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NPRR164

Summary

Title: Resubmitting Ancillary Service Offers in SASM
Next Group:
Next Step:
Status: Approved on 01/19/2010

Action

Date Gov Body Action Taken Next Steps
11/19/2009 PRS Recommended for Approval TAC consideration of NPRR164
12/03/2009 TAC Deferred/Tabled TAC consideration of NPRR164
11/20/2008 PRS Recommended for Approval PRS Impact Analysis review
01/06/2010 TAC Recommended for Approval ERCOT Board consideration of NPRR164
12/18/2008 PRS Deferred/Tabled PRS Impact Analysis review
01/19/2010 BOARD Approved Parking Deck - Impact Analysis and budget review
01/22/2009 PRS Deferred/Tabled PRS Impact Analysis review

Voting Record

Date Gov Body Motion Result
11/19/2009 PRS To endorse and forward the 11/20/08 PRS Recommendation Report for NPRR164 to TAC with a priority of Medium and rank of 2. Passed
12/03/2009 TAC To table NPRR164 for one month. Passed
11/20/2008 PRS To recommend approval of NPRR164 as submitted. Passed
01/06/2010 TAC To recommend approval of NPRR164 as recommended by PRS in the 11/19/09 PRS Recommendation Report and with a priority of Medium. Passed
12/18/2008 PRS To table NPRR164 until the special 1/8/09 PRS meeting. Passed
01/19/2010 BOARD To approve NPRR164 as recommended by TAC in the 1/6/10 TAC Report. Passed
01/22/2009 PRS To table NPRR164. 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: Nov 12, 2008
Sponsor: Transition Plan Task Force (TPTF)
Urgent: No
Sections: 6.4.8.2.1
Description: This Nodal Protocol Revision Request (NPRR) revises existing rules for resubmitting Ancillary Service (AS) offers in the Adjustment Period to provide for resubmitting those AS offers not awarded in the previous markets at the higher of the Day-Ahead Market (DAM) Market Clearing Price for Capacity (MCPC) for the corresponding AS or the Resource’s offer price for the corresponding AS in the DAM.
Reason: This AS resubmission provision was carried forward from the current Zonal Protocols where the provision was meant to mitigate against possible manipulation in the AS market. AS offers in the Zonal market are on a portfolio basis and there is no co-optimization of energy and AS in the Zonal market. However, AS offers in the Nodal market are Resource-specific and the Nodal DAM co-optimizes energy and AS. Due to co-optimization, awarded AS offers linked to energy in DAM are guaranteed to be paid the opportunity cost of providing AS instead of being awarded energy in DAM. Thus, linked AS offers in Nodal DAM should exclude any opportunity costs and, therefore, could be close to zero. On the other hand, Nodal Supplemental AS Market (SASM) is an AS-only market with no co-optimization with energy. If SASM is cleared with resubmitted linked DAM AS offers under the current rules, then the clearing price for AS will certainly not account for any opportunity cost of providing AS instead of energy. As a result, QSEs with linked AS offers in the DAM will have a strong economic incentive to expire those offers prior to any SASM. SASM are typically needed for additional AS, and QSEs expiring their AS offers will be counter-productive. This revision addresses these issues by changing the current rules for resubmitting AS offers in the Adjustment Period to provide for resubmitting those AS offers not awarded in the previous markets at the higher of the DAM MCPC for the corresponding AS or the Resource’s offer price in the DAM. In addition, the current AS offer resubmission rules are difficult to implement as part of the offer validation process -- ERCOT is still struggling to implement this complex resubmission rule. This revision changes the resubmission rules to make them simpler because the DAM AS offers are the only reference for resubmission.

Key Documents

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