Meeting Summary - 04/22/2025 RTCBTF Meeting

▶️1 - Anti-trust Admonition

▶️2 - RTCBTF Update

2_RTCBTF_Update_04222025.pdf

▶️2.1 - Update on NPRRs at Board

• Reviewed the old issues list with positive progress shown; more items marked as completed.
• Acknowledgment of TAC and board approval for NPRR1268, NPRR1269, and NPRR1270, scheduled for commission consideration on May 15.
• Development of new aggregated ORDC curve, AS demand curves, and proxy offer logic is underway.
• Discussion on the state of charge duration parameter is planned; another revision anticipated for the June Board meeting.
• Emphasis on ongoing market trials and planning for load frequency control (LFC) tests through April, May, and June.
• Preparations for the go-live transition plan expected, including potential parallel data submissions and dual model day-ahead runs.
• Consideration of protocol exemptions for LFC testing and go-live transition.
• Acknowledgment of approved NPRRs and upcoming focus on state of charge discussions.
• Clarification NPRR for June 18 regarding settlement corrections to align with protocols.
• Highlighting NFRC telemetry updates requiring maintenance of specific data attributes for NERC evaluations.
• Offer bid structure cleanup in progress, addressing monotonically non-increasing language on bids.

▶️2.2 - Update on Scorecard

• TAC meetings scheduled for May leading to a June board meeting, and for August leading to a September board meeting.
• No other board meetings until the meeting in December, after going live.
• No changes in the market trial sequence; handbooks provide guidance on market submissions, telemetry startup, and open loop scheduling.
• Final reviews for open loop scheduling and QSE telemetry test, initial reviews for closed loop LFC test and day ahead.
• New market trials and tech support folders available on the RTCBTF homepage.
• Plan to add four more training videos before the next meeting.

▶️2.3 - Update on Weekly WebEx Market Trials (Market Notice sent 4/16)

• Market trials will use a central location for key documents like handbooks and technical details, located on the RTCBTF homepage.
• The RTCB@ercot.com mailbox is operational and is managed to ensure quick responses.
• Training videos are planned to aid in the market trials process.
• ERCOT engaged with the demand side working group for load resource participation training.
• A special session with the demand side working group was conducted with a focus on their participation in market trials.

▶️2.4 - Operator Training Seminar Update

• Operator training seminars have been conducted every Wednesday for the past month.
• The seminars cover RTC basics and operations, with a focus on telemetry changes.
• 600-800 operators have participated in the training at the T4 control center in Taylor.
• Training sessions will conclude next Wednesday, with a focus on technical details related to RTC.
• Preparation for formal market trials starting May 5th was discussed.
• A market notice was sent on March 13 to ensure market participants were aware of upcoming market trial activities.
• A 100% response rate was achieved for confirming readiness for the trials.
• A second notice was sent regarding mandatory real-time co-optimization and battery market trials for all QSEs with resources starting May 5.
• Market trial schedules and expectations from May through October were outlined for participants.

▶️2.5 - Model Schedule Posted

• Model load information is being posted to the RTCBTF homepage.
• Network model, EMS system, and market management system topology were discussed.
• New resources and their display on the model load schedule were mentioned.
• Highlighted the posting of the model schedule as a housekeeping item.

▶️3 - State of Charge / AS Duration Discussion

3_RTCTF_Duration_Requirements_Topic_Update_v6.pdf

• A presentation was given on the analysis updates regarding Non-Spin resources, specifically online Non-Spin resources, and how they were being deployed.
• It was noted that the analysis did not change the initial recommendation to recommend that Non-Spin duration lasts at least 4 hours.
• Online Non-Spin capacity must be offered at a minimum of $75 per megawatt hour as per the protocols, with this capacity being available to SCED for deployment as needed.
• An estimation was conducted to evaluate the deployment of online Non-Spin resources by SCED.
• Historical data from 06/01/2018 to 03/27/2025 was analyzed, showing that 81% of events had a duration of four hours or more.
• Questions were raised regarding the impact of different price floors on the event patterns and on the reliability determination.
• A discussion was held on a specific date's analysis where forecast errors led to extended deployment of Non-Spin capacity.
• Nitika Mago presented that the deployment patterns are driven by weather events and forced outages, which are difficult to forecast accurately.
• Clarifications were made regarding the adjustments to battery state of charge calculations and their implications for the reliability need analyses.
• It was concluded that the information shared did not change the existing recommendation but highlighted the usage of Non-Spin capacity during system demands.

▶️3.1 - Draft NPRR

3_XXXNOGRR-01-Related-to-NPRRXXX-Ancillary-Service-Duration-during-Real-Time-Co-Optimization-04XX25.pdf

3_XXXNPRR-01-Ancillary-Service-Duration-Under-Real-Time-Co-optimization-04DD25.pdf

• The draft NPRR includes additional sections for clarity on qualification and monitoring criteria.
• Key changes introduced include adjusting durations in various sections with acronyms established for consistency.
• In reliability unit commitment, a new paragraph includes a 60-minute duration for energy and ancillary services, excluding RRS provided using fast frequency response with a 15-minute duration.
• Changes include replacing a 15-minute duration with 30 minutes in regulation and responsive reserve.
• Adjustments also seen in monitoring criteria, replacing 15 minutes with 30, and ECRS criteria changed from two hours to one hour.
• Discussion on the impact of Non-Spin resource qualification and ECRS.
• Nitika Mago addressed the revisions focusing on regulation updates and ERCOT’s intention to file the NPRR.
• Stakeholder comments emphasized the importance of ensuring market stability and considerations for evolving reserve durability.
• Concerns raised regarding state of charge (SOC) limits and how language applies to breakdown scenarios.
• Further inquiries included how the NPRR aligns with security constraints and socioeconomic dispatch parameters, ensuring it doesn’t violate max/min SOC limits.
• Clarification provided that adjustments are needed when transitioning from a combo model to a single model concerning ESR registration.
• Queries about the impact of the NPRR changes on day-ahead market ancillary services.
• Stakeholders invited to provide further comments or proposals before the next session, with potential for additional sessions based on feedback.

▶️4 - Market Readiness

• Discussion focused on the handbooks, with emphasis on transparency regarding recent modifications.
• Acknowledgment of feedback loop necessity in case of issues with handbook updates.
• Nathan Smith assisted in correcting handbook information regarding AS capability fields.
• The field is not new but rather an adjustment from a single value to a megawatt value.
• Clarification on telemetry checkout language to reflect that not all checkouts are complete but telemetry verification is recognized as success.
• The language around telemetry verification has been softened to align with current progress and understanding.

▶️4.1 - Review Handbook #3- Open Loop SCED (Round 3-Final)

4_RTCB_Market_Trials_Handbook_3_OpenLoop_RTC_SCED_04182025_FINAL.pdf

• Specific sections of the handbook are marked in green to indicate completion by ERCOT; this helps to show what the QSE needs to accomplish.
• Section three of the handbook is crucial and has been discussed in past meetings.
• ERCOT will run RTC SCED in the market trials environment using market submissions and telemetry, with published prices and dispatch information.
• Introduction of 'non-monitored operating days' where QSEs submit real-time offers with 80%-120% cost representation. Participation is not enforced but expected to improve market results.
• NPRR1058 allows all resources to update offers during the operating hour, with a mandatory reason in the text field for changes.
• SCED-generated capacity prices will be published by interval on ERCOT.com; reports must be downloaded as no dashboards or specific displays will be provided.
• SCED operations will occur on business days, specifically Tuesdays and Thursdays from 9 to 5, which provides a regular schedule for participants.
• The handbook is being finalized and flagged as complete, but changes can be made if necessary.
• There was a question about schema changes for recent code requirements; it was clarified that the reason field is already part of submissions and will be validated during the operating period.
• The same update logic for energy offer changes will apply to AS offer submissions, pending confirmation.

▶️4.2 - Review Handbook #4- QSE Telemetry Tests (Round 3-Final) Abhi Masanna Gari

4_RTCB_Market_Trials_Handbook_4_QSE-Telemetry-Tests_04182025_FINAL.pdf

• Presented the proposed final version of the QSE telemetry tests.
• Tweaked the handbook for better clarity and specificity.
• Discussed the parallel test window running alongside the open loop schedule.
• Emphasized the need for accurate telemetry to support the market solution.
• Outlined the coordination of individual QSE tests on selected resources for point-to-point telemetry checkout.
• Clarified that QSE tests don't involve the whole fleet, only selected resources.
• Set test times to Tuesday and Thursday, nine to five.
• Open to observed or self tests, with ERCOT in knowledge of the tests.
• Clarified that CLRs will not require additional tests.
• Mentioned forms, sheets, and expectations will be provided as the process progresses.
• Plans to put the finalized document on the website.
• Discussion involving Nathan Smith and Dave Maggio on energy offer curves and the ability to update ancillary service offers.
• Clarified the distinction between energy offers under NPRR1058 and RTCTF discussions.

▶️4.3 - Review Handbook #5- Close-Loop LFC Tests (Round 1-Initial)

4_RTCB_Market_Trials_Handbook_5_ClosedLoop_LFC_DRAFT_04182025.pdf

• Introduction of a new frequency control test from September to October, described as challenging.
• Proposal of a two-hour test with QSE participation, ensuring reliable RTC SCED dispatch and frequency control without significant operational disruption.
• ERCOT to provide a minimum of ten business days advanced notice before test dates, with tests conducted to prevent frequency issues.
• Details on managing transition risk through parallel production systems and binding RTC SCED during tests.
• Minimizing the risk of significant redispatch through guardrails requiring QSEs to enter identical energy offer curves for both current and RTC systems.
• Specific instructions for AS responsibilities: $0 offers for resources carrying responsibilities and $2,000/megawatt for others.
• Consideration of current duration requirements over RTC during LFC tests for ESRs with response AS responsibility.
• Telecom assumptions for QSEs and possible test run LFC to ensure QSE offers and telemetry are functioning prior to main tests.
• Detailed test execution phases involving gradual QSE transition to RTC control, minimizing frequency swings during the test’s two-hour window.
• Clarification on AS trades or changes within the test window, ensuring QSE can update offers as needed.
• Financial settlements during tests based on current system prices, exempting base point deviation charges to prevent penalties.
• Dispute conditions limited to financial harm instances, with criteria based on protocol 6.6.9(4)
• Discussion on potential repeat of the test twice if needed, with adjustments based on findings.

Key Participants

• ERCOT representatives introducing and explaining the test process.
• Q&A from attendees like Ned Bonskowski, Dave Maggio, and Chris Espinosa providing additional inquiries on operational details.
• Questions addressing specific scenarios like AS responsibility shifts and telemetry requirements.

Next Steps

• Take feedback back to respective teams and provide additional questions or concerns in the next round of discussions.
• Refine clarifications on AS offer protocols and test logistics prior to next meeting.

▶️4.4 - Review Handbook #6- Day-Ahead Market Tests (Round 1-Initial)

4_RTCB_Market_Trials_Handbook_6_DayAheadMarket_DRAFT_04182025.pdf

• Voluntary Day-Ahead Market
• The day-ahead market is voluntary post-RTC go live.
• Day-ahead market participation is encouraged but not mandatory in readiness metrics.
• Ancillary services (AS) are expected to have a liquid market.
• The market will open to all QSEs, not just the existing participants.
• Market Participation
• QSEs can test market submissions like energy bids and AS offers.
• Specific transactions for energy storage can be submitted.
• Resource-specific AS offers can be submitted.
• ESRs and Market Testing
• ESR (energy storage resources) names updated in the system.
• ESRs are available in RTCB environment for testing.
• Questions about inclusion and updating of ESR lists were discussed.
• Market Trials and Advisory Obligations
• Day-ahead market tests are advisory with no binding commitments.
• Details about AS scheduling limits were clarified.
• Adjustment period is separate and not linked to closed loop tests.
• Upcoming Sandbox and Reports
• Publicly available sandbox data to be discussed at a later point.
• Reports update planned for upcoming meetings.
• Closing Remarks and Follow-ups
• Finalization of handbook items discussed.
• Feedback on day-ahead market and closed loop testing to be sought in next meeting.

▶️5 - Review 3 New Training Modules

▶️5.1 - Day-Ahead Market Training

5_RTCB_DAM_Training_v04182025.pdf

• Overview of day-ahead market changes in the RTC+B era compared to current operations.
• Reminder of the day-ahead market timeline which remains unchanged, including AS obligations and incentive service demand curves.
• Introduction of three different AS submissions: AS only (new), resource specific, and self-arrangement.
• No minimum obligation for AS submissions; advisory and final AS obligations calculated using LSE's load ratio share.
• Shift in AS demand curve structure, moving away from an AS penalty cost structure to using AS demand curves in RTC.
• AS insufficiency process modifications where insufficiency may lead to market reopening for additional offers.
• Introduction of AS only offers in RTC without resource ties, limited to specific AS types, and subject to a new credit exposure calculation.
• Resource specific offers to continue with some modifications, and a new optimization focus on AS demand curves.
• Self-arrangement can't exceed advisory obligation in RTC, and negative self-arrangements treated as price takers.
• Energy Storage Resources (ESRs) to have a single model incorporating charging/discharging, and no ESR offline reserves allowed.
• Training outcomes to be seen in September/October with ERCOT publishing AS obligation reports.

Questions

• Clarification on AS insufficiency process in RTC and its interaction with pricing.
• Clarification on the role of SASM in relation to real-time co-optimization.
• Potential for earlier testing of AS obligation reports for integration purposes.
• Further illustration on the co-optimization of resource specific and AS only offers.

Next Steps

• Address the implementation details of new AS only offers and their market impacts.
• Further clarification on the functional differences between day-ahead and real-time operations for battery resources.
• ERCOT to consider publishing AS obligation reports sooner for testing integration.
• Continuing market training focusing on other key topics like battery operations in the day-ahead market.

▶️5.2 - Battery Training

5_RTCBTF_Battery-Overview-Training-4-22-25-as-of-4-17-25-1830.pdf

• Overview of the progress and future integration of battery energy storage systems into the ERCOT system.
• Increase in battery energy storage capacity from less than 200 megawatts in 2019 to over 11,000 megawatts today, with expectations of reaching 18,000 by the end of the year.
• Duration of batteries in the system mainly consists of one-hour duration batteries, with a future trend towards longer duration batteries.
• Implementation of real-time co-optimization where more ancillary services are expected to be provided by batteries.
• Introduction to new NPRRs that support the transition such as NPRR1014, NPRR1204, NPRR1236 and the cleanup NPRR1246.
• Details about the single model approach which includes registration, qualification, modeling, and telemetry as a single resource.
• Modification of setpoint deviation calculation with tighter tolerance requirements being implemented.
• Procedures for submission of energy bid offer curves and real-time management in the day-ahead and real-time markets.
• RUC processes including DRUC and HRUC will be used to ensure enough capacity in future hours and how state of charge information will be utilized.
• Deployment factors will simulate potential AS deployment used for future RUC calculations.
• Discussion on how deployment factors are determined and how they can impact the market participants' operations.
• Multiple questions were raised and answered about deployment factors, tolerances, and operating procedures.

▶️5.3 - RTC Spreadsheet Tool and Examples

RTC_RealTime_Market_Simulator_April-RTCBTF.pdf

• Presentation used a simple model to illustrate price formation under RTC using different scenarios.
• Ray Lee and the market analysis team were acknowledged for their contribution.
• The presentation focuses on illustrating changes in outputs with RTC such as clearing prices, base points, and awards.
• Simulation tool for scenarios is available on the RTC+B web page for download.
• SCED system overview: designed to provide the lowest cost set of resources to meet energy needs, with reserve pricing added outside optimization.
• RTC reflects scarcity of energy and ancillary services and factors ancillary service costs directly into LMPs.
• Three scenarios presented: optimal allocation of ancillary services, transmission congestion management, and system scarcity impact.
• Importance of making resources indifferent regarding capacity use for energy vs. ancillary services was emphasized.
• Example scenarios demonstrated how RTC prioritizes the need to serve load and ensures operating profit consistency for resources.
• RTC can alleviate congestion by adjusting ancillary service awards and managing costs effectively.
• During tight conditions, RTC prioritizes energy over ancillary services and factors penalty costs.
• Indifference in operating profit maintained irrespective of capacity use is essential.
• Confirmation that offer cap remains at $5k in day-ahead but reduces to $2k for energy and ancillaries in real-time.

▶️6 - TWG Updates/Questions

6_RTCBTF_Reports_CDR_PD_04182025.pdf

▶️6.1 - Reports Update

• Discussion on the timing and phases of report deliveries.
• Reports will be delivered in multiple phases: no new reports on May 5, but introduction of wave one and wave two groups.
• Group One involves open loop testing reports including RTC energy prices, binding constraints, adders, and market clearing prices for ancillary services.
• Group Two involves closed loop testing, with seven additional reports and 11 new CDR reports available in September.
• Some reports could be moved up to July for integration testing.
• Reports are categorized as existing, modified, or new, with some changes not affecting the data itself.
• The complete inventory includes around 95 reports, detailing when each will be released and any associated changes.
• Dashboards and XSD files also discussed; XSDs available by October 15 for integration building.
• The ERCOT reporting inventory tool, EMIL, was mentioned as a resource for tracking reports.
• No significant changes in graphic/dashboard elements except for a few modifications.

▶️7 - Other Business

▶️7.1 - Next Steps on HEN Proposal related to underlying AORDC Calculations

7_HEN_Appropriate-Parameters-for-the-AORDC.pdf

• Shams Siddiqi clarified that the HEN proposal does not seek to change the AORDC curve shape.
• The proposal suggests using unaltered ORDC μ and σ for AORDC calculations.
• Critique of the current process as cumbersome and based on regression fit that undervalues MCPC.
• Advocated for using current ORDC hourly statistics for μ and σ.
• Current AORDC uses μ* and  σ*, which are seen as incorrect proxies.
• Shortcomings of the option two ORDC adder formula lead to undervaluing of reserves.
• Using unaltered ORDC statistics could correct inadvertent price suppression.
• No system changes required, just a manual update of parameters.
• Could potentially address the missing money problem in current market pricing.
• Some members are cautious about implementing significant changes before RTC go live.
• Concerns over how these changes interact with future market design and reliability standards.
• Need for broad analysis and simulations to understand full market impact.
• Potential for an NPRR submission to facilitate further study.
• Possible escalation to TAC and other bodies for higher-level discussion.
• Some participants suggested considering this alongside broader market design changes post-RTC implementation.

▶️8 - Adjourn