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NPRR449

Summary

Title: Reduce Maximum CRR Transaction Limit in Auctions
Next Group:
Next Step:
Status: Approved on 04/17/2012
Effective Dates:
05/01/2012

Action

Date Gov Body Action Taken Next Steps
04/17/2012 BOARD Approved
04/05/2012 TAC Recommended for Approval ERCOT Board consideration of NPRR449
03/22/2012 PRS Recommended for Approval TAC consideration of NPRR449

Voting Record

Date Gov Body Motion Result
04/17/2012 BOARD To approve NPRR449 as recommended by TAC in the 4/5/12 TAC Report. Passed
04/05/2012 TAC To recommend approval of NPRR449 as recommended by PRS in the 3/22/12 PRS Report, as amended by the 4/4/12 ERCOT comments, and as revised by TAC; set an initial transaction limit of 5,000 for annual CRR Auctions and 7,500 for monthly CRR Auctions; and request that WMS review the process and timelines associated with setting transaction limits for future CRR Auctions. Passed
03/22/2012 PRS To recommend approval of NPRR449 as submitted and to recommend to TAC a 5,000 transaction limit for annual CRR Auctions and a 7,500 transaction limit for monthly CRR Auctions. 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: Mar 13, 2012
Sponsor: WMS
Urgent: Yes
Sections: 7.5.2
Description: This Nodal Protocol Revision Request (NPRR) reduces the potential of oversubscription of Congestion Revenue Right (CRR) Auctions due to bid volumes by reducing the first round transaction limit from 10,000 to a value established by the Technical Advisory Committee (TAC).
Reason: Since Nodal go-live, the ERCOT CRR Auction has twice exceeded the maximum number of transactions (bids and offers) allowable in the CRR Auction. Although there is a round-two mechanism that allows re-submissions, the volume limitation is greatly reduced (example from 10,000 to 1,700 transactions). Historical bidding reflects that if TAC had approved a lower limit of 5,000 (example purposes only), the 2012 annual CRR Auction (approximately 226,000 transactions) would not have been oversubscribed, but would have had a healthy participation of 169,000 rather than the reduced volume of 90,000. Also, the monthly CRR Auction threshold could be less vulnerable to over-subscription if that value is not able to be reduced by TAC.

Key Documents

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