PRR746

This PRR amends various Protocols related to EILS.  The specific amendments are as follows:

·        Section 2.1 is modified to eliminate the definitions of EILS Business Hours and EILS Non-Business Hours and to redefine the term “Time Period” consistent with the amended Rule.  The Rule has eliminated the terms “Prime” and “Non Prime” hours and has provided ERCOT with flexibility to modify EILS Time Periods within a Contract Period.  This amendment would permit ERCOT to establish EILS Time Periods by defining the hours in the Request for Proposal specific to a Contract Period.  It would also allow ERCOT to restructure the EILS Contract Periods, consistent with the Rule, and would require ERCOT to post the restructured hours on its website at least 90 days prior to the start of the Contract Period.

·        Section 6.5.12(2) is amended to eliminate a requirement that was specific to the initial EILS bid solicitation in April 2007.

·        Section 6.5.12(5) is amended to clarify that ERCOT solicits EILS bids and that the bids are submitted by QSEs.

·        Section 6.5.12(6) is amended to eliminate the requirement that all members of an aggregated EILS Resource must have a peak demand of at least 500 kW.

·        Section 6.5.12(8) is amended to conform the EILS Cost Cap to the $50 million cost cap established by the Rule.  This provision also conforms the Protocols to the Rule by clarifying that the Cost Cap applies to the 12 months from February through January, instead of a “rolling 12-month period.”  This provision also clarifies that ERCOT may reject any bid that it finds unreasonable or outside the parameters of an acceptable bid.  This provision also moves the current Protocol language relating to how the Cost Cap is adjusted for Self-Provided EILS to its own subparagraph (9), and renumbers the existing (9) to (10).

·        Section 6.5.12(10), which established a 500 MW procurement minimum for the EILS service, is eliminated.

·        Section 6.5.12(17)(a) is amended to add clarity to the meter data requirements for any EILS Resource that does not have a dedicated ESI ID.  This may include Loads within a NOIE area or within a Private Use Network. 

·        Section 6.5.12(17)(b) is amended to clarify that an EILS Resource may return to service only after being released by ERCOT and to correct a typographical error.

·        Section 6.5.12(20), relating to sunset provisions for EILS, is eliminated.

·        A new Section 6.5.12(20) is added to prescribe ERCOT’s EILS reporting requirements.

·        Section 6.8.6 is amended to eliminate all subscript references to the terms “b” (business hours) and “nb” (non-business hours) in the equations used to calculate EILS Capacity Payments and convert them to a single reference term “tp” (time period).  This amendment reaffirms that each EILS Time Period will be clearly defined by ERCOT in the Request For Proposal (RFP) specific to the EILS Contract Period.

·        Section 6.9.4.4 is amended to eliminate all subscript references to “b” (business hours) and “nb” (non-business hours) in the EILS settlement equations and convert them to a single reference of “tp” (time period).    This amendment reaffirms that each EILS Time Period will be clearly defined by ERCOT in the RFP specific to the EILS Contract Period.

·        Section 6.10.13.3 is amended to eliminate all subscript references to “b” (business hours) and “nb” (non-business hours) in the equations used to calculate EILS Resources’ performance criteria and convert them to a single reference of “tp” (time period). This amendment reaffirms that each EILS Time Period will be clearly defined by ERCOT in the RFP specific to the EILS Contract Period.

·        Section 6.10.13.4 is amended to clarify procedures for ERCOT-administered penalties applied to QSEs and/or EILS Resources that fail to meet their availability or performance obligations and to make the Protocols consistent with the Rule.  Specifically, the Rule requires a six-month suspension for failure to perform.  This provision clarifies that the suspension may apply to the EILS Resource’s ability to participate and/or its QSE’s ability to offer EILS; clarifies when the six-month suspension period shall commence; and requires that a suspended EILS Resource may be reinstated only after successfully completing a load-shedding test.  The provision also eliminates references to “revocation” of participation privileges for an EILS Resource or a QSE, as such is not provided for in the Rule.  This amendment also retitles this Section to replace the word “Revocation” with the word “Suspension.”

·        Section 16.5 is amended to clarify that EILS Resources are not required to register as Resource Entities, but rather are required to register via Appendix A of the QSE’s Standard Form EILS supplemental agreement with ERCOT.