1 TAC Report to the ERCOT Board June 21, 2005. 2 TAC Summary 8 PRRS 8 PRRS Withdrawal of PRR 552...
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Transcript of 1 TAC Report to the ERCOT Board June 21, 2005. 2 TAC Summary 8 PRRS 8 PRRS Withdrawal of PRR 552...
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TAC Report to the ERCOT TAC Report to the ERCOT BoardBoard
June 21, 2005June 21, 2005
22
TAC SummaryTAC Summary
• 8 PRRS8 PRRS• Withdrawal of PRR 552Withdrawal of PRR 552• Potomac RecommendationsPotomac Recommendations• REP Default Under LSE AgreementREP Default Under LSE Agreement
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PRR 552 – Appropriate Use of Relaxed PRR 552 – Appropriate Use of Relaxed Balanced SchedulesBalanced Schedules
• Submitted by Coral (IPM)Submitted by Coral (IPM)• Remanded by Board to TACRemanded by Board to TAC• Remanded by TAC to PRSRemanded by TAC to PRS• Withdrawn by sponsor after remandWithdrawn by sponsor after remand• No motion to reject withdrawal raised at PRSNo motion to reject withdrawal raised at PRS• TAC unanimously approved withdrawal TAC unanimously approved withdrawal
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PRR 555 – Modify Number of Sub-PRR 555 – Modify Number of Sub-QSEs a Single Entity Can PartitionQSEs a Single Entity Can Partition• Removes limit on the number of sub-QSEs an entity may haveRemoves limit on the number of sub-QSEs an entity may have• ERCOT has authority to determine the implementation plan for ERCOT has authority to determine the implementation plan for
new sub-QSEsnew sub-QSEs• Benefit: More granular accounting capability for QSEsBenefit: More granular accounting capability for QSEs• Amended by ERCOT, PSEG, Calpine & PRSAmended by ERCOT, PSEG, Calpine & PRS• PRS recommended approval with 4 nay votes and 1 abstention- PRS recommended approval with 4 nay votes and 1 abstention-
all market segments were presentall market segments were present• TAC unanimously recommends approval – TAC unanimously recommends approval – all market segments all market segments
presentpresent• ERCOT Staff to report to TAC if costs of adding sub-QSEs ERCOT Staff to report to TAC if costs of adding sub-QSEs
becomes excessivebecomes excessive• Proposed effective date is July 1, 2005Proposed effective date is July 1, 2005
55
PRR 555 – Modify Number of Sub-PRR 555 – Modify Number of Sub-QSEs a Single Entity Can PartitionQSEs a Single Entity Can Partition
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
Case-by-case impactCase-by-case impact
Case-by-case impactCase-by-case impact
66
PRR 564 – OOME DefinitionPRR 564 – OOME Definition
• PRR submitted by ANP (Independent Generator)PRR submitted by ANP (Independent Generator)• Resource owners directly impacted by the actuation of a Resource owners directly impacted by the actuation of a
Special Protection System (SPS)Special Protection System (SPS)• Benefit: Automates settlement process by eliminating dispute Benefit: Automates settlement process by eliminating dispute
filings by generatorsfilings by generators• PRS recommended approval with 3 nay votes and 3 PRS recommended approval with 3 nay votes and 3
abstentions - abstentions - all market segments presentall market segments present• TAC recommends approval with 5 abstentions from consumer TAC recommends approval with 5 abstentions from consumer
segmentsegment• Concern expressed that this may expand OOM (down) Concern expressed that this may expand OOM (down)
payments – discussion on record that this would not expand payments – discussion on record that this would not expand OOM (down) paymentsOOM (down) payments
• Proposed effective date is July 1, 2005Proposed effective date is July 1, 2005
77
PRR 564 – OOME DefinitionPRR 564 – OOME Definition
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
Increased VDI usage
Requires verbal confirmations
Increased TSP communication
88
PRR 572 – Weather Sensitivity PRR 572 – Weather Sensitivity ClassificationClassification
• PRR submitted by Reliant Energy (IPM) for Profile PRR submitted by Reliant Energy (IPM) for Profile Working GroupWorking Group
• Establishes procedures to determine weather Establishes procedures to determine weather sensitivity classifications when an ESI ID is inactive sensitivity classifications when an ESI ID is inactive or de-energizedor de-energized
• Benefit: Improves ERCOT settlement accuracyBenefit: Improves ERCOT settlement accuracy• PRS recommended approval unanimously -PRS recommended approval unanimously -all all
market segments were presentmarket segments were present• TAC unanimously recommends approval – TAC unanimously recommends approval – all market all market
segments were presentsegments were present• Proposed effective date is upon system Proposed effective date is upon system
implementationimplementation
99
PRR 572 – Weather Sensitivity PRR 572 – Weather Sensitivity ClassificationClassificationImpact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
1010
PRR 575 – Mandatory Down PRR 575 – Mandatory Down Balancing Ramp RateBalancing Ramp Rate
• PRR submitted by ERCOTPRR submitted by ERCOT• Specifies that the Mandatory DN Balancing amount Specifies that the Mandatory DN Balancing amount
should be deployable in one hourshould be deployable in one hour• Benefit: Increase system reliabilityBenefit: Increase system reliability• PRS recommended approval of PRR as amended by PRS recommended approval of PRR as amended by
PRS with 2 nay votes from Power Market segment PRS with 2 nay votes from Power Market segment and 6 abstentions from IPP and IOU segment - and 6 abstentions from IPP and IOU segment - all all market segments were presentmarket segments were present
• TAC unanimously recommends approval – TAC unanimously recommends approval – all market all market segments were presentsegments were present
• Proposed effective date is July 1, 2005Proposed effective date is July 1, 2005
1111
PRR 575 – Mandatory Down PRR 575 – Mandatory Down Balancing Ramp RateBalancing Ramp Rate
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
1212
PRR 576 – Disclosure of OOME, OOMC PRR 576 – Disclosure of OOME, OOMC and RMR Serviceand RMR Service
• PRR submitted by ERCOTPRR submitted by ERCOT• Changes posting from 17 Business Days to the Changes posting from 17 Business Days to the
Business Day after the Initial Statement and adds a Business Day after the Initial Statement and adds a definition for “Off-Line”definition for “Off-Line”
• Benefit: Aligns posting requirement with data Benefit: Aligns posting requirement with data availability – enables automation of postingavailability – enables automation of posting
• PRS recommended approval with one nay vote from PRS recommended approval with one nay vote from PM segment - PM segment - all market segments were presentall market segments were present
• TAC unanimously recommends approval – TAC unanimously recommends approval – all market all market segments were presentsegments were present
• Proposed effective date is July 1, 2005Proposed effective date is July 1, 2005
1313
PRR 576 – Disclosure of OOME, OOMC PRR 576 – Disclosure of OOME, OOMC and RMR Serviceand RMR Service
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
1414
PRR 587 – Intra-year Modification of PRR 587 – Intra-year Modification of CRECRE
• PRR submitted by ERCOTPRR submitted by ERCOT• Implements Patton #4 – Allows ERCOT to identify Implements Patton #4 – Allows ERCOT to identify
and implement CRE list changes anytime within a and implement CRE list changes anytime within a year – TAC review of recommendationyear – TAC review of recommendation
• Benefit: Provides greater accuracy in managing Benefit: Provides greater accuracy in managing congestion in ERCOTcongestion in ERCOT
• Amended by ERCOT, CMWG & PRSAmended by ERCOT, CMWG & PRS• PRS recommended approval unanimously -PRS recommended approval unanimously -all all
market segments were presentmarket segments were present• TAC unanimously recommends approval – TAC unanimously recommends approval – all market all market
segments were presentsegments were present• Proposed effective date is July 1, 2005Proposed effective date is July 1, 2005
1515
PRR 587 – Intra-year Modification of PRR 587 – Intra-year Modification of CRECRE
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
1616
PRR 589 – CSC & Zone DeterminationPRR 589 – CSC & Zone Determination
• PRR submitted by ERCOTPRR submitted by ERCOT• Implements Patton #1—strengthens ERCOT’s role in Implements Patton #1—strengthens ERCOT’s role in
CSC & zone determination process – also eliminates CSC & zone determination process – also eliminates BOD approval of NOIE exemptions from CSC BOD approval of NOIE exemptions from CSC determinationdetermination
• Benefit: Clarifies ERCOT’s role in processBenefit: Clarifies ERCOT’s role in process• PRS recommended approval with 1 nay vote from PRS recommended approval with 1 nay vote from
Consumer segment and 1 abstention from PM Consumer segment and 1 abstention from PM segment - segment - all market segments were presentall market segments were present
• TAC unanimously recommends approval – TAC unanimously recommends approval – all market all market segments were presentsegments were present
• Proposed effective date is July 1, 2005Proposed effective date is July 1, 2005
1717
PRR 589 – CSC & Zone DeterminationPRR 589 – CSC & Zone Determination
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
1818
PRR 592 – Modify Shift Factor Calculation to PRR 592 – Modify Shift Factor Calculation to Exclude Fixed Output GeneratorsExclude Fixed Output Generators
• Submitted by ERCOTSubmitted by ERCOT• Implements Patton #3 – excludes fixed output Implements Patton #3 – excludes fixed output
generators from monthly shift factor calculationsgenerators from monthly shift factor calculations• Benefit: Indeterminate – may financially impact some Benefit: Indeterminate – may financially impact some
market participants positively and other negativelymarket participants positively and other negatively• PRS recommended approval with 2 abstentions from PRS recommended approval with 2 abstentions from
IPP and PM segment - IPP and PM segment - all market segments were all market segments were presentpresent
• TAC unanimously recommends approval – TAC unanimously recommends approval – all market all market segments were presentsegments were present
• Proposed effective date is November 1, 2005 in Proposed effective date is November 1, 2005 in accordance with the normal CSC/CRE processaccordance with the normal CSC/CRE process
1919
PRR 592 – Modify Shift Factor Calculation PRR 592 – Modify Shift Factor Calculation to Exclude Fixed Output Generatorsto Exclude Fixed Output Generators
Impact AnalysisImpact Analysis
Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact
Credit Monitoring/LiabilityCredit Monitoring/Liability
BudgetBudget
StaffingStaffing
Computer SystemsComputer Systems
Business FunctionsBusiness Functions
Grid OperationsGrid Operations
ImpactImpact
2020
Recommended TAC ActionsRecommended TAC Actions• ApprovalApproval
• PRR 555 – Modify Number of Sub-QSEs/Entity (unanimous)PRR 555 – Modify Number of Sub-QSEs/Entity (unanimous)• PRR 564 – OOME DefinitionPRR 564 – OOME Definition• PRR 572 – Weather Sensitivity Classification (unanimous)PRR 572 – Weather Sensitivity Classification (unanimous)• PRR 575 – Mandatory DN Balancing Ramp Rate (unanimous)PRR 575 – Mandatory DN Balancing Ramp Rate (unanimous)• PRR 576 – Disclosure of OOMC, OOME and RMR (unanimous)PRR 576 – Disclosure of OOMC, OOME and RMR (unanimous)• Urgent PRR 587 – Intra-year Modification of CREs Urgent PRR 587 – Intra-year Modification of CREs
(unanimous)(unanimous)• Urgent PRR 589 – CSC & Zone Determination (unanimous)Urgent PRR 589 – CSC & Zone Determination (unanimous)• Urgent PRR 592 – Modify Shift Factor Calc to Exclude Fixed Urgent PRR 592 – Modify Shift Factor Calc to Exclude Fixed
Output Generators (unanimous)Output Generators (unanimous)
• Withdrawal AffirmationWithdrawal Affirmation• PRR 552 – Clarification of Relaxed Balanced Schedules PRR 552 – Clarification of Relaxed Balanced Schedules
(unanimous)(unanimous)
2121
REP Default Under LSE AgreementREP Default Under LSE Agreement
ERCOT provided update regarding REP default ERCOT provided update regarding REP default under LSE agreement at May BOD meetingunder LSE agreement at May BOD meetingTAC created RMS/WMS joint task force to TAC created RMS/WMS joint task force to review current procedures and determine review current procedures and determine whether improvements can be made – objective whether improvements can be made – objective is to minimize or eliminate uplift exposureis to minimize or eliminate uplift exposureKick-off meeting scheduled on June 24Kick-off meeting scheduled on June 24 thth
Anticipate that any proposed PRRs would be Anticipate that any proposed PRRs would be presented to BOD late this year or 1presented to BOD late this year or 1stst quarter quarter next yearnext year