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Report to TAC

Report to TAC. March 2010. In Brief . Voting Items GATF – WMS endorsed the recommendations of the GATF WCATF – WMS endorsed Wind Plus Load Ratio Share proposal and directed WCATF develop appropriate NPRR language

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Report to TAC

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  1. Report to TAC March 2010

  2. In Brief • Voting Items • GATF – WMS endorsed the recommendations of the GATF • WCATF – WMS endorsed Wind Plus Load Ratio Share proposal and directed WCATF develop appropriate NPRR language • NPRR 091 – Took 2 votes and endorsed NPRR 091 with changes to 4.4.11.2, in order to allow cost recovery for units using fuel oil. • WMS –endorsed minor change to procedures… WMS shall follow the election process as described in the TAC Procedures, Section III… when electing the WMS Chair and Vice-Chair. • Working Group Reports • CMWG , DSWG, QMWG – updates only no votes taken • MCWG • CWG/MCWG merger into TAC Subcommittee with voting structure? • “e” factor recommendation or discussion at April TAC • WMS endorsed draft NPPR - DAM & Real-Time Market Default Allocation Changes with WMS corrections and any ERCOT staff clean-up

  3. In Brief • Working Groups (cont’) • VCWG • WMS endorsed standard cost option, directed VCWG to draft NPRR and provide recommendation regarding switching and escalation factors • Task Forces • QSTF – WMS endorsed NPRR 207, as submitted, and requested review by ERCOT to determine if it can be done by TNMID • MIGTF - Interconnection Date for Protocol Considerations NPRR to be drafted by M. Bruce. Minimum Cost Planning Concept to be referred to RPG for inclusion in GENERATION INTERCONNECTION OR CHANGE REQUEST PROCEDURE • Other Activities • NPRR211 – Modify RUC Capacity Short Charge to Use Final Energy Trades – WMS recommended that PRS table to allow further discussion. WMS will discuss on March 24 and report back at the March PRS meeting • NPRR212 –Disputing Fuel Oil Price (FOP) Costs – WMS endorsed with Luminant comments and minor correction • Nodal Reliability Must-Run (RMR): ERCOT Created Three-Part Supply Offer – referred to QMWG

  4. TAC Voting Item • Generation Adequacy Task Force http://www.ercot.com/content/meetings/wms/keydocs/2010/0120/14_gatf_report_to_wms_100120_.doc • WMS endorsed GATF recommendations: • LOLP Study Review/Load Forecasting/EILS and other • CDR Inputs, Calculations and Format • Installed Capacity Assumptions – use RARF • New Unit Additions – affirmative declaration • Renewables – Wind: effective load carrying capability / Solar: RARF • Mothballed Capacity – no change • DC Tie Capacity – no change • Switchable Capacity - RARF • Netting of Generation and Load – no change • Retired Capacity – introduce “pending unit requirements” line • CDR Format – move Summer and Winter Capacities closer to front

  5. TAC Voting Item TAC Recommended Motion: Move to endorse WMS recommendation to adopt the GATF report recommendations.

  6. TAC Voting Item • Wind Cost Allocation Task Force (WCATF) http://www.ercot.com/content/meetings/tac/keydocs/2010/0304/09._WCATF_WMS_UPDATE_021710_rev_2.ppt • Two allocation methodologies were proposed for WMS Consideration • Wind Plus Load Ratio Share Proposal (ENDORSED) • Wind generators receive a hedgeable ancillary service obligation for responsive reserves, non-spinning reserves, regulation up, and regulation down • Wind generators can reduce the obligation by qualifying for “reliability credits” • Incremental Allocation Proposal • WMS also heard a presentation that advocated for no action to be taken regarding WCA

  7. TAC Voting Item • WMS Motion • WMS endorsed the Wind Plus Load Ratio Share proposal and directed WCATF to develop appropriate NPRR language • Motion carries: 61.1% to 38.9% TAC Recommended Motion: Move to endorse WMS recommendation to adopt the Wind Plus Load Ratio Share Proposal and direct WMS to draft protocol language.

  8. TAC Voting Item • NPRR 091 • WMS hosted Special Meeting to discuss and address recent comments to NPRR 091 • 091NPRR-28 Steel Group Comments • 091NPRR-27 REP Nodal Group Comments • 091NPRR-25 Luminant Comments • Commission Staff, ERCOT and the IMM were present and updated WMS on the status of potential need for changes under P.U.C. SUBST. R. 25.505 to allow for a temporary mitigated offer cap. • After a robust discussion a Motion was made to endorse NPRR 091 in form proposed by Steel group; this Motion Failed

  9. TAC Voting Item • NPRR 091 • A second Motion was made to endorse the concept of revising Section 4.4.11.2, Scarcity Pricing and Mitigated Offer Cap During Nodal Startup, in order to allow cost recovery for units using fuel oil; this Motion Passed • Subsequent to the Special Meeting, Luminant filed comments to the NPRR which addressed the WMS recommendation and other options. • The Commission met today. WMS endorses changes to 4.4.11.2 in the Luminant comments but defers on making a motion recommendation.

  10. Working Group ReportsCMWG • Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2010/0217/05_CMWG_Update_to_WMS_2-17-10.ppt • Main topics • Operation of Phase Shifting Transformers • Yellow Jacket Phase Shifter In Service Date 1-29-10 • ERCOT Coordinating with AEP to optimize flows • Constraint Competitiveness Test Status • GOAL: recommendation of Competitive Constraints to April WMS • Next Meeting: March 09 and March 29, 2010

  11. Working Group ReportsDSWG • Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2010/0217/06_dswg_update_to_wms_100217.ppt

  12. Working Group ReportsDSWG • EILS improvement group met on February 26th • Topics were: • Substitution rules • Reinstatement procedures and timeline • Review baseline performance • Bidding processes • Meter data submittal • Procurement schedule • Next DSWG Meeting is March 5th

  13. Working Group ReportsQMWG • Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2010/0217/09_qmwg_update_to_wms_100217.ppt • Main Topics • Definition of WGR and implementation of PRR830 • WGRPP Forecast Accuracy Update • Load Forecasting Accuracy • Zonal RPRS unit de-selection • Implementation of PRR811 • Draft NPRR, WGR HSL update process (possible Vote) • SCR757, Real Time Wind Production by Zone • Forecasting Ancillary Service Requirements • Next QMWG Meeting: March 8th

  14. Working Group ReportsMCWG • Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2010/0217/08_mcwg_update__to_wms_021710.ppt • Main topics • NPRR 206 – ERCOT Board Action • WMS directed MCWG to define “e” factors with goal of April TAC and Board Meeting • MCWG and CWG – 1 credit subcommittee? • WMS endorsed NPPR - DAM & Real-Time Market Default Allocation Changes – ERCOT reviewing WMS recommendation, NPRR should be submitted soon. • Update on Short-Pay Fund - a subgroup has been set up to discuss and expectation is that a proposal will be available for WMS for March 2010 • Next Meetings – March 8, 12 and 26th

  15. Working Group ReportsVCWG • Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2010/0217/11_VCWG_Update_for_WMS_021710.ppt Main Topics • The standard cost proposal, as presented by VCWG in the whitepaper, was endorsed and VCWG was directed to develop NPRR language, review hydro issue (should Hydro be with Coal or explicitly not RUC’d), review requests for additional technologies to be added to the proposal, make a recommendation to WMS on escalation factors for Standard Costs and options for switching from VC to SC and vice-versa. • Some minor changes were also made to the Manual for i) a change control process, ii) allow fuel from breaker close to LSL and iii) affidavit. • Next Meeting: not scheduled at time of ppt

  16. Working Group ReportsVCWG Standard Costs • Options for Filing Verifiable Costs • File Verifiable Costs. • File with election of Standard O & M Costs by Technology. • Standard O & M per Startup by Technology - $ per Start • Standard O & M for Energy - $/MWH • Will have to provide Actual fuel flows, Heat Rate Curves , emissions rates, ect. • Nodal Generics will be used for entities that do not elect option a or b.

  17. Working Group ReportsVCWG Standard Costs WMS endorsed $/MWH for standard O & M Costs.

  18. Other Activities • NPRR211: Modify RUC Capacity Short Charge to Use Final Energy Trades • PRS referred NPRR211 to WMS to allow for further time to work on revisions and additional discussion at the March 2010 WMS meeting, and requested that WMS report back at the March 2010 PRS meeting. • NPRR212 Disputing Fuel Oil Price (FOP) Costs • WMS endorsed NPRR212 as amended by the 2/15/10 Luminant Energy comments and as revised by WMS. There was one opposing vote from the Consumer Market Segment.

  19. Inactive Task Force • Joint ROS/WMS Multiple Interconnection of Generation Task Force (MIG TF) • TF has be disbanded • WMS Action to be taken: • Market Participant Notification Period (Transmission outage) • ROS • Interconnection Date for Protocol Considerations • Mark Bruce shall draft protocols to introduce generation operation date. The generation operation date shall define what the generation unit is expected to do, and the Interconnection Date would define the requirements of equipment at the point of interconnection. Existing resources reconnecting to a different line would be grandfathered to the date of the original interconnection. • Planning Concept Endorsement • Option – B - Minimal Cost - As a default view TSPs would try to minimize the cost of Transmission, (ERCOT process does not change regarding optimization). • TO BE DRAFTED BY RPG

  20. WMS 2010 Goals

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