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TAC Report to the ERCOT Board

TAC Report to the ERCOT Board. September 21, 2004. Summary. Notifications Read Comstock TAC Chair for remainder of 2004 and Mark Dreyfus TAC Vice Chair for remainder of 2004 Retail Market Guide Revision RMS System Changes Requests TX SET Versions 2.0a and 2.1

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TAC Report to the ERCOT Board

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  1. TAC Report to the ERCOT Board September 21, 2004

  2. Summary • Notifications • Read Comstock TAC Chair for remainder of 2004 and Mark Dreyfus TAC Vice Chair for remainder of 2004 • Retail Market Guide Revision • RMS System Changes Requests • TX SET Versions 2.0a and 2.1 • PRRs 509, 518, 522, 528, 537, 409, 534 • Partial Suspension of 2004 Load Profile ID Assignment and Validation Process • 2005 Project List • 2005 Commercially Significant Constraints (CSCs) and Zones • 2005 Exemptions

  3. RMS Update • TAC approved two new scheduled versions (2.0a and 2.1) of the Texas SET Implementation Guides to be developed and the timeline for development. • Version: TX SET 2.0A • Implemented: November 2004 • TX SET does not recommend that 2.0A be associated with a Test Flight. The Change Controls associated with this release will not be impacting MPs systems, and therefore do not require testing. • Version: TX SET 2.1 • Implemented: December 2005 • Will provide CRs with “Billing Determinants” on the 810_02 Invoice. • 650_04 will have indicator requesting MVO for permanent meter removal. • 814_24 will have indicator code for 2nd MVO request.

  4. Retail Market Guide Revision • RMGR 2004-011 – Disconnect/Reconnect Process Guide – This RMGRR affects the DNP Process Guide Section D.i. (will soon become Section E.i.) – Disconnection Activity During Extreme Weather, and provides a communication requirement within the document to define the process more completely. Provides public access to an e-mail to notify the PUCT of disconnection activity during an extreme weather emergency.

  5. System Change Requests • SCR 738 – Enhancements to FasTrak Tools - Creates a Project to Implement the System Requirements for an Enhanced FasTrak Process as defined by Market Participants using the work done in SCR 732.The FasTrak tool will allow issues to be better tracked and manipulated by Market Participants for purposes of better managing the retail transaction issue resolution process. This SCR was assigned a priority of 1.1. • SCR 739 – Pending Load Loss Report for CRs - Provides CRs with a daily extract of customer loss notifications based on ERCOT’s receipt of a TDSP’s accepted response to a transaction that would cause a CR to lose the customer (and their associated load). This SCR was assigned a priority of 1.2. • SCR 740 – Enhancements to SCR 727 Extracts - Facilitates more accurate SCR 727 data from ERCOT and ensures auditing capabilities for MPs. This report will provide MPs with more complete usage data and will assist them in confirming the accuracy of their entire SCR 727 data. This SCR was assigned a priority of 1.2.

  6. System Change Requests (cont.) • SCR 737 – Estimated Meter Read Data – This SCR creates a calendar month, summary report to be presented at the RMS that will provide Market Participants with estimated meter reading information broken down by TDSP territory and indicating customer class. This SCR was assigned a priority of 3.1. • SCR 736 - TML ESID TXN Portal Flag - Provides a data flag to indicate Portal generated ESI ID registration transactions displayed under TML Market Activities > Query ESI ID Transactions > Find Transactions function. This SCR was assigned a priority of 3.2.

  7. PRR 509 – Initiation, Procedure, and Settlement of Disputes through ADR • Rewrite of Section 20 (ADR) by Commercial Operations Working Group (COPs). • Goal was to clarify ADR process and bring more consistency to payments for resolved ADRs. • ERCOT is required to participate as a facilitator if any party requests such involvement. • ADR will apply to disputes involving variances that are filed through FasTrak or any other data discrepancy tracking method. • Must file a written request & serve on General Counsel of ERCOT.

  8. PRR 509 – Initiation, Procedure, and Settlement of Disputes through ADR (cont.) • ADR request must be submitted within 45 days of date dispute is denied or failure to agree. • If ADR is not timely pursued, ERCOT can send a notification. If the MP wants to pursue the ADR, then the MP must submit an affirmative written statement that includes a recommended course of action. • Provides 15 day response time for request for data. • Provides for treatment of Protected Information. • Provides for methods of delivery. • Requires written agreement of resolution. • Establishes procedures for adjustments to MP accounts. • Establishes procedures for payment.

  9. PRR 509 – Initiation, Procedure, and Settlement of Disputes through ADR (cont.) • Negligible budget impacts; very minor staffing impact to ERCOT Wholesale Client Relations until the system change is implemented; a minor change to ERCOT computer systems; some impact to ERCOT business functions; no impact to grid operations. • Proposed effective date is October 1, 2004. • TAC approved by unanimous voice vote with all segment represented.

  10. PRR 518 – Clarification of Requirements Related to Retail Transactions • Rewrite of Section 15 addressing retail transactions to clarify deadlines, Market Participant requirements and improve readability. • Adds new definitions to Section 2 for Retail Business Day, CR of Record and Safety-Net Move-In. • Adds new point-to-point transactions to Section 24. • No impact on ERCOT budget; staffing; business functions or operations; minimal computer system impact; no credit implications, • Proposed effective date is October 1, 2004. • TAC approved by unanimous voice vote with all segments represented.

  11. PRR 522- Collateral Requirements and Credit Changes • This PRR strengthens ERCOT’s ability to utilize collateral and offset amounts or liabilities due to ERCOT appropriately in bankruptcy or other situations. Also, the changes adjust collateral requirements for known or estimated potential liability. The PRR also refines the requirements for disclosure of affiliate companies. • Remanded to PRS from TAC to resolve three issues: • Creditworthiness test for new entrants • Resolved by limiting ERCOT to investigate QSE applicant bill payments in other markets only if it believes the applicant is failing to comply • Affiliate reporting requirements • Clarified the information required to be provided to ERCOT • Reconsider additional collateral requirement attributable to payment plans • No change

  12. PRR 522 – Collateral Requirements and Credit Changes – (cont.) • No budgetary impact; no impact to ERCOT staffing; no impact to ERCOT computer systems; benefit to business functions; no impact to grid operations. • Proposed effective date is October 1, 2004. • TAC approved by unanimous voice vote with all segments represented.

  13. PRR 528 – Deadline for Filing ADR Claims • Companion PRR to PRR 509 (Section 20 Rewrite) • Amends Alternative Dispute Resolution filing deadline for denied disputes from 30 to 45 days • No impact to ERCOT budget, staffing, computer systems, business functions and operations; no credit implications • Effective October 1, 2004 • TAC approved by unanimous voice vote with all segments represented.

  14. PRR 537 – Increased Congestion Management Flexibility • This PRR provides ERCOT with additional options to use in the management of congestion both in day-ahead and real-time operations. • PRR allows ERCOT to issue OOMC instructions where, to solve a constraint, ERCOT would otherwise move a unit with a shift factor equal to or less than 5% or the total of unit-specific deployments exceeds 1K MWs. • Urgent status requested by PRS and approved by unanimous voice vote by TAC with all segments represented. • Budget impact 5L ($100-500k); no impact on staffing; some impact on business functions and operations; no credit implications. • Effective October 1, 2004 • TAC approved by unanimous voice vote with all segments represented.

  15. PRR 409 – Voltage Support Service • This PRR originated from Generator Reactive Compensation Task Force. - Existing Protocols recognized this issue would be addressed at a later date. • PRR maintains +/- .95 power factor envelope and allows for compensation when ERCOT instructs generators to go outside the envelope. • Compensation based on the avoided cost of reactive support devices on the transmission network • $2.65/MVARhr based on $50/installed KVAR • Compensation allowed for: • Reactive support outside the .95 bandwidth based on the avoided cost of reactive support devices on the transmission network • $2.65/MVARhr based on $50/installed KVAR • Reduction in real power • Paid as OOME Down • VSS settled on a Load Ratio Share basis

  16. PRR 409 Voltage Support Service (cont.) • This PRR was declared urgent by TAC (26 to 1 with all market segments represented) to accept comments from ERCOT and clarifying language from TAC. • Impacts to ERCOT budgeting; staffing; computer systems; business functions and operations; no credit impact. Frequency of VSS dispatch determines levels of impact. • Proposed effective date is upon system implementation. • Approved by TAC 24-0 with three abstentions. All market segments represented. • TAC also approved a motion that the ROS review applicable Operating Guides and reconcile with PRR 409. Unanimously approved by voice vote with all segments present.

  17. PRR 534 – Temporary Modifications to Annual Load Profile ID Assignment and Validation Process • Inserts language allowing the Board to suspend the annual requirement in the existing Protocols. • The Load Profiling Working Group (LPWG) has discovered a pattern of certain types of Load Profiles being assigned inappropriately. The LPWG will review this problem and attempt to correct prior to 2005 validation process. • The PRR was declared urgent by the TAC. Unanimously approved by voice vote with all segments present. • This PRR revision was declared urgent for the purpose of being presented to the ERCOT BOD at the September meeting.  The reason for this urgency is that the current Load Profiling Guides require completion of the annual load profile ID validation process prior to the October BOD meeting.  • No impact to ERCOT budget, staffing, computer systems, business functions or operations; no credit implications. • Effective upon Board approval. • TAC approved by unanimous voice vote with all segments present.

  18. PRR 530 – Short Pay Uplift to LSEs • PRR 530 would require the uplift of and short payment to Load on a more timely basis. • TAC affirmed the PRS recommendation to reject PRR 530 by a 21 to 2 vote with 2 abstentions. All market segment were represented.

  19. Partial Suspension of 2004 Load Profile ID Assignment and Validation Process • This action was a follow-up to the approval by TAC of PRR 534. • TAC recommended by unanimous voice vote with all segments present that the Board properly notice and place on its meeting agenda a discussion regarding the suspension of the Annual Load Profile ID Assignment and Validation Process. • PRR 534 requires TAC approval of a RMS request to suspend the validation process before it can be submitted to the BOD for approval. • RMS met on September 16th and approved a recommendation to suspend the Annual Load Profile ID assignment and validation process for the residential sector only. • TAC approved the RMS recommendation by e-mail vote on September 20th. TAC approved 22-0 with one abstention and all market segments represented.

  20. System Prioritization PRRs, SCRs, System, Facility & PUC Improvement Projects Market ERCOT PUC Prioritization Process Priority Assignments for ERCOT Budget Process

  21. Priority Assignments High (1.X) 1.1 High 1.2 Medium 1.3 Low Forced Rank Medium (2.X) 2.1 High 2.2 Medium 2.3 Low Forced Rank Low (3.X) 3.1 High 3.2 Medium 3.3 Low Forced Rank

  22. Priorities For 2005 High (1.X) PUC (5) Market (12) ERCOT (60) Forced Rank Projected Cut Line Medium (2.X) PUC (0) Market (6) ERCOT (42) Forced Rank Low (3.X) PUC (0) Market (15) ERCOT (25) Forced Rank

  23. System Prioritization (cont.) • PRS met on August 27th to prioritize the 2005 ERCOT Project List. • Cut line is contingent on the 2005 budget approved by the BOD. • PRS and TAC did not change any of ERCOT’s priorities. • List was approved by PRS and TAC without any estimates of cost for ERCOT to implement. This information will be provided directly to the BOD. • TAC approved Prioritized Project List for 2005 by unanimous voice vote with all segments represented. • TAC did flag items certain items for BOD consideration. TAC believes non-IT capital projects and security issues are best left to the BOD for assignment. TAC flagged #s 16, 96, 105, 108, 125, 127, 128, 129, 130, and 131 as examples. • PRS and TAC will continue to update the list as new PRRs/SCRs are approved. • TAC recommends BOD approval of 2005 priorities.

  24. 2005 Commercial Significant Constraints and Zones • Section 7.2.1.1 Process for Determining CSCs of the ERCOT Protocols states: “ERCOT will reassess CSCs annually, based on changes to the ERCOT System topology, and will identify new Congestion Zones based on the reassessed CSC’s by November 1 of each year. “ • CMWG completed their data collection and evaluation of congestion. • WMS recommended to TAC that the same Commercially Significant Constraints (CSCs) with the addition of a N to W CSC using the same elements as the W to N CSC be adopted. • WMS also recommended the same zones in 2005 as 2004 (Houston, North, Northeast, South, and West). • The recommendation includes no changes to the generation and load buses from 2004.

  25. 2005 CSCs and Zones (cont.) • TAC approved the WMS recommendation and recommends that, with the addition of a North to West CSC using the same elements as the current West to North CSC, the same CSCs and number of zones that currently exist for 2004 be approved for 2005. TAC approved by unanimous voice vote with all segments represented. CSCs: • - West to North – Graham to Parker and Graham to Benbrook • - South to North – Sandow to Temple double circuit • - South to Houston – South Texas Project to Dow (Valasco) double circuit • -  North to Houston – Gibbons Creek to O’Brien, Jewett to T.H. Wharton • -  Northeast to North – Farmersville to Royse double circuit • -  North to West – Parker to Graham, Benbrook to Graham (new CSC) Congestion Zones:  • - West 2005 • - North 2005 • - Houston 2005 • - South 2005 • - Northeast 2005

  26. 2005 Exemptions • LCRA and STEC requested exemptions for certain facility placements in the 2005 Zones, pursuant to the process set forth in Protocols Section 7.2.1.1(5). These exemptions are identical to the exemptions approved for the 2004 Congestion Zones. • LCRA: Move the SeaWay (7670) and Macedonia (7671) load buses (on the 138 kV system) from the Houston Zone to the South Zone. These are the only loads served by LCRA in the Houston zone and represent approximately 13 and 11 MW at summer peak respectively. • STEC: Move three load buses from the Houston Zone to the South Zone – two 69 kV buses Franklin's Camp (5566) and Sargent (5564) and one load bus on the 138 kV side of the 69/138 kV auto at Franklin’s Camp (5568). It is also possible that, when the final zone determination is made, a third STEC 69 kV load bus, Bay City could fall into the Houston Zone. These load buses (including Bay City) represent 13.3 MW.

  27. 2005 Exemptions (cont.) • TAC discussed whether or not exemption requests required separate notice as a voting item from the recommendation on congestion zones and CSCs for 2005 voting item. • TAC voted to waive the seven day notice to allow TAC to consider the exemptions at the September TAC meeting. TAC approved the waiver 17 to 6 with 5 abstentions. All segments were represented. • TAC approved the exemptions 26 to 2 with two abstentions. All segments were represented

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