NPRR091

Title:	Scarcity Pricing and Mitigated Offer Cap During the Period Commencing on the Nodal Market Implementation Date and Continuing for a Total of 45 Days
Next Group:	Board of Directors
Next Step:
Status:	Approved on 08/17/2010

Date	Gov Body	Next Steps
08/17/2009	Board of Directors	Approved
06/15/2010	Board of Directors	Deferred/Tabled	ERCOT Board consideration of NPRR091
06/03/2010	TAC	Recommended for Approval	ERCOT Board consideration of NPRR091
05/19/2010	WMS		TAC consideration of NPRR091
04/08/2010	TAC	Referred	WMS consideration of NPRR091
04/08/2010	TAC		TAC consideration of NPRR091
04/08/2010	TAC	Recommended for Approval	ERCOT Board consideration of NPRR091
03/04/2010	TAC	Deferred/Tabled	TAC consideration of NPRR091
02/04/2010	TAC	Deferred/Tabled	TAC consideration of NPRR091
02/04/2010	TAC		TAC consideration of NPRR091
01/06/2010	TAC	Deferred/Tabled	Consideration of NPRR091 by TAC.
08/07/2008	TAC	Deferred/Tabled	Consideration of NPRR091 by TAC.
07/17/2008	PRS	Recommended for Approval	Consideration of NPRR091 by TAC.
05/22/2008	PRS	Deferred/Tabled	Review of Impact Analysis and Recommendation Report.
03/20/2008	PRS	Deferred/Tabled	Review of final Impact Anaysis and Recommendation Report
02/21/2008	PRS	Recommended for Approval	PRS review of the Impact Analysis and Recommendation Report.
01/17/2008	PRS	Deferred/Tabled	Continued consideration of NPRR091 by PRS at its February 21, 2008 meeting.
12/13/2007	PRS	Deferred/Tabled	PRS consideration
			PRS consideration

Date	Gov Body	Motion	Result	Against	Abstentions
08/17/2009	Board of Directors	To approve NPRR091 as recommended by TAC in the 6/3/10 TAC Report.	Passed
06/15/2010	Board of Directors	To table NPRR091.	Passed
06/03/2010	TAC	To recommend approval of NPRR091 as amended by the 5/26/10 WMS comments.	Passed	0	0
04/08/2010	TAC	To refer NPRR091 to WMS.	Passed	0	0
04/08/2010	TAC	To reconsider NPRR091.	Passed	0	0
04/08/2010	TAC	To recommend approval of NPRR091 as recommended by PRS in the 7/17/08 PRS Report and as amended by the 3/29/10 WMS comments.	Passed	0	0
03/04/2010	TAC	To table NPRR091 and request that WMS provide comments on the Options under consideration.	Passed	0	0
02/04/2010	TAC	To table NPRR091 for one month.	Passed	1 IREP	0
02/04/2010	TAC	To recommend approval of NPRR091 as recommended by PRS in the 7/17/08 PRS Report and as revised by TAC	Failed
01/06/2010	TAC	To table NPRR091 for one month.	Passed	1 IREP	0
08/07/2008	TAC	To table NPRR091 until the TAC meeting following the establishment of a revised Texas Nodal Market Implementation Date.	Passed	4 Consumers	0
07/17/2008	PRS	To endorse the Impact Analysis and Recommendation Report for NPRR091 and forward the documents to TAC.	Passed	1 Consumers	1 IOU
05/22/2008	PRS	To table NPRR091 pending development of the final Impact Analysis.	Passed	0	0
03/20/2008	PRS	To table NPRR091 pending development of the final Impact Analysis (IA).	Passed	0	0
02/21/2008	PRS	To set the values of the X at $180 per MWh with a Heat Rate of 18 mmBtu per MWh, and establish an Energy Offer Curve floor of -$50 per MWh.	Passed	4 Consumers	3 Coop, IOU, and IPM
01/17/2008	PRS	To table NPRR091 until the February 21st PRS meeting.	Passed	0	1 IREP
12/13/2007	PRS	To table NPRR091.	Passed	0	0

Vote tallies here reflect individual votes, not the weight of the votes by market segment. Affirmative votes are not recorded in these vote tallies. For additional details on the voting record, please consult the Recommendation or Action Report, or the official vote tally if available, as posted in the key documents.

Status:	Approved
Date Posted:	12/05/2007
Sponsor:	TPTF
Urgent:	No
Sections:	3.19, 4.4.11.2
Description:	This Nodal Protocol Revision Request (NPRR) adds: (1) A provision to Section 3.19 that all transmission constraints are treated as non-competitive constraints during an initial 45 Operating Day period, beginning with the Texas Nodal Market Implementation Date (TNMID). (2) New Section 4.4.11.2, which requires that the System-Wide Offer Cap (SWCAP) be set to the higher of $180 per MWh or 18 mmBtu per MWh times the Fuel Index Price (FIP) during an initial 45 Operating Day period, beginning with the TNMID, provided that a Market Participant who burns fuel oil rather than natural gas may dispute the use of $180 per MWh or 18 mmBtu heat rate per MWh times FIP if the Generation Resource’s Settlement Point Price does not cover the cost incurred by the Market Participant to provide energy or Ancillary Services. This new section also establishes an Energy Offer Curve floor adjusted to -$50 per MWh.
Reason:	(1) The purpose of these changes is to add safeguards during an initial shake-down period of nodal market operations to limit the economic consequences of bids and offers as reflected in the Day Ahead Market (DAM) and Real Time Settlement Point Prices. The shake-down period has been selected to allow Market Participants sufficient time to build experience by becoming familiar with the operation of the DAM and Real Time nodal market systems. The methodology selected implements the safeguards described in this NPRR by utilizing the existing ERCOT nodal system designs and will not, and are not intended, to require ERCOT to change or modify the market system design. In all cases, either during this shake-down period or during normal operation of the nodal market systems, all DAM and Adjustment Period and Real Time Energy Offers and DAM Ancillary Service Offers are validated against the SWCAP to assure that no offers used in the nodal price calculations for energy or ancillary service capacity exceed the SWCAP in both the DAM and Real Time Market. Therefore, no special changes are required to the functionality of ERCOT or Market Participant systems during the initial shake-down period or upon its expiration and the assumption of normal system operations. (2) This NPRR creates a set of offer caps for the 45 day period after Nodal startup. (3) This NPRR incorporates the concept into the Nodal Protocols of the Nodal Startup Transition Rules proposal from the Independent Market Monitor (IMM), which was approved by TPTF on September 25, 2007. (4) This NPRR incorporates into nodal Protocols a set of Nodal Startup Transition Rules in response to the PUCT Chairman Memo of July 28, 2005 (filed in PUCT Project 28500, Activities Related to the Implementation of a Nodal Market for the Electric Reliability Council of Texas) and “requiring cost based offer limitations for an appropriate time period.”