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.
Apr 29, 2015
2.1, 188.8.131.52, 184.108.40.206
Just before the implementation of the Nodal Market, it was discovered that the Real-Time revenues earned by a Resource while ramping from breaker close to the Lowest Sustained Limit (LSL) were not included in the calculation of Reliability Unit Commitment (RUC) Make-Whole Payments. To mitigate this problem, it was decided to reduce the Startup Costs in RUC guarantee by an amount that approximates the Real-Time revenues (heat rate proxy “H”) to ensure a balanced equation (total cost versus total revenues). The reduction in Startup Costs affects both Day-Ahead Market (DAM) and RUC procurement given that both use the same cost structure in the calculation of Startup Offer caps, even though reducing Startup Costs in DAM by the heat rate proxy “H” is not desirable since it’s a financial market and generators do not earn additional revenues while ramping to the LSL.
This Nodal Protocol Revision Request (NPRR) tries to rectify this problem by incorporating the actual fuel costs into the DAM and RUC procurement process and DAM Make-Whole Payment calculation. However, for RUC Make-Whole Payment calculations the Startup Costs should still be reduced by the heat rate proxy “H” to ensure a balanced equation. If approved, this NPRR should be implemented with NPRR 617, Energy Offer Flexibility.
Addresses current operational issues,
Market efficiencies or enhancements