Title: Creation of the RUC Resource Buyback Provision (formerly "Removal of the RUC Clawback Charge for Resources Other than RMR Units")
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Next Step:
Status: Approved on 07/17/2012
Effective Dates:

Sections 5.5.2(11) and 5.5.2(12)


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Date Gov Body Action Taken Next Steps
07/17/2012 BOARD Approved
06/28/2012 TAC Recommended for Approval ERCOT Board consideration of NPRR416
06/21/2012 PRS Recommended for Approval TAC consideration of NPRR416
05/17/2012 PRS Deferred/Tabled PRS Impact Analysis review
04/19/2012 PRS Recommended for Approval PRS Impact Analysis review
03/22/2012 PRS Deferred/Tabled PRS language consideration
11/17/2011 PRS Deferred/Tabled PRS language consideration
10/20/2011 PRS Deferred/Tabled PRS language consideration

Voting Record

Date Gov Body Motion Result
07/17/2012 BOARD To approve NPRR416 as recommended by TAC in the 6/28/12 TAC Report. Passed
06/28/2012 TAC To recommend approval of NPRR416 as recommended by PRS in the 6/21/12 PRS Report and as revised by TAC. Passed
06/21/2012 PRS To endorse and forward the 4/19/12 PRS Report as amended by the 6/20/12 ERCOT comments and Impact Analysis for NPRR416 to TAC with a recommended priority of 2012 and rank of 365. Passed
05/17/2012 PRS To table NPRR416 for one month. Passed
04/19/2012 PRS To recommend approval of NPRR416 as amended by the 4/18/12 STEC comments and as revised by PRS. Passed
03/22/2012 PRS To table NPRR416 and to request that WMS review NPRR416. Passed
11/17/2011 PRS To table NPRR416. Passed
10/20/2011 PRS To table NPRR416 for one month and to request that ERCOT submit comments regarding its concerns over behavioral issues with respect to the 50% RUC Clawback Charge and the implications of removing the charge on RUC execution. 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.


Status: Approved
Date Posted: Sep 20, 2011
Sponsor: Exelon, Calpine
Urgent: No
Sections: 2.1, 3.9.1, 5.5.2, 5.6.2, 5.7.2, 5.7.6, 6.4.6
Description: This Nodal Protocol Revision Request (NPRR) adds a buyback provision for Resources committed by ERCOT’s Reliability Unit Commitment (RUC) process that allows all RUC Clawback Charges associated with the RUC commitment to be waived and RUC Make-Whole Payments to be forfeited.
Reason: The existence of the RUC clawback is leading to inefficient scheduling of units, inefficient RUC selection in the Day-Ahead Market (DAM) and hourly market. The clawback negatively affects valid hedging strategies. The lack of necessity for the clawback mechanism tied to Resource DAM participation, in light of the other incentives for DAM participation, was recognized in early review of the Nodal Protocols in Public Utility Commission of Texas (PUCT) Docket No. 31540, Proceeding to Consider Protocols to Implement a Nodal Market in the Electric Reliability Council of Texas (ERCOT) Pursuant To P.U.C. Subst .R. 25.501: "What is your recommendation regarding the clawback provisions? I recommend the elimination of the clawback provisions. I have confidence in the incentives created by the day-ahead and real-time prices to promote full participation by both loads and suppliers in the day-ahead market. Some have argued that the lack of a mandatory offer requirement in the day-ahead market may make these provisions necessary. However, the Midwest IS0 does not have a mandatory offer requirement, but nevertheless enjoys relatively full participation in the day-ahead market by both supply and demand." Direct Testimory of David B. Patton, President, Potomac Economics Ltd., on behalf of the PUCT Staff, November 20, 2005.

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