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Technical Advisory Committee. Presentation to the ERCOT Board of Directors May 20, 2009. 2 PRRs for Board approval 4 NPRRs for Board approval 1 SCR for Board approval Recommendation: NPRR Parking Deck Update: ERCOT planning charter Preview: June Board meeting. TAC Report Summary. - PowerPoint PPT Presentation
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Technical Technical Advisory Advisory
CommitteeCommitteePresentation to the Presentation to the
ERCOT Board of DirectorsERCOT Board of Directors
May 20, 2009May 20, 2009
TAC Report SummaryTAC Report Summary• 2 PRRs for Board approval2 PRRs for Board approval• 4 NPRRs for Board approval4 NPRRs for Board approval• 1 SCR for Board approval1 SCR for Board approval• Recommendation: NPRR Parking DeckRecommendation: NPRR Parking Deck• Update: ERCOT planning charterUpdate: ERCOT planning charter• Preview: June Board meetingPreview: June Board meeting
2
Protocol Revision RequestsProtocol Revision RequestsPRR 797PRR 797 Removal of Reference to ERCOT Removal of Reference to ERCOT
Business ProcessesBusiness Processes
PRR 800PRR 800 QSE Day Ahead Metric – URGENT QSE Day Ahead Metric – URGENT
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PRR 797PRR 797 – Removal of Reference to ERCOT – Removal of Reference to ERCOT Business ProcessBusiness Process
PurposePurpose
(ERCOT)(ERCOT)Revises term “Generation Resource Asset Revises term “Generation Resource Asset Registration Form” in Section 4.10.4.1 (LSL Registration Form” in Section 4.10.4.1 (LSL Requirements for WGRs) to “as registered with Requirements for WGRs) to “as registered with ERCOT”ERCOT”
BenefitBenefit Clarifies that the requirement is asset Clarifies that the requirement is asset registration and not a specific type of formregistration and not a specific type of form
Market ImpactMarket Impact N/AN/A
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present
Effective DateEffective Date June 1, 2009June 1, 2009
PRR 797PRR 797 – Removal of Reference to – Removal of Reference to ERCOT Business ProcessERCOT Business Process
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Credit Monitoring/Monitoring/LiabilityLiability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
PRR 800PRR 800 – QSE Day-Ahead Metric -- – QSE Day-Ahead Metric -- URGENTURGENT
PurposePurpose
(ERCOT)(ERCOT)Re-defines the Day Ahead metric for QSEs with Re-defines the Day Ahead metric for QSEs with and without WGRs to ensure that both categories and without WGRs to ensure that both categories of QSE schedule enough capacity in the Day of QSE schedule enough capacity in the Day Ahead to meet their planned energy schedules Ahead to meet their planned energy schedules plus A/S obligations; removes WGR QSE plus A/S obligations; removes WGR QSE exemption established by PRR 777, WGR QSE exemption established by PRR 777, WGR QSE Metric CorrectionMetric Correction
BenefitBenefit Establishes an appropriate Day Ahead metric for Establishes an appropriate Day Ahead metric for all QSEsall QSEs
Market ImpactMarket Impact N/AN/A
System ChangeSystem Change NoNo ERCOT source systems will not be ERCOT source systems will not be modified or impacted by this PRR.modified or impacted by this PRR.
AssumptionsAssumptions ERCOT will develop a reporting solution which ERCOT will develop a reporting solution which will query and report data from source systems. will query and report data from source systems.
TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present
Effective DateEffective Date Upon system implementationUpon system implementation
PRR 800PRR 800 – QSE Day-Ahead Metric -- – QSE Day-Ahead Metric -- URGENTURGENT
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Credit Monitoring/Monitoring/LiabilityLiability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
Less than $50K (project required)
PRR 800PRR 800 – QSE Day-Ahead Metric -- – QSE Day-Ahead Metric -- URGENTURGENT
• TAC discussion regarding funding TAC discussion regarding funding mechanisms for TRE system projectsmechanisms for TRE system projects• TRE / ERCOT Service Level TRE / ERCOT Service Level
AgreementAgreement• TRE Fee vs. ERCOT Administrative TRE Fee vs. ERCOT Administrative
FeeFee• NOGRR 025 budget assumptionsNOGRR 025 budget assumptions
Nodal Protocol Revision Nodal Protocol Revision RequestsRequests
NPRR 157NPRR 157 Extending Black Start Service Bid Extending Black Start Service Bid TimelineTimeline
NPRR 163NPRR 163 Removal of Late Fee Language Removal of Late Fee Language
NPRR 166NPRR 166 Timing for Required Black Start Timing for Required Black Start Unit Load Carrying TestUnit Load Carrying Test
NPRR 167NPRR 167 Options for Filing Verifiable Costs Options for Filing Verifiable Costs – QSEs or Resources– QSEs or Resources
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NPRR 157NPRR 157– Extending Black Start Service – Extending Black Start Service Bid TimelineBid Timeline
PurposePurpose
(ROS)(ROS)Changes the Black Start Service bids from a 1-Changes the Black Start Service bids from a 1-year period to a 2-year period (companion was year period to a 2-year period (companion was PRR780)PRR780)
BenefitBenefit Gives Transmission Operators and Market Gives Transmission Operators and Market Participants more time to prepare and train their Participants more time to prepare and train their system operatorssystem operators
Market ImpactMarket Impact Allows more time to train system operatorsAllows more time to train system operators
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present
Effective DateEffective Date ERCOT believes NPRR 157 is needed for “go-ERCOT believes NPRR 157 is needed for “go-live”; effective upon Nodal implementation; no live”; effective upon Nodal implementation; no impact to scheduleimpact to schedule
NPRR 157NPRR 157– Extending Black Start Service – Extending Black Start Service Bid TimelineBid Timeline
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Credit Monitoring/Monitoring/LiabilityLiability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
NPRR 163NPRR 163– Removal of Late Fee Language– Removal of Late Fee Language
PurposePurpose
(ERCOT)(ERCOT)Eliminates conflicting language by removing the Eliminates conflicting language by removing the concept of late fees calculated on all delinquent concept of late fees calculated on all delinquent accounts; states that late fees are only calculated accounts; states that late fees are only calculated on delinquent DAM, RTM and RTM uplift on delinquent DAM, RTM and RTM uplift amountsamounts
BenefitBenefit Removes conflicting languageRemoves conflicting language
Market ImpactMarket Impact N/AN/A
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present
Effective DateEffective Date ERCOT believes NPRR 163 is needed for “go-ERCOT believes NPRR 163 is needed for “go-live”; effective upon Nodal implementation; no live”; effective upon Nodal implementation; no impact to scheduleimpact to schedule
NPRR 163NPRR 163– Removal of Late Fee – Removal of Late Fee LanguageLanguage
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Credit Monitoring/Monitoring/LiabilityLiability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
NPRR 166NPRR 166– Timing for Required Black – Timing for Required Black Start Unit Load Carrying TestStart Unit Load Carrying Test
PurposePurpose
(ERCOT)(ERCOT)Synchronizes the Nodal Protocols for PRR 785, Synchronizes the Nodal Protocols for PRR 785, Timing for Required Black Start Unit Load Timing for Required Black Start Unit Load Carrying Test (BOD Approved 3/09); changes test Carrying Test (BOD Approved 3/09); changes test from once every six years to once every five yearsfrom once every six years to once every five years
BenefitBenefit Reduces risk of NERC compliance violationReduces risk of NERC compliance violation
Market ImpactMarket Impact More frequent load carrying testsMore frequent load carrying tests
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present
Effective DateEffective Date ERCOT believes NPRR 166 is needed for “go-ERCOT believes NPRR 166 is needed for “go-live”; effective upon Nodal implementation; no live”; effective upon Nodal implementation; no impact to scheduleimpact to schedule
NPRR 166NPRR 166– Timing for Required Black – Timing for Required Black Start Unit Load Carrying TestStart Unit Load Carrying Test
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Credit Monitoring/Monitoring/LiabilityLiability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
NPRR 167NPRR 167– Options for Filing Verifiable – Options for Filing Verifiable Costs – Costs –
QSEs or ResourcesQSEs or Resources
PurposePurpose
(Verifiable Cost (Verifiable Cost WG)WG)
Allows either QSEs or Resource Entities to file Allows either QSEs or Resource Entities to file verifiable costsverifiable costs
BenefitBenefit Eliminates confidentiality issues associated with Eliminates confidentiality issues associated with Resource-specific verifiable cost dataResource-specific verifiable cost data
Market ImpactMarket Impact N/AN/A
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present
Effective DateEffective Date ERCOT has no opinion on whether NPRR 167 is ERCOT has no opinion on whether NPRR 167 is needed for “go-live”; no Nodal impactsneeded for “go-live”; no Nodal impacts
NPRR 167NPRR 167– Options for Filing Verifiable – Options for Filing Verifiable Costs – Costs –
QSEs or ResourcesQSEs or Resources
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Credit Monitoring/Monitoring/LiabilityLiability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
System Change RequestSystem Change RequestSCR 753SCR 753 Transmission Outage Notice Detail Transmission Outage Notice Detail
EnhancementsEnhancements
Enhances transparency of grid operations by Enhances transparency of grid operations by publishing additional information regarding publishing additional information regarding outages.outages. This information is already available in ERCOT systems, This information is already available in ERCOT systems,
just needs to be extracted and publishedjust needs to be extracted and published Will make outages easier to track for all market Will make outages easier to track for all market
participantsparticipants Minor cost impact to be absorbed by affected Minor cost impact to be absorbed by affected
departments O&M budgetsdepartments O&M budgets Requires approximately one month to complete Requires approximately one month to complete
after Board approvalafter Board approval Unanimously recommended by TACUnanimously recommended by TAC 18
Recommendation: NPRR Recommendation: NPRR Parking DeckParking Deck
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• Post-“Go-Live” NPRRsPost-“Go-Live” NPRRs• Parking Deck white paper and supporting Parking Deck white paper and supporting
materials included in Board packetmaterials included in Board packet• After PRS approves NPRR, they will suggest a After PRS approves NPRR, they will suggest a
rank on the Nodal tab of the Project rank on the Nodal tab of the Project Prioritization List (PPL) – Parking DeckPrioritization List (PPL) – Parking Deck
• Only Approved Items will be on Parking DeckOnly Approved Items will be on Parking Deck• PRS sends approved NPRRs to TAC with rankPRS sends approved NPRRs to TAC with rank• TAC sends approved NPRRs to BoardTAC sends approved NPRRs to Board• If Board approves NPRR, language added to If Board approves NPRR, language added to
Nodal Protocols as a grey-boxNodal Protocols as a grey-box• Approved rank will be tracked in PPL and Approved rank will be tracked in PPL and
projects in the PPL will be grouped into post-Go-projects in the PPL will be grouped into post-Go-Live releasesLive releases
• Before NPRRs on the PPL can be implemented, Before NPRRs on the PPL can be implemented, ERCOT will provide impact analyses, cost-benefit ERCOT will provide impact analyses, cost-benefit analyses, and the post-Go-Live releases will be analyses, and the post-Go-Live releases will be included in the annual Admin Fee budgeting included in the annual Admin Fee budgeting processprocess
Update: ERCOT Planning Update: ERCOT Planning CharterCharter
In January, ERCOT Staff presented recommended In January, ERCOT Staff presented recommended changes to the ERCOT Planning Charter. TAC changes to the ERCOT Planning Charter. TAC endorsed the proposed changes.endorsed the proposed changes.
The Board approved the revisions except the The Board approved the revisions except the proposal to exempt transmission projects relating to proposal to exempt transmission projects relating to generation interconnection from ERCOT and RPG generation interconnection from ERCOT and RPG review. Treatment of such facilities was remanded review. Treatment of such facilities was remanded to TAC for further discussion and recommendation.to TAC for further discussion and recommendation.
The current Planning Charter language requires The current Planning Charter language requires generation interconnection projects costing more generation interconnection projects costing more than $15 million or requiring CCNs be reviewed by than $15 million or requiring CCNs be reviewed by the RPG (including ERCOT independent review and the RPG (including ERCOT independent review and Board approval as appropriate).Board approval as appropriate).
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Current Review ProcessCurrent Review Process
21
ProposedProject
Is it a “Neutral Project”?
>$50M Capital Cost
n y
n
CCN Required?
y
<$15M Capital Cost?
n
n
y
y
•RPG Review and Comment•ERCOT Independent Review•ERCOT BOD Endorsement
TIER 1
•RPG Review and Comment•ERCOT Independent Review•ERCOT BOD Endorsement
TIER 1
•RPG Review and Comment•ERCOT Independent Review
TIER 2
•RPG Review and Comment•ERCOT Independent Review
TIER 2
•RPG Review and Comment
TIER 3
•RPG Review and Comment
TIER 3
•No ERCOT Review
TIER 4
•No ERCOT Review
TIER 4
Summary of stakeholder Summary of stakeholder discussiondiscussion
Consensus on 2 procedural changes for TSPs to Consensus on 2 procedural changes for TSPs to raise visibility of large generation raise visibility of large generation interconnection projectsinterconnection projects
Require in Generation Interconnection (GI) Require in Generation Interconnection (GI) Procedure that the Lead TSP for the Full Procedure that the Lead TSP for the Full Interconnection Study (FIS) communicates to Interconnection Study (FIS) communicates to other TSPs when the FIS indicates that the direct other TSPs when the FIS indicates that the direct interconnection facilities will cost >$50 million so interconnection facilities will cost >$50 million so that the other TSPs will know to particularly focus that the other TSPs will know to particularly focus on the FIS on the FIS
The Lead TSP for GI FIS will communicate direct The Lead TSP for GI FIS will communicate direct generation interconnection projects >$50 million generation interconnection projects >$50 million out to full RPG (no review by RPG) once generation out to full RPG (no review by RPG) once generation Interconnection Agreement is signedInterconnection Agreement is signed
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Summary of stakeholder Summary of stakeholder discussiondiscussion
Support for ERCOT/RPG Review of interconnection Support for ERCOT/RPG Review of interconnection facilitiesfacilities Commission Staff testimony in Kelson CCN docket expressed need Commission Staff testimony in Kelson CCN docket expressed need
for ERCOT review of these types of CCNsfor ERCOT review of these types of CCNs Increase transparency / awareness of significant projectsIncrease transparency / awareness of significant projects
Concerns with ERCOT/RPG Review of interconnection Concerns with ERCOT/RPG Review of interconnection facilitiesfacilities Reliability impacts are already considered in generation Reliability impacts are already considered in generation
interconnection study processinterconnection study process ERCOT and RPG review of these projects results in stakeholder ERCOT and RPG review of these projects results in stakeholder
judgment on the economic merits of the proposed generationjudgment on the economic merits of the proposed generation Potential for RPG review to delay generation interconnectionPotential for RPG review to delay generation interconnection
Additional considerationsAdditional considerations Open access regime should be preserved in whatever process is Open access regime should be preserved in whatever process is
adoptedadopted Appropriateness of ERCOT role / recognition of ERCOT work loadAppropriateness of ERCOT role / recognition of ERCOT work load
23
Planning Charter options Planning Charter options consideredconsidered
Regional Planning Group: no consensusRegional Planning Group: no consensus Reliability and Operations Subcommittee: Reliability and Operations Subcommittee:
recommended Planning Charter language recommended Planning Charter language proposed to the Board in January with the 2 proposed to the Board in January with the 2 procedural changesprocedural changes
Wholesale Market Subcommittee: Agreed with 2 Wholesale Market Subcommittee: Agreed with 2 procedural changes and agreed to revert to procedural changes and agreed to revert to January Planning Charter proposal but evenly January Planning Charter proposal but evenly split whether to add language requiring ERCOT split whether to add language requiring ERCOT and/or RPG review for informational purposes and/or RPG review for informational purposes when proposed direct interconnection facilities when proposed direct interconnection facilities >$25 million or >$50 million>$25 million or >$50 million
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Status of TAC deliberationsStatus of TAC deliberations In addition to other identified issues, TAC discussed In addition to other identified issues, TAC discussed
whether this is a policy determination best made by the whether this is a policy determination best made by the PUCT rather than stakeholders and whether TAC and PUCT rather than stakeholders and whether TAC and the Board might receive policy guidance from the PUCT the Board might receive policy guidance from the PUCT soon through a final order in the Kelson CCN docketsoon through a final order in the Kelson CCN docket
Motion to recommend the January Planning Charter Motion to recommend the January Planning Charter proposal with a requirement ERCOT perform economic proposal with a requirement ERCOT perform economic analysis for facilities >$50 million failed: 17 Yes, 11 No, analysis for facilities >$50 million failed: 17 Yes, 11 No, 2 Abstain2 Abstain
Motion to recommend the January Planning Charter Motion to recommend the January Planning Charter proposal with requirement ERCOT perform economic proposal with requirement ERCOT perform economic analysis for facilities >$25 million when requested by analysis for facilities >$25 million when requested by PUCT Staff failed: 5 Yes, 21 No, 3 AbstainPUCT Staff failed: 5 Yes, 21 No, 3 Abstain
Motion to Table passed on voice vote with 3 abstentionsMotion to Table passed on voice vote with 3 abstentions
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Preview: June Board Preview: June Board meetingmeeting
PRR 796 Resource Plan Performance Metrics PRR 796 Resource Plan Performance Metrics RevisionRevision
PRR 802 TCR Transition to CRR Refund RevisionPRR 802 TCR Transition to CRR Refund Revision Quarterly CREZ Report to PUCTQuarterly CREZ Report to PUCT Draft Texas Renewables Integration PlanDraft Texas Renewables Integration Plan Restructured TAC engagement in nodal projectRestructured TAC engagement in nodal project
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