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NPRR696

Summary

Title: Price Correction Process Following a SCED Failure
Next Group:
Next Step:
Status: Approved on 08/09/2016
Effective Dates:
09/01/2016

Action

Date Gov Body Action Taken Next Steps
08/09/2016 BOARD Approved
07/28/2016 TAC Recommended for Approval Revision Request Consideration
07/14/2016 PRS Recommended for Approval Revision Request Consideration
06/16/2016 PRS Recommended for Approval Impact Analysis Consideration
12/10/2015 PRS Deferred/Tabled Language Consideration
05/14/2015 PRS Deferred/Tabled Language Consideration

Voting Record

Date Gov Body Motion Result
08/09/2016 BOARD Approved NPRR696 as recommended by TAC in the 7/28/16 TAC Report. Passed
07/28/2016 TAC To recommend approval of NPRR696 as recommended by PRS in the 7/14/16 PRS Report. Passed
07/14/2016 PRS To endorse and forward to TAC the 6/16/16 PRS Report as revised by PRS and the Impact Analysis for NPRR696. Passed
06/16/2016 PRS To recommend approval of NPRR696 as amended by the 10/19/15 Reliant comments. Passed
12/10/2015 PRS To continue to table NPRR696 and refer the issue to WMS. Passed
05/14/2015 PRS To table NPRR696 and refer the issue 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.

Background

Status: Approved
Date Posted: Apr 27, 2015
Sponsor: Bill Barnes on behalf of Reliant Energy Retail Services, LLC
Urgent: No
Sections: 6.3, 6.5.9.2
Description: The existing process for managing price corrections following a Security-Constrained Economic Dispatch (SCED) failure creates situations where pricing outcomes are uncertain and may not reflect market conditions. When ERCOT experiences a SCED failure, the last good price is used for Settlement for the period of time when SCED does not execute. Following the failure, SCED resumes execution but ERCOT continues to take the necessary manual actions specified in paragraph (3) of Section 6.5.9.2, Failure of the SCED Process. to stabilize the system. During this stabilization period, ERCOT may or may not correct prices depending on their determination of whether the prices were erroneous or not. This creates price uncertainty for Market Participants that are actively transacting in the market. In addition, the manual actions taken in paragraph (3) of Section 6.5.9.2 following the SCED failure can significantly influence the pricing outcomes and produce results which do not reflect market conditions. This Nodal Protocol Revision Request (NPRR) establishes a price correction policy which uses the last good price for Settlement until ERCOT no longer requires manual action to stabilize the system following a SCED failure. ERCOT provides notice to Market Participants of the occurrence of a SCED failure by declaring a Watch in accordance with paragraph (1) of Section 6.5.9.2. Once the system has stabilized following a SCED failure and ERCOT no longer requires manual intervention, ERCOT will cancel the Watch in accordance with paragraph (4) of Section 6.5.9.2. By correcting prices for Settlement Intervals corresponding to the active Watch period, Market Participants will have transparency to known prices which reflect the last good SCED execution.
Reason: Addresses current operational issues, Market efficiencies or enhancements

Key Documents

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