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.
Mar 30, 2011
4.1, 4.5.3, 6.1, 6.3
This Nodal Protocol Revision Request (NPRR) details the process for notifying Market Participants of market outcomes in the Day-Ahead Market (DAM) and Real-Time Market (RTM) that are inconsistent with the "efficient operation of the market" in the ERCOT Region, as that term is defined in paragraph (c)(2) of P.U.C. Subst. R. 25.503, Oversight of Wholesale Market Participants. This NPRR gives ERCOT discretion to implement corrective measures and advise Market Participants to discontinue practices that are inconsistent with efficient operation of the ERCOT-administered markets. This NPRR allows the ERCOT CEO to deem any NPRR designed to correct such activity as Urgent.
It is assumed that prior to taking actions allowed by NPRR342, ERCOT shall consult with the Independent Market Monitor (IMM) and Public Utility Commission of Texas (PUCT) Staff regarding actions that are inconsistent with the efficient operation of ERCOT-administered markets.
P.U.C. Subst. R. 25.503(f)(12) places duties on Market Participants and ERCOT Staff to identify to the appropriate ERCOT subcommittee any "provision in the ERCOT procedures that produces an outcome inconsistent with the efficient and reliable operation of the ERCOT-administered markets." P.U.C. Subst. R. 25.503(c)(2) defines "efficient operation of the market" as "[o]peration of the markets administered by ERCOT, consistent with reliability standards, that is characterized by the fullest use of competitive auctions to procure ancillary services, minimal cost socialization, and the most economical utilization of resources, subject to necessary operational and other constraints."
Since the Nodal market began operations in December 2010, market outcomes have been identified that ERCOT contends are inconsistent with the efficient operation of the market. These anomalous outcomes have resulted from flaws in the design or implementation of Nodal market procedures or systems that created unintended consequences in ERCOT-administered markets.
The current Protocols do not sufficiently prevent or control the impact of such problems. ERCOT may put Market Participants on Notice that such problems have arisen in the market, but there is very limited ability to correct prices so as to eliminate the market distortions created by such issues.
The NPRR authorizes ERCOT to implement corrective measures and advise Market Participants to discontinue practices that are inconsistent with efficient operation of the ERCOT-administered markets.
This NPRR recognizes that once problems are identified, their resolution may require Protocol and system changes that cannot be implemented immediately. In order to mitigate future inconsistent market outcomes, this NPRR gives ERCOT authority to notify Market Participants of these outcomes and instruct corrective measures going forward. Any such corrective measures will be subject to ERCOT Board review.