NOTICE DATE: February 26, 2021

NOTICE TYPE: M-F022621-01 General

SHORT DESCRIPTION: Implementation Details of NPRR971, NPRR986, NPRR1043, and VCMRR027

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: March 30 – April 1, 2021

LONG DESCRIPTION:  ERCOT will be implementing system changes between March 30 and April 1, 2021, for Protocol language associated with Nodal Protocol Revision Request (NPRR) 971, Replacing the Real-Time Average Incremental Energy Cost; NPRR 986, BESTF-2 Energy Storage Resource Energy Offer Curves, Pricing, Dispatch, and Mitigation; NPRR 1043, Clarification of NPRR986 Language Related to Wholesale Storage Load (WSL); and Verifiable Cost Manual language associated with Verifiable Cost Manual Revision Request (VCMRR) 027, Related to NPRR986, BESTF-2 Energy Storage Resource Energy Offer Curves, Pricing, Dispatch, and Mitigation.

NPRR971 introduces the following changes to the Nodal Protocols:

• Section 4.4.9.3.3, Energy Offer Curve Cost Caps – Updates the Reliability Must- Run (RMR) Energy Offer Curve Cost Cap to the System- Wide Offer Cap (SWCAP).
• Section 4.6.5, Calculation of “Average Incremental Energy Cost” (AIEC), Section 5.7.1.3, Revenue Less Cost Above LSL During RUC-Committed Hours; Section 5.7.1.4, Revenue Less Cost During QSE Clawback Intervals; Section 6.6.3.7, Real-Time High Dispatch Limit Override Energy Payment; and Section 6.6.7.1, Voltage Support Service Payments—Replaces the Average Incremental Energy Cost (AIEC) used in the Settlement calculations with the Energy Offer Curve cost cap.

NPRR986 and NPRR1043 introduce the following changes to the Nodal Protocols for Energy Storage Resources (ESRs) in the combo model era:

• Section 3.6.1, Load Resource Participation – Provides for ESR charging to be settled at the ESR’s Resource Node, thus providing for symmetrical Dispatch and Settlement of ESRs for both charging and discharging.
• Section 3.8.5, Limited Duration Resources – The term “Limited Duration Resource (LDR)” was rendered obsolete by NPRR 986 and removed from the Nodal Protocols; in addition, following implementation of NPRR 986 ESRs, which are modeled on the charging side as Controllable Load Resources, will be prohibited from using OUTL status to withdraw energy from the grid to charge.
• Section 4.4.9.2.3, Startup Offer and Minimum-Energy Offer Generic Caps – ESRs Startup and Minimum Energy Offer caps will be set to $0 and $0/MWh, respectively.   
• Section 4.4.9.3, Energy Offer Curve, and Section 6.4.3.1, RTM Energy Bids – Allows ESRs the flexibility to update their Energy Offer Curves and RTM Energy Bids in Real-Time to be used by Security-Constrained Economic Dispatch (SCED).
• Section 4.4.9.4.1, Mitigated Offer Cap – Sets the Mitigated Offer Cap (MOC) for ESRs at the SWCAP until December 31, 2023, at which time the Technical Advisory Committee (TAC) will re-evaluate the approach. 
• Section 5.6.1, Verifiable Costs – Clarifies that verifiable costs cannot be submitted for ESRs.
• Section 6.5.7.3, Security Constrained Economic Dispatch – Enables SCED Dispatch to use the appropriate Shift Factor for ESRs.  New paragraph (16) in that same section allows ESRs to charge only when dispatched by SCED.
• Section 6.6.1.2, Real-Time Settlement Point Price for Load Zone, and Section 6.6.1.4, Load Zone LMPs – NPRR1043 adds clarification to exclude Non-WSL ESR Charging Load in the SEL calculation that is present in these sections.
• Section 6.6.3.1, Real-Time Energy Imbalance Payment or Charge at a Resource Node – Establishes Settlement equations that implement nodal pricing for Non-WSL ESR Charging Load. In addition, changes are made to the Real-Time price at the bus to be calculated utilizing the weighted base points rather than telemetry.
• Section 6.6.3.2, Real-Time Energy Imbalance Payment or Charge at a Load Zone – Removes Non-WSL ESR Charging Load from Real-Time Adjusted Metered Load (RTAML).
• Section 10.2.3, ERCOT-Polled Settlement Meters – Adds ERCOT-Polled Settlement (EPS) metering requirement when necessary to determine Non-WSL ESR Charging Load.
• Section 11.1.6, ERCOT Polled Settlement Meter Netting – Adds new sections to define the ERCOT process for calculating Non-WSL ESR Charging Load for configurations where the ESR Charging Load is separately metered and when it is not separately metered.   
• Section 11.1.12, Treatment of ERCOT-Polled Settlement Wholesale Energy Storage Resource Load Data – Expands the existing EPS WSL requirement that ERCOT be the Meter Reading Entity (MRE) and properly perform netting and aggregation to include EPS Non-WSL ESR Charging Load.

VCMRR027 deletes Section 2.2, Exceptions for Energy Storage Resources, and Appendix 10, Procedure for Evaluating Costs and Caps for Energy Storage Resources, to align the Verifiable Cost Manual with the Nodal Protocol changes addressed in NPRR 986 that state an ESR is not allowed to submit verifiable costs and will have their MOC set to the SWCAP. 

New Settlement Billing Determinants:

Bill Determinant	Short Description	Extract	Extract Table
RTEOCOST	Real-Time Energy Offer Curve Cost Cap	RTM CODE	PREPROCESSHEADER PREPROCESSINTERVAL
ESRNWSLTOT	Non-WSL ESR Charging Load	RTM CODE	AGGOUTPUTHEADER AGGOUTPUTINTERVAL
MEBR	Metered Energy at the Bus for Non-WSL ESR Charging Load	RTM CODE	AGGOUTPUTHEADER AGGOUTPUTINTERVAL
ESRNWSLAMTTOT	ESR Non-WSL Amount	RTM CODE	RTMOUTPUTHEADER RTMOUTPUTINTERVAL
RTRMPRESR	Real-Time Price for Energy Metered as ESR Load	SID & RTM CODE	MKTINPUTHEADER MKTINPUTINTERVAL
RTAMLESRNW	Real-Time Adjusted Metered Load for Non-WSL ESR Charging Load	RTM CODE	AGGOUTPUTHEADER AGGOUTPUTINTERVAL

 

Settlement Billing Determinants that will no longer be used after the implementation of these projects:

Bill Determinant	Short Description	Extract	Extract Table
RTRMPRWSL	Real-Time Price for Wholesale Storage Load	SID & RTM CODE	MKTINPUTHEADER MKTINPUTINTERVAL
RTAIEC	Real-Time Average Incremental Energy Cost	RTM CODE	PREPROCESSHEADER PREPROCESSINTERVAL
RTVSSAIEC	Real-Time Voltage Support Service Average Incremental Energy Cost	RTM CODE	PREPROCESSHEADER PREPROCESSINTERVAL
RTHSLAIEC	Real-Time High Sustainable Limit Average Incremental Energy Cost	RTM CODE	PREPROCESSHEADER PREPROCESSINTERVAL
HDLOAIEC	High Dispatch Limit Override Average Incremental Energy Cost	RTM CODE	MKTINPUTHEADER MKTINPUTINTERVAL

 

ACTION REQUIRED:  Impacted Market Participants should implement changes to their shadow systems to incorporate the Protocol and Verifiable Cost Manual revisions made by NPRR917, NPRR986, NPRR1043, and VCMRR027.

ADDITIONAL INFORMATION:  Pursuant to Nodal Protocol Section 21.6, Nodal Protocol Revision Implementation, and Verifiable Cost Manual Section 13.6, Verifiable Cost Manual Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.

NPRR917, NPRR986, NPRR1043, and VCMRR027 and their associated documents can be found on the ERCOT website.

Additional Settlement details can be found in the Settlements Charge Matrix located on the Settlements Information page on the Market Information System (MIS) Public Area.

CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.

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