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NPRR181

Summary

Title: FIP Definition Revision
Next Group:
Next Step:
Status: Approved on 01/19/2010

Action

Date Gov Body Action Taken Next Steps
01/06/2010 TAC Recommended for Approval ERCOT Board consideration of NPRR181
11/19/2009 PRS Deferred/Tabled PRS language consideration
12/17/2009 PRS Recommended for Approval TAC consideration of NPRR181
06/18/2009 PRS Deferred/Tabled PRS language consideration
01/19/2010 BOARD Approved Parking Deck - Impact Analysis and budget review

Voting Record

Date Gov Body Motion Result
01/06/2010 TAC To recommend approval of NPRR181 as recommended by PRS in the 12/17/09 PRS Recommendation Report. Passed
11/19/2009 PRS To table NPRR181 for one month. Passed
12/17/2009 PRS To recommend approval of NPRR181 as submitted; to recommend a priority of High and to forward NPRR181 to TAC. Passed
06/18/2009 PRS To table NPRR181 until the "parking deck" issue for NPRRs determined not to be necessary prior to the Texas Nodal Market Implementation Date is resolved. Passed
01/19/2010 BOARD To approve NPRR181 as recommended by TAC in the 1/6/10 TAC Report. 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: Jun 10, 2009
Sponsor: Luminant Energy Company LLC
Urgent: No
Sections: 2.1
Description: This Nodal Protocol Revision Request (NPRR) revises the definition of Fuel Index Price (FIP) to correctly account for the timing difference between ERCOT’s application of the FIP in its systems (midnight to midnight) and the timing of natural gas prices reflected by the index (i.e., 10 AM to 9 AM). The fuel price index published in Gas Daily, in the Daily Price Survey, under the heading "East-Houston-Katy, Houston Ship Channel" for any particular day reflects natural gas prices available to users from hour ending 10 AM of the particular day to hour ending 9 AM of the next day (i.e., the normal "gas day"). This NPRR also adds a new definition for the term "Gas Day." This NPRR also proposes non-substantive administrative changes, such as correcting acronym and defined term usage and section references. These are shown below with the author "ERCOT Market Rules."
Reason: Currently, the FIP is defined as the midpoint price expressed in dollars per million British thermal units ($/MMBtu), published in Gas Daily, in the Daily Price Survey, under the heading "East-Houston-Katy, Houston Ship Channel." However, this definition fails to recognize that the fuel index price effectively changes at hour ending 9 AM each day for current day. That is, the index price published today for gas delivered beginning at hour ending 10 AM today reflects actual gas trades made yesterday. Thus, the published index price represents the price for the "gas day", which goes from hour ending 10 AM on one day (the day of publication) to hour ending 9 AM on the next day (see graphic below). The current FIP definition fails to take this time differential into account because ERCOT’s Settlement systems apply the FIP from midnight to midnight.

Key Documents

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