Meeting Summary - 04/17/2025 DSWG Meeting

▶️1 - Introduction & Anti-trust Admonition

▶️2 - RTC+B General Educational

Real-Time-Co-optimization-Batteries-General-Education-DSWG-4-17-25.pdf

• Matt Mereness introduced the session, highlighting the importance of outreach to the demand side of the business in preparation for market trials on May 5.
• Market trials offer a chance for questions and coordination via weekly calls.
• Dave Maggio discussed the focus on real-time co-optimization (RTC) and provided a background on its financial benefits, including a reduction in costs ranging from $2.5 billion to $6.4 billion.
• Importance of storage and battery resources was mentioned, with an installed net generation capacity of around 11 gigawatts.
• Co-optimization was explained through examples, illustrating cost benefits and the prioritization of cheaper energy sources.
• Transition from the Operating Reserve Demand Curve (ORDC) to Ancillary Service Demand Curves in RTC was discussed.
• Real-time co-optimization introduces changes to market components, such as the integration of ancillary services in market clearing processes.
• Education on the difference between current and post-RTC operations, emphasizing no post-process adder for reserve value in market clearing.
• Explanation of ancillary service demand curves' role in price setting and priority in scarcity conditions.
• Additional market and operational changes: reliability unit commitment (RUC) system, day-ahead market changes, and elimination of the supplementary ancillary service market.
• Compliance implications include changes in deployment performance measures and base-point deviations, affecting QSE obligations and operations.
• Financial implications of RTC for imbalance settlements were discussed.
• Improvements in telemetry and data reporting between ERCOT and QSE, with modified reporting and compliance workflows.
• Significant changes in telemetry requirements and resource statuses, moving toward simplified and more general resource categorization.
• Financial incentive discussion highlighted imbalance charges and allocation of reliability make-whole costs.
• Upcoming RTC+B training sessions, testing phases, and market notice information towards full system implementation were outlined.
• Question and answer sessions addressed specifics about RTC+B's impact on current market operations, compliance, and telemetry requirements.

▶️3 - Load Resource Changes Implemented with RTC

Load-Resource-Changes-Implemented-with-RTC.pdf

• Overview of load resources changes with RTC and new terms and concepts introduced.
• Day-ahead market changes overlap with previous presentations.
• Telemetry is crucial, mentioned multiple times.
• Real-time market changes and performance analysis are similar to current processes.
• SCED will optimize energy and ancillary services in real-time.
• Self provision allows QSEs to self provide ancillary services, acting as price takers.
• Distinction between self arrangement (day-ahead) and self provision (real-time).
• Self provision supports load resources with under frequency relay challenges.
• QSEs can self provide ancillary services and serve as price takers in the real-time market.
• Specific rules exist to manage self provision.
• Clarification on self providing ancillaries and compliance concerns were raised.
• Existing qualifications for load resources will be retained, but new resources must undergo standard qualification processes.
• Elimination of ancillary service-specific statuses as well as resource specific ancillary service responsibility and AS schedule.
• A proxy offer will be assigned to an NCLR if telemetered capability shows headroom and no offer is present.
• Deployment and recall of resources showcase several changes; however, some validation checks and rules are retained.
• Questions around partial awards and compliance concerns with partial deployment.
• Discussion on validation rules for real-time and armament status of relays.
• Conversations highlighted risks and flexibility associated with self provision.
• Questions about the telemetry logic and rules around specific scenarios of resource deployment.
• Market participation reporting remains mostly unchanged, but with ancillary services broken out by NCLRs and CLRs.
• Some feedback received on self provision rules will be reconsidered for potential revisions.

▶️4 - New Residential Demand Response Program

06.-DSWG_DR-April-2025.pdf

• The focus is on a new residential demand response program to manage net load given ERCOT's growing capacity needs.
• Residential demand response represents an untapped capacity which includes smart devices, thermostats, EVs, batteries, water heaters, and pool pump switches.
• ERCOT aims to develop a program that enhances system reliability and complements existing programs without adding much overhead.
• The framework focuses on quick development, simplicity in administration, popularity, and cost-effectiveness.
• The program offers incentives to retail electric providers based on residential demand response during high demand periods, primarily in summer and winter.
• Participation is at the household level and is voluntary, allowing REPs to use demand response capacity as needed.
• Measurement of load reduction will be based on ESIID and meter data during peak net load hours.
• Key design considerations include net load day allocation, incentive payment size, settlement parameters, and inclusion of municipally owned utilities and co-ops.
• Next steps include discussions with stakeholders, internal reviews, dedicated workshops, and the first workshop scheduled for Friday, May 2nd.
• Non-REP aggregators may play an indirect role, but direct participation is targeted towards electric providers.
• The program's integration into forecasts will be refined through stakeholder input.

▶️5 - ADER Phase 3 Governing Document_Outstanding Issues

DSWG_ADER_April-2025.pdf

• A review was provided on the current status of the ADER pilot and its participation models.
• Discussions revolved around potential expanded frameworks within which resources can participate in the ADER program, specifically looking at non-controllable load resource (NCLR) models for “blocky” loads.
• A nonconsensus issue arose regarding whether the same qualified scheduling entity (QSE) representing the ADER must be the same as the QSE representing the load-serving entity.
• Three options for moving forward with the governing document were discussed:
• Allowing third-party QSEs to participate for larger aggregations (100+ kW).
• A compromise necessitating coordination between LSE and third-party QSE.
• Maintaining the current requirement pending a future phase discussion.
• It was emphasized that the pilot should aim for incremental changes and minimize complex adjustments due to resource constraints.
• Concerns were raised about third-party aggregators potentially impacting the representative's ability to hedge against uncoordinated load shape changes.
• James Langdon (Vistra) and Monica Batra-Shrader (Enchanted Rock) indicated a preference for option two, involving a coordinated acknowledgment between LSE and third-party QSE.
• The importance of incorporating smaller resources like residential batteries in future discussions was emphasized, ensuring broad participation in demand response programs.
• Agreement and willingness to collaborate with stakeholders like Voltus, Leap, and others to refine participation models in the upcoming WMS meeting were expressed.

▶️6 - Changes for Load Resources in the upcoming RIOO release

Changes-for-LRs-in-Upcoming-RIOO-Release_DSWG_04172025.pdf

FINAL-Types-of-Loads-Associated-with-ERS-Resources-and-Load-Resources.pdf

• Introduction by Donald House from the demand integration team, discussing processing and modeling registration requests for load resources.
• Update on changes discussed previously in January at the DSWG meeting, with new RIOO registration requirements for load resources.
• The next RIOO release is scheduled for April 24, with two changes impacting load resources.
• Introduction of a requirement to select the type of load associated with each load resource during registration.
• Ability to view and update the critical load attestation condition selected during the initial registration.
• Discussion on the types of loads participating as load resources, with a finalized list available above and on the January DSWG meeting page.
• Resource entities required to select one type of load from a drop-down list, with an option for additional details for 'other' categories.
• Confidential registration data will help aggregate reports and data requests without revealing resource-specific data.
• Future changes to the load list will be manageable and adjustments encouraged based on user feedback.
• Existing load resources will be prompted to populate the new data fields, facilitated by ERCOT.
• Incorporation of critical load attestations, associating load resources with specific conditions as per operating guide language.
• Prepopulation of attestation data fields with current records, focusing on gathering and updating missing data.
• User guides on the RIOO website to be updated with new screenshots and information post-testing.
• Encouragement for feedback and communication through the demand integration team's email for any missing load types or registration queries.

▶️7 - Q&A

• Questions were raised about ERCOT creating specific load profiles for certain load resources like data centers and crypto.
• The ERCOT team is focused on registered load resources participating in ancillary services, not specifically on load profiles.
• There was a clarification sought regarding load exemptions in registration requirements, specifically whether it applies to all loads or specific ones.
• It's noted that current discussions are about load resources, not new or existing loads entering the market.
• A similar process to load resource registration is being implemented on the ERS side for contract terms from June to September, requiring a load type for offer validation.
• Updates about required fields for ERS contracts were discussed, ensuring necessary fields are validated.
• Suggestions and topics for future meetings were encouraged, emphasizing the need for advance notice for planning purposes.
• The next meeting is scheduled for May 12, where updates may be provided.

▶️8 - Adjourn