Frame

Meeting Summary - Reliability and Markets Committee Meeting

Grid Monitor Staff Writer
04/22/2024

<img src="/storage/docs/2024/04/RMC%20photo.png" /> <a href="https://app.gridmonitor.com/sharing/?token=20526fbd-1b0c-4fca-91ce-2c49987a9ee6" target="_blank" rel="noopener">2</a> - Notice of Public Comment - Bob Flex <ul> <li style="font-weight: 400;" aria-level="1">Eric Goff and Mark Alstrom on behalf of Nextera, Sarah Parsons for Avangrid, and Omar Martino for Invenergy expressed an interest in commenting on Nodal operating guide revision request NOGRR245.</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=2aa99e36-9043-4e83-9782-3a74957fa96a" target="_blank" rel="noopener">3</a> - Meeting Minutes - Bob Flex <ul> <li style="font-weight: 400;" aria-level="1">The meeting minutes were approved unanimously.</li> </ul> 4 - TAC Report regarding R&M Committee - Colin Martin <ul> <li style="font-weight: 400;" aria-level="1">Agenda item 4: TAC Report regarding R&M Committee charter revision request recommended for board approval.</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=2200b20d-2c53-40b6-bce3-9e72fe0dc18b" target="_blank" rel="noopener">4.1</a> - <a href="/controls/ercot/?control=NPRR1197" target="_blank" rel="noopener">NPRR1197</a> - Colin Martin <ul> <li style="font-weight: 400;" aria-level="1">NPRR1197, addressing the optional exclusion of load from netting at ERCOT PD settlement metering facilities, was presented by Colin Martin, vice chair of TAC.</li> <li style="font-weight: 400;" aria-level="1">The revision request aims to allow resources to separately meter and settle loads located behind the EPS metering point at the resource's point of interconnection.</li> <li style="font-weight: 400;" aria-level="1">The justification for the revision is that netting auxiliary loads can impact the expected performance of the projects, and the proposed language enables a resource to exclude loads from a netting arrangement and settle them with a separate TDSP and load serving entity.</li> <li style="font-weight: 400;" aria-level="1">There was one opposing vote from the cooperative segment due to concerns that the revision codifies in the protocols a metering arrangement they had attempted to prohibit in a separate, recently rejected revision request, NPRR1194.</li> <li style="font-weight: 400;" aria-level="1">This opposing vote also represents a general objection to how netted loads are treated in protocols in relation to energy storage resources.</li> <li style="font-weight: 400;" aria-level="1">Unanimously approved.</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=e97f1e6d-d41e-469c-a469-6b230b46ea29" target="_blank" rel="noopener">4.2 </a>- <a href="/controls/ercot/?control=NOGRR245" target="_blank" rel="noopener">NOGRR245</a> - Colin Martin <ul> <li style="font-weight: 400;" aria-level="1">ERCOT initiated NOGRR245 in response to the increasing penetrations of inverter-based resources and observed disturbances</li> <li style="font-weight: 400;" aria-level="1">The proposal aims to replace current voltage ride through requirements for intermittent renewable resources with inverter-based resources</li> <li style="font-weight: 400;" aria-level="1">Discussions on NOGRR245 have taken place in multiple stakeholder groups, with 76 associated items filed as of the last count</li> <li style="font-weight: 400;" aria-level="1">After protracted and robust debate, NOGRR245 was finally approved by TAC with 69% voting in favor.</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=311e2cac-0405-4e17-9a9c-0bee9cb3ad0d" target="_blank" rel="noopener">4.2.1</a> - ERCOT Comments- Colin Martin <ul> <li style="font-weight: 400;" aria-level="1">ERCOT remains opposed to Comments approved at TAC due to three main reliability concerns: 1) lack of consideration of system reliability when assessing exemptions, 2) potential for indefinite exemptions from ride-through requirements, and 3) timeline of the effective date.</li> <li style="font-weight: 400;" aria-level="1">ERCOT would like RMC to remand to TAC to reconsider due to the narrow margin by which NOGRR245 passed.</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=c7e0566a-a2ee-46c7-b2b3-1ec24b763243" target="_blank" rel="noopener">4.2.2</a> - Stakeholder Comments - Eric Goff <ul> <li style="font-weight: 400;" aria-level="1">Eric Goff is solely representing Nextera but sharing the views of the joint commenters</li> <li style="font-weight: 400;" aria-level="1">Requesting that RMC approve the TAC recommendation</li> <li style="font-weight: 400;" aria-level="1">Emphasized avoidance of retroactive requirements due to chilling effect on investment</li> <li style="font-weight: 400;" aria-level="1">Emphasized commercial reasonability as a standard</li> <li style="font-weight: 400;" aria-level="1">Sarah Parsons spoke for Avangrid and emphasized regulatory certainty and procedural transparency</li> <li style="font-weight: 400;" aria-level="1">Omar Martino for Invenergy spoke, emphasizing the importance of commercial reasonableness and avoiding retroactive requirements for investment decisions</li> <li style="font-weight: 400;" aria-level="1">Mark Alstrom for Nextera also spoke in favor of the TAC-approved comments</li> <li style="font-weight: 400;" aria-level="1">After robust discussion and questions, NOGRR245 was remanded to TAC with Courtney Hjaltman abstaining and the other three members approving the motion</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=5ff27ef5-1066-4527-8c3b-b904aac80a50" target="_blank" rel="noopener">5</a> - Recommendation regarding San Antonio South Reliability - Kristi Hobbs <ul> <li style="font-weight: 400;" aria-level="1">Kristi Hobbs presented the recommendation for an additional reliability project in the San Antonio area, asking for endorsement and designation as critical for reliability</li> <li style="font-weight: 400;" aria-level="1">The project involves rebuilding two current 345kV lines, expanding right away, and adding a new substation to increase the region's reliability</li> <li style="font-weight: 400;" aria-level="1">The project was recommended unanimously by TAC and designated as critical to the reliability of the ERCOT system</li> <li style="font-weight: 400;" aria-level="1">The project is part of a phased approach, with phase one being the CPS South of San Antonio project</li> <li style="font-weight: 400;" aria-level="1">It was noted that additional projects may be needed in the future to meet the demands of the state's evolving resource mix</li> <li style="font-weight: 400;" aria-level="1">The motion to recommend the project to the board was approved unanimously</li> </ul> 6 - Market Price Corrections - Woody Rickerson <a href="https://app.gridmonitor.com/sharing/?token=ebd753ab-b3bf-46fe-9d00-76cea319e7fc" target="_blank" rel="noopener">6.1</a> - Incorrect Line - Woody Rickerson <ul> <li style="font-weight: 400;" aria-level="1">Issue with incorrect line series device and transformer ratings identified in January</li> <li style="font-weight: 400;" aria-level="1">Implemented a fix on January 30th to ensure correct static ratings for transmission lines</li> <li style="font-weight: 400;" aria-level="1">Market notice put out on February 5th</li> <li style="font-weight: 400;" aria-level="1">Impact analysis completed on March 12</li> <li style="font-weight: 400;" aria-level="1">Three operating days identified for board approval</li> <li style="font-weight: 400;" aria-level="1">Issue rooted in new EMs installed in November, now fixed</li> <li style="font-weight: 400;" aria-level="1">Motion to approve item 6.1 made and approved</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=b0ffa5df-3335-45ce-a833-60222e1c10e9" target="_blank" rel="noopener">6.2</a> - Incorrect Constraint Data for GTCs - Woody Rickerson <ul> <li style="font-weight: 400;" aria-level="1">On February 28th, a routine maintenance process led to the deletion of a constraint in the Market Management System, impacting the real-time market.</li> <li style="font-weight: 400;" aria-level="1">The constraint deletion was a result of a downstream production change, which didn't show up in the Energy Management System, leading to market impact.</li> <li style="font-weight: 400;" aria-level="1">On March 1st, ERCOT issued a notice for impact analysis, followed by notifying the market on March 18th about the results needed for board review.</li> <li style="font-weight: 400;" aria-level="1">Seven counterparties were affected, with the largest impact being $455,000 and an overall impact of $277,000.</li> <li style="font-weight: 400;" aria-level="1">The downstream production change process was identified as the root cause, designed to accommodate last-minute system changes, but in this case, an error occurred.</li> <li style="font-weight: 400;" aria-level="1">There are approximately 7-8 weekly database loads requiring production changes, which are vulnerable to errors, and their increasing numbers are being monitored.</li> <li style="font-weight: 400;" aria-level="1">Recommendations were made to track and control the number of downstream changes and to address them in upcoming meetings.</li> <li style="font-weight: 400;" aria-level="1">Motion to approve ERCOT recommendation approved unanimously</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=dcda3d0f-8d63-4503-963f-dfd4ce69835c" target="_blank" rel="noopener">7</a> - Independent Market Monitor - Jeff McDonald <ul> <li style="font-weight: 400;" aria-level="1">Jeff McDonald is the new director of the Independent Market Monitor (IMM) for ERCOT.</li> <li style="font-weight: 400;" aria-level="1">He has been focusing on ECRS rule change issues, working collaboratively with PUC and ERCOT staff.</li> <li style="font-weight: 400;" aria-level="1">The IMM is also involved in an Ancillary services study, with positive cooperation among all parties.</li> <li style="font-weight: 400;" aria-level="1">They are gearing up for more effort in the performance credit mechanism space and preparing the state of the market report, which will be forwarded to the PUC staff for review on May 1st.</li> <li style="font-weight: 400;" aria-level="1">There are also less pressing market rule changes that the IMM has been engaged in</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=89dbc43e-d037-425b-a43d-00f20ded4445" target="_blank" rel="noopener">8</a> - Committee Briefs - Kristi Hobbs <ul> <li style="font-weight: 400;" aria-level="1">Kristi Hobbs presented an update on system planning and weatherization.</li> <li style="font-weight: 400;" aria-level="1">The presentation likely touched on preparations for extreme weather events and system planning improvements.</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=4718c5f9-87e8-4b51-a681-7b3ce89f1a90" target="_blank" rel="noopener">8.1</a> - System Planning and Weatherization Update - Kristi Hobbs <ul> <li style="font-weight: 400;" aria-level="1">340 generation resource and 129 TSP winter weatherization inspections completed</li> <li style="font-weight: 400;" aria-level="1">Non-RRR force outage levels have improved since standards were implemented</li> <li style="font-weight: 400;" aria-level="1">Summer inspections goal is to complete over 600 inspections</li> <li style="font-weight: 400;" aria-level="1">New tool to improve communication between ERCOT and market participants</li> <li style="font-weight: 400;" aria-level="1">Permian Basin study underway to complete a reliability study plan by July</li> <li style="font-weight: 400;" aria-level="1">Load forecast for 2030 is nearly 24,000 MW, with significant growth in the Permian area</li> <li style="font-weight: 400;" aria-level="1">Estimated need for substantial transmission to support load growth in the Permian area</li> <li style="font-weight: 400;" aria-level="1">Anticipated need for 565 miles of new 345 kV upgrades and over 300 miles of new 138 kV lines.</li> <li style="font-weight: 400;" aria-level="1">Significant load growth projected in 2024 regional transmission plan, with potential challenges in balancing generation and load</li> <li style="font-weight: 400;" aria-level="1">Large portion of new resource development coming from solar and batteries</li> <li style="font-weight: 400;" aria-level="1">Large load integration increasing, with over 4500 MW approved for energization</li> <li style="font-weight: 400;" aria-level="1">Remaining significant challenges in summer weatherization inspections</li> <li style="font-weight: 400;" aria-level="1">Increased instrumentation failures during summer inspections</li> <li style="font-weight: 400;" aria-level="1">Retrofitting and record-keeping challenges observed during summer weatherization inspections</li> <li style="font-weight: 400;" aria-level="1">Potential correlations between load growth, changes in legislation, and planning rules</li> <li style="font-weight: 400;" aria-level="1">Breakdown of load growth figures and the need for additional insight on A.I. operated data centers</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=f6c9c7d6-a893-475c-b9c9-0e84ccecc153" target="_blank" rel="noopener">8.2</a> - System Operations Update - Dan Woodfin <ul> <li style="font-weight: 400;" aria-level="1">All-time winter peak set in January</li> <li style="font-weight: 400;" aria-level="1">Discussion on research attitudes, eclipse, and ECRS</li> <li style="font-weight: 400;" aria-level="1">Maximum daily resource planned outage capacity discussed, seeking stakeholder feedback</li> <li style="font-weight: 400;" aria-level="1">Successful management during solar eclipse, additional ancillary services committed</li> <li style="font-weight: 400;" aria-level="1">ECRS release focus on near scarcity conditions, proposed NPRR for stakeholder feedback</li> <li style="font-weight: 400;" aria-level="1"><a href="/controls/ercot/?control=NPRR1224" target="_blank" rel="noopener">NPRR1224</a> tabled at PRS, unlikely to be approved before summer</li> <li style="font-weight: 400;" aria-level="1">Commission suggests aiming for approval at June board meeting</li> <li style="font-weight: 400;" aria-level="1">Prioritizing reliability and cost impacts for consumers in ECRS discussions</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=df2e0117-06b4-4b6a-af25-9513ee2f1797" target="_blank" rel="noopener">8.3</a> - Commercial Markets Update - Woody Rickerson <ul> <li style="font-weight: 400;" aria-level="1">Woody Rickerson provided an update on the commercial markets addressing ADERs. He mentioned that there are no new developments in that area and that they continue to work on qualifying it for ECRS.</li> <li style="font-weight: 400;" aria-level="1">No new ADERs have been added since the last update.</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=bd485558-972e-450b-8e5f-f5eb5c0e7cf5" target="_blank" rel="noopener">8.3.1</a> - Real-Time Co-optimization Update - Matt Mereness <ul> <li style="font-weight: 400;" aria-level="1">The Real-Time Co-optimization (RTC) involves 75 departments and 150 people, representing a significant operational shift for ERCOT</li> <li style="font-weight: 400;" aria-level="1">Progress has been made with technology and security aspects, with regular meetings and code deliveries in progress</li> <li style="font-weight: 400;" aria-level="1">Market readiness design issues are being addressed through workshops and engagement with market participants</li> <li style="font-weight: 400;" aria-level="1">Key outstanding design issues include RUC capacity shortage and online hydro resources</li> <li style="font-weight: 400;" aria-level="1">Discussion on the reshaping of Ancillary service demand curves, with potential policy changes at the PUC level and implications for market trials in May of next year</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=fbdc68f3-9db8-47b7-a277-25cca3e2a029" target="_blank" rel="noopener">8.4</a> - Market Credit Update - Austin Rosel <ul> <li style="font-weight: 400;" aria-level="1">Market Credit Update presented by Austin Rosel</li> <li style="font-weight: 400;" aria-level="1">No action requested, just an update on statistics, NPRRs, and defaults</li> <li style="font-weight: 400;" aria-level="1">Total potential exposure and average discretionary collateral noted</li> <li style="font-weight: 400;" aria-level="1">New NPRR1165 revisions implemented on April 1st, requiring all market participants to post an independent amount for each counterparty</li> <li style="font-weight: 400;" aria-level="1">Four defaults due to market participants not meeting the requirement</li> <li style="font-weight: 400;" aria-level="1">Defaulted participants no longer qualify until they clear the default</li> <li style="font-weight: 400;" aria-level="1">Implemented NPRR1205 to strengthen credit requirements for LC issuing banks and insurance companies</li> <li style="font-weight: 400;" aria-level="1">Top 10 banks based on LC utilization discussed, highlighting potential issues with overallocation</li> <li style="font-weight: 400;" aria-level="1">A cleanup NPRR introduced to better specify credit calculation details, with no policy changes proposed</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=d8b01c0c-049d-4e00-9871-030ba8fd8fe5" target="_blank" rel="noopener">8.5</a> - Revision Request Status Update - Ann Boren <ul> <li style="font-weight: 400;" aria-level="1">Four revision requests for April board consideration, less volume but not lacking in content</li> <li style="font-weight: 400;" aria-level="1">Discussion on NOGRR245 and RMGRR1197, with opposing votes from TAC</li> <li style="font-weight: 400;" aria-level="1">11 new revision requests filed from the February board meeting</li> <li style="font-weight: 400;" aria-level="1">19 revision requests approved at the PUC last week</li> <li style="font-weight: 400;" aria-level="1">49 revision requests in process with budgetary impact details, sponsorship, and reasons for revision</li> <li style="font-weight: 400;" aria-level="1">14 revision requests on aging list, NPRR1162 withdrawn, recent comments on NPRR1188 and NPRR1190</li> <li style="font-weight: 400;" aria-level="1">29 revision requests approved by board and PUC this year</li> <li style="font-weight: 400;" aria-level="1">Some revision requests are waiting on legislation or ongoing lawsuits</li> <li style="font-weight: 400;" aria-level="1">No NPRRs currently elevated to the level of NOGRR245, possibly NPRR1070</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=7a79caa0-a17a-4fbb-bcd5-1740bdd7e21d" target="_blank" rel="noopener">9</a> - Future Agenda Items - Woody Rickerson <ul> <li style="font-weight: 400;" aria-level="1">Mention of the discussion around the ECRS requested for the June meeting by Commissioner Cobos</li> <li style="font-weight: 400;" aria-level="1">Request for more information on the production changes discussed earlier</li> </ul> <a href="https://app.gridmonitor.com/sharing/?token=70cf3b05-91f1-49a2-b46c-c4aee83d6d6e" target="_blank" rel="noopener">10</a> - Other Business - Bob Flexon <ul> <li style="font-weight: 400;" aria-level="1">Discussion on the market notice that came out concerning the reliability must run determination for the CPS Braunig units</li> <li style="font-weight: 400;" aria-level="1">Explanation on the RMR analysis and its impact on the transmission system</li> <li style="font-weight: 400;" aria-level="1">Consideration of alternative resources for must run alternatives</li> <li style="font-weight: 400;" aria-level="1">CPS's anticipated suspending operations of those units in April 2025</li> <li style="font-weight: 400;" aria-level="1">ERCOT's plan to file something with the commission for a different timeline for the RFP to evaluate the cost of keeping those units around</li> <li style="font-weight: 400;" aria-level="1">Need for committee and board evaluation of benefits and costs of potential must run alternatives</li> <li style="font-weight: 400;" aria-level="1">Consideration of an exit strategy for the RMR, potentially a transmission solution</li> </ul> 12 - Adjournment - Bob Flex