Title: Ancillary Service Make-Whole Payments Under a Watch
Next Group:
Next Step:
Status: Rejected on 05/29/2014


Date Gov Body Action Taken Next Steps
05/29/2014 TAC Rejected
05/15/2014 PRS Recommended for Approval PRS for Impact Analysis review
04/10/2014 PRS Deferred/Tabled PRS for consideration

Voting Record

Date Gov Body Motion Result
05/29/2014 TAC To recommend approval of NPRR605 as amended by the 5/28/14 ERCOT comments. Failed
05/15/2014 PRS To recommend approval of NPRR605 as amended by the 5/14/14 CPS comments. Passed
04/10/2014 PRS To table NPRR605 for one month and to refer related issues to WMS. 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.


Status: Rejected
Date Posted: Mar 17, 2014
Sponsor: Exelon Generation
Urgent: Yes
Sections: 2.1,, 6.7.5, 6.7.6
Description: This NPRR requires ERCOT to implement a Make-Whole Payment for Qualified Scheduling Entities (QSEs) that are unable to hedge the cost of serving Load due to a reassignment of capacity from energy to Ancillary Services that could occur under a Watch. Starting June 1, 2014, the Real-Time Locational Marginal Price (LMP) will be capped at $9,000 (including the Option B+ adder), and Day-Ahead offers will be capped at $7,000. If a Market Participant believes there is a certainty that Real-Time LMPs will go to the cap, it is unlikely to offer all its generation at a $2,000 discount in the Day-Ahead Market (DAM) to the price it has to pay for its Loads and energy trades exposure in Real-Time. This includes Ancillary Services. A generator would choose to receive $9,000 Real-Time LMPs over $7,000 Day-Ahead Market Clearing Prices for selling Ancillary Services. This could lead to a situation whereby ERCOT cannot procure enough Ancillary Service to meet its Ancillary Service Plan. It can issue a Supplementary Ancillary Service Market (SASM), but this has the same problem in that the SASM offer cap is $7,000, which could be lower than Real-Time energy price. Thus the only alternative left to ERCOT to meet its North American Electric Reliability Corporation (NERC) requirements of spinning reserves is to Reliability Unit Commitment (RUC) units for Ancillary
Reason: - Addresses current operational issues - Market efficiencies or enhancements

Key Documents

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