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QMWG Update on WMS Assignments and SASM Performance Review (August 6, 2014)

This update provides insights from the August 6, 2014 QMWG meeting concerning WMS assignments, performance reviews of the SASM post-NPRR589 implementation, and the review of the Generation Interconnection Handbook comments. Key topics included RUC for AS processes, settlement changes, and coordination improvements for IEs and TSPs. There were discussions on compensation for manual overrides and the recent decline in manual override hours. The QMWG is requesting further data from ERCOT to better understand market impacts and recommends meeting with stakeholders for process enhancements.

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QMWG Update on WMS Assignments and SASM Performance Review (August 6, 2014)

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  1. QMWG Update to WMS S. Looney August 6, 2014

  2. WMS Assignments • Review of SASM Performance post NPRR589 implementation – One SASM on July 13, 13:09 • Notice to MPs @ 12:38; SASM at 13:09 • No insufficiency • MCPC $450 • A small amount of AS Offers were submitted after SASM notification • In this case, that additional amount was not needed (and was not awarded)

  3. WMS Assignments • ORDC oscillation bandwidth concern for RTOFFCAP set to zero – No possible occurrences of oscillation since June 1 • Review of Generation Interconnection Handbook and Checklists • Several market participants have submitted comments • Primary concern with the revisions is implementation date. Requested that implementation be delayed for IEs which are already into commissioning of their project • Requested that ERCOT work with QMWG to discuss possible process improvements for coordination between IE, TSP, ERCOT Network Modeling and ERCOT Operations going forward. ERCOT will schedule a WebEx to discuss comments.

  4. WMS Assignments • RUC for AS process and settlements • Settlement of RUC for AS; Make-Whole is currently charged to the “energy-shorts” • QMWG recommends WMS consider change to charge Make-Whole to “AS-shorts” • QMWG recommends addition of recovery of costs related to providing Regulation. O&M in addition to energy costs. • If a Resource opts outit should receive the higher of the LMP or the ORDC Adder for the reserved capacity because there is no provision for payment of MCPC. • Assumption is if a Resource status is ONOPTOUT, it receives the AS Imbalance payment for Online Capacity.

  5. WMS Assignments • Assignment of AS to an Online Resource – QMWG discussed options: • Pay the Resource the higher of the LMP or the ORDC Adder for the reserved capacity • Pay the Resource the higher of the LMP or the ORDC Adder plus the last cleared MCPC • Use a penalty curve for AS capacity to clear a virtual offer

  6. WMS Assignments • Impact of Emergency Base Points on LMPs • ERCOT provided data to QMWG, spreadsheet on the July 29 meeting page. • The data shows total charge to the market for HDL/LDL overrides in 2013 and 2014 through June was $1.84 M and $0.09 M, respectively • QMWG is requesting additional data from ERCOT to be able to ascertain MW and LMP effects • ERCOT presentation on the July 29 meeting page shows the number of hours of manual overrides have decreased significantly • Opening a discussion of compensation for HDL overrides • Also requesting ERCOT bring the data on manual overrides/emergency base point settlement to QMWG every month with root cause

  7. General Update • Review the use of EMR status by QSEs – At next meeting, August 26, 2014. • Review testing requirements for all Resources and impact on price formation – At next meeting, will request QSEs to bring their concerns for discussion.

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