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RCWG Update to WMS

This update covers incorporating NPRR 511 changes into the VC Manual and exploring a long-term fuel cost solution for fuel adders in Texas electricity market. ERCOT aims to align VCM changes with NPRR 511 directions and examine compensation methods for generators' fuel costs. The interim solution involves generic monthly fuel costs provision, with a goal of implementing individualized costs possibly on a daily basis. ERCOT is evaluating the feasibility of implementing NPRR 485 for generic fuel costs in the near term.

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RCWG Update to WMS

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  1. RCWG Update to WMS March 13, 2013

  2. General Update • Agenda Items for Today: • Incorporate NPRR 511 changes into the VC Manual (no vote) • Long Term Fuel Cost Solution for Fuel Adder (no vote) • Other Items • NPRR 385 – Impact Test to CMWG • Load Providing Capacity – Tabled

  3. Incorporate NPRR 511 Changes into VC Manual • Reviewed language changes in VC Manual related to NPRR 511 • Luminant suggested: • NPRR 511 tabled atTAC, so WMS needs toensure VCM changes match direction takenwith NPRR 511.

  4. Long Term Fuel Cost Solution for Fuel Adder • Exploring the solution that would allow Generators to be compensated for fuel costs in their Mitigated Offer Cap. • Interim solution would be to provide generic fuel costs on a monthly basis • Longer term solution to provide individual costs, perhaps as often as daily • ERCOT exploring ability to implement NPRR 485 at least for generic fuel costs on a nearer-term basis.

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