Post on 04-Jan-2016
description
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TAC Report to the ERCOT TAC Report to the ERCOT BoardBoard
February 21, 2006February 21, 2006
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TAC SummaryTAC Summary
• Report on Goals from TAC Planning Report on Goals from TAC Planning RetreatRetreat
• 4 Unanimous PRRs 4 Unanimous PRRs • Return of PRR 567Return of PRR 567• SCR 746SCR 746• Consideration of Temporary Change to Consideration of Temporary Change to
2005 Annual Validation2005 Annual Validation
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PRR 543 – Schedules & Emergency PRR 543 – Schedules & Emergency Assistance Over CFE-ERCOT DC TiesAssistance Over CFE-ERCOT DC Ties
PurposePurpose(ERCOT)(ERCOT)
Addresses the use of Back-to-Back ties and BLTs Addresses the use of Back-to-Back ties and BLTs with CFE during emergency conditionswith CFE during emergency conditions
BenefitBenefit Greater reliability in emergency conditionsGreater reliability in emergency conditions
Market ImpactMarket Impact NoneNone
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote Unanimously recommends approval; all segments Unanimously recommends approval; all segments presentpresent
Effective DateEffective Date March 1, 2006March 1, 2006
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PRR 543 – Schedules & Emergency PRR 543 – Schedules & Emergency Assistance Over CFE-ERCOT DC TiesAssistance Over CFE-ERCOT DC Ties
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
Risk exists when energy flows toCFE from ERCOT
Contract required prior to ERCOTuse of PRR
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PRR 627 – RMR Transmission Issues & RMR PRR 627 – RMR Transmission Issues & RMR Contract ExtensionContract Extension
PurposePurpose(TXU, IOU)(TXU, IOU)
Establishes TDSP reporting requirements Establishes TDSP reporting requirements regarding RMR exit strategy implementation; regarding RMR exit strategy implementation; codifies ERCOT ability to extend RMR/MRA codifies ERCOT ability to extend RMR/MRA contract if exit strategy delayedcontract if exit strategy delayed
BenefitBenefit Increases transparency regarding RMR/MRA exit Increases transparency regarding RMR/MRA exit strategy implementationstrategy implementation
Market ImpactMarket Impact Increases transparency regarding RMR/MRA exit Increases transparency regarding RMR/MRA exit strategy implementation (Change from strategy implementation (Change from Recommendation Report)Recommendation Report)
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote Unanimously recommends approval; all market Unanimously recommends approval; all market segments were presentsegments were present
Effective DateEffective Date March 1, 2006March 1, 2006
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PRR 627 – RMR Transmission Issues & RMR PRR 627 – RMR Transmission Issues & RMR Contract ExtensionContract Extension
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
77
PRR 638 – Change Settlement Invoice Due PRR 638 – Change Settlement Invoice Due Date from 16 Calendar Days to 5 Bank Date from 16 Calendar Days to 5 Bank
Business DaysBusiness Days
PurposePurpose(TXU, IOU, COPS)(TXU, IOU, COPS)
Changes the Settlement Invoice Due Date from Changes the Settlement Invoice Due Date from sixteen (16) calendar days to five (5) Bank sixteen (16) calendar days to five (5) Bank Business Days.Business Days.
BenefitBenefit Accurate settlement dataAccurate settlement data
Market ImpactMarket Impact Accurate settlement dataAccurate settlement data
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote Unanimously recommends approval; all segments Unanimously recommends approval; all segments presentpresent
Effective DateEffective Date March 1, 2006 – TAC recommends change to March 1, 2006 – TAC recommends change to April 1, 2006April 1, 2006
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PRR 638 – Change Settlement Invoice Due PRR 638 – Change Settlement Invoice Due Date from 16 Calendar Days to 5 Bank Date from 16 Calendar Days to 5 Bank
Business DaysBusiness DaysImpact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
99
PRR 638 – Change Settlement Invoice PRR 638 – Change Settlement Invoice Due Date from 16 Calendar Days to 5 Due Date from 16 Calendar Days to 5
Bank Business DaysBank Business DaysOn 1/12/06, TAC discussed the positive credit implications On 1/12/06, TAC discussed the positive credit implications of PRR638. It was clarified that once PRR638 is of PRR638. It was clarified that once PRR638 is implemented, credit calculations would have to be implemented, credit calculations would have to be reviewed before credit exposure is reduced. PRR638 will reviewed before credit exposure is reduced. PRR638 will not have an immediate effect on liability requirements.not have an immediate effect on liability requirements.On 2/2/06, TAC discussed the possible negative effects of On 2/2/06, TAC discussed the possible negative effects of the combined impact of implementing PRR638 and the the combined impact of implementing PRR638 and the transition to 10-day Initial Settlement under PRR568 transition to 10-day Initial Settlement under PRR568 (Change Initial Settlement from 17 days to 10 Days) on (Change Initial Settlement from 17 days to 10 Days) on some QSEs. COPS recommended that the some QSEs. COPS recommended that the implementation date of PRR638 be delayed to April 1, implementation date of PRR638 be delayed to April 1, 2006 to avoid any overlap. TAC unanimously approved 2006 to avoid any overlap. TAC unanimously approved this recommendation.this recommendation.
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PRR 639 – Notification of Repairs to EPS PRR 639 – Notification of Repairs to EPS Facilities Under Emergency ConditionsFacilities Under Emergency Conditions
PurposePurpose(TXU, IOU, MWG)(TXU, IOU, MWG)
Allows TDSP to repair EPS meter prior to notifying Allows TDSP to repair EPS meter prior to notifying ERCOT in emergency situationsERCOT in emergency situations
BenefitBenefit Allows for more timely repairs of EPS meters Allows for more timely repairs of EPS meters during emergency situationsduring emergency situations
Market ImpactMarket Impact N/AN/A
System ChangeSystem Change NoNo N/AN/A
AssumptionsAssumptions N/AN/A
TAC VoteTAC Vote Unanimously recommends approval; all segments Unanimously recommends approval; all segments presentpresent
Effective DateEffective Date March 1, 2006March 1, 2006
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PRR 639 – Notification of Repairs to EPS PRR 639 – Notification of Repairs to EPS Facilities Under Emergency ConditionsFacilities Under Emergency Conditions
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
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PRR 567 – Simplified 3-Part Bidding for A/SPRR 567 – Simplified 3-Part Bidding for A/S
On 11/15/05, the Board granted TXU’s appeal and remanded the CBA to TAC for On 11/15/05, the Board granted TXU’s appeal and remanded the CBA to TAC for further development of the costs and benefits of this PRR and reconsideration of the further development of the costs and benefits of this PRR and reconsideration of the priority and ranking assignmentpriority and ranking assignment..On 12/1/05, TAC voted to refer this PRR to PRS to review the CBA and the priority On 12/1/05, TAC voted to refer this PRR to PRS to review the CBA and the priority and ranking assigned to this PRR. The motion was approved by hand vote.and ranking assigned to this PRR. The motion was approved by hand vote.On 1/19/06, ERCOT Staff gave a presentation on the potential resource impacts On 1/19/06, ERCOT Staff gave a presentation on the potential resource impacts resulting from the implementation of this PRR. ERCOT noted that the long-term resulting from the implementation of this PRR. ERCOT noted that the long-term impacts are fairly minimal. The short-term resource impacts, however, are impacts are fairly minimal. The short-term resource impacts, however, are substantial. The implementation of this PRR would require the same resources as substantial. The implementation of this PRR would require the same resources as needed for the implementation of the Nodal market and could result in a delay of the needed for the implementation of the Nodal market and could result in a delay of the Nodal market implementation if PRR567 was given higher priority.Nodal market implementation if PRR567 was given higher priority.TXU presented the revised CBA and the underlying methodology. The revised CBA TXU presented the revised CBA and the underlying methodology. The revised CBA showed a $10 million benefit resulting from this project. TXU emphasized that this is showed a $10 million benefit resulting from this project. TXU emphasized that this is a conservative number because the benefit calculation showed a range of $10 to $20 a conservative number because the benefit calculation showed a range of $10 to $20 million. Participants questioned the validity of the underlying assumptions of the million. Participants questioned the validity of the underlying assumptions of the methodology.methodology. 2/2/06, TAC voted to endorse the revised CBA and retain the original priority and 2/2/06, TAC voted to endorse the revised CBA and retain the original priority and ranking as recommended by PRS. The motion passed with two representatives from ranking as recommended by PRS. The motion passed with two representatives from the Consumer segment abstaining from the vote. All market segments were present.the Consumer segment abstaining from the vote. All market segments were present.
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PRR 567 – Simplified 3-Part Bidding for A/SPRR 567 – Simplified 3-Part Bidding for A/S
PurposePurpose
(Constellation, IPM)(Constellation, IPM)
PRR creates parameters for start-up costs, capacity offers, PRR creates parameters for start-up costs, capacity offers, minimum operating costs and others that would allow ERCOT minimum operating costs and others that would allow ERCOT to reduce AS costs and provides for make-whole payments to reduce AS costs and provides for make-whole payments where appropriatewhere appropriate
BenefitBenefit Greater participation in A/S markets; lower AS costsGreater participation in A/S markets; lower AS costs
Market ImpactMarket Impact Requires redesign of bid submittal interface with ERCOT Requires redesign of bid submittal interface with ERCOT systems; may also require more complex bidding strategysystems; may also require more complex bidding strategy
System ChangeSystem Change YesYes Net Benefits -- $6.3MM; Ratio – 3.21Net Benefits -- $6.3MM; Ratio – 3.21
AssumptionsAssumptions TXU analysis of each day (11/04-10/05); High Implementation TXU analysis of each day (11/04-10/05); High Implementation Cost Case -- $3MM; in effect 12 months; reduced benefits by Cost Case -- $3MM; in effect 12 months; reduced benefits by 50% for conservatism50% for conservatism
TAC VoteTAC Vote TAC voted to retain the original priority of 1.2 and ranking of TAC voted to retain the original priority of 1.2 and ranking of 54.5 with 2 consumer segment representatives abstaining54.5 with 2 consumer segment representatives abstaining
Effective DateEffective Date Upon system implementationUpon system implementation
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PRR 567 – Simplified 3-Part Bidding for PRR 567 – Simplified 3-Part Bidding for Ancillary ServicesAncillary Services
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
$1 to $3 Million
Impacts several systems
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SCR 746 Dynamic Rating Data to TSP Using ICCP LinkSCR 746 Dynamic Rating Data to TSP Using ICCP Link Provide transmission element dynamic rating data used by ERCOT Provide transmission element dynamic rating data used by ERCOT to the Transmission Service Provider (TSP) of the facility through to the Transmission Service Provider (TSP) of the facility through the Inter-Control Center Protocol (ICCP) link.the Inter-Control Center Protocol (ICCP) link. ERCOT and the TSP need to use the same rating for transmission ERCOT and the TSP need to use the same rating for transmission facilities. Both entities must also use the correct ratings. facilities. Both entities must also use the correct ratings. By providing the data using the ICCP link it will make the By providing the data using the ICCP link it will make the comparison of the data used by the TSP and the data used by comparison of the data used by the TSP and the data used by ERCOT by computers easier and more timely. This will improve the ERCOT by computers easier and more timely. This will improve the accuracy of the data used by both the TSP and ERCOT.accuracy of the data used by both the TSP and ERCOT.Reliability Operations Subcommittee unanimously approved SCR Reliability Operations Subcommittee unanimously approved SCR 746 746 On 1/12/06, TAC voted to recommend approval of SCR746 and On 1/12/06, TAC voted to recommend approval of SCR746 and assigned a priority of 1.1 and ranking of 9.5. There were two votes assigned a priority of 1.1 and ranking of 9.5. There were two votes against the motion (Consumer segment) and one abstention against the motion (Consumer segment) and one abstention (Consumer segment). All market segments were present for the (Consumer segment). All market segments were present for the vote. vote.
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SCR 746 Dynamic Rating Data to TSP Using ICCP LinkSCR 746 Dynamic Rating Data to TSP Using ICCP Link
CBA shows overall cost of $454,890CBA shows overall cost of $454,890Benefit: Benefit: Early identification of transmission line rating errorsEarly identification of transmission line rating errorsCost: Cost to upgrade ICCP to accommodate line rating data Cost: Cost to upgrade ICCP to accommodate line rating data Why did ROS and TAC overwhelmingly approve a SCR with project cost to Why did ROS and TAC overwhelmingly approve a SCR with project cost to the market?the market?It is because of the stakeholder belief in the importance and the potential It is because of the stakeholder belief in the importance and the potential magnitude of the “non-quantifiable impacts”magnitude of the “non-quantifiable impacts”This SCR aims to reduce network model errors. The economic benefits, in This SCR aims to reduce network model errors. The economic benefits, in terms of unnecessary congestion costs incurred due to erroneous terms of unnecessary congestion costs incurred due to erroneous limitations, depend upon a number of factors including (1) how many errors limitations, depend upon a number of factors including (1) how many errors exist; (2) how many errors would be eliminated by this SCR; and (3) the exist; (2) how many errors would be eliminated by this SCR; and (3) the congestion costs caused by the errors. congestion costs caused by the errors. Network model errors can cause congestion if transfer limits are set Network model errors can cause congestion if transfer limits are set artificially low due to the errors. Conversely, network errors can cause artificially low due to the errors. Conversely, network errors can cause reliability problems if transfer limits are set artificially high due to the errors. reliability problems if transfer limits are set artificially high due to the errors. Therefore, in addition to reducing congestion costs, this SCR also improves Therefore, in addition to reducing congestion costs, this SCR also improves reliability, which is difficult to quantify in terms of economic benefit.reliability, which is difficult to quantify in terms of economic benefit.
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Recommended Board ActionsRecommended Board Actions• ApprovalApproval
• PRR 543 – Schedules & Emergency Assistance Over CFE-ERCOT DC PRR 543 – Schedules & Emergency Assistance Over CFE-ERCOT DC Ties (unanimous)Ties (unanimous)
• PRR 627 – RMR Transmission Issues & RMR Contract Extension PRR 627 – RMR Transmission Issues & RMR Contract Extension (unanimous)(unanimous)
• PRR 638 – Change Settlement Invoice Due Date from 16 Calendar PRR 638 – Change Settlement Invoice Due Date from 16 Calendar Days to 5 Bank Business Days with effective date change (unanimous)Days to 5 Bank Business Days with effective date change (unanimous)
• PRR 639 – Notification of Repairs to EPS Facilities Under Emergency PRR 639 – Notification of Repairs to EPS Facilities Under Emergency Conditions (unanimous)Conditions (unanimous)
• PRR 567 – Simplified 3-Part Bidding for A/S – Priority and RankingPRR 567 – Simplified 3-Part Bidding for A/S – Priority and Ranking
• SCR 746 Dynamic Rating Data to TSP Using ICCP LinkSCR 746 Dynamic Rating Data to TSP Using ICCP Link
• Temporary Change to 2005 Annual ValidationTemporary Change to 2005 Annual Validation