PRR772

Title:	Description of MCPE Cap and Shadow Price Cap Methodology
Next Group:
Next Step:
Status:	Approved on 09/16/2008

Date	Gov Body		Next Steps
09/16/2008	Board of Directors	Approved
09/04/2008	TAC	Recommended for Approval	ERCOT Board consideration
08/21/2008	PRS	Recommended for Approval	TAC consideration of PRR772
08/21/2008	PRS		Consideration of PRR772 by PRS.

Date	Gov Body	Motion	Result	Against	Abstentions
09/16/2008	Board of Directors	To approved PRR772 as recommended by TAC.	Passed
09/04/2008	TAC	To approve PRR772 as recommended by PRS with updates to the Impact Analysis.	Passed
08/21/2008	PRS	To recommend approval of PRR772 as amended by Austin Energy comments and as revised by PRS.	Passed	0	0

Status:	Approved
Date Posted:	07/25/2008
Sponsor:	ERCOT Staff
Urgent:	Yes
Sections:	6.11.1, Balancing Energy Offer Cap Floor; 6.11.2, Responsive Reserve Service (RRS) Offer Cap Floor; and 7.1, Overview of ERCOT Congestion Management
Description:	This PRR clarifies ERCOT’s authority to take action to ensure that the Market Clearing Price of Energy (MCPE) does not exceed the system-wide offer cap established by the Public Utility Commission of Texas (PUCT) in PUC Subst. R. 25.505, Resource Adequacy in the Electric Reliability Council of Texas Power Region. This PRR also proposes that the methodology to make the price adjustments be described in a separate document and that Market Participants be notified of any changes in the Shadow Price caps. In addition, this PRR proposes to change the section title in Section 6.11.1, Balancing Energy Offer Cap Floor, to Balancing Energy Offer Floor, to avoid confusion. A similar change is proposed for Section 6.11.2.
Reason:	On June 17, 2008, the ERCOT Board adopted a proposal submitted by the Independent Market Monitor (IMM) and directed ERCOT Staff to implement the IMM’s recommendation, as follows: · To meet the PUCT’s recently clarified intent to have MCPEs capped at the system-wide offer cap; · To set an MCPE floor consistent with the offer floor; and · To make a downward adjustment to the Shadow Price Cap. This PRR complies with this ERCOT Board directive.