To recommend approval of NPRR530 as amended by the 4/17/13 ERCOT comments and to forward NPRR530 to TAC.
Mar 20, 2013
The City of Georgetown
This Nodal Protocol Revision Request (NPRR) would allow a Non-Opt-In Entity (NOIE), who has provided notification of termination of its pre-1999 power supply contract, to move to a Competitive Load Zone in January 2014. Currently paragraph (2) of Section 3.4.2 requires that such a NOIE provide notice to ERCOT of termination of its power supply arrangement no later than 90 days prior to the next annual Congestion Revenue Right (CRR) Auction. Upon implementation of NPRR463, CRR Auction Structure Enhancements, annual CRR Auctions will no longer be conducted.
This NPRR also removes obsolete references to the Texas Nodal Market Implementation Date and provides additional clarification regarding NOIE Load Zones in Section 3.4.3.
Eight NOIEs have given notice of termination of their long-term, pre-1999 contracts. Seven of these NOIEs are located in a pre-assigned NOIE Load Zone. The other requested and was moved to a Competitive Load Zone near the start of Nodal Market implementation. Notice of termination has been provided as required by paragraph (2)(d) of Section 3.4.3. The current Protocols provide for a NOIE to request the change 90 days prior to the next annual CRR Auction, if approved by the ERCOT Board. However, with implementation of the CRR Long-Term Auction Sequence, an annual CRR Auction is no longer relevant. This NPRR allows NOIEs to provide notice by March 21, 2013 (60 days) prior to the CRR Long-Term Auction Sequence in which January -- June 2014 will be auctioned.
Prior to implementation of NPRR463, these NOIEs would not have needed to provide notice before July 2013, for a Load Zone change with an effective date of January 2014.
The eight-month transition provides minimal impact to the CRR Auction process.
We do not believe it was the intent of the Protocols nor is it in the spirit of a competitive market to hold NOIEs in an automatic pre-assigned Load Zone. This change is limited to NOIEs that have already provided notice of termination of their power supply agreement and filed a letter with ERCOT asking to be moved to the appropriate Competitive Load Zone.