September 25 and October 23, September 25 and October 23, 20142014Technical Advisory Committee Technical Advisory Committee (TAC) Update to RMS(TAC) Update to RMS

Kathy Scott

October 28, 2014 TAC Update to RMS 1

TAC & ERCOT’s Antitrust TAC & ERCOT’s Antitrust Review Review

In 2015 should ERCOT continue to provide Annual Antitrust Training? ◦TAC Comment and Action Items:

ERCOT will discuss their 2015 Antitrust Training Plans and provide their update to TAC prior to the December TAC meeting.

ERCOT will also take their 2015 Antitrust Training Plans to ERCOT’s Board HR and Governance Committee for recommendation review.

October 28, 2014 TAC Update to RMS 2

9/25/14 - PRS Initiatives9/25/14 - PRS InitiativesNodal Protocol Revision Requests (NPRRs)

◦ NPRR617, Energy Offer Flexibility– Approved with 1 Abstention

◦ NPRR643, Clarification of MIS Postings for Outages Upon Implementation of SCR774 (Urgent) – Unanimously Approved

◦ NPRR644, Operating Reserve Demand Curve Phase 2 Revisions – Unanimously Approved

PRS Goals: Unanimously Approved Process NPRRs and SCRs (Section 21 requirement). Facilitate and make recommendations for Project Priorities. Consider requests and assignments from the ERCOT Board and

TAC in a timely and diligent manner. Review Other Binding Documents (OBDs) annually for elimination

or incorporation into Protocols/Market Guides.

October 28, 2014 TAC Update to RMS 3

10/23/14 - PRS Initiatives 10/23/14 - PRS Initiatives Nodal Protocol Revision Requests

(NPRRs) ◦ NPRR595, RRS Load Resource Treatment In ORDC

Approved with 3 Abstentions ◦ NPRR640, As-Built Clarification of Load Resource

Participation in SCED and Non-Spin Qualification Unanimously Approved

◦ NPRR647, CRR Auction Shadow Price Transparency Approved with 1 Opposed

◦ NPRR612, Reduction of Cure Period Subsequent to Event of Default Approved with ERCOT’s 8/12/14 comments with a planned

implementation of April 2015 System Change Requests (SCR)

◦ SCR781, MP Online Data Entry Market Requirements Unanimously Approved

October 28, 2014 TAC Update to RMS 4

10/23/14 - PRS Initiatives 10/23/14 - PRS Initiatives (cont.) (cont.) Market Training: ◦PRS discussed the potential of forming a Market Training Working Group to address market training needs: Feedback from Market Participants attending PRS is

a standing working group wasn’t necessary, instead hold workshops when necessary to discuss market training needs and provide ERCOT with workshop’s feedback.

TAC Leadership requested that PRS Leadership provides notice to all TAC Subcommittee’s listserv of any PRS’ Training Workshop(s) location, date and time.

October 28, 2014 TAC Update to RMS 5

Withdrawals and/or Tabled Withdrawals and/or Tabled RevisionsRevisions

Request for Withdrawal (Vote)◦NPRR340, Introduction and Definition of

Duration-Limited Resources (formerly “Unannounced HSL test for Duration-Limited Resources”) Question from TAC: “

Why is this no longer needed?” Should this be referred to WMS to determine if there is no

longer a need for this prior to voting on withdrawal request?

TAC Rejected the Withdrawal Request and referred NPRR340 to WMS for further investigations and recommendation to TAC.

October 28, 2014 TAC Update to RMS 6

Wholesale Market Subcommittee (WMS)◦ Letter of Credit Issuer Limits for ERCOT Creditworthiness

Standards (Vote) - Unanimously Approved ◦ CRR Activity Calendar (Vote) - Unanimously Approved

Reliability Operations Subcommittee (ROS)◦ RRGRR003, Modifications to Improve Wind Forecasting –

URGENT (Vote) Unanimously Approved◦ RRGRR004, Steam Pressure Curve Information for

Implementation of Regional Reliability Standard BAL-001-TRE-1 – URGENT (Vote) Unanimously Approved

◦ Voltage Reduction Report (Discussion): This shouldn’t be mandatory for TDSPs’ participation also any policy

developed from this report should come from the Commission. Concerns voiced that TDSPs would be engaging in Market activities

with potential Wholesale implications. Action Item: Request was made to refer this report to WMS for

discussion of Market Impacts and, if possible, to develop Cost Benefit Analysis (CBA).

October 28, 2014 TAC Update to RMS 7

WMS and ROS Initiatives WMS and ROS Initiatives

Commercial Operations Subcommittee (COPS)◦ LPGRR052, Change to Oil and Gas Assignment Process

(Vote) - Unanimously Approved ◦ COPMGRR037, Market Notification for Adhoc Invoices

and COPMG Cleanup (Vote) - Unanimously Approved

Retail Market Subcommittee (RMS)◦ RMGRR124, New REP Operating Rule 13, CSA Bypass

Code (Vote) Unanimously Approved◦ RMGRR125, Updates to Transition Process – Contact

Information and Cleanup of Timelines (Vote) Unanimously Approved with ERCOT’s 9/18/14 edits

October 28, 2014 TAC Update to RMS 8

COPS and RMS Initiatives COPS and RMS Initiatives

Ancillary Services Methodology Ancillary Services Methodology 10/23/14 TAC Recommendation as follows:

1. 2015 Ancillary Services Methodology presented to TAC (as presented by ROS/WMS and as modified by the Luminant comments ),

2. Using 20% adjustment factor*, 3. Do not transfer any of calculated NSRS amount to RRS,4. Revisit the NSRS procurement methodology;5. Amounts published annually are fixed amounts, not advisory,6. Amounts are calculated using 70th percentile of cases in each particular

bin,7. Load Resources remain limited to providing a maximum of 50% of RRS,8. Make changes to Regulation as recommended by ERCOT, 9. Effective date of RRS and Non-Spin changes to be effective June 1, 2015: 10.Regulation change to be effective January 1, 2015 but remainder of 2014

AS Methodology remains in effect until June 1, 2015. 11.Periodic WMS review of results.

The above recommendations were Unanimously Approved by TAC!

October 28, 2014 TAC Update to RMS 9

Future Ancillary Services Activities Future Ancillary Services Activities Update on FAST/TAC Workshop 3

◦ Procurement Methodology PFR/FFR (Possible Vote) Motion: Approved – CBA Only for the Procurement Scenario

◦ Clearing and Pricing of Ancillary Services (Possible Vote) Motion: Perform the CBA based upon the FAS proposal and ERCOT will share

slide deck on pricing proposal with vendor – Approved with 2 Abstentions NPRR needed by November 1, 2014 – Market comments due by October 15,

2014◦ Review of Timeline:

RFP Date: 09/17/2014 Optional Notice of Intent to Propose Due: 09/22/2014 Vendor Questions Due: 09/25/2014 Response to Vendor Questions Posted: 10/01/2014 Vendor Proposals Due: 10/09/2014 at 2 p.m. Vendor Presentations WebEx only –NOT onsite: TBD the week of

10/27/2014 Anticipated Contract Award: 11/03/2014 Anticipated Contract Start Date: 12/01/2014

Note: Plans are to award contract NLT 11/13/14 with contract start date NLT 12/1/14

October 28, 2014 TAC Update to RMS 10

ERCOT Operations, Planning & IT ERCOT Operations, Planning & IT ReportsReports◦Multi-Interval of SCED/Real-Time Co-Optimization of

Ancillary Services Whitepaper Update TAC referred to WMS for discussion and to develop a recommendation for TAC

consideration. ◦Frontera Plant Move-Out

Assessing the Reliability Impacts is Completed ERCOT’s Frontera Plant Move-Out Study is posted to Key Documents #11: http://

www.ercot.com/calendar/2014/10/20141023-TAC ◦Rio Grande Valley Rotating Outages on10/8/14

4:47PM – 6:29 PM: ERCOT instructed the TSPs to reduce system demand by 200 MW due to voltage concerns on transmission systems in area and to protect the Valley region from the risk of an uncontrolled blackout situation. Additional power was imported from the power grid in Mexico to help address transmission system issues.

October 28, 2014 TAC Update to RMS 11

Questions?Questions?

12October 28, 2014 TAC update to RMS