July QMWG Update (WMS)

1. July QMWG Update (WMS)

2. GREDP Discussion • GREDP is currently used as a compliance tool • ERCOT is considering now just using it as an investigative tool. • ERCOT would use GREDP scores to determine if an investigation into behavior is warranted. • ERCOT will conduct interviews with QSEs with low scores to determine cause. • If necessary, ERCOT will pursue Protocol violations for failure to follow basepoints (not GREDP) following interviews and investigations. • QSE Managers Working Group will review the appropriate Protocol sections to determine if an NPRR is necessary to reflect this change in policy.

3. SASM • The 3/5 SASM over-procured due to a conflict between the outage scheduler and a COP about when a unit was coming back online.

4. More work on 663 and 689 • All QSE Managers attendees agreed that in the event of a unit trip triggering the sequence of events covered in 663, the QSE representing the tripper should pay. This will require additional language in 689. • Since the MCPC is already charged to trippers, only the incremental cost of the AS assignment need to be charged. • The IMM and ERCOT will work on comments that pay only the opportunity cost, and not just total revenue for an AS assignment

5. Price Correction Principles • ERCOT should avoid frequent price corrections • ERCOT should have clear and comprehensive Protocols related to price correction. We should combine the several sections into one to avoid potential conflict • The Protocols should avoid grey language with multiple interpretations, such as “hardware error” or “software error” and instead, to the greatest extent possible, provide specifics. • ERCOT should develop procedures to provide significant transparency when price issues due occur.

6. Discussion on NPRR 696 • It’s difficult to know what “bad inputs” are • It’s not certain if the end of a Watch is the appropriate time to return to SCED pricing • It’s not clear that using the last good price (LGP) before SCED failure is a good policy. • If we use “good enough” instead of the end of a Watch, we need clear, consistent rules about what “good enough” is and how to determine it. • We should determine if there is a better price to use than the LGP.

7. NPRR 705 • QSE Managers will, upon referral, review all documents associated with NPRR 705. • NOGRR 145 • PGRR 045 • RRGRR 008 • Other documents?

8. “MW at Risk” and Wind Chill • ERCOT’s meteorologist, Chris Coleman, believes that wind chill is a good starting point for when additional RUCs are appropriate for extreme winter weather. • ERCOT will bring back procedures that use wind chill, but are more specific around: • Wind chill at what weather stations • What quantity of capacity to RUC • Whether the dry bulb temperature should also be below freezing • QSE Managers will continue to discuss a MW at Risk report. • QSE Managers has asked that ERCOT’s winterization expert weigh in.

9. Valley RUC • QSE Managers has asked that ERCOT provide details at our August or September meeting about the 6/3/2015 RUC event in the Valley, using data that is no longer confidential.

10. Regulation Bias in GTBD • QSE Managers recommends that ERCOT not implement change request 54380.