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NPRR091

Summary

Title: Scarcity Pricing and Mitigated Offer Cap During the Period Commencing on the Nodal Market Implementation Date and Continuing for a Total of 45 Days
Next Group:
Next Step:
Status: Approved on 08/17/2010
Effective Dates:
12/01/2010

or per the Nodal Protocol Transition Plan http://www.ercot.com/mktrules/protocols (09/01/10 Nodal Protocols Library)

Action

Date Gov Body Action Taken Next Steps
08/16/2010 BOARD Approved
08/17/2010 BOARD Approved
08/07/2008 TAC Deferred/Tabled Consideration of NPRR091 by TAC.
07/17/2008 PRS Recommended for Approval Consideration of NPRR091 by TAC.
01/06/2010 TAC Deferred/Tabled Consideration of NPRR091 by TAC.
04/08/2010 TAC Recommended for Approval ERCOT Board consideration of NPRR091
05/19/2010 WMS TAC consideration of NPRR091
02/04/2010 TAC Deferred/Tabled TAC consideration of NPRR091
06/03/2010 TAC Recommended for Approval ERCOT Board consideration of NPRR091
06/15/2010 BOARD Deferred/Tabled ERCOT Board consideration of NPRR091
03/04/2010 TAC Deferred/Tabled TAC consideration of NPRR091
05/22/2008 PRS Deferred/Tabled Review of Impact Analysis and Recommendation Report.
03/20/2008 PRS Deferred/Tabled Review of final Impact Anaysis and Recommendation Report
02/21/2008 PRS Recommended for Approval PRS review of the Impact Analysis and Recommendation Report.
01/17/2008 PRS Deferred/Tabled Continued consideration of NPRR091 by PRS at its February 21, 2008 meeting.
12/13/2007 PRS Deferred/Tabled PRS consideration

Voting Record

Date Gov Body Motion Result
08/16/2010 BOARD To approve NPRR091 as recommended by TAC in the 6/3/10 TAC Report Passed
08/17/2010 BOARD To approve NPRR091 as recommended by TAC in the 6/3/10 TAC Report. Passed
08/07/2008 TAC To table NPRR091 until the TAC meeting following the establishment of a revised Texas Nodal Market Implementation Date. Passed
07/17/2008 PRS To endorse the Impact Analysis and Recommendation Report for NPRR091 and forward the documents to TAC. Passed
01/06/2010 TAC To table NPRR091 for one month. Passed
04/08/2010 TAC To recommend approval of NPRR091 as recommended by PRS in the 7/17/08 PRS Report and as amended by the 3/29/10 WMS comments. Passed
05/19/2010 WMS
02/04/2010 TAC To table NPRR091 for one month. Passed
06/03/2010 TAC To recommend approval of NPRR091 as amended by the 5/26/10 WMS comments. Passed
06/15/2010 BOARD To table NPRR091. Passed
03/04/2010 TAC To table NPRR091 and request that WMS provide comments on the Options under consideration. Passed
05/22/2008 PRS To table NPRR091 pending development of the final Impact Analysis. Passed
03/20/2008 PRS To table NPRR091 pending development of the final Impact Analysis (IA). Passed
02/21/2008 PRS To set the values of the X at $180 per MWh with a Heat Rate of 18 mmBtu per MWh, and establish an Energy Offer Curve floor of -$50 per MWh. Passed
01/17/2008 PRS To table NPRR091 until the February 21st PRS meeting. Passed
12/13/2007 PRS To table NPRR091. Passed

Vote tallies here reflect individual votes, not the weight of the votes by market segment. Affirmative votes are not recorded in these vote tallies. For additional details on the voting record, please consult the Recommendation or Action Report, or the official vote tally if available, as posted in the key documents.

Background

Status: Approved
Date Posted: Dec 5, 2007
Sponsor: TPTF
Urgent: No
Sections: 3.19, 4.4.11.2
Description: This Nodal Protocol Revision Request (NPRR) adds: (1) A provision to Section 3.19 that all transmission constraints are treated as non-competitive constraints during an initial 45 Operating Day period, beginning with the Texas Nodal Market Implementation Date (TNMID). (2) New Section 4.4.11.2, which requires that the System-Wide Offer Cap (SWCAP) be set to the higher of $180 per MWh or 18 mmBtu per MWh times the Fuel Index Price (FIP) during an initial 45 Operating Day period, beginning with the TNMID, provided that a Market Participant who burns fuel oil rather than natural gas may dispute the use of $180 per MWh or 18 mmBtu heat rate per MWh times FIP if the Generation Resource’s Settlement Point Price does not cover the cost incurred by the Market Participant to provide energy or Ancillary Services. This new section also establishes an Energy Offer Curve floor adjusted to -$50 per MWh.
Reason: (1) The purpose of these changes is to add safeguards during an initial shake-down period of nodal market operations to limit the economic consequences of bids and offers as reflected in the Day Ahead Market (DAM) and Real Time Settlement Point Prices. The shake-down period has been selected to allow Market Participants sufficient time to build experience by becoming familiar with the operation of the DAM and Real Time nodal market systems. The methodology selected implements the safeguards described in this NPRR by utilizing the existing ERCOT nodal system designs and will not, and are not intended, to require ERCOT to change or modify the market system design. In all cases, either during this shake-down period or during normal operation of the nodal market systems, all DAM and Adjustment Period and Real Time Energy Offers and DAM Ancillary Service Offers are validated against the SWCAP to assure that no offers used in the nodal price calculations for energy or ancillary service capacity exceed the SWCAP in both the DAM and Real Time Market. Therefore, no special changes are required to the functionality of ERCOT or Market Participant systems during the initial shake-down period or upon its expiration and the assumption of normal system operations. (2) This NPRR creates a set of offer caps for the 45 day period after Nodal startup. (3) This NPRR incorporates the concept into the Nodal Protocols of the Nodal Startup Transition Rules proposal from the Independent Market Monitor (IMM), which was approved by TPTF on September 25, 2007.(4) This NPRR incorporates into nodal Protocols a set of Nodal Startup Transition Rules in response to the PUCT Chairman Memo of July 28, 2005 (filed in PUCT Project 28500, Activities Related to the Implementation of a Nodal Market for the Electric Reliability Council of Texas) and "requiring cost based offer limitations for an appropriate time period."

Key Documents

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