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TAC Update to RMS and February 9, 2016 Board Update - Important ERCOT Updates

This update provides information on the 2016 TAC leadership, DREAM taskforce, Board-approved NPRRs, TAC goals and strategic initiatives, and PRS initiatives and votes. Includes links to relevant documents.

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TAC Update to RMS and February 9, 2016 Board Update - Important ERCOT Updates

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  1. February 25, 2016 Technical Advisory Committee (TAC) Update to RMS Kathy Scott TAC Update to RMS

  2. 2016 Leadership Voting • Technical Advisory Committee 2016 TAC Leadership Approved by TAC • Vice Chair: Adrianne Brandt, CPS • Note: Vote was retaken by TAC membership due to Adrianne’s company change from Austin Energy to CPS Energy • Retail Market Subcommittee (RMS) Leadership Unanimously Confirmed by TAC: • Chair: Kathy Scott, CenterPoint Energy • Vice Chair: Rebecca Reed Zerwas, NRG TAC Update to RMS

  3. DREAM Taskforce Update • Distributed Resource Energy and Ancillaries Market Taskforce (DREAM) • http://www.ercot.com/content/wcm/key_documents_lists/76821/04._TAC_Dream_Report_022516.pdf • http://www.ercot.com/content/wcm/key_documents_lists/76821/04._DREAM_TAC_Deck_022516_Final.pptx • The Task Force reviewed current and potential: (1) Abilities for a distributed resource to become associated with a Resource Node or logical Resource Node, to include registration and qualification requirements; (2) Inclusion of distributed Resource Nodes or logical Resource Nodes in Congestion Revenue Rights (CRR) markets; (3) Allowances for a distributed resource associated with a Resource Node or logical Resource Node to take an economic outage; (4) Allowances for aggregations on a zonal and system-wide basis; TAC Update to RMS

  4. DREAM Taskforce Update • Distributed Resource Energy and Ancillaries Market Taskforce (DREAM) • The Task Force reviewed current and potential: (5) Improvements to the existing Settlement meter data submittal process and ERCOT registration requirements for distributed resources (ex: AMI meters instead of EPS per an NPRR under review); • NOTE:NPRR753 and RMGRR135. PRS is currently awaiting RMS’ recommendations concerning NPRR753. (6) Opportunities for enhancements to distributed resource visibility and/or ERCOT dispatch and control; (7) Compliance metrics appropriate for distributed resources; and (8) Allowances for distributed resources associated with a Resource Node or logical Resource Node to return to a zonal pricing regime. TAC Update to RMS

  5. DREAM Taskforce Update • Distributed Resource Energy and Ancillaries Market Taskforce (DREAM) • 2/25/16 TAC’s Voting Recommendation: • TACApproveda motion requesting ERCOT provide a matrix with their responses to the 8 items listed in the DREAM Power Point slide deck – slides # 29-31 and DREAM’s PDF Whitepaper. • This matrix will be scheduled for TAC’s review and discussion during the April 28th TAC meeting TAC Update to RMS

  6. February 9, 2016 Board Update • ERCOT Board Approved the following: • NPRR691, Alignment of Protocols with NERC Reliability Standard,  BAL-001-TRE-1 • NPRR713, Reactive Power Testing Requirements • NPRR720, Update to Settlement Stability Reporting Requirements • NPRR734, Digital Attestation Signature Authority Clarification • NPRR739, Prohibiting Load Resources Associated with a Dynamically Scheduled Resource • NPRR740,Retail Clarification and Cleanup • NPRR742, CRR Balancing Account Invoice Data Cuts • NPRR743, Revision to MCE to Have a Floor For Load Exposure • NOGRR147, Reactive Power Testing Requirements TAC Update to RMS

  7. February 9, 2016 Board Update • Remanded to TAC for Additional Discussion: • Appeal of TAC Action on NPRR649, Addressing Issues Surrounding High Dispatch Limit (HDL) Overrides • 2/25/16 TAC’s Voting Recommendation: • Workshop will be planned early April to discuss ERCOT’s alternative language and if ERCOT’s option (a) or (b) is viable or needs to be modified to gain market support. • Motion to Table NPRR649 was Unanimous TAC Update to RMS

  8. 2016 TAC Goals & Strategic Initiatives • http://www.ercot.com/content/wcm/key_documents_lists/76821/06._2016_TAC_Goals.zip • 2016 TAC Goals (Vote): • Unanimously Approved • 2016 TAC Strategic Initiatives (Vote): • TAC agreed with RMS’ edits for Smart Meter Texas (SMT) • TAC’s edits changed “Loads in SCED Part 2” to “Loads participation in price formation” • Unanimously Approved TAC Update to RMS

  9. PRS Initiatives and Votes • Nodal Protocol Revision Requests (NPRRs) • NPRR749, Option Cost for Outstanding CRRs – Approved • NPRR750, Clarify Resource Status when Providing Fast Responding Regulation Service – Unanimously Approved • SCR787, Maintain NDCRC Data For Generator Transfer Between Resource Entities - Unanimously Approved • PRS 2016 Goals - Unanimously Approved • http://www.ercot.com/content/wcm/key_documents_lists/76821/07._Draft_2016_PRS_Goals.doc • ERCOT Internal Labor Rate Revision Update: • ERCOT has increased their internal labor rate used for Impact Analysis cost estimates from $65/hour to $75/hour. Future rate changes will be evaluated for 2018/2019 cycle when that time comes. • ERCOT has allocated a $400k contingency for the $4M current allocation to cover the increase in the labor rate to keep market’s funding whole. ERCOT will absorb this amount in its projects. IAs includes this rate beginning in February 2016. The new rate will also be retroactively included in approved projects for future budget comparisons. • ERCOT is reviewing the Impact Analysis process and soliciting feedback. ERCOT’s review will compare estimated and actual costs for projects completed in 2013-2015. ERCOT will share initial findings and ideas for improvements with PRS. TAC Update to RMS

  10. Tabled and/or Withdrawn Revisions • Revision Request Previously Tabled: • NOGRR143, Alignment of Nodal Operating Guides with NERC Reliability Standard, BAL-001-TRE-1 – • 1/28/16 TAC Meeting: Recommendation to Table to allow NOGRR143 to sync-up with NPRR691 scheduled to be considered by the Board during their February 9th meeting--- Motion to Table was Unanimous • 2/25/16 TAC Meeting: Unanimously Approved TAC Update to RMS

  11. ROS Initiatives and Votes: • Reliability Operations Subcommittee (ROS) • http://www.ercot.com/content/wcm/key_documents_lists/76821/09._ROS_Update_to_TAC_02252016.ppt • 2016 ROS Goals (Vote) • http://www.ercot.com/content/wcm/key_documents_lists/76821/09._Draft_2016_ROS_Goals.doc • Unanimously Approved by TAC TAC Update to RMS

  12. WMS Initiatives and Votes: • Wholesale Market Subcommittee (WMS) • http://www.ercot.com/content/wcm/key_documents_lists/76821/10._WMS_Update_to_TAC_022516.ppt • 2016 WMS Goals (Vote) • http://www.ercot.com/content/wcm/key_documents_lists/76821/10._Draft_2016_WMS_Goals.doc • Unanimously Approved by TAC • Regional Haze Workshop Discussion: • TAC Leadership recommended a joint WMS/ROS workshop to develop future market plans that may be necessary to support Regional Haze TAC Update to RMS

  13. COPS Initiatives and Votes: • Commercial Operations Subcommittee (COPS) • http://www.ercot.com/content/wcm/key_documents_lists/76821/11._COPS_UPDATE_TO_TAC_022516.ppt • COPS Procedures (Vote) • http://www.ercot.com/content/wcm/key_documents_lists/76821/11._COPS_Procedures_021016_MDWG_Change.doc • Unanimously Approved by TAC • 2016 COPS Goals (Vote) • http://www.ercot.com/content/wcm/key_documents_lists/76821/11._COPS_2016_GOALS_Draft_021016.docx • Unanimously Approved by TAC TAC Update to RMS

  14. RMS Initiatives and Votes • Retail Market Subcommittee (RMS) Update • http://www.ercot.com/content/wcm/key_documents_lists/76821/12._RMS_Update_to_TAC_02_25_16.ppt • TAC Confirmed RMS 2016 Leadership (Vote) • Kathy Scott – Chair (CenterPoint Energy) • Rebecca Reed Zerwas – Vice Chair (NRG) TAC Update to RMS

  15. Ancillary Services Re-design Update • FAS (NPRR 667) • ERCOT is still reviewing comments and believe NPRR667 have some key concepts. • New Ancillary Services NPRR756 is currently at PRS and wasn’t eligible for discussion at PRS on 2/11/16 since it was still in the 21 Day comment period. • TAC Leadership stated and TAC members agreed that this topic should be removed from TAC’s agenda for a monthly update and allow NPRR667 and NPRR756 to work through the normal market processes. TAC Update to RMS

  16. ERCOT Operations, Planning, and IT Report • Next Steps on Reserve Discount Factor and 2016 Ancillary Service Methodology • http://www.ercot.com/content/wcm/key_documents_lists/76821/14._RDF_and_AS_Methodology_Changes.pptx • 2016 Seasonal Adjustment Factor • http://www.ercot.com/content/wcm/key_documents_lists/76821/14._TAC_2016_02_25_Item_14_2016_Seasonal_Adjustment_Factor_v2.pptx • 2/25/16 TAC Discussion: • TACLeadershipstated the Market needs to take a holistic view of these processes and what changes should be made going forward. • ERCOT will be reporting their updates to ROS and QMWG, however, TAC Leadership requested that WMS also include this topic on their agenda. TAC Update to RMS

  17. Questions? TAC update to RMS

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