Market Information System Grid and Market Conditions

News Release

November 19, 2008

ERCOT NEWS - ERCOT Files Interim Surcharge Request for Nodal


  • ERCOT Files Interim Surcharge Request for Nodal Program
  • Board Approves Protocol Revisions, Other Items
  • CEO Testifies at Senate Hearing


The Electric Reliability Council of Texas (ERCOT), grid operator of most of the state, filed a request today with the Public Utility Commission for an interim nodal surcharge of $0.38 per megawatt-hour to support continued work on the nodal market implementation. 

ERCOT announced in May that the nodal market would not be ready to launch by the January 1, 2009 deadline set by the commission in 2006.  ERCOT has continued to work on the program but does not plan to announce a new implementation schedule or budget – at the request of the commission – until completion of a commission-directed cost-benefit analysis update.  The commission expects to receive the report by December 18.   

The ERCOT Board of Directors approved the interim surcharge request at Monday’s monthly meeting.  The request would increase the nodal surcharge rate to $0.38 per megawatt-hour, from $0.17, representing a 75 percent revenue contribution to new nodal program expenses.  Project expenditures currently average $12 million per month. 

The nodal surcharge is assessed to energy schedulers who represent generation resources. 

In addition, the ERCOT filing asks the commission for permission to postpone the nodal debt repayment which was scheduled to begin next year.   

Additional information online:

Nodal Program monthly update to the Board of Directors 


In other action at Monday’s meeting, the board approved several Protocol Revision Requests (PRR), nodal PRRs (NPRR), and one Operating Guide Revision Request (OGRR): 

  • PRR 769: Emergency Electric Curtailment Plan Media Appeal Change, to move the mandatory public conservation appeal to step 3 of the procedures instead of step 2.
  • NPRR 145: Power Purchase and Tolling Agreements as Resource-Specific Verifiable Costs Documentation
  • NPRR 150: Responsive Reserve Service Offer Floor
  • OGRR 208: Voltage Ride-Through Requirement, on appeal of action taken by the Technical Advisory Committee, with amendments. 

The vote to approve PRR 777, Wind-powered Generation Resource Qualified Scheduling Entity Metric Correction, did not pass. 

Consent agenda approvals included NPRR 128,    NPRR 134, NPRR 136, NPRR 138, NPRR 139, NPRR 143, NPRR 148, and Load Profiling Guide Revision Request (LPGRR) 031. 

In other votes, the board:

  • Approved modifications to the Financial Corporate Standard
  • Approved an increase of $10,000 in the compensation cap for the board chair, setting the chair’s annual compensation cap at $99,800/year, and the other four unaffiliated directors’ caps remain at $89,800/year. 

Monthly staff reports for the board meeting included:

Board meeting documents and reports are posted on the under the November 17 board meeting date. 


ERCOT President and CEO Bob Kahn presented “An Update on the ERCOT Market” at the Texas Senate Business and Commerce Committee hearing Tuesday.  The presentation included a preliminary update of the reserve margins.  At this time, generation reserves are forecast to be adequate until 2014.  The official reserve margin forecasts are reported each June and updated in December.   

Barry T. Smitherman, Chairman of the Public Utility Commission, presented “State of the Electric Industry” at the Senate hearing. 

The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to more than 26 million Texas customers -- representing about 90 percent of the state’s electric load. As the independent system operator for the region, ERCOT schedules power on an electric grid that connects more than 46,500 miles of transmission lines and 710+ generation units. It also performs financial settlement for the competitive wholesale bulk-power market and administers retail switching for nearly 8 million premises in competitive choice areas.

ERCOT is a membership-based 501(c)(4) nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature. Its members include consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, transmission and distribution providers and municipally owned electric utilities.