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Protocol Revision Subcommittee

This report discusses the implementation of PRRs and provides updates on the RMR Task Force, addressing various issues such as criteria/process, compensation levels, cost allocation, and transmission planning process.

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Protocol Revision Subcommittee

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  1. Protocol Revision Subcommittee Report to ERCOT Technical Advisory Committee February 6, 2003

  2. PRR 376 – Procure Total AS from ERCOT • Allows a QSE to purchase AS to cover both the ERCOT AS allocation as well as the obligations to other sub-QSEs or QSEs • No impact on IT systems • Effective March 1, 2003

  3. PRR 378 – RMR Units Mandatory Down Bids • Excludes RMR Unit’s energy schedules from the requirement to provide mandatory DEC bids • Effective March 1, 2003

  4. PRR 380 – Black Start Service • Approve URGENT status • Comments due 2/3 • PRS review 2/20 • TAC 3/6 • BOD 3/18

  5. RMR Task Force Status Report to ERCOT Technical Advisory Committee February 6, 2003

  6. Six Issues to be Resolved • Criteria/Process • RMR Categories • Compensation Level • Economic Trade-Offs • Cost Allocation • Transmission Planning Process

  7. Six Issues to be Resolved • Criteria/Process • Qualification for RMR Applicant • Uneconomic to remain in service • Unavailable at least 180 days • Unavailable if not to be staffed, physically disconnected or otherwise demolished or abandoned • Applicant statement that resource will not be used during the suspension period if not selected

  8. Six Issues to be Resolved • Criteria/Process • Treatment of RMR Applicant • Non-selected applicant prohibited from future use unless reinstated • Multi-year contract available to ERCOT if threshold amount or percentage of capital additions are required for continued operation

  9. Six Issues to be Resolved • Criteria/Process • RMR Replacement Options • ERCOT to report on cost-effective replacement options 90 days after execution • If a cost-effective replacement option exists, ERCOT will establish an implementation timeline • Options include: • New or expanded transmission facilities • Installation of voltage control devices • Solicitation or auction for interruptible load from REPs • Extension of existing RMR agreement on an annual basis

  10. Six Issues to be Resolved • RMR Categories • Short-term RMR Need (minimum period) • Long-term RMR Need • Exit Strategy Analysis by ERCOT

  11. Six Issues to be Resolved • Compensation Level Proposals • Proxy Price • Cost Plus

  12. Six Issues to be Resolved • Economic Trade-Offs • Reviewed RMR/OOM Pricing • Goal is to align incentives between market and OOM/RMR • RMR should not be an economic alternative to OOM or the market • ERCOT should not have an incentive to overly rely on RMR • OOM pricing objectives include bringing greater granularity to existing resource generic cost categories

  13. Six Issues to be Resolved • Cost Allocation • Options Available • Proposal to allocate local congestion costs, including RMR, on a more local basis • Continue ERCOT-wide uplift of all congestion costs, except for CSC congestion

  14. Six Issues to be Resolved • Transmission Planning Process • Reviewed the developing ERCOT transmission planning process • Provided input concerning openness and communication • Reported to TAC • ERCOT already implementing with announcement of transmission planning meetings

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