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NPRR320

Summary

Title: Minimum PTP Option Bid and Settlement (formerly "Minimum PTP Option Bids and CRR Auction Fees")
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Status: Approved on 04/19/2011
Effective Dates:
05/01/2011

All sections except for Sections 7.7.2, 7.9.3.4, 7.9.3, and 9.8

12/01/2011

Sections 7.7.2, 7.9.3.4, 7.9.3, and 9.8

Action

Date Gov Body Action Taken Next Steps
04/19/2011 BOARD Approved
04/07/2011 TAC Recommended for Approval ERCOT Board consideration of NPRR320
03/24/2011 PRS Recommended for Approval TAC consideration of NPRR320
03/03/2011 TAC Remanded PRS consideration of NPRR320
02/17/2011 PRS Recommended for Approval TAC consideration of NPRR320

Voting Record

Date Gov Body Motion Result
04/19/2011 BOARD To approve NPRR320 as recommended by TAC in the 4/7/11 TAC Report. Passed
04/07/2011 TAC To recommend approval of NPRR320 as amended by the 3/29/11 ERCOT comments and as revised by TAC. Passed
03/24/2011 PRS To recommend approval of NPRR320 as amended by the 3/23/11 ERCOT comments. Passed
03/03/2011 TAC To remand NPRR320 to PRS and to request that COPS and WMS review NPRR320 and provide comments. Passed
02/17/2011 PRS To recommend approval of NPRR320 as amended by the 2/15/11 Luminant comments and as revised by PRS, to recommend that the PTP Option Bidding Fee be set at zero, and to forward NPRR320 to TAC via roll call vote. 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: Feb 8, 2011
Sponsor: Bob Wittmeyer
Urgent: Yes
Sections: 2.1, 7.5.2, 7.5.2.3, 7.5.7, 7.6, 7.7 (new), 7.7.1 (new), 7.7.2 (new), 7.9.3.4, 7.9.3.5, 9.8
Description: This Nodal Protocol Revision Request (NPRR) sets a minimum price on PTP Option bids (Minimum PTP Option Bid Price) of $0.010 and places a fee on each PTP Option bid awarded where the clearing price for the PTP Option bid awarded is less than the Minimum PTP Option Bid Price. Upon implementation of system changes, the revenue from the fees will be put in the Congestion Revenue Right (CRR) Balancing Account. Until system changes are implemented, the PTP Option Bidding Fee will be invoiced separately from CRR Invoices using a Miscellaneous Invoice, and the revenue from the fees will be distributed by the Monthly Load Ratio Share (LRS) and through the use of a Miscellaneous Invoice.
Reason: This NPRR will help rationalize CRR bidding and accelerate the CRR Auction Engine by imposing a minimum price on PTP Option bids and a fee on PTP Option awards. ERCOT systems currently have a limitation of 200,000 bids per auction. These changes are expected to limit the number of bids ultimately submitted and reduce the demand on ERCOT systems in the future. Some CRR Account Holders are currently receiving no cost PTP Options by submitting zero priced bids. This action results in sub-optimal performance of the ERCOT Auction Engine. When PTP Options clear at zero costs, load receives neither auction proceeds nor revenue from unsold CRRs; all revenue is given to the PTP Option holder with no compensation to the load. Imposing minimum bid prices is expected to accelerate the CRR Auction Engine solution and minimum clearing prices are expected to return some revenue to load for PTP Options sold in the auction.

Key Documents

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