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NPRR305

Summary

Title: Timeline for Calculating the Value of X
Next Group:
Next Step:
Status: Approved on 03/22/2011
Effective Dates:
04/01/2011

Action

Date Gov Body Action Taken Next Steps
03/22/2011 BOARD Approved
02/03/2011 TAC Recommended for Approval ERCOT Board consideration of NPRR305
01/20/2011 PRS Recommended for Approval TAC consideration of NPRR305

Voting Record

Date Gov Body Motion Result
03/22/2011 BOARD To approve NPRR305 as recommended by TAC in the 2/3/11 TAC Report. Passed
02/03/2011 TAC To recommend approval of NPRR305 as recommended by PRS in the 1/20/11 PRS Report. Passed
01/20/2011 PRS To recommend approval of NPRR305 as submitted. 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: Jan 11, 2011
Sponsor: VCWG
Urgent: Yes
Sections: 5.6.1.1
Description: This Nodal Protocol Revision Request (NPRR) removes from the Nodal Protocols language describing the effective date for the value of X for the purpose of determining verifiable startup costs and instead refers to the Verifiable Cost Manual as the source for such information.
Reason: According to the Verifiable Cost Manual, the Proxy Heat Rate is in effect every first and third Tuesday of each month and its value is based on Day-Ahead Market (DAM) Hub and fuel prices from a 14 calendar day period. The Proxy Heat Rate that is in effect the third Tuesday of the current month must be made available to the market by the first Tuesday of the same month although ERCOT is not able to modify the fuel rates (based on the Proxy Heat Rate) until a few days prior to the third Tuesday of the month because the value of X is not available until such time. The value of X is also used to change the fuel rates but its value is based on the fuel price of the Tuesday prior to the effective day. Hence, the Proxy Heat Rate and value of X both change the approved fuel rates although the timeline for determining these values differ. Therefore, determining and publishing the Proxy Heat Rate two weeks in advance of its effective date serves no purpose since ERCOT cannot modify the fuel rates until a few days prior to the effective date when the value of X is determined. Since the final fuel rates decrease by the Proxy Heat Rate and increase by value of X, both variables should be determined at the same time and using prices for the same period. Currently the Verifiable Cost Working Group (VCWG) and WMS are discussing ways to streamline the process for updating Resources’ costs and better aligning the timelines for determining the Proxy Heat Rate and value of X. By referring to the Verifiable Cost Manual as the source for Resources’ costs, it improves efficiency and visibility to changes made by ERCOT.

Key Documents

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