Issues

NPRR568

Summary
Action
Voting Record
Background
Key Documents

Summary

Title	Real-Time Reserve Price Adder Based on Operating Reserve Demand Curve
Next Group
Next Step
Status	Approved on 11/19/2013
Effective Dates	11/20/2013 Sections 2.2 and 6.3.2(2) (partial) 06/01/2014 Phase 1: see the 11/19/13 Board Report under "Key Documents" for specific Phase 1 sections

Action

Date	Gov Body	Action Taken	Next steps
11/19/2013	BOARD	Approved
11/07/2013	TAC	Recommended for Approval	ERCOT Board consideration of NPRR568
10/18/2013	PRS	Recommended for Approval	TAC consideration of NPRR568

Date

Gov Body

Action Taken

Next steps

11/19/2013

BOARD

Approved

11/07/2013

TAC

Recommended for Approval

ERCOT Board consideration of NPRR568

10/18/2013

PRS

Recommended for Approval

TAC consideration of NPRR568

Voting Record

Date	Gov Body	Motion	Result
11/19/2013	BOARD	To approve NPRR568 as recommended by TAC in the 11/7/13 TAC Report.	Passed
11/07/2013	TAC	To recommend approval of the "Methodology for Implementing Operating Reserve Demand Curve (ORDC) to Calculate Real-Time Reserve Price Adder" as amended by the 11/6/13 ERCOT comments (Attachment 1) and as revised by TAC with a proposed effective date of upon implementation of NPRR568 and to add the methodology to the Other Binding Document List.	Passed
10/18/2013	PRS	To recommend approval of NPRR568 as amended by the 10/8/13 Morgan Stanley comments, 10/11/13 ERCOT comments, 10/15/13 EMMT comments and 10/16/13 Luminant comments and as revised by PRS with a recommended priority of 2013, rank of 70 and category of Regulatory; to request that the Impact Analysis separate out the impacts associated with each of the following: (A) the 10/11/13 ERCOT comments (including the revision related to Wind-powered Generation Resources introduced in the 10/15/13 EMMT comments), (B) the 10/8/13 Morgan Stanley comments, and (C) the 10/18/13 PRS revisions; to refer the issue of Load Resources providing OFF10 or OFF30 capacity to WMS for assignment to the Demand Side Working Group (DSWG); and to refer review of the verification of Real-Time Production Potential to WMS for assignment to the Qualified Scheduling Entity (QSE) Managers Working Group (QMWG).	Passed

Date

Gov Body

Motion

Result

11/19/2013

BOARD

To approve NPRR568 as recommended by TAC in the 11/7/13 TAC Report.

Passed

11/07/2013

TAC

To recommend approval of the "Methodology for Implementing Operating Reserve Demand Curve (ORDC) to Calculate Real-Time Reserve Price Adder" as amended by the 11/6/13 ERCOT comments (Attachment 1) and as revised by TAC with a proposed effective date of upon implementation of NPRR568 and to add the methodology to the Other Binding Document List.

Passed

10/18/2013

PRS

To recommend approval of NPRR568 as amended by the 10/8/13 Morgan Stanley comments, 10/11/13 ERCOT comments, 10/15/13 EMMT comments and 10/16/13 Luminant comments and as revised by PRS with a recommended priority of 2013, rank of 70 and category of Regulatory; to request that the Impact Analysis separate out the impacts associated with each of the following: (A) the 10/11/13 ERCOT comments (including the revision related to Wind-powered Generation Resources introduced in the 10/15/13 EMMT comments), (B) the 10/8/13 Morgan Stanley comments, and (C) the 10/18/13 PRS revisions; to refer the issue of Load Resources providing OFF10 or OFF30 capacity to WMS for assignment to the Demand Side Working Group (DSWG); and to refer review of the verification of Real-Time Production Potential to WMS for assignment to the Qualified Scheduling Entity (QSE) Managers Working Group (QMWG).

Passed

Background

Status:	Approved
Date Posted:	Sep 19, 2013
Sponsor:	ERCOT
Urgent:	Yes
Sections:	2.1, 2.2, 3.5.2.1, 3.5.2.2, 3.5.2.3, 3.5.2.4, 3.5.2.6, 3.9, 6.3, 6.3.2, 6.4.3.1, 6.4.3.2 (delete), 6.4.3.3 (delete), 6.5.5.2, 6.5.7.3, 6.5.9.2, 6.6.1, 6.6.1.1, 6.6.1.2, 6.6.3.1, 6.6.10, 6.7.4 (new), 6.7.5 (new), 8.1.1, 8.1.1.2, 8.1.1.2.1, 8.1.1.2.1.6 (new), 8.1.1.2.1.7 (new), 8.1.1.4.4 (new), 8.1.1.4.5 (new), 9.5.3
Description:	This NPRR requires ERCOT to implement an Operating Reserve Demand Curve (ORDC) in the Real-Time Market (RTM) to determine the Real-Time price adder for Real Time Settlement Point Prices. The Real-Time price adder reflects the price for reserves available in the ERCOT System based on the loss of Load probability at that reserve level. The addition of this price adder to the Real Time Settlement Point Price ensures that the Real Time Settlement Point Price reflects the opportunity cost of reserve scarcity. A new Other Binding Document, "Methodology for Implementing Operating Reserve Demand Curve (ORDC) to Calculate Real-Time Reserve Price Adder," a draft of which is attached to this NPRR as Attachment 1, will describe the methodologies for developing the ORDC and determining the reserve price adder using the ORDC. It will also list the values of the parameters to be used. Additional details about the methodology and a backcast based on the methodology can be found in filings under Public Utility Commission of Texas (PUCT) Docket No. 40000, Commission Proceeding to Ensure Resource Adequacy in Texas, and Key Documents posted on the Resource Adequacy Task Force home page . Since Real-Time co-optimization of energy and Ancillary Services will not be implemented at this time, to ensure that Resources are indifferent between providing energy and reserves in Real-Time, an Ancillary Service imbalance Settlement will be performed. Reliability Unit Commitment (RUC) Resources and Reliability Must-Run (RMR) Units are removed from this Ancillary Service imbalance payment for their On-Line capacity in Real-Time since making the payment and clawing it back would result in the same financial outcome but with significant changes to the Protocols.
Reason:	To implement the concepts presented and address concerns raised at the January 24, 2013 PUCT workshop regarding Docket No. 40000.