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NPRR 461 Implementation Detail

NPRR 461 Implementation Detail. Presented to TAC Jan. 3, 2013. Mark Bruce Stratus Energy Group representing Xtreme Power. NPRR 461 Implementation Issue.

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NPRR 461 Implementation Detail

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  1. NPRR 461Implementation Detail Presented to TAC Jan. 3, 2013 Mark Bruce Stratus Energy Group representing Xtreme Power

  2. NPRR 461 Implementation Issue • The PUCT adopted Subst. R. 25.501(m) on March 7, 2012 to address the ERCOT settlement treatment of Wholesale Storage Load. NPRR 461 implements the rule. • Duke Energy and Xtreme Power brought an energy storage resource online Dec. 22, 2012. • During the NPRR 461 implementation period, the battery resource will be financially harmed due to dissonance between the Protocols and the PUCT rule.

  3. FRRS Pilot Participation Problematic • Xtreme Power will be unable to mitigate the harm of inappropriate settlement treatment when participating in the ERCOT Fast Response Regulation Service (FRRS) Pilot, except to limit participation in the pilot. • Operational control effectively surrendered to ERCOT during FRRS hours. No ability to manage whether the resource ends any given settlement interval as a net positive or negative. • FRRS deployments are not price sensitive.

  4. Question posed to ERCOT and TAC • The Board approved NPRR 461 in Dec. 2012. • The motion to approve included a request to ERCOT to see, “whether something can be done in terms of a true-up.” • Xtreme Power has worked closely with ERCOT to develop a feasible solution with minimal impact to other market participants.

  5. Proposed Implementation Solution • TAC recommends the Board modify the effective date of NPRR 461 to coincide with the “unboxing” of Protocols related to the implementation of “Release 6” but that ERCOT shall not perform manual implementation of NPRR 461 prior to system implementation. Rather, upon system implementation, ERCOT shall correct settlements for the prior effective days through the normal settlement process to the extent possible.

  6. Timelines and Scenarios • Key Variables and Dependencies • Release 6 implementation date • FRRS Pilot start date • NPRR 461 systems implementation date • NPRR 461 systems logic start date NPRR 461 Gray Box in Protocols Double-coding window Release 5 Release 6 180 days FRRS Pilot NPRR 461 Unboxed Unaddressed Gap

  7. Timelines and Scenarios (cont.) • Key Variables and Dependencies • Release 6 implementation date • FRRS Pilot start date • NPRR 461 systems implementation date • NPRR 461 systems logic start date NPRR 461 Gray Box in Protocols Release 5 Release 6 Unaddressed Gap 180 days FRRS Pilot NPRR 461 Unboxed Resettlement Window (if needed)

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