">Consideration of netting real-time and day-ahead invoices and the implications.</li> <li style="font-weight: 400;" aria-level="1">Review of six different scenarios impacting the credit form, focusing on under-collateralization and overcollateralization to reduce market costs.</li> <li style="font-weight: 400;" aria-level="1">Potential adjustments: shorten the 40-day look-back period, implement caps and floors on forward adjustment factors, aiming to reduce volatility and liquidity jumps.</li> <li style="font-weight: 400;" aria-level="1">Discussed whether smaller, easy adjustments could be implemented early, while larger changes like netting are more complex.</li> <li style="font-weight: 400;" aria-level="1">Presentation of data on forward adjustment factors and the justification for caps and floors.</li> <li style="font-weight: 400;" aria-level="1">Review of three new NPRRs, deemed operational with no changes required for credit monitoring or liability calculations.</li> <li style="font-weight: 400;" aria-level="1">Monthly highlights: decrease in TPE from 2.18 billion to 1.81 billion, decrease in discretionary collateral from 4.23 billion to 4.15 billion.</li> <li style="font-weight: 400;" aria-level="1">Allocation of credit instruments to ERCOT, predominantly letters of credit, cash, and a few surety bonds.</li> <li style="font-weight: 400;" aria-level="1">Discussion on discretionary collateral and the priority to avoid over and under-collateralization in the market.</li> <li style="font-weight: 400;" aria-level="1">Update on ERCOT's credit limit issuer problems, noting an improvement in the number of issuers in the warning category.</li> <li style="font-weight: 400;" aria-level="1">Vote on addition to the membership of CFSG to be added to the combo ballot.</li> </ul> <a href="/sharing/?token=71166969-6a94-4212-9b9e-ee7a9da98dca">12</a> - RTC+B Task Force <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/23/12-rtc-b-task-force-report.zip">Report</a> - Matt Mereness <ul> <li style="font-weight: 400;" aria-level="1">ERCOT is finalizing the project schedule, emphasizing the importance of aligning dates for market trials and resolving outstanding issues.</li> <li style="font-weight: 400;" aria-level="1">There is a possibility of going live by the end of 2025, but not later than September 2026.</li> <li style="font-weight: 400;" aria-level="1">Ongoing work on aligning business requirements with current protocols and updating technical specifications.</li> <li style="font-weight: 400;" aria-level="1">ERCOT's RTC simulator is nearing completion and will be used to run historical data to study price convergence.</li> <li style="font-weight: 400;" aria-level="1">Market readiness and trials plan include comments on the load frequency control test and the attestation scorecard showing significant engagement.</li> <li style="font-weight: 400;" aria-level="1">Discussion on deferring NPRR1245 and NPRR1246 for additional review due to numerous small changes.</li> <li style="font-weight: 400;" aria-level="1">Upcoming review of proxy offer curves, market readiness, training modules, and potential changes to AS demand curves.</li> <li style="font-weight: 400;" aria-level="1">The simulation tool won't be accessible to market participants initially but will publish price formations.</li> <li style="font-weight: 400;" aria-level="1">Stakeholders expressed the need for more comprehensive data and analysis from ERCOT simulations.</li> <li style="font-weight: 400;" aria-level="1">Confirmation that TAC approval and NPRR submission will be required for changes to AS demand curves.</li> </ul> <a href="/sharing/?token=bc44ccc9-4882-4310-8a16-c6d2bdad84da">13</a> - ERCOT 2025 Membership Application and Agreement <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/21/13-ercot-reports.zip">Updates</a> - Katherine Gross <ul> <li style="font-weight: 400;" aria-level="1">Application process begins September 20 and ends November 20.</li> <li style="font-weight: 400;" aria-level="1">Last year switched to online applications; addressed issues like viewing submitted forms, confusion with question marks, and payment process.</li> <li style="font-weight: 400;" aria-level="1">Clarified that the person filling out the application can't be the AR or BAR due to technical issues.</li> <li style="font-weight: 400;" aria-level="1">Emails and market notices will be sent to current participants; instructions will be included.</li> <li style="font-weight: 400;" aria-level="1">Important to register and verify email if you're a new member.</li> <li style="font-weight: 400;" aria-level="1">Applicants must use their own email and correctly fill out the entity's legal name and other required fields.</li> <li style="font-weight: 400;" aria-level="1">Option to download the submitted application and instructions on how to pay the fee provided.</li> <li style="font-weight: 400;" aria-level="1">Issues like naming conventions and finance acceptance of email notifications noted.</li> <li style="font-weight: 400;" aria-level="1">Plan to process applications and notify issues weekly.</li> </ul> <a href="/sharing/?token=b57f30d2-7f94-49ed-9c6c-dce5573f4e18">14</a> - 9/5/24 TAC Workshop for Stakeholder Process - Caitlin Smith <ul> <li style="font-weight: 400;" aria-level="1">Discussed the successful expansion from 300,000 to 400,000 bids but identified performance issues with the 10% network model.</li> <li style="font-weight: 400;" aria-level="1">ERCOT is exploring solutions to the performance issues, including minimum bid prices and the impact of price discovery bids.</li> <li style="font-weight: 400;" aria-level="1">Highlighted the upcoming September 5 TAC workshop, feedback on WebEx versus in-person, and potential follow-up workshop.</li> <li style="font-weight: 400;" aria-level="1">Consensus for an in-person meeting and the need for a clear agenda was emphasized.</li> </ul> <a href="/sharing/?token=71749c06-d87c-43ca-82c5-2256ddbbf2db">15 </a>- Combo Ballot - Vote - Caitlin Smith <ul> <li style="font-weight: 400;" aria-level="1">Motion to approve combo ballot carries unamiously</li> </ul> <img src="/storage/docs/2024/08/20240827TACComboItems.png" width="570" height="126" /> <img src="/storage/docs/2024/08/20240827TACCombo.png" width="571" height="563" /> <a href="/sharing/?token=171c1d4f-c6b8-4971-ad3c-1fbe7f3c83d7">16</a> - Adjourn