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Meeting Summary - 08/07/24 WMS Meeting

Grid Monitor AI
08/07/2024

<a href="/sharing/?token=c91eba03-216c-46c6-bfca-8475322cfc7d">1</a> - Antitrust Admonition - Eric Blakey <a href="/sharing/?token=98fcf410-60bf-41ae-8bc7-d7e66eddb32a">2</a> - Agenda Review - Eric Blakey <a href="/sharing/?token=0d53208c-e2a7-49e5-9700-5533de53909a">3</a> - Technical Advisory Committee TAC Update - Eric Blakey <ul> <li style="font-weight: 400;" aria-level="1">ERCOT and joint commenters instructed to bifurcate NOGRR245 into less controversial NOGRR and a second for equipment requirements. Board priority revision request to be made for February consideration and April implementation. </li> <li style="font-weight: 400;" aria-level="1">SAWG had been working on NPRR1219; urgency status requested by ERCOT at PRS meeting. Now passed through PRS and TAC. Protocols indicate WMS and SAWG to oversee these CDR issues. </li> <li style="font-weight: 400;" aria-level="1">Commissioners raised concerns regarding ECRS manual deployment triggers (vote 1224), rejecting board recommendation. Workshop scheduled for September 5 to discuss stakeholder process. </li> </ul> <a href="/sharing/?token=07e15083-fe50-4205-bf66-24b321d89d69">3.1</a> - TAC Assignment re - NPRR1230 Methodology for Setting Transmission Shadow Price Caps for an IROL in SCED <ul> <li style="font-weight: 400;" aria-level="1">Introduction of TAC assignment regarding NPRR1230 and its potential cost increase.</li> <li style="font-weight: 400;" aria-level="1">Request by David Key to monitor the implementation and performance effects by WMS.</li> <li style="font-weight: 400;" aria-level="1">Decision to involve both WMS and CMWG initially to determine which group it fits better under.</li> <li style="font-weight: 400;" aria-level="1">Suggestion to include cost impact monitoring by IMM in their monthly report.</li> <li style="font-weight: 400;" aria-level="1">Agreement to revisit the decision after receiving feedback from the working groups.</li> </ul> <a href="/sharing/?token=b726311b-ed4d-4293-92f3-2df4cb5a7302">4</a> - ERCOT Operations and Market Items <a href="/sharing/?token=0040eea6-c7f7-4852-91a8-e6dde3ce9091">4.1</a> - 2023 State of the Market Recommendations <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/06/04-imm-som-2023-for-ercot-wms-2024-08.pptx">Report</a> - Jeff McDonald <ul> <li style="font-weight: 400;" aria-level="1">Jeff McDonald, IMM, discussed a small reduction in real-time electricity prices in 2023 (13% compared to 2022), despite a significant 60% drop in natural gas prices.</li> <li style="font-weight: 400;" aria-level="1">Natural gas often sets the wholesale electricity price in Texas; thus, a larger decrease in electricity prices was expected.</li> <li style="font-weight: 400;" aria-level="1">The administration of ERCOT products in 2023 influenced electricity prices, preventing them from falling as much as natural gas prices.</li> <li style="font-weight: 400;" aria-level="1">Price range across different zones was tighter in 2023 compared to 2022, indicating reduced inter-zonal congestion.</li> <li style="font-weight: 400;" aria-level="1">Discussions on electricity price impact from ECRS revealed that real-time prices did not follow natural gas prices consistently.</li> <li style="font-weight: 400;" aria-level="1">Observed a trend of increasing total load over the past three years, with a peak load of 85.7 GW in 2023.</li> <li style="font-weight: 400;" aria-level="1">Supply changes noted included increased wind and solar energy, and about 970 MW of new gas-fired generation.</li> <li style="font-weight: 400;" aria-level="1">Jeff explained a potential discrepancy between new entry costs and market signals, with mixed input from consultants and real-world conditions.</li> <li style="font-weight: 400;" aria-level="1">Discussion on Cost of New Entry (CONE) and market revenues, reflecting on how financial factors and policy risk influence decisions on new builds.</li> <li style="font-weight: 400;" aria-level="1">New generation is impacted by numerous factors including financing, policy risk, market revenues, and supply chain issues.</li> </ul> <a href="/sharing/?token=1dccc2e8-fcb2-4b67-bd06-ca86044b8dc3">4.2</a> - 2024 Q2 Settlement Stability <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/02/04-wms_settlement-stability-report_q2_2024.pptx">Report</a> - Judy Luu <ul> <li style="font-weight: 400;" aria-level="1">Discussed price correction changes affecting a few days in January and February 2024.</li> <li style="font-weight: 400;" aria-level="1">Mentioned CRR balancing account resettlement due to DN resettlements.</li> <li style="font-weight: 400;" aria-level="1">Reviewed resettlements due to non-price errors for November 2022 operating days.</li> <li style="font-weight: 400;" aria-level="1">Addressed quarter disputes for Q1 and Q2, all resolved timely.</li> <li style="font-weight: 400;" aria-level="1">Highlighted percent changes from previous real-time settlements and displayed data for changes from initial to final and final to true-up.</li> <li style="font-weight: 400;" aria-level="1">Identified a spike in November due to an issue in the calculation of ERS contract period from June 1 to September 30, 2023.</li> <li style="font-weight: 400;" aria-level="1">Presented real-time market average prices and DAM total charges from 2011 to 2024.</li> <li style="font-weight: 400;" aria-level="1">Provided data on load volume availability percentage and ESI ID account availability percentage.</li> <li style="font-weight: 400;" aria-level="1">Discussed net allocation to load over a 13-month period and its breakdown by congestion management zones.</li> <li style="font-weight: 400;" aria-level="1">Covered information on securitization default charge and security authorization uplift charge for the period from June 2023 to June 2024.</li> </ul> <a href="/sharing/?token=5b083091-ce58-4322-b443-8d9349532bf3">4.3</a> - 2024 Q2 Unregistered Distribution Generation - DG - <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/31/04-2024-q2-unregistered-distributed-generation-dg-report-wms-update.pptx">Report</a> - Dan Mantena <ul> <li style="font-weight: 400;" aria-level="1">Total DG was over 2600 MW with 67 MW from DG battery energy storage.</li> <li style="font-weight: 400;" aria-level="1">This is the first update excluding DG battery storage units from the main reporting table.</li> <li style="font-weight: 400;" aria-level="1">DG battery storage units are not required to be reported based on protocol language.</li> <li style="font-weight: 400;" aria-level="1">Started seeing voluntary submissions of DG battery systems.</li> <li style="font-weight: 400;" aria-level="1">Current report excludes DG battery systems from main table and lists them as a footnote for transparency.</li> <li style="font-weight: 400;" aria-level="1">There was an aggregate 35 MW increase in Q2 with a decrease from DG storage units removed from the main table.</li> <li style="font-weight: 400;" aria-level="1"> No current plans for a new category for DG energy storage due to required protocol changes. Current method is reporting as a footnote.</li> <li style="font-weight: 400;" aria-level="1">Suggestion for continued reporting and tracking DG battery systems with breakdown below and above 50 kW.</li> <li style="font-weight: 400;" aria-level="1">Clarification on 'other non-renewable' category  provided in chat, confirming some classifications under renewable and others under non-renewable.</li> <li style="font-weight: 400;" aria-level="1">Potential protocol revision mentioned for classification consistency.</li> </ul> <a href="/sharing/?token=d5f1b535-bddc-407f-8227-e4f075d458f5">4.4</a> - Auction Revenue Distribution - CARD - and CRR Balancing Account - CRRBA - Randy Roberts <ul> <li style="font-weight: 400;" aria-level="1">Multiple options for auction revenue distribution were initially <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/06/04-04-card-reallocation-wms.pptx">presented</a>, with a new fourth option added:</li> <ul> <li style="font-weight: 400;" aria-level="2">Monthly load ratio share previously discussed.</li> <li style="font-weight: 400;" aria-level="2">Daily load ratio share based on 15 mins peak interval.</li> <li style="font-weight: 400;" aria-level="2">Combination of monthly and daily load ratio share with weighting percentage.</li> <li style="font-weight: 400;" aria-level="2">New option using eight peak hours per day for all days of the month.</li> </ul> <li style="font-weight: 400;" aria-level="1">Discussion on whether additional options needed to be considered from Market Participants (MPs) and IMM (Independent Market Monitor).</li> <li style="font-weight: 400;" aria-level="1">IMM favors proposals more directly connected to hourly congestion rent but acknowledges potential high implementation cost and delays.</li> <li style="font-weight: 400;" aria-level="1">Ken Lindbergh suggested using the previous year's 4CP calculation for setting ratios.</li> <li style="font-weight: 400;" aria-level="1">ERCOT and IMM opposed linking CARD allocation directly to 4CP, citing different objectives.</li> <li style="font-weight: 400;" aria-level="1">Shams Siddiqi highlighted that sunk cost allocation should not distort market prices, criticized 4CP for potential inefficiency.</li> <li style="font-weight: 400;" aria-level="1">Various participants voiced concerns about shifting costs between residential and industrial users.</li> <li style="font-weight: 400;" aria-level="1">Alternative ideas included billing card based on eight peak hours of the peak day of the month or using top ten peak hours of the month.</li> <li style="font-weight: 400;" aria-level="1">Discussion on whether to strike certain options like alternate option one and two, maintaining focus on more viable options.</li> <li style="font-weight: 400;" aria-level="1">Emphasis on achieving balance in objectives, minimizing perverse incentives and maintaining particular distribution among load classes.</li> </ul> <a href="/sharing/?token=35ed1f58-b5a8-4f82-b14a-2aad609cb156">4.5</a> - HDL-LDL Override Report - Cory Carswell <ul> <li style="font-weight: 400;" aria-level="1"><a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/31/04-hdl-ldl-override-report-wms-08-07-2024.pptx">Presentation</a> on low dispatch limit (LDL) overrides during the solar eclipse on April 8, 2024.</li> <li style="font-weight: 400;" aria-level="1">No energy payments for LDL overrides, unlike HDL override energy payments.</li> <li style="font-weight: 400;" aria-level="1">ERCOT procured additional Non-Spin ancillary services and committed additional capacity via reliability unit commitments leading up to the event.</li> <li style="font-weight: 400;" aria-level="1">LDL overrides were used to pre-position slower ramping resources and increase ramp rates for the expected net load ramp.</li> <li style="font-weight: 400;" aria-level="1">ERCOT deployed ~2.4 GW of Non-Spin during the eclipse, Hubbus prices averaged ~$200/MWh without significant binding constraints.</li> <li style="font-weight: 400;" aria-level="1">Query about the reliance on coal plants for HDL overrides instead of more flexible gas units.</li> <li style="font-weight: 400;" aria-level="1">Coal resources with lower ramp rates were identified as slower ramping units that could benefit from ramping up earlier.</li> <li style="font-weight: 400;" aria-level="1">Query about impact on SCED and pricing outcomes if LDL overrides had not been initiated.</li> <li style="font-weight: 400;" aria-level="1">Focus on operational standpoint for increased ramping capability; economic impact discussion suggested for market analysis at WMS.</li> <li style="font-weight: 400;" aria-level="1">Clarification on values for override intervals and recent updates to the presentation.</li> <li style="font-weight: 400;" aria-level="1">Next Steps include a manual report on the large load interconnection, indicating an increase of interconnection capacity from 4,636 MW in the past year.</li> <li style="font-weight: 400;" aria-level="1">Request for periodic updates on large load interconnection with detailed load type categories and contractual statuses with Transmission Service Providers (TSPs).</li> <li style="font-weight: 400;" aria-level="1">Clarification on the absence of large load projects in specific load zones.</li> <li style="font-weight: 400;" aria-level="1">General consensus for monthly updates, with consideration for ERCOT's operational workload.</li> </ul> <a href="/sharing/?token=bdfa4d4f-6491-4882-bb31-c24b8b10ba04">5</a> - Congestion Management Working Group - CMWG - Alex Miller <a href="https://ercot-control-docs.s3.us-west-2.amazonaws.com/31/05-cmwg-update-2024-08-wms.pptx">CMWG Update</a> <ul> <li style="font-weight: 400;" aria-level="1">Topic: CRR long term auction solution time and transaction limits</li> <ul> <li style="font-weight: 400;" aria-level="2">Enforcement of 400,000 transaction limit has been lifted after implementing software changes on 6/28 </li> <li style="font-weight: 400;" aria-level="2">Considering solutions: increasing point-to-point option bid price, charging bid fees on uncleared bids, removing the multi-month bid functionality.</li> <li style="font-weight: 400;" aria-level="2">44% of bids currently use multi-month functionality.</li> <li style="font-weight: 400;" aria-level="2">ERCOT performing more testing on removing the multi-month product and increasing bid limits.</li> </ul> <li style="font-weight: 400;" aria-level="1">Topic: Load zone analysis update</li> <ul> <li style="font-weight: 400;" aria-level="2">Load zone definitions unchanged since 2003.</li> <li style="font-weight: 400;" aria-level="2">Using k-means clustering to propose new load zones based on latest LMP data.</li> <li style="font-weight: 400;" aria-level="2">Concerns about impact on planning studies, congestion management efficiency, protocol changes, and data continuity.</li> <li style="font-weight: 400;" aria-level="2">Bill Barnes raised concerns about the impact on retail market; increased complexity and risk premium for retail products.</li> <li style="font-weight: 400;" aria-level="2">Discussion about practical need for change, considering impacts on smaller retailers, potential benefits of discrete nodal prices.</li> </ul> <li style="font-weight: 400;" aria-level="1">Topic: Mitigation for Electricity Storage Resources - ESRs</li> <ul> <li style="font-weight: 400;" aria-level="2">ERCOT staff introduced NPRR draft with just-in-time framework.</li> <li style="font-weight: 400;" aria-level="2">Considerations included high system lambda prices and handling of multiple constraints.</li> <li style="font-weight: 400;" aria-level="2">Stakeholders concerned about over-mitigation and maintaining as obligations.</li> <li style="font-weight: 400;" aria-level="2">CMWG releasing NPRR for formal stakeholder process.</li> </ul> </ul> <a href="/sharing/?token=735fc5c3-3d4a-4ddb-9554-0dbcca3159fb">6</a> - Demand Side Working Group - DSWG - Nathaniel Mancha <ul> <li style="font-weight: 400;" aria-level="1">Request for WMS to endorse NPRR1226 </li> <li style="font-weight: 400;" aria-level="1">Needs for more transparency on demand response data.</li> <li style="font-weight: 400;" aria-level="1">4CP discussion and the need for clarification.</li> <li style="font-weight: 400;" aria-level="1">Comparison between WSL and ESR calculations.</li> <li style="font-weight: 400;" aria-level="1">Release of ERCOT notice on equivalent numbers.</li> <li style="font-weight: 400;" aria-level="1">Difficulty in backing ESR charging numbers.</li> <li style="font-weight: 400;" aria-level="1">Market asks for clarification to avoid manual calculations.</li> <li style="font-weight: 400;" aria-level="1">Issues around forecasting and energy storage impacts.</li> <li style="font-weight: 400;" aria-level="1">Desire for better visibility into the market for load participants.</li> <li style="font-weight: 400;" aria-level="1">Clarification needed on data published post-month end from WMS.</li> <li style="font-weight: 400;" aria-level="1">Discussion about the equivalence of numbers in WMS.</li> <li style="font-weight: 400;" aria-level="1">Transparency and understanding of reports for market participants.</li> <li style="font-weight: 400;" aria-level="1">Importance of real-time combination of data for market participants.</li> <li style="font-weight: 400;" aria-level="1">Need for further ERCOT guidance on making data changes real-time.</li> <li style="font-weight: 400;" aria-level="1">Exploration of data availability and meeting market needs.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgment of the need for additional tools beyond current dashboards.</li> <li style="font-weight: 400;" aria-level="1">Some data available via ICCP points but needs internal discussion.</li> </ul> <a href="/sharing/?token=79fc6c08-0f9e-4e63-9dcf-3abf86a2cdaf">7</a> - Meter Working Group - MWG - Michael Blum <ul> <li style="font-weight: 400;" aria-level="1">Proposal to consolidate the naming convention to 'Meter Working Group' across all documents and website.</li> </ul> <a href="/sharing/?token=4d7ef0fd-6572-44aa-8a17-7a1f67072f59">7.1</a> - Procedure Update - Vote <ul> <li style="font-weight: 400;" aria-level="1">Consolidated name to meter working group.</li> <li style="font-weight: 400;" aria-level="1">Motion to endorse MWG procedures as submitted added to combo ballot.</li> </ul> <a href="/sharing/?token=b466e3c1-3486-454d-9144-0f1f1ef5ead9">8</a> - Resource Cost Working Group - RCWG - Blake Holt <ul> <li style="font-weight: 400;" aria-level="1">See items 10 and 11.</li> </ul> <a href="/sharing/?token=b883dbe1-4336-46c5-ac06-8bc6100b8799">9</a> - Wholesale Market Working Group - WMWG - Blake Holt <ul> <li style="font-weight: 400;" aria-level="1">ERCOT presented initial analysis on 2025 AS methodology. Data not final; updates due in August.</li> <li style="font-weight: 400;" aria-level="1">No changes to 2024 methodology for RRS Non-Spin and ECRS. Values pending NERC’s updated IFRO number.</li> <li style="font-weight: 400;" aria-level="1">Changes include using net load ramp, historical regulation deployment, and SCED net load forecast error.</li> <li style="font-weight: 400;" aria-level="1">Stakeholder questions on ERCOT's inertia data; ERCOT refreshing 2016 inertia white paper in the context of PUC study.</li> <li style="font-weight: 400;" aria-level="1">ERCOT's state of charge monitoring analysis in line with NPRR1149 using mock data. Production data refresh expected for August 30 meeting.</li> <li style="font-weight: 400;" aria-level="1">Proposes calculating state of charge shortfall based on each resource's state of charge expectation; reporting at system level.</li> <li style="font-weight: 400;" aria-level="1">Feedback on inadequate ESRs responses discussed; feedback being incorporated by ERCOT.</li> <li style="font-weight: 400;" aria-level="1">Skipped discussion on NPRR1232; update to be provided later in the meeting.</li> </ul> <a href="/sharing/?token=056e87c6-9ccc-4cf7-a40d-2f51cda705ed">10</a> - WMS Revision Requests <a href="/sharing/?token=8db458fa-7549-49e3-9c80-5357c8bf6a99">10.2</a> - VCMRR042, SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations Katie Rich <ul> <li style="font-weight: 400;" aria-level="1">Discussed the need for revisions to address ERCOT comments.</li> <li style="font-weight: 400;" aria-level="1">Noted annual prices are flat, but seasonal index prices have value due to opportunity cost.</li> <li style="font-weight: 400;" aria-level="1">VCMRR042 ensures ERCOT access to seasonal prices, reflecting market volatility and reduction in allowances.</li> <li style="font-weight: 400;" aria-level="1">Emphasized difference in cost between seasonal ($750-$1,200 per short ton) and ERCOT proposed NOx prices ($3 per short ton).</li> <li style="font-weight: 400;" aria-level="1">Manual input for prices could be used temporarily if system change is needed.</li> <li style="font-weight: 400;" aria-level="1">Outlined language changes in VCMRR042 for using seasonal index prices for NOx and SOx from May through September.</li> <li style="font-weight: 400;" aria-level="1">NPRR proposes a user fee to cover ERCOT's subscription fee.</li> </ul> Ino Gonzalez <ul> <li style="font-weight: 400;" aria-level="1">VCMRR042 removes the manual process for calculating emission prices.</li> <li style="font-weight: 400;" aria-level="1">Current process collects prices daily and sets a fixed price for the next month.</li> <li style="font-weight: 400;" aria-level="1">System change required to handle seasonal prices.</li> <li style="font-weight: 400;" aria-level="1">Subscription fees for annual prices have been increasing without practical value.</li> <li style="font-weight: 400;" aria-level="1">ERCOT disagrees with the user fee proposal in NPRR1242, citing it goes against board policy.</li> </ul> Eric Goff <ul> <li style="font-weight: 400;" aria-level="1">Emphasized importance of including all fuel costs in real-time prices.</li> <li style="font-weight: 400;" aria-level="1">Expressed sympathy for avoiding ongoing fees with little practical value.</li> <li style="font-weight: 400;" aria-level="1">Suggested user fee makes sense if board policy is changed.</li> <li style="font-weight: 400;" aria-level="1">Recommended reviewing manual workarounds or system changes before making final decision.</li> </ul> Blake Holt <ul> <li style="font-weight: 400;" aria-level="1">Agreed with Eric's and Katie’s points on maintaining the subscription for seasonal values.</li> <li style="font-weight: 400;" aria-level="1">Supported moving forward with VCMRR042 and NPRR1242.</li> <li style="font-weight: 400;" aria-level="1">Highlighted the importance of systematic implementation through the IA process.</li> </ul> Katherine Gross <ul> <li style="font-weight: 400;" aria-level="1">Explained background check fee ($350 per principal) often meets the million-dollar threshold due to multiple principals per entity.</li> </ul> Motion <ul> <li style="font-weight: 400;" aria-level="1">Motion to table VCMRR042 and refer to RCWG added to combo ballot</li> </ul> <a href="/sharing/?token=acc1c365-59fc-40e4-bd51-b3d30cb8eb29">10.4</a> - NPRR1242, Related to VCMRR042 SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations - Possible Vote <ul> <li style="font-weight: 400;" aria-level="1">Clarification made that NPRR1242 is not officially before the committee; it has not gone to PRS yet. Recommendations can still be made.</li> <li style="font-weight: 400;" aria-level="1">Bill Barnes emphasizes the importance of incorporating accurate information into prices and support for the direction of the proposal.</li> <li style="font-weight: 400;" aria-level="1">Concerns noted regarding the subscription fee of $50,000 per year.</li> <li style="font-weight: 400;" aria-level="1">Ian Haley from Morgan Stanley supports accurate market prices and voices concern over potential difficulty in recovering costs if the proposal is delayed.</li> <li style="font-weight: 400;" aria-level="1">Eric Goff  raises two concerns: the annual subscription's value versus seasonal impact and the specific calculation methods.</li> <li style="font-weight: 400;" aria-level="1">Potential need to table VCMRR042 for revisions and reject VCMRR041 to avoid redundancy.</li> <li style="font-weight: 400;" aria-level="1">Consensus leans towards wanting VCMRR042 but acknowledges it needs more work before approval.</li> <li style="font-weight: 400;" aria-level="1">Discussion on costs of emissions allowances and the need for policy discussion on adopting a fixed summer price.</li> <li style="font-weight: 400;" aria-level="1">General agreement about keeping the $50,000 subscription, emphasizing market stability and benefits.</li> <li style="font-weight: 400;" aria-level="1">Addresses multiple opinions on the practicality of user fees versus keeping costs within the administrative fee.</li> <li style="font-weight: 400;" aria-level="1">Motion to request PRS table NPRR1242 for further discussion by RCWG considering user fees as an option for covering the subscription cost added to combo ballot</li> </ul> <a href="/sharing/?token=a47945d5-1c4b-44ef-80b5-c3a14f6109ac">11</a> - WMS Revision Requests Tabled at WMS - Possible Vote - Eric Blakey <a href="/sharing/?token=55dd6b0f-5b82-4eb6-8753-4f189ed1be65">11.1</a> - SMOGRR028, Add Series Reactor Compensation Factors - MWG <ul> <li style="font-weight: 400;" aria-level="1">No updates on the item.</li> </ul> <a href="/sharing/?token=bae2a255-3492-420a-91fd-ec5aa396571c">11.2</a> - VCMRR041, SO2 and NOX Emission Prices Used in Verifiable Cost Calculations - RCWG <ul> <li style="font-weight: 400;" aria-level="1">VCMRR041 aims to eliminate the current index price subscription for NOx and SO2, which has remained stagnant over the last five years.</li> <li style="font-weight: 400;" aria-level="1">VCMRR041 proposes to hard code emission prices into verifiable cost formulas.</li> <li style="font-weight: 400;" aria-level="1">Luminant presented a draft NPRR and VCMRR and expressed the desire to retain the index price subscription for flexibility in rapidly changing emission rules.</li> <li style="font-weight: 400;" aria-level="1">NPRR proposes a new ERCOT fee for emission cost subscription, allocated to resource entities based on megawatt capacity ratio.</li> <li style="font-weight: 400;" aria-level="1">Verifiable cost manual revision includes flexible calculations for seasonal index pricing (May-September) and annual index pricing (October-April).</li> <li style="font-weight: 400;" aria-level="1">Board policies prevent the creation of a new user fee unless it generates at least $1 million in annual revenue, which the proposed fee does not.</li> <li style="font-weight: 400;" aria-level="1">Motion to reject VCMRR041 added to combo ballot</li> </ul> <a href="/sharing/?token=fbef887f-b9e8-4eef-8bea-2e0face5d065">12</a> - NPRR1238, Voluntary Registration of Loads with Curtailable Load Capabilities <ul> <li style="font-weight: 400;" aria-level="1">Discussion is ongoing for NPRR1238; it was referred to WMS and ROS.</li> <li style="font-weight: 400;" aria-level="1">Golden Spread is addressing compliance issues related to load shed allocation, particularly due to large loads significantly exceeding their native load.</li> <li style="font-weight: 400;" aria-level="1">Golden Spread seeks voluntary registration for curtailable loads to prevent non-compliance during EA events.</li> <li style="font-weight: 400;" aria-level="1">The initiative aims to exclude large, curtailable loads from load shed obligations, focusing only on native loads.</li> <li style="font-weight: 400;" aria-level="1">Originally urgent, the proposal faces alignment needs with other ERCOT issues, preventing immediate urgency.</li> <li style="font-weight: 400;" aria-level="1">PRS voted to refer the issue to WMS and WMWG for further discussion.</li> <li style="font-weight: 400;" aria-level="1">Concerns include broader price formation issues and ORDC impacts.</li> <li style="font-weight: 400;" aria-level="1">System changes and interconnection requirements for large loads may be needed.</li> <li style="font-weight: 400;" aria-level="1">Market-related and systemic issues will be discussed to ensure comprehensive solutions.</li> <li style="font-weight: 400;" aria-level="1">Request for PRS to continue to table NPRR1238 for further review by WMWG added to combo ballot</li> </ul> <a href="/sharing/?token=5b045ea6-625e-4f19-8091-23a2670aa9fb">13</a> - Revision Requests Tabled at PRS and Referred to WMS - Possible Vote - Eric Blakey <ul> <li style="font-weight: 400;" aria-level="1">Discussion on maintaining most revision requests tabled based on prior discussions.</li> </ul> <a href="/sharing/?token=3962e85c-1a1a-4cd0-9b52-a9a5a47f6330">13.4</a> - NPRR1214, Reliability Deployment Price Adder Fix to Provide Locational Price Signals, Reduce Uplift and Risk - CMWG <ul> <li style="font-weight: 400;" aria-level="1">Request for more analysis and data faced challenges in data retrieval.</li> <li style="font-weight: 400;" aria-level="1">Qualitative discussion highlighted the need for locational price signals.</li> <li style="font-weight: 400;" aria-level="1">General agreement on the philosophy and need for proper incentivizing of generation.</li> <li style="font-weight: 400;" aria-level="1">Impacts of the change still unclear without specific historical data.</li> <li style="font-weight: 400;" aria-level="1">Discussion to continue next month with or without additional historical data.</li> <li style="font-weight: 400;" aria-level="1">Request for update on SCR819 implementation and its impacts on GTC limits.</li> </ul> <a href="/sharing/?token=80a063de-b8c3-4a08-874f-72df503a328f">13.5</a> - NPRR1226, Demand Response Monitor DSWG <ul> <li style="font-weight: 400;" aria-level="1">Suggestion to table the discussion for another month to allow further consideration.</li> <li style="font-weight: 400;" aria-level="1">Mark Smith confirmed consensus at the DSWG meeting and received favorable feedback elsewhere.</li> <li style="font-weight: 400;" aria-level="1">Floyd Treffney provided clarification on the nature of the demand response monitor.</li> <li style="font-weight: 400;" aria-level="1">Concerns from ERCOT regarding the mandate for specific dashboard content and format.</li> <li style="font-weight: 400;" aria-level="1">Historical context provided by Floyd Treffney on protocol language changes.</li> <li style="font-weight: 400;" aria-level="1">General support for NPRR1226 but recognition of the need for further discussion and potential edits.</li> <li style="font-weight: 400;" aria-level="1">Motion to endorse NPRR1226 as submitted added to combo ballot.</li> </ul> <a href="/sharing/?token=a08263fb-c021-4c3d-827e-077770fffc07">13.6</a> - NPRR1229, Real-Time Constraint Management Plan Energy Payment - WMWG <ul> <li style="font-weight: 400;" aria-level="1">Discussion on NPRR1229 related to payments due to congestion management plan actions.</li> <li style="font-weight: 400;" aria-level="1">Author of NPRR1229 explained its purpose: to allow compensation when ERCOT takes a manual action impacting a resource.</li> <li style="font-weight: 400;" aria-level="1">ERCOT operations presented congestion management plan and issues with NPRR1229 language.</li> <li style="font-weight: 400;" aria-level="1">Settlement issues and policy questions needing answers were highlighted.</li> <li style="font-weight: 400;" aria-level="1">Participants were requested to provide feedback before the August meeting.</li> <li style="font-weight: 400;" aria-level="1">Updates were given on design defects with NPRR1149 and NPRR1058.</li> <li style="font-weight: 400;" aria-level="1">NPRR1058 update: backward compatibility added for reason code in offer curves.</li> <li style="font-weight: 400;" aria-level="1">Discussion on NPRR1235 and legislative priority to move it forward.</li> <li style="font-weight: 400;" aria-level="1">Concerns on how DRRS and RUC interact, and the impact on market design.</li> <li style="font-weight: 400;" aria-level="1">Feedback on potentially allowing self-commitment for DRRS resources.</li> <li style="font-weight: 400;" aria-level="1">Operational perspective discussed: DRRS resources to be prioritized for commitments.</li> <li style="font-weight: 400;" aria-level="1">Concerns raised about behavioral impacts of DRRS on other resources.</li> <li style="font-weight: 400;" aria-level="1">Confirmation that NPRR1235 implementation timeline aligns post-RTC.</li> </ul> <a href="/sharing/?token=6481cc49-8455-4792-b8f5-da1a10c33cf7">13.7</a> - NPRR1235, Dispatchable Reliability Reserve Service as a Stand-Alone Ancillary Service - SAWG and WMWG <ul> <li style="font-weight: 400;" aria-level="1">No action items, strictly a discussion</li> <li style="font-weight: 400;" aria-level="1">TSPA and joint commenters presented filed comments on NPRR1235</li> <li style="font-weight: 400;" aria-level="1">Encouragement for inclusion of Energy Storage Resources (ESRs) into DRRS</li> <li style="font-weight: 400;" aria-level="1">ERCOT explained reasons for excluding ESRs in initial proposal with agreement to consider future integration</li> <li style="font-weight: 400;" aria-level="1">Placeholder to discuss NPRR1235 in the next month's meeting</li> </ul> <a href="/sharing/?token=7f73b69f-3e0a-4365-ac62-b8195ae9abbf">14</a> - Combo Ballot - Vote - Eric Blakey <ul> <li style="font-weight: 400;" aria-level="1">Combo ballot passed unanimously.</li> </ul> <img src="/storage/docs/2024/08/AugWMSComboItems.png" width="753" height="168" /> <img src="/storage/docs/2024/08/AugWMSCombo.png" width="756" height="753" /> <a href="/sharing/?token=a1ae069b-a074-457d-a476-1fb998cec21b">15</a> - Other Business - Eric Blakey <a href="/sharing/?token=50ae72ef-2557-4e32-b065-a8d885ebbec4">15.1</a> - Withdrawn – NPRR1232, Standing Deployment of ECRS in the Operating Hour for a Portion of ECRS that is Provided from SCED-Dispatchable Resources <ul> <li style="font-weight: 400;" aria-level="1">NPRR1232 was withdrawn following the board vote on NPRR1224.</li> </ul> <a href="/sharing/?token=89022072-d7ed-42ba-adda-4828fcf6c9a2">15.2</a> - Review Open Action Items - Jim Lee <ul> <li style="font-weight: 400;" aria-level="1">The previously discussed item was withdrawn under open action items.</li> <li style="font-weight: 400;" aria-level="1">New assignment was discussed and assigned to WMS and congestion management working group.</li> <li style="font-weight: 400;" aria-level="1">Reminder for WMWG and SAWG about their EPA item assignments.</li> <li style="font-weight: 400;" aria-level="1">Request for WMWG and SAWG to keep the council informed through their meetings about any pertinent updates.</li> </ul> <a href="/sharing/?token=b8c027e8-9d37-4635-8f59-52a9b164a86f">15.3</a> - 2025 Block Calendar - Pamela Hanson <ul> <li style="font-weight: 400;" aria-level="1">Highlighted the change of the October meeting from Monday to Friday the 3rd.</li> <li style="font-weight: 400;" aria-level="1">Suggestion to move the October meeting to Thursday the 9th, considering potential conflicts with PUC open meetings.</li> <li style="font-weight: 400;" aria-level="1">Acknowledgement that PRS will meet on Wednesdays and WMS on Tuesdays, except for one month.</li> </ul> <a href="/sharing/?token=2712ee8b-5ba7-4c8d-bb49-c2a567591688">15.7</a> - Adjourn