The Wholesale Market Subcommittee Update

Prepared for the September 25th TAC meeting

Letter of Credit Issuer Limits for ERCOT Creditworthiness Standards • WMS endorsed the limits – They are determined by the long-term issuer rating and

the Tangible Net Worth of the Issuer– Reviewing the limits is performed at least yearly– ERCOT’s posted presentation provides statistics regarding

the limits

• This is a voting Item for TAC recommendation– The limits need Finance and Audit Committee

approval

TAC Assignment List Update

WMS Assignments From The TACDate Assignment Status

8/28/14 11/3/11 - NPRR181, FIP Definition Revision, tabled

QMWG will start discussions at their next meeting

8/27/14 Maintenance/Improvement of operational checklist for Resource interconnection

Discussion ongoing at QMWG and will also be taken up at the Joint ROS/WMS meeting on October 6th

4/24/14 Evaluate concerns with bringing RUC units earlier than required because of start-up failures

Conduct a review of the RUC process in the newly created RUC Task Force. Optimize market based tools and minimize RUC.

2/24/14Related to NPRR598, Clarify Inputs to PRC and ORDC – address additional ORDC enhancements including addressing bandwidth oscillations

QMWG review to be conducted on operational data during emergency conditions.

2/27/14 Related to NPRR582, Refinements to Testing ERS – address testing requirements for all Resources. QMWG review ongoing

9/5/13 Review steps ERCOT utilizes in the CDR load forecasts

ERCOT’s analysis of incorporating ERS, Load Resources providing RRS, energy efficiency, and distributive generation in ongoing (~Fall 2014)

Structural review

• TAC directed WMS to combine the RATF responsibilities into the GATF

• WMS Chair’s understanding is that this would entail an update to the GATF charter

• WMS members raised some concern over combining the groups

Load Resources in SCED Update• The LRIS version 2 subgroup continues to work on

proposals to facilitate direct participation in the real-time market by DR QSEs– TAC endorsed LMP – volumetric G on 10/6/2011– The DSWG and LIS Subgroup have identified issues with LMP-VG

• requires assignment of the estimated curtailment back to the specific customer.

• Estimation of load drop for many individual loads (esp. residential) is near impossible

• Need to expand residential DR• Requires LSEs to bill customers for consumption that didn’t occur. PUCT

action likely required

Load Resources in SCED Update

• The LMP - $G approach is the leading alternative– Many details to work though

• What is a fair proxy for the purchase price representative of retail energy price?

• How often to change LMP-G• REP specific or ERCOT-wide• Process for qualifying and managing ALRs