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NPRR 168

NPRR 168. Change the Definition of “Start-up” and Include the Fuel from Breaker Close to LSL in Startup Costs. Objective of NPRR 168. Resources to recuperate their variable operating costs and thus make these Entities whole as allowed under DAM and RUC market Process

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NPRR 168

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  1. NPRR 168 Change the Definition of “Start-up” and Include the Fuel from Breaker Close to LSL in Startup Costs

  2. Objective of NPRR 168 • Resources to recuperate their variable operating costs and thus make these Entities whole as allowed under DAM and RUC market • Process • QSEs or Resource Entities to file Resource fuel consumption from breaker close to LSL and breaker open to shutdown • Includes reduction to startup cost to reflects estimate of expected revenue that would be credited to QSE • Reduction/clawback is determined by calculating a heat rate proxy multiplied by fuel price that will estimate Settlement Point Price as described in Verifiable Cost Manual

  3. Current Heat Rate Proxy “H” WMS Voted to support the following process as discussed by VCWG, however this has not been incorporated in the manual yet :

  4. Luminant’s Proposal • Luminant supports the process as developed by VCWG, but offers the following modification • FACT- Most units will be coming online in these circumstances during OFF-PEAK hours, not ON-PEAK hours (ERCOT’s data from May 2009 illustrated this point) • To better reflect the actual impact of the clawback, the proxy heat rate will be overstated by using a daily average- therefore clawing back too much money and units will not recuperate their actual costs • Luminant proposes the only modification be the ERCOT calculates the proxy Heat Rate for the next period based on the Average Off-Peak Hub prices published for a 14 day period • Next steps- WMS would need to re-vote on this issue

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