To recommend approval of NPRR576 as recommended by PRS in the 3/18/14 PRS Report, as amended by the 3/25/14 CPS comments, and as revised by TAC with a recommendation of $75 per MWh as the minimum offer floor for On-Line Non-Spin.
To table NPRR576 and to refer issues to ROS and WMS.
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available, as posted in the key documents.
This Nodal Protocol Revision Request (NPRR) continues to allow On-Line Non-Spin, but places it behind the High Ancillary Service Limit (HASL). This NPRR also proposes the reinstatement of a minimum offer floor for On-Line Non-Spin, but leaves the determination of its value (value of X) to TAC.
Currently Non-Spin can be provided by On-Line Generation Resources which are always available to Security-Constrained Economic Dispatch (SCED). This creates several issues both from a reliability and market perspective. It reduces reliability because it is being deployed before it is needed therefore no longer there when it is truly needed; and if Entities know this is coming in, they have less MWs in SCED, thus the total available response in system is lower at all times. From a market perspective On-Line Non-Spinning reserves create a non-linearity in prices, thus preventing true scarcity prices as the large amount of On-Line creates an artificial buffer in the supply stack.