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NPRR284

Summary

Title: Cost Allocation Zones as They Relate to NOIE Load Zones -- As Built Systems
Next Group:
Next Step:
Status: Approved on 10/19/2010
Effective Dates:
12/01/2010

or per the Nodal Protocol Transition Plan http://www.ercot.com/mktrules/protocols (11/01/10 Nodal Protocols Library)

Action

Date Gov Body Action Taken Next Steps
10/19/2010 BOARD Approved
10/07/2010 TAC Recommended for Approval ERCOT Board for consideration.
10/04/2010 PRS Recommended for Approval TAC for consideration.

Voting Record

Date Gov Body Motion Result
10/19/2010 BOARD To approve NPRR284 as recommended by TAC in the 10/7/10 TAC Report. Passed
10/07/2010 TAC To recommend approval of NPRR284 as submitted and to forward NPRR284 and the Impact Analysis to TAC. Passed
10/04/2010 PRS To to recommend approval of NPRR284 as submitted and to forward NPRR284 and the Impact Analysis to TAC. 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: Sep 29, 2010
Sponsor: ERCOT
Urgent: No
Sections: 3.4.3
Description: Changes the Cost Allocation Load Zone assignment for NOIE Load Zones to a single 2003 Congestion Management Zone (CMZ) for go-live.
Reason: This Nodal Protocol Revision Request (NPRR) synchronizes the Nodal Protocols with the as-built system. In regards to the association of a Non-Opt-In Entity (NOIE) Load Zone with a Cost Allocation Zone (i.e., a 2003 CM Zone), the ERCOT system was built in alignment with paragraph (2) of Section 7.5.7, Method for Distributing CRR Auction Revenues, not Section 3.4.3(2)(c). Current Protocols apply one mapping methodology when assigning the Congestion Revenue Right (CRR) Auction revenue to a Cost Allocation Load Zone but apply a different mapping methodology when distributing the money from the Cost Allocation Load Zone buckets to Qualified Scheduling Entities (QSEs) who represent load. Following this approach, the result of the difference in these methodologies is that a NOIE would recover less of the CRR Auction revenue than is actually associated with its NOIE Load Zone. While the NOIE will have a zonal Load Ratio Share (LRS) for each of the Cost Allocation Load Zones to which it maps, the CRR Auction revenue would only be assigned to a single Cost Allocation Load Zone. Thus the NOIE is not able to receive a share of the CRR Auction Revenue from all CRRs which source or sink at its NOIE Load Zone. As currently built, the ERCOT system can only support a single mapping for a NOIE Load Zone to a Cost Allocation Load Zone. The system implementation was done in alignment with Section 7.5.7(2). This is described in the Data Aggregation system requirements and was addressed with the Transition Plan Task Force (TPTF) in January of 2009. The mapping is used for two purposes: To determine the Cost Allocation Load Zone "bucket" to which the CRR Auction revenue should be assigned; and To determine the monthly LRS for purpose of allocating revenues from the Cost Allocation Load Zone "buckets" to QSEs representing load.While the system is currently not able to support multiple NOIE Load Zone to Cost Allocation Load Zone mappings, the benefit is that the assignment of revenue to a Cost Allocation Load Zone is in alignment with the calculation of the NOIE’s LRS for Cost Allocation Load Zone. In other words, all CRR Auction revenue is assigned to the Cost Allocation Load Zone that represents the largest Load for that NOIE or group of NOIEs in 2003, and the NOIE’s monthly LRS for the Cost Allocation Load Zone is calculated by assigning all of the NOIEs load to the Cost Allocation Load Zone that represents the largest Load for that NOIE or group of NOIEs in 2003. Thus, the NOIE ends up with a share of the CRR Auction revenue from all CRRs which source or sink at its NOIE Load Zone.

Key Documents

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