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ERCOT Reliability and Operations Subcommittee Special Meeting Notes - 9/14

Grid Monitor - staff writer
09/15/2023

<img src="/storage/docs/2023/09/ros full 0916.jpg" width="75%" /> Agenda 1.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     Antitrust Admonition   2.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     NOGRR245, Inverter-Based Resource (IBR) Ride-Through Requirements (Vote) a.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     ERCOT posted and gave an updated <a style="color: #0563c1;" href="https://www.ercot.com/files/docs/2023/09/14/nogrr245-ibr-ride-through-requirements_ros_0901423_updated.pptx">presentation</a> on the events that have occurred and the risks to the system that they see. They see the current risk of uncontrolled load shed as more pressing than the potential future risk for load curtailments due to resource retirements. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                               i.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     ERCOT stated that these changes are needed for reliability. They have reviewed the proposals that have been made in comments and think that those proposals, particularly the most recent one made by NextEra, require the system to absorb the risk of load shed. They also stated that setting requirements drives engineers to create solutions and drives the needed investment. Without those requirements being in place the investment would not be made. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                             ii.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     They acknowledged that NextEra says that the resource owners will work to comply with voltage ride-through (VRT), but their proposal removes enforcement capability. ERCOT believes that this will not achieve ERCOT’s goals. There is not requirement for resource owners to comply in the proposal, even after there is a failure. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                            iii.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     Other concerns that ERCOT has with NextEra’s proposal are outlined in their slides. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                            iv.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     ERCOT urged ROS to endorse with their 8/18/23 comments, but do not oppose GE Vernova’s comments from 9/5/23. b.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     NextEra spoke, noting that reliability of the system is a shared goal of all parties. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                               i.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     However, they remain concerned about ERCOT imposing operational restrictions on a generator that could lead to a generator retiring. They believe this is a foundational issue. They were appreciative of ERCOT’s efforts to work with stakeholders and the changes to the revision that ERCOT has made. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                             ii.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     NextEra clarified that comments about 2014 and 2008 in their comments, stating that these refer to decisions in those year regarding legacy installations. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                            iii.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     Their plan is to have resources go through a commercially reasonable/technically feasible review every year and that if there is a feasible change at the unit then have to make it. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                            iv.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     They think that ERCOT has mischaracterized NextEra in their slide that discussed ERCOT’s issues with the NextEra proposal. They point out that NextEra is saying that resources (whose financials are not supported by rate base recovery) should not be made to make investments that were not envisioned when the investments were made based on regulations that have been created after the resource was put into service. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                              v.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     They also pointed out conflicting requirements between protocol requirements for sub synchronous resonance (SSR) and these VRT requirements that would be in the operating guides. They stated that the protocol trumps the operating guides and represented that some OEM’s have told them that SSR mitigation plans directly conflict with the ability to ride through. c.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     GE Vernova, an OEM, spoke to their comments. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                               i.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     They agreed with the previous comments about conflicts with SSR and said there were similar other weak grid conflicts. In particular, a 6-cycle settling time at the POC of each turbine is very challenging. <span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">                                             ii.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     GE Vernova stated that the requirements in NOGRR245 pose a challenge to both new units and existing fleets. Addressing these challenges will take significant time and resources. They believe that a meaningful percentage of the existing ERCOT fleet cannot be made compatible with the proposed requirements by the deadlines proposed. There may also be instances with units no longer manufactured where GE no longer has the components and equipment necessary to perform the testing that would be required to vet retrofit options. d.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     Sierra Club, who also filed comments, spoke to say that they understood both ERCOT’s and the IBR resource owners’ positions. They proposed some flexibility on the compliance dates. Additionally, they asked whether it made sense to have different dates for WTG’s than for solar and storage. e.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     ERCOT responded that they have been telling people that they want to go to IEEE2800 for quite a while. They originally proposed 1/1/2023 as the relevant SGIA date, but they have delayed it to 6/1/2023. ERCOT pointed to GE’s comments that say they have developed new turbines that can comply with IEEE2800's VRT requirements. However, this issue is exacerbated by the fact that some projects, that have not signed an SGIA yet or been constructed, have contracted to purchase older designed units, for which more time is needed to develop a solution. ERCOT pointed out that resources could make a commitment that they will upgrade these newly-installed, older units. f.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">      Sierra Club also asked about requirements for synchronous generators. ERCOT answered that this is being examined at NERC, but they pointed out that the timing is not the same, practically. When conventional units trip they have an incentive to fix the issue so that they can come back online. Therefore, they’ve already fixed the issue that caused the problem that resulted in the trip. g.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     Some stakeholders, including TSP’s and some developers, supported the principles of ERCOT’s version of this revision. They acknowledged that the issues are real, and that moving the time frame further out was not the answer. h.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     Others stated that GE comments that there is a solution, new designed units, and studies to inform last-generation, but recent, units, is the clearest way that OEM’s have addressed the perceived disconnect between ERCOT being told that compliance is possible and some existing generators saying they’ve been told it isn’t. i.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">      Pattern stated that they have issues with this revision simply because they are having such a challenge wrapping their arms around the practical issues surrounding the engineering considerations. j.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">      The group went through the revision section-by-section and made desktop edits. k.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     Revision granted urgent status and recommended for approval as amended by the 9/13/23 NextEra comments and forwarded to TAC.   3.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; font-kerning: auto; font-optical-sizing: auto; font-feature-settings: normal; font-variation-settings: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">     Adjourn