Title NOx Emissions Allowance Index Price (NOxEAIP)
Next Group
Next Step
Status Approved on 08/18/2009
Effective Dates


Date Gov Body Action Taken Next Steps
08/18/2009 BOARD Approved
08/06/2009 TAC Recommended for Approval ERCOT Board consideration of PRR814
07/23/2009 PRS Recommended for Approval TAC consideration of PRR814
06/18/2009 PRS Deferred/Tabled PRS language consideration

Voting Record

Date Gov Body Motion Result
08/18/2009 BOARD To approve PRR814 as amended by the 8/14/09 ERCOT comments. Passed
08/06/2009 TAC To recommend approval of PRR814 as recommended by PRS. Passed
07/23/2009 PRS To recommend approval of PRR814 as amended by 7/14/09 ERCOT comments. Passed
06/18/2009 PRS To table PRR814. Passed


Status: Approved
Date Posted: Jun 1, 2009
Sponsor: Luminant Energy Company LLC
Urgent: Yes
Sections: 2.1,,,
Description: This Protocol Revision Request (PRR) establishes a definition for NOx Emissions Allowance Index Price (NOxEAIP) that relies on a published cost index for NOx emissions allowances. The PRR provides Qualified Scheduling Entities (QSEs) with an option to either provide detailed documentation of the actual cost of NOx emissions allowances as part of the verifiable cost process or to rely on the NOxEAIP. Specifically, this PRR allows QSEs to recover the cost of emissions allowances when providing Replacement Reserve, Out of Merit Capacity (OOMC) or Out of Merit Energy (OOME) Service as directed by ERCOT if the costs of those emissions allowances are less than one hundred ten percent (110%) of the NOxEAIP. This is the same concept that is applied to the documentation requirements of natural gas prices and fuel oil prices for verifiable cost purposes. This PRR also adds language to clarify how QSEs can recover any emissions-related costs for both startup and operations when providing Replacement Reserve, OOMC or OOME Service. This PRR also proposes non-substantive administrative changes, such as correcting acronym and defined term usage and section references. These are shown below with the author "ERCOT Market Rules."
Reason: Current Protocol language related to documentation of verifiable costs includes the cost of emissions allowances. However, the Protocols do not explicitly say how QSEs can recover any emission-related costs associated with startup or operation when providing Replacement Reserve, OOMC or OOME Service. And the Protocols do not specify the level of documentation required to validate those emission allowance costs nor do they provide an alternate method of emission allowance cost verification. This PRR provides clarification of how QSEs can recover emission-related costs and provides more details regarding documentation requirements as well as an option to use a published emission allowance index for verification of emission allowance costs.

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