To recommend approval of NPRR489 as amended by the 10/17/12 ERCOT comments and as revised by PRS
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record, please consult the Recommendation or Action Report, or the official vote tally if
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This Nodal Protocol Revision Request (NPRR) adds the Planning Reserve Margin (PRM) methodology, currently in the Planning Guide, to the Protocols.
The calculation methodology used by ERCOT to determine the PRM for the semi-annual Capacity, Demand and Reserves Report has historically been developed by the Generation Adequacy Task Force (GATF), subsequently approved by the Wholesale Market Subcommittee (WMS), and then ultimately approved by the Technical Advisory Committee (TAC).
In 2010, Market Participants decided that adding the PRM methodology into the Planning Guide would increase the transparency of the PRM methodology, and also provide a formal change and approval procedure via the Planning Guide Revision Request (PGRR) process. Including the PRM methodology in the Planning Guide also provided for ERCOT Board approval. The PGRR approval requires a recommendation from the Planning Working Group (PLWG), the Reliability and Operations Subcommittee (ROS), TAC, and finally ERCOT Board approval. While this approval path achieved its objective (i.e., to improve and formalize the PRM approval process) it did not include language acknowledging that the PRM methodology had historically been under GATF and WMS purview.
Discussions at WMS and ROS resulted in both subcommittees agreeing the PRM calculation methodology:
(1) Is important enough that it needs to be transparent;
(2) Needs input from WMS, ROS, and any other interested stakeholder body or Market Participant, and
(3) Should receive ERCOT Board approval.
It was also determined the best way to meet these three goals is to move the PRM methodology from the Planning Guide to the Protocols.