NPRR568

    Summary

    Title: Real-Time Reserve Price Adder Based on Operating Reserve Demand Curve
    Next Group:
    Next Step:
    Status: Approved on 11/19/2013
    Effective Dates: 11/20/2013 – Sections 2.2 and 6.3.2(2) (partial)
    06/01/2014 – Phase 1: see the 11/19/13 Board Report under "Key Documents" for specific Phase 1 sections

    Action

    Date Gov Body Action Taken Next Steps
    11/19/2013 Board of Directors Approved
    11/07/2013 TAC Recommended for Approval ERCOT Board consideration of NPRR568
    10/18/2013 PRS Recommended for Approval TAC consideration of NPRR568

    Voting Record

    Date Gov Body Motion Result
    11/19/2013 Board of Directors To approve NPRR568 as recommended by TAC in the 11/7/13 TAC Report. Passed
    11/07/2013 TAC To recommend approval of the "Methodology for Implementing Operating Reserve Demand Curve (ORDC) to Calculate Real-Time Reserve Price Adder" as amended by the 11/6/13 ERCOT comments (Attachment 1) and as revised by TAC with a proposed effective date of upon implementation of NPRR568 and to add the methodology to the Other Binding Document List. Passed
    10/18/2013 PRS To recommend approval of NPRR568 as amended by the 10/8/13 Morgan Stanley comments, 10/11/13 ERCOT comments, 10/15/13 EMMT comments and 10/16/13 Luminant comments and as revised by PRS with a recommended priority of 2013, rank of 70 and category of Regulatory; to request that the Impact Analysis separate out the impacts associated with each of the following: (A) the 10/11/13 ERCOT comments (including the revision related to Wind-powered Generation Resources introduced in the 10/15/13 EMMT comments), (B) the 10/8/13 Morgan Stanley comments, and (C) the 10/18/13 PRS revisions; to refer the issue of Load Resources providing OFF10 or OFF30 capacity to WMS for assignment to the Demand Side Working Group (DSWG); and to refer review of the verification of Real-Time Production Potential to WMS for assignment to the Qualified Scheduling Entity (QSE) Managers Working Group (QMWG). Passed

    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.

    Background

    Status: Approved
    Date Posted: 09/19/2013
    Sponsor: ERCOT
    Urgent: Yes
    Sections: 2.1, 2.2, 3.5.2.1, 3.5.2.2, 3.5.2.3, 3.5.2.4, 3.5.2.6, 3.9, 6.3, 6.3.2, 6.4.3.1, 6.4.3.2 (delete), 6.4.3.3 (delete), 6.5.5.2, 6.5.7.3, 6.5.9.2, 6.6.1, 6.6.1.1, 6.6.1.2, 6.6.3.1, 6.6.10, 6.7.4 (new), 6.7.5 (new), 8.1.1, 8.1.1.2, 8.1.1.2.1, 8.1.1.2.1.6 (new), 8.1.1.2.1.7 (new), 8.1.1.4.4 (new), 8.1.1.4.5 (new), 9.5.3
    Description: This NPRR requires ERCOT to implement an Operating Reserve Demand Curve (ORDC) in the Real-Time Market (RTM) to determine the Real-Time price adder for Real Time Settlement Point Prices. The Real-Time price adder reflects the price for reserves available in the ERCOT System based on the loss of Load probability at that reserve level. The addition of this price adder to the Real Time Settlement Point Price ensures that the Real Time Settlement Point Price reflects the opportunity cost of reserve scarcity. A new Other Binding Document, "Methodology for Implementing Operating Reserve Demand Curve (ORDC) to Calculate Real-Time Reserve Price Adder," a draft of which is attached to this NPRR as Attachment 1, will describe the methodologies for developing the ORDC and determining the reserve price adder using the ORDC. It will also list the values of the parameters to be used. Additional details about the methodology and a backcast based on the methodology can be found in filings under Public Utility Commission of Texas (PUCT) Docket No. 40000, Commission Proceeding to Ensure Resource Adequacy in Texas, <http://interchange.puc.state.tx.us/WebApp/Interchange/application/dbapps/filings/pgControl.asp?TXT_CNTRL_NO=40000> and Key Documents posted on the Resource Adequacy Task Force home page <http://www.ercot.com/committees/board/tac/wms/ratf/>. Since Real-Time co-optimization of energy and Ancillary Services will not be implemented at this time, to ensure that Resources are indifferent between providing energy and reserves in Real-Time, an Ancillary Service imbalance Settlement will be performed. Reliability Unit Commitment (RUC) Resources and Reliability Must-Run (RMR) Units are removed from this Ancillary Service imbalance payment for their On-Line capacity in Real-Time since making the payment and clawing it back would result in the same financial outcome but with significant changes to the Protocols.
    Reason: To implement the concepts presented and address concerns raised at the January 24, 2013 PUCT workshop regarding Docket No. 40000.

    Key Documents