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Meeting Summary - 12/10/2024 - WMWG Meeting

Grid Monitor AI
12/10/2024

<h2><img src="/storage/docs/2024/12/20241210WMWG%20Hero.png" width="868" height="651" /></h2> <h2><a href="/sharing/?token=f6b264a6-0af6-4cb0-a5e8-4b980552f029">▶️</a> 1 - Antitrust Admonition - Blake Holt</h2> <h2><a href="/sharing/?token=5d897e1f-6eb6-443f-acb5-2888dfabf5f5">▶️</a> 2 - Questions on Standing Reports - WMWG Participants</h2> <ul> <li style="font-weight: 400;" aria-level="1">No questions were raised on the posted reports from ERCOT.</li> </ul> <h3>2.1 - 2.6 - Not Discussed</h3> <h2><a href="/sharing/?token=f96bccee-99b7-46cb-9692-4afea21e008b">▶️</a> 3 - WSL Treatment in Load Forecasts - Sam Morris</h2> <ul> <li style="font-weight: 400;" aria-level="1">Discussion on how ERCOT currently treats wholesale storage loads (WSLs) in midterm and short-term load forecasts, where WSLs are included in telemetry but removed during settlement.</li> <li style="font-weight: 400;" aria-level="1">Concerns raised about skewed load forecasts due to inclusion of WSLs in day-to-day forecasting which affects the 4CP calculations and market operations.</li> <li style="font-weight: 400;" aria-level="1">Consideration of exclusion of battery charging loads from forecasts to focus on true retail demand vs. WSL demand.</li> <li style="font-weight: 400;" aria-level="1">Mention of previous systems set up in 2012 when battery storage was minimal, and now under discussion to change equations with RTC+B updates.</li> <li style="font-weight: 400;" aria-level="1">Discussion on challenges of removing WSL from forecasts and ensuring consistent reporting and calculation in future updates.</li> <li style="font-weight: 400;" aria-level="1">Questions about integration into RUC engine and potential impacts on forecasting and market operations.</li> <li style="font-weight: 400;" aria-level="1">Consensus on the need to address the issue at RTC task forces ensuring forecasts align with new state of charge calculations and market dynamics.</li> </ul> <h2><a href="/sharing/?token=908833ee-29b9-429d-89a4-fcc95d73929e">▶️</a> 4 - NPRR1256, Settlement for MRA of ESRs - ERCOT</h2> <ul> <li style="font-weight: 400;" aria-level="1">NPRR1256 introduces changes for MRA settlement for Energy Storage Resources (ESRs).</li> <li style="font-weight: 400;" aria-level="1">Focus on how storage duration is treated in MRA procurement and settlement.</li> <li style="font-weight: 400;" aria-level="1">Discussion on MRA deployments treatment in the reliability deployment price adder process.</li> <li style="font-weight: 400;" aria-level="1">Settlements for MRA energy storage resources will be similar to generation resources, except no fuel component for ESRs.</li> <li style="font-weight: 400;" aria-level="1">Variable payments for storage resources consider the cost to charge during non-contracted hours.</li> <li style="font-weight: 400;" aria-level="1">Addressed the question regarding charging at a negative price; variable price is considered for the calculation.</li> <li style="font-weight: 400;" aria-level="1">Potential system changes and their timelines remain uncertain.</li> <li style="font-weight: 400;" aria-level="1">Clarified battery treatment during testing for MRA contracts.</li> <li style="font-weight: 400;" aria-level="1">Future ERCOT meeting planned to discuss real-time co-optimization and battery testing for resource evaluation.</li> <li style="font-weight: 400;" aria-level="1">Participants require more information on testing processes to determine battery capacity and resolve transmission constraints.</li> <li style="font-weight: 400;" aria-level="1">Decision to delay recommendation until further clarity on testing is achieved.</li> </ul> <h2><a href="/sharing/?token=141d42ab-516c-4b26-941d-99b8e8bf7fef">▶️</a> 5 - Mitigation Concept for NPRR1190, HDL Override Provision for Increased LSE Costs - Bill Barnes</h2> <ul> <li style="font-weight: 400;" aria-level="1">Bill Barnes presented a proposal to address consumer concerns about NPRR1190 to prevent substantial increases in HDL override payments.</li> <li style="font-weight: 400;" aria-level="1">The changes aim to ensure fair payment and settlement treatment for all types of resources, not just those in competitive territories.</li> <li style="font-weight: 400;" aria-level="1">Concerns were raised about the potential significant rise in HDL payments, and the need for review if payments exceeded $10 million annually.</li> <li style="font-weight: 400;" aria-level="1">A historical context was provided comparing current HDL override numbers to past OOM (Out of Market) payments in the zonal market.</li> <li style="font-weight: 400;" aria-level="1">The proposal includes a $10 million trigger for review to avoid significant impacts similar to past OOM payments.</li> <li style="font-weight: 400;" aria-level="1">Eric Goff expressed concerns about setting a precedent with NPRR1190 that could result in additional charges and sought more time for consumer consultation.</li> <li style="font-weight: 400;" aria-level="1">Blake Holt and Austin Rosel supported the review process, agreeing that NPRR1190 should prevent payment issues while being flexible in managing exceptions.</li> <li style="font-weight: 400;" aria-level="1">Discussions included options for hard caps on payments and the practical complexities of implementing such caps.</li> </ul> <h2><a href="/sharing/?token=2f078d9b-7ba2-4ce6-9b13-9f2c918c0522">▶️</a> 6 - Discussion of above Mitigation Concept in relation to NPRR1229, RTM CMP Energy Payment - WMWG Participants</h2> <ul> <li style="font-weight: 400;" aria-level="1">NPRR1229 was placed on the agenda to discuss its relation to a decision on the compromise for NPRR1190.</li> <li style="font-weight: 400;" aria-level="1">The discussion on NPRR1229 is paused and will continue next month.</li> </ul> <h2><a href="/sharing/?token=6fa7bdf8-c5f2-4c2e-a26a-619d6864b92d">▶️</a> 7 - NPRR1241, FFSS Availability and Hourly Standby Fee – Luminant Comments - Katie Rich</h2> <ul> <li style="font-weight: 400;" aria-level="1">NPRR1241 has new comments and logic changes proposed by Luminant.</li> <li style="font-weight: 400;" aria-level="1">The new approach presents a more linear calculation method for availability factors, addressing feedback from earlier discussions.</li> <li style="font-weight: 400;" aria-level="1">A significant change in the proposal is the reduction of the unavailability threshold from 75% to 50%, making it more punitive compared to previous versions.</li> <li style="font-weight: 400;" aria-level="1">Participants generally expressed support for the new version, finding it more reasonable and aligned with expectations, compared to the original NPRR1241 and current protocols.</li> <li style="font-weight: 400;" aria-level="1">The new proposal aims to incentivize better resource availability by implementing a linear claw-back function instead of a fixed day claw-back.</li> <li style="font-weight: 400;" aria-level="1">Consensus was reached among attendees to recommend NPRR1241 to the WMS for approval.</li> </ul> <h2><a href="/sharing/?token=68517be8-cbd6-4baf-b6af-1548f4b1377e">▶️</a> 8 - The return of CARD/RRBA, Part 1 – To Zone or Not to Zone? - Blake Holt</h2> <ul> <li style="font-weight: 400;" aria-level="1">Discussion on the allocation of CARD revenue and whether to maintain zonal allocations or move to a system-wide allocation.</li> <li style="font-weight: 400;" aria-level="1">Current system allocates revenue to zonal and non-zonal buckets based on whether the CRR sources and sinks within the same congestion management zone.</li> <li style="font-weight: 400;" aria-level="1">A proposal was made to investigate a system-wide allocation and update previous analyses.</li> <li style="font-weight: 400;" aria-level="1">New proposal suggests removing zonal allocation and capping CARD distribution at T-costs, transitioning to system-wide allocation if necessary.</li> <li style="font-weight: 400;" aria-level="1">Challenges in forecasting future CARD revenues and T-costs exist, with basic historical trend analyses being the main available method.</li> <li style="font-weight: 400;" aria-level="1">Some stakeholders expressed concerns over removing zonal allocation due to potential shifts in revenue distribution totaling billions.</li> <li style="font-weight: 400;" aria-level="1">Acknowledged that the issue might persist into February with ongoing discussions needed; possibility of postponing until after legislative session.</li> <li style="font-weight: 400;" aria-level="1">Identification of purported gaming behavior with potential exploitation of current CARD allocation methods was noted.</li> <li style="font-weight: 400;" aria-level="1">Stakeholders requested more analysis on current CARD returns, problem size, projected impacts, and implementation timeframes.</li> <li style="font-weight: 400;" aria-level="1">Next steps include revisiting the discussion in January, with data and analyses being pivotal to informed decision-making.</li> </ul> <h2><a href="/sharing/?token=63174eb7-e2f8-493a-b9e9-2c5ce2b60bd3">▶️</a> 9 - Other Business - Blake Holt</h2> <ul> <li style="font-weight: 400;" aria-level="1">Leadership nominations for next year were discussed.</li> <li style="font-weight: 400;" aria-level="1">WMS plans to take a vote on nominations in February.</li> <li style="font-weight: 400;" aria-level="1">Blake Holt will step away from WMWG.</li> <li style="font-weight: 400;" aria-level="1">Amanda Frazier from Treaty Oak Energy, the current Vice Chair, is interested in becoming the Chair.</li> <li style="font-weight: 400;" aria-level="1">Trevor Safko from LCRA is interested in becoming the Vice Chair.</li> <li style="font-weight: 400;" aria-level="1">Group to consider these leadership options and discuss in the January meeting.</li> <li style="font-weight: 400;" aria-level="1">Individuals interested in leadership roles are encouraged to reach out.</li> <li style="font-weight: 400;" aria-level="1">Creative solutions, such as co-leadership, have been proposed and supported in the past.</li> <li style="font-weight: 400;" aria-level="1">General call for other business items, but no additional topics were raised.</li> </ul> <h2><a href="/sharing/?token=73bc69ca-4b34-4ca5-9ce2-031b5c6979cb">▶️</a> 10 - Adjourn - Blake Holt</h2> <ul> <li style="font-weight: 400;" aria-level="1">A meeting is scheduled for January.</li> </ul>