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03/27/24 Technical Advisory Committee - Meeting Summary

Grid Monitor Staff Writer
03/28/2024

<div class="news-image-container"><img src="/storage/docs/2024/03/NOGRR245NextSteps.jpg" /></div> <div class="news-image-container"> </div>   1 - Antitrust Admonition - Suzy Clifton 2 - Approval of TAC Meeting Minutes - Vote - TAC Chair Caitlin Smith <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Approval of the February 14th meeting minutes was discussed</li> <li style="font-weight: 400;" aria-level="1">No edits or comments were mentioned</li> <li style="font-weight: 400;" aria-level="1">Approval was placed on the combo ballot</li> </ul> 3 and 3.1 - Meeting Updates - TAC Chair Caitlin Smith <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">TAC Chair Caitlin Smith provided updates on the ongoing market regulatory activities</li> </ul> <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">The February board meeting was held on February 26th and 27th.</li> <li style="font-weight: 400;" aria-level="1">The board approved all revision requests. NPRR1186 is approved with the inclusion of the recommendations in the ERCOT 2/12 comments.</li> <li style="font-weight: 400;" aria-level="1">The revision of NPRR1186, with those recommendations included, addressed the remand and direction from the PUCT commissioners.</li> <li style="font-weight: 400;" aria-level="1">The approved revision requests will be considered at the April 11th PUC meeting.</li> </ul> 4 - Review of Revision Request Summary/ERCOT Market Impact Statement/Opinions - Ann Boren/ IMM <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Six revision requests were discussed at the TAC meeting, with two having financial impacts.</li> <li style="font-weight: 400;" aria-level="1">NPRR1205 has an 80k to 120k budgetary impact, while NOGRR245 has a 480k to 570k annual recurring O&M impact.</li> <li style="font-weight: 400;" aria-level="1">ERCOT supports all revision requests except for NOGRR245 and PGRR105, as recommended by ROS.</li> <li style="font-weight: 400;" aria-level="1">The IMM has no opinion on any of the revision requests discussed.</li> </ul> 5 - PRS Report - Vote - Diana Coleman <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Diana Coleman of CPS Energy presented the PRS report</li> </ul> 5.1 - NPRR1197, Optional Exclusion of Load from Netting at ERCOT-Polled Settlement - EPS - Metering Facilities which Include Resources <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">NPRR1197 was discussed, with the recommendation for approval based on the February and March PRS reports.</li> <li style="font-weight: 400;" aria-level="1">There was one one abstention, as STEC felt it contradicted their previous revision request (NPRR1194).</li> <li style="font-weight: 400;" aria-level="1">A motion for approval of NPRR1197 was made and seconded, and the motion carried with one vote opposed, from STEC.</li> </ul> 5.2 - NPRR1205, Revisions to Credit Qualification Requirements of Banks and Insurance Companies <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">NPRR1205, involving revisions to credit qualification requirements, was also presented, with a cost estimate of $80,000-$120,000.</li> <li style="font-weight: 400;" aria-level="1">PRS voted unanimously to recommend approval of the language in NPRR1205, as amended by the January 16th Luminant comments.</li> <li style="font-weight: 400;" aria-level="1">Manual implementation is expected to be followed by system implementation in year 2025</li> <li style="font-weight: 400;" aria-level="1">Cost estimate adjusted slightly, still within the estimate</li> <li style="font-weight: 400;" aria-level="1">Proposal to put NPRR1205 on the combo ballot for recommended approval</li> </ul> 6 - Revision Requests Tabled at TAC - Possible Vote - Caitlin Smith 6.1 - OBDRR046, Related to NPRR1188, Implement Nodal Dispatch and Energy Settlement for Controllable Load Resources <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">The speaker mentioned that OBDRR046 can remain tabled, with NPRR1188 still pending at PRS.</li> </ul> 6.2 - OBDRR051, Related to NPRR1216, Implementation of Emergency Pricing Program <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">OBDRR051 is tabled as the committee is waiting on NPRR1216, which is also tabled.</li> <li style="font-weight: 400;" aria-level="1">No questions or comments were raised regarding the status of OBDRR051.</li> </ul> 6.3 - PGRR105, Deliverability Criteria for DC Tie Imports <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Agenda item 6.3 was discussed - PGRR105, Deliverability Criteria for DC Tie Imports</li> <li style="font-weight: 400;" aria-level="1">The speaker mentioned that they are waiting on comments to the commission and feedback from the commission</li> <li style="font-weight: 400;" aria-level="1">The decision was to continue to keep PGRR105 tabled.</li> </ul> 6.4 - NOGRR245, Inverter-Based Resource - IBR - Ride-Through Requirements – URGENT <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Discussion history: Extensive discussion in January, settlement conferences in February, leading to current proposals.</li> <li style="font-weight: 400;" aria-level="1">Comments: ERCOT has two sets, joint commenters (NextEra, Southern Power, and others) have one set.</li> <li style="font-weight: 400;" aria-level="1">Neither set of comments was initially approved at TAC; after both failed; TAC took a sidebar and ultimately approved Join Commenter’s approach with additional language added to address ERCOT’s concerns.</li> <li style="font-weight: 400;" aria-level="1">TAC Chair Smith wants TAC to put all issues and facts into the record, in light of structural changes to ERCOT Board composition and PUC involvement in -RR approvals so they have the benefit of all relevant information. </li> <li style="font-weight: 400;" aria-level="1">Motions: Richard Ross moves to approve ERCOT's March 20th comments. Jim Lee seconds.</li> <li style="font-weight: 400;" aria-level="1">Amendment: Bob Helton proposes amending Ross's motion to include joint commenters' latest comments. Seconded by Ian Haley.</li> <li style="font-weight: 400;" aria-level="1"><a href="/sharing/?token=818fc9b3-78d7-4545-afe0-e7aa2a2e52d9">ERCOT Presentation</a>: Stephen Solis discusses NOGRR245, its background, the Odessa disturbances response, NERC recommendations, and the balance between risk mitigation and the impact on generators.</li> <li style="font-weight: 400;" aria-level="1">Solis stated that ERCOT could not make any further concessions on NOGRR245 without jeopardizing reliability and states that Joint Commenters’ amendments would decrease reliability.</li> <li style="font-weight: 400;" aria-level="1">ERCOT proposes a separate NOGRR to immediately follow NOGRR245 to address biggest challenges raised in response to ERCOT’s RFI and handle further technical discussions.</li> <li style="font-weight: 400;" aria-level="1">ERCOR stressed that NOGRR245 is part of an ongoing set of changes, including the need for further synchronous condenser projects and improved modeling. </li> <li style="font-weight: 400;" aria-level="1">ERCOT also stressed that concessions on ride-through requirements result in additional  congestion and costs to consumers.</li> <li style="font-weight: 400;" aria-level="1">Eric Goff, representing joint commenters, argues that their approach balances reliability and economics. He addressed concerns about ERCOT's disconnection authority, suggesting a commission review for transparency and clear criteria.</li> <li style="font-weight: 400;" aria-level="1">Participants raised questions about the impact of  ERCOT’s version on existing investments and the potential for retirements.</li> <li style="font-weight: 400;" aria-level="1">After initial stalemate, parties conferred offline and arrived at a compromise. </li> <li style="font-weight: 400;" aria-level="1">Motion and vote occurs in other business: <a href="/sharing/?token=e7fc5969-411d-4baa-a94e-e3ac92ef2572">Here is the video clip of the vote.</a></li> </ul> 7 - RMS Report - Vote - John Schatz <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">John Schatz provided RMS report, seeking TAC approval for two items</li> <li style="font-weight: 400;" aria-level="1">Lubbock's transition update provided</li> </ul> 7.1 - RMGRR177, Switch Hold Removal Clarification <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">RMGRR177 switch hold removal clarification discussed without impact analysis</li> <li style="font-weight: 400;" aria-level="1">Motion to approve RMGRR177 as recommended by the 3/5/24 RMS Report passes with two abstentions.</li> </ul> 7.2 - RMS Goals <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Approval of RMS goals as presented placed on combo ballot</li> </ul> 8 - ROS Report Vote - Katie Rich Two voting items brought forward, NOGRR255 and ROS Goals 8.1 - <a href="/sharing/?token=9ba1cb58-1b0e-41f0-9840-b68583d22332">NOGRR255, High Resolution Data Requirements</a> <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Approved IA for NOGRR255, with Luminant abstaining and subsequently filing comments</li> <li style="font-weight: 400;" aria-level="1">Discussion centered around the ROS recommended version, Luminant 3/22 comments, and ERCOT 3/26 comments for NOGRR255.</li> <li style="font-weight: 400;" aria-level="1">Motion made to approve Luminant comments with desktop edits, but later withdrawn in favor of tabling the issue for further review in April TAC.</li> <li style="font-weight: 400;" aria-level="1">Motion to table NOGRR255 placed on Combo Ballot</li> </ul> 8.2 - ROS Goals <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">ROS Goals placed on the Combo Ballot.</li> </ul> 9 - WMS Report - Vote - Eric Blakey <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Discussion on NPRR1190, adding a provision for recovery of a demonstrable financial loss from a manual HTL override, with further discussion to continue due to alternative proposals being filed.</li> <li style="font-weight: 400;" aria-level="1">Emergency pricing program discussed, to continue next week at WMWG for previously tabled items.</li> <li style="font-weight: 400;" aria-level="1">Discussion on NPRR1202, no issues found by WMWG but no action taken until LFLTF addresses the issues.</li> <li style="font-weight: 400;" aria-level="1">New leadership in WMWG with Kevin Hanson as chair and Blake Holt as vice chair.</li> <li style="font-weight: 400;" aria-level="1">Need for more volunteers to fill working group positions and diversify leadership.</li> </ul> 9.1 - WMS Goals <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">WMS goals placed on Combo Ballot</li> </ul> 10 - Credit Finance Sub Group CFSG Report - Brenden Sager <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">The Credit Finance Sub Group discussed operational NPRRs with no credit impact and an independent amount posting requirement for all counterparties.</li> <li style="font-weight: 400;" aria-level="1">Concerns were raised about liquidity implications for small market participants regarding independent amount posting required by NPRR1165</li> <li style="font-weight: 400;" aria-level="1">ERCOT proposed administrative clean-up of language around DAM Energy-Only Offer Calculations in NPRR1215, with no impact on market operations.</li> <li style="font-weight: 400;" aria-level="1">ERCOT shifted to monthly interest payments on earned cash collateral in NPRR1184, wanted to update processes around collateral posting and dispute resolution. </li> <li style="font-weight: 400;" aria-level="1">Changes to the EAL calculation methodology were discussed, with an evaluation of the look-back period and forward adjustment factors.</li> <li style="font-weight: 400;" aria-level="1">Monthly highlights included a decrease in market-wide total potential exposure and discretionary collateral.</li> <li style="font-weight: 400;" aria-level="1">ERCOT has mostly resolved breaches of concentration limits among letter of credit issuers.</li> </ul> 11 - <a href="/sharing/?token=3893dd84-497e-4fcb-8ddb-99ac9c86fe1f">RTC+B Task Force Report</a> - Matt Mereness <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">The task force is dealing with several issues, such as AS demand curves, RUC capacity short, and hydro mitigation, with the aim to conclude these in the next few months.</li> <li style="font-weight: 400;" aria-level="1">Discussion revolved around the AS demand curves and whether the current method of allocating AS to the existing ORDC is the best way of AS price formation.   </li> <li style="font-weight: 400;" aria-level="1">Reported deadlines on the process for modifying the ORDC curve, extending it to reflect current AS procurement quantities, and redistributing AS under the curve.</li> <li style="font-weight: 400;" aria-level="1">The possibility of setting up deep dives to address telemetry changes and engage both the RTC and TWG task forces was also mentioned.</li> </ul> 12 -<a href="/sharing/?token=f261d226-5e3f-4334-9d83-62c1db2d0140"> ERCOT Reports</a> <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Price corrections to be discussed with the board</li> <li style="font-weight: 400;" aria-level="1">Revisions to the board policies and procedures need attention.</li> <li style="font-weight: 400;" aria-level="1">Task force meeting scheduled for policy discussions on RTC+B.</li> </ul> 12.1 - Potential Price Corrections - Matt Young <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Matt Young, ERCOT supervisor of market validation, presented two potential price corrections to be taken to the board for approval.</li> <li style="font-weight: 400;" aria-level="1">The first issue discussed was the invalid ratings for transmission elements, including line service devices, series devices, and transformers, from November through January, which affected the real-time market and DAM.</li> <li style="font-weight: 400;" aria-level="1">ERCOT implemented a fix on January 30th and sent a notice on February 5th to notify the market of the issue and the intent to seek price correction from the board upon completion of analysis.</li> </ul> 12.2 - <a href="/sharing/?token=b08769fb-121b-432f-8a2c-95d65660e89c">Jan 24 - Incorrect Ratings Impacting the Real-Time and Day-Ahead Markets</a> <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">ERCOT issued a market notice with the results of the impact analysis</li> <li style="font-weight: 400;" aria-level="1">In the real-time market, there were three days in January that met the criteria, 15th, 17th, and 19th</li> <li style="font-weight: 400;" aria-level="1">The largest absolute value impact was approximately $877,000 on the 17th</li> <li style="font-weight: 400;" aria-level="1">Day-ahead impact: total of eight days</li> <li style="font-weight: 400;" aria-level="1">Next steps include taking these findings to the RMC meeting and the board for approval</li> </ul> 12.3 - Feb 28 24 – Incorrect GTC Shift Factors Impacting the Real-Time Market <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Issue with GTC constraint data on February 8th during routine maintenance resulted in incorrect data for GTCs being sent to the MMS where SCED used them.</li> <li style="font-weight: 400;" aria-level="1">Effective SCED intervals were from 15:50 to 16:25.</li> <li style="font-weight: 400;" aria-level="1">Impact analysis: seven counterparties met criteria, with a maximum estimated value impact of $455,000.</li> <li style="font-weight: 400;" aria-level="1">Estimated change in charges due to ERCOT was a net charge to market participants of $277,000.</li> <li style="font-weight: 400;" aria-level="1">Seeking approval at the RMC meeting and the Board in April.</li> <li style="font-weight: 400;" aria-level="1">Focus on identifying root causes and reducing instances of errors with the establishment of a new risk and continuous improvement group.</li> </ul> 13 - Other Business <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1"><a href="/sharing/?token=e7fc5969-411d-4baa-a94e-e3ac92ef2572">Motion to recommend approval of NOGRR245 as recommended by ROS in the 9/14/23 ROS Reports as amended by the 3/22/24 Joint Commenters 2 comments as revised by TAC</a></li> <li style="font-weight: 400;" aria-level="1">The motion for approval as amended by the joint commenters was passed with a 69% approval rate and three abstentions.</li> </ul> 13.1 - ERCOT Board/Stakeholder Engagement Update -  Ann Boren <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Reminders on Board-related surveys and forms</li> <li style="font-weight: 400;" aria-level="1">Provided refresher on RMR process with further questions to be answered later</li> </ul> 13.2 - Proposed revisions to Board Policies and Procedures - Kim Rainwater/Jon Levine <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">The proposed revisions to Board Policies and Procedures will be discussed in April, and it is requested that everyone reviews the document and sends questions and comments to Kim before the meeting.</li> </ul> 14 - Combo Ballot - Vote - Caitlin Smith <ul style="font-weight: 400;"> <li style="font-weight: 400;" aria-level="1">Combo ballot approved unanimously</li> <li style="font-weight: 400;" aria-level="1">To approve the February 14, 2024 meeting minutes as presented</li> <li style="font-weight: 400;" aria-level="1">NPRR1205 - To recommend approval of NPRR1205 as recommended by PRS in the 3/20/24 PRS Report; and the 3/26/24 Revised impact Analysis</li> <li style="font-weight: 400;" aria-level="1">RMS Goals - To approve the 2024 RMS Goals as presented</li> <li style="font-weight: 400;" aria-level="1">NOGRR255 - To table NOGRR255</li> <li style="font-weight: 400;" aria-level="1">ROS Goals - To approve the 2024 ROS Goals as presented</li> <li style="font-weight: 400;" aria-level="1">WMS Goals - To approve the 2024 WMS Goals as presented</li> </ul> 15 - Adjourned