NOTICE DATE: March 19, 2021
NOTICE TYPE: W-A031921-01 Operations
SHORT DESCRIPTION: Implementation Details of NPRR 1024
INTENDED AUDIENCE: ERCOT Market Participants
DAYS AFFECTED: April 1, 2021
LONG DESCRIPTION: On April 1, 2021, Protocol language related to Nodal Protocol Revision Request (NPRR) 1024, Determination of Significance with Respect to Price Correction, will be implemented.
NPRR1024 introduces pricing threshold metrics for determining when ERCOT staff will perform a price correction or seek ERCOT Board review of prices.
Before Prices are Final
For price corrections performed before prices are final (i.e., within two Business Days of the relevant Operating Day), ERCOT will conduct an analysis of the impact of the identified error on prices for the relevant Operating Day, and ERCOT will perform a price correction only if accurate prices can be determined and the error resulted in a specified threshold impact to prices. For purposes of correcting prices before they become final, an impact will be deemed significant enough to warrant a price correction for a given Operating Day under the following circumstances for the Day-Ahead Market (DAM) and Real-Time Market (RTM), respectively:
- The absolute value change to any single DAM Settlement Point Price at a Resource Node or Day-Ahead Market Clearing Price for Capacity (MCPC) is greater than $0.05/MWh;
- The price correction would require ERCOT to change more than 10 DAM Settlement Point Prices and Day-Ahead MCPCs; or
- The absolute value change to any DAM Settlement Point Price at a Load Zone or Hub is greater than $0.02/MWh.
- The absolute value change to any single Real-Time Settlement Point Price at a Resource Node is greater than $0.05/MWh;
- The price correction would require ERCOT to change more than 50 Real-Time Settlement Point Prices;
- The absolute value change to any Real-Time Settlement Point Price at a Load Zone or Hub is greater than $0.02/MWh;
- The estimated absolute total dollar impact for changes to Real-Time prices for energy metered is greater than $500; or
- The absolute total dollar impact for changes to Supplemental Ancillary Services Market (SASM) MCPCs is greater than $500.
After Prices are Final - Board Review
For price corrections approved by the ERCOT Board, ERCOT will calculate the potential changes to the DAM or RTM Settlement Statement(s) for Counter-Parties for the impacted Operating Days, and will only seek ERCOT Board review of prices for a given Operating Day if the change in DAM or RTM Settlement Statements(s) would result in the absolute value impact to any single Counter-Party for the Operating Day, based on the sum of all original Settlement Statement amounts of Market Participants assigned to the Counter-Party, to be greater than:
- 2% and also greater than $20,000; or
- 20% and also greater than $2,000.
The language related to of NPRR1024 will be unboxed in the following Sections:
- Section 4.5.3, Communicating DAM Results
- Section 6.3, Adjustment Period and Real-Time Operations Timeline
ADDITIONAL INFORMATION: Pursuant to Nodal Protocol Section 21.6, Nodal Protocol Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.
NPRR1024 and associated documents can be found on the ERCOT website.
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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