PRR809

This Protocol Revision Request (PRR) modifies Section 6.8.2.2, Capacity and Minimum Energy Payments, to explicitly state the criteria currently used to determine eligibility for Out of Merit Capacity (OOMC) startup costs, as well as clawback of startup costs.

This PRR also incorporates ‘max zero’ logic into the settlement formula that calculates the price for the startup costs (PS_ui).

ERCOT often receives settlement and billing disputes regarding eligibility for OOMC startup costs and the associated clawback; these settlement and billing disputes are mainly a result of a lack of understanding of the criteria used to determine startup and clawback eligibility.  The criteria are currently reflected in the Settlement Charge Matrix posted on ERCOT’s website, but not in the ERCOT Protocols.  ERCOT believes that updating the Protocols to reflect the criteria as documented in the Settlement Charge Matrix, as well as current settlement practice for the clawback, will provide the clarity necessary to avoid such future settlement and billing disputes.

ERCOT also receives settlement and billing disputes and questions pertaining to the implementation of the ‘max zero’ logic on the OOMC startup cost formula (PS_ui).  PRR 676, RPRS Solution with Nodal RUC-Type Procurement and Cost Allocation, which was approved by the ERCOT Board on 9/19/06, included this logic.  However, Replacement Reserve Service (RPRS) settlement was the main focus of PRR676, and the Public Utility Commission of Texas (PUCT) eventually ruled that the PRR should not be implemented.  ERCOT is reintroducing this concept because of the possibility that the startup cost ‘max zero’ logic was collateral damage out of PRR676 and that the market had previously come to agreement that a Generation Resource should not be charged for providing OOMC Service.