11/22/22 2:34 PM
M-A112222-01 Request for stakeholder written comments on proposed ERCOT Framework for Firm Gas Firm Fuel Supply Service Phase 2 by Close of Business December 9, 2022, and Notice of upcoming December 14, 2022 ERCOT Workshop
NOTICE DATE: November 22, 2022
NOTICE TYPE: M-A112222-01 Legal
SHORT DESCRIPTION: Request for stakeholder written comments on proposed ERCOT Framework for Firm Gas Firm Fuel Supply Service Phase 2 by Close of Business December 9, 2022, and Notice of upcoming December 14, 2022 ERCOT Workshop.
INTENDED AUDIENCE: All Market Participants and Gas Industry Participants
DAYS AFFECTED: December 9 and 14, 2022
LONG DESCRIPTION: Consistent with directives from the Texas Legislature requiring development of ancillary or reliability services products to address reliability during extreme cold weather conditions and the Public Utility Commission of Texas (PUC) instructing ERCOT to develop a firm-fuel product that provides additional grid reliability and resiliency during extreme cold weather and compensates Generation Resources that meet a higher resiliency standard, ERCOT implemented changes to the ERCOT Protocols to incorporate a Firm Fuel Supply Service (FFSS) and issued a Request for Proposal (RFP) to acquire FFSS for the obligation period of November 15, 2022, through March 15, 2023.
Two categories of Generation Resources were eligible to participate as Firm Fuel Supply Service Resources (FFSSRs) in the first obligation period: Generation Resources with on-site fuel and Generation Resources with off-site natural gas storage where the Resource Entity and/or Qualified Scheduling Entity (QSE) owns and controls both the natural gas storage and pipeline to deliver the required amount of natural gas. This was a Phase 1 initiative.
For Phase 2, ERCOT intends to propose for the PUC’s consideration an additional category of FFSS that would allow participation by a broader range of Generation Resources that utilize off-site natural gas storage and pipeline transportation owned by third parties. For a Generation Resource to be eligible to participate as an FFSSR in this category, the Generation Entity that represents the Generation Resource would need to demonstrate that the Generation Entity (or an Affiliate) has:
- owned or contracted firm natural gas storage capacity at a storage facility;
- owned natural gas stored at the storage facility; and
- a firm transportation agreement allowing the Generation Entity (or an Affiliate) to transport the required amount of natural gas from the storage facility to the Generation Resource.
The full scope of this Phase 2 initiative is attached as a draft ERCOT Framework proposal.
ERCOT requests written stakeholder comments on the draft proposal by Close of Business Friday, December 9, 2022. All written stakeholder comments shall be submitted to email@example.com and will be posted for the upcoming ERCOT workshop. ERCOT anticipates gas industry representatives will file written comments as well.
ERCOT has scheduled a workshop to discuss the written stakeholder comments and the draft proposed ERCOT Framework for Wednesday, December 14 at 2 p.m. at the Austin Met Center. There will also be a Webex for virtual attendance. Details of the workshop are located on the ERCOT website at the Meeting Calendar (https://www.ercot.com/calendar).
ERCOT’s goal is to finalize the ERCOT Framework and seek PUC feedback at a January 2023 Open Meeting. ERCOT will then sponsor appropriate Protocol changes thereafter for additional stakeholder consideration.
CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.
If you are receiving email from a public ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.