Proposal to Modify ERS Time Periods

2014 DSWG Goal #10

Presented to: Demand Side Working Group

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• Align ERS time periods with the seasonal and hourly changes in the risk of entering into an EEA– Winter Peaks, currently winter peak hours (less than 2% of the

annual hours) requires to contract for all NBHs for both the Oct-Jan and Feb-May standard contract terms (≈43% of the annual hours)

• Optimize the allocation of ERS expenditure dollars

Purpose of Proposed Changes

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Option 1 & 2

Two options were presented during the February 18, 2014 WebEx meeting and again during the August 27, 2014 DSWG meeting.

A common concern from DSWG was that both options would introduce unnecessary confusion during the Standard Contract Terms and put providers at risk during deployments

DSWG requested that ERCOT develop a third option that would keep the time period definitions consistent across Standard Contract Terms

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Option 3

Features:

1. Modify time periods within each SCT to enable better alignment with the risk of ERS deployments

2. New time period that targets morning winter peak hours before the existing Business Hours 1 Time Period and extending Business Hours 3 to 10 pm.

3. Time Periods would be consistent across all SCTs

4. No change to the SCTs

1.ERCOT recommends implementation at the beginning of the 2016 ERS Budget year (initiate for the Feb-May 2016 SCT)

2.Changes would only require a 90 day notice and modifications to the Technical Requirements & Scope of Work document

3.Would NOT require PUC Rule change, NPRR, or redefinition of the ERS budget year

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Option 3 details

Time Period Name Time Period Hours

Business Hours 0Hours Ending 0600 – 0800 (5:00:00a.m. to 8:00:00a.m.)Monday through Friday except ERCOT Holidays

Business Hours 1Hours Ending 0900 - 1300 (8:00:00a.m. to 1:00:00p.m.)Monday through Friday except ERCOT Holidays.

Business Hours 2Hours Ending 1400 - 1600 (1:00:00p.m. to 4:00:00p.m.)Monday through Friday except ERCOT Holidays.

Business Hours 3Hours Ending 1700 - 2200 (4:00:00p.m. to 10:00:00p.m.) Monday through Friday except ERCOT Holidays.

Non-Business Hours All other hours

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Questions