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NPRR398

Summary

Title: Changes to Resource Category Minimum-Energy Generic Heat Rates
Next Group:
Next Step:
Status: Approved on 12/12/2011
Effective Dates:
01/01/2012

Action

Date Gov Body Action Taken Next Steps
12/12/2011 BOARD Approved
10/06/2011 TAC Recommended for Approval ERCOT Board consideration of NPRR398
09/22/2011 PRS Recommended for Approval TAC consideration of NPRR398
08/18/2011 PRS Recommended for Approval PRS Impact Analysis review

Voting Record

Date Gov Body Motion Result
12/12/2011 BOARD To approve NPRR398 as recommended by TAC in the 10/6/11 TAC Report. Passed
10/06/2011 TAC To recommend approval of NPRR398 as recommended by PRS in the 9/22/11 PRS Report. Passed
09/22/2011 PRS To endorse and forward the 8/18/11 PRS Report and Impact Analysis for NPRR398 to TAC. Passed
08/18/2011 PRS To recommend approval of NPRR398 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: Aug 3, 2011
Sponsor: ERCOT
Urgent: No
Sections: 4.4.9.2.3
Description: This Nodal Protocol Revision Request (NPRR) changes the Resource Category Minimum-Energy Generic Heat Rates for several fuel type Resource categories as described below.
Reason: ERCOT conducted a comprehensive study to determine actual Resource-specific heat rates, compare them to the Resource Category Minimum-Energy Generic Heat Rate values published in the Nodal Protocols, and ascertain the accuracy of the generic heat rate values used to establish minimum-energy costs. This comparison was done under the assumption that the Generic Heat Rates should represent the weighted average of Minimum Energy heat rates for similar fuel type Resources. The results of this study clearly indicate that most of the generic heat rates are higher than typical actual Resource-specific values. High generic heat rates allow Resources to submit higher Minimum-Energy Offers into the Day-Ahead Market (DAM) and Reliability Unit Commitment (RUC), which are used to compensate Resources via Make-Whole Payments. Generic rates serve as a proxy for actual Resource heat rate values and should not be used to artificially reduce the efficiency of generating units offering into the DAM or RUC. That is, the generic heat rates should represent typical Resource type fuel consumption as a function of power produced. High generic heat rates imply lower Resource efficiencies and higher costs to operate these units in the ERCOT market, which could result in higher costs since Resource offers would be capped at higher value. However, the main reason for this NPRR is to improve the accuracy of the generic heat rates used for capping Minimum-Energy Offers and to better align these efficiency parameters with typical average actual values submitted by Resources.

Key Documents

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