Meeting Summary – 09/19/24 TAC Meeting

Published: September 23, 2025

1 – Antitrust Admonition – Caitlin Smith

2 – Discussion of Stakeholder Process and Communications – Caitlin Smith/ERCOT Staff

• Mini workshop on stakeholder process and communications.
• Previous discussions at the July 25 and August 29 open meetings.
• References to NPRR1224 and NOGRR245.
• Importance of communication improvements in the TAC process including subcommittees and working groups.
• Need for transparent communication to the board and PUC.
• Focus on making sure information on contentious issues is communicated earlier.

2.1 – Review of Current Stakeholder Process

• Ann Boren provided a high-level review of current stakeholder structure and process.
• Explanation of ERCOT stakeholder committee structure, including working groups, task forces, and subcommittees.
• Description of subcommittees (PRS, RMS, ROS, and WMS) and their roles as voting bodies.
• TAC’s role in the process and its composition as laid out in the bylaws.
• Details on the voting structures for TAC and subcommittees.
• Explanation of the revision request process, focusing on NPRRs.
• Role of PRS in the language consideration and impact analysis of NPRRs.
• Review process by TAC for NPRR recommendations.
• Potential for R&M to review NPRR requests if opposing votes occur in TAC.
• Board receives recommendations from both TAC and R&M for final decision-making.
• PUC has the final approval on revision requests.
• Comments can be filed at any time during the stakeholder process.
• If TAC has a different recommendation than R&M, both recommendations go to the board, with presentations from the TAC recommendation by the TAC chair and the R&M recommendation by the R&M chair.

2.2 – Possible Process Improvements

• Considered drafts/proposals: modifying subcommittee voting thresholds, minimum time requirements between PRS and TAC, and encouraging formal comments.
• Subcommittee voting threshold currently at 50%; proposals include higher thresholds to encourage earlier debates and better records.
• Very few revision requests met 50% but not two-thirds threshold in recent history.
• Suggested minimum time requirements between PRS and TAC (e.g., similar to PUC’s 30-day requirement).
• Encourage stakeholders to file formal comments to ensure transparent and early communication of positions.
• Concerns that higher thresholds might hinder smaller participants and stifle idea flow.
• Proposal to increase time between PRS and TAC to avoid rushed decisions.
• Formalize conversations/compromises happening between PRS and TAC in formal comments.
• Formalizing commission review processes to address discomfort and ensure due process for appeals.
• Ideas on improving stakeholder process with involvement from commissioners, board members, and market participants.
• Agreement on importance of formal comments to show seriousness and level of stakeholder engagement.
• Clarified difference in roles of TAC and the Board post-SB2; acknowledged procedural confusion.

2.3 – Stakeholder/TAC Communications to Board

• Discussion on NPRR1190 and TAC’s communication role to the Board.
• Concerns about ERCOT filtering stakeholder positions.
• Suggestions to allow direct communication between stakeholders and the Board.
• Need for a systematic approach to stakeholder engagement in board interactions.

2.4 – Comments to the Board on Revision Requests

• Process for submitting comments to the Board clarified (written or verbal).
• Board is data-driven; relies on detailed data, especially on close or controversial votes.
• Importance of transparency on segment positions and no-votes.
• Stakeholders encouraged to provide more complete data and context.

3 – Approval of TAC Meeting Minutes – Caitlin Smith

• Motion to approve the August 28, 2024 minutes as revised; added to combo ballot.
• Concerns about timeline for NOGRR filing post-PUC approval; aiming for Board submission in February.
• Differences between market trial timeline and QSE attestations noted.
• Discussion on simulator functionality and differences with real-time co-optimization (RTC+B), especially committed capacity.
• Issues raised on membership requests and ERCOT handling.
• Covered: NOGRR245 Bifurcated Approach, Real-Time Co-Optimization, and the 2025 Membership Application Process.

4 – Meeting Updates – Caitlin Smith

• Updates from PUC meetings on August 29 and September 12.
• No revision requests were up for adoption during these meetings.

5 – Review of Revision Request Summary / ERCOT Market Impact Statement / Opinions – Ann Boren / IMM

• Eight revision requests on the TAC agenda this month.
• Five sponsored by ERCOT and three by market participants.
• Reasons: two board/PUC directives; five general system process improvements; one regulatory.
• NPRR1188 budget impact: $1.8–$2.5 million.
• NPRR1244 budget impact: $70k–$100k.
• Remaining requests have no impact or are captured in other revision requests.
• ERCOT supports all requests with positive market impact statements.
• CFSG reviewed all requests; no credit implications.
• IMM supports NPRR1188 and has no opinion on the remaining requests.

6 – PRS Report – Vote – Diana Coleman

Diana Coleman (CPS Energy) presented the September PRS report.

6.1 – NPRR1188, Implement Nodal Dispatch and Energy Settlement for Controllable Load Resources

• Motion to recommend approval of NPRR1188 (and OBDRR046) carries unanimously.
• NPRR1188 changes dispatch and pricing for Controllable Load Resources (CLRs) per market design blueprint phase one.
• Impact Analysis (IA): $1.8M–$2.5M. Priority 2026; Rank 390.
• PRS unanimously recommended approval as amended by July 15 Oncor comments (Aug 8).
• PRS unanimously endorsed and forwarded the revised Aug 8 report and June 27, 2023 IA with a recommended 2026 priority and rank 390 (Sep 12).

6.2 – NPRR1237, Retail Market Qualification Testing Requirements

• Motion to recommend approval added to combo ballot; no opposition and no impact.
• Originates from CenterPoint.
• Sets conditions for ERCOT to require all competitive retailers (new and existing) and TDSPs to complete retail market qualification testing.
• PRS unanimously approved as amended by Aug 6 RMS comments (Aug 8). Endorsed and forwarded to TAC with Aug 8 PRS report and Aug 27 impact analysis (Sep).

6.3 – NPRR1244, Clarification of Controllable Load Resource Primary Frequency Response Responsibilities

• Motion to recommend approval as in the 9/12/24 PRS Report and 9/13/24 Revised IA; recommended priority 2026 and rank 4710.

• Minor IA title change; comments from Priority Power aligning PFR provisions to provide ECRS and PRC calculation.

• Aug 8: PRS recommended approval as submitted. Sep: endorsed and forwarded to TAC the Aug 8 PRS report with Sep 6 IA.

• ERCOT expedited review suggested moving priority to 2026 (new rank 4710).

• Proposal to move NPRR1237, NPRR1188, and NPRR1244 to combo ballot. Recusal noted; separate ballots for NPRR1188 and OBDRR046.

• Discussion: NPRR1247 tabled pending ERCOT white paper clarification; ERCOT to clarify separately before returning.

7 – Revision Requests Tabled at TAC – Possible Vote – Caitlin Smith

7.1 – OBDRR046 (Related to NPRR1188)

• See item 6.1 for ballot details.

7.2 – OBDRR052 (Related to NPRR1246), Energy Storage Resource Terminology Alignment for the Single-Model Era

• For terminology alignment in the single-model era.
• Item remains tabled while awaiting NPRR1246.

7.3 – NPRR1215, Clarifications to the DAM Energy-Only Offer Calculation

• Motion to recommend approval of NPRR1215 (with 8/1/24 ERCOT comments) added to combo ballot.
• Initially approved by TAC and the Board; remanded back to TAC for edits/corrections identified by ERCOT.
• ERCOT’s Aug 1 comments change “credit reduction” to “credit exposure”; further edits addressed.
• Alfredo Moreno (ERCOT) confirmed corrections are complete; recommendation to approve advanced.

8 – RMS Report – John Schatz

• Verbal update on Texas Set 5.0 and MarkeTrak SCR817 (retail projects).
• MarkeTrak training held with 165+ attendees; another session planned before end-of-October go-live.
• Testing underway with existing and new retail market participants; TDSPs working to get testbed transactions flowing next week.
• WMS email vote to approve revised Texas Set 5.0 implementation plan; clarified Saturday 06:00 a.m. transaction handling.

9 – ROS Report – Vote – Katie Rich

• NOGRR263 (related to NPRR1244): motion to recommend approval added to combo ballot.
• NOGRR264 (related to NPRR1235, DRRS as stand-alone AS): motion to table added to combo ballot.
• Major Transmission Elements (MTE) List: motion to approve as presented added to combo ballot.

10 – WMS Report – Eric Blakey

• Two votes: proposed changes to AS services and CRR auction mitigation.
• New feature: monthly large load interconnection reports; latest shows +4,439 MW since August update.
• NPRR1241 tabled and referred to WMWG; NPRR1202 remains tabled.
• NPRR1229: cost recovery/policy alignment concerns. Some argue rejection to avoid unintended incentives.

11 – Proposed Changes to Ancillary Service (AS) Methodology for 2025 – Possible Vote – Luis Hinojosa

Broad Picture

• Past methodology changes: NPRR1224 and NPRR1232.
• Need to review and approve methodology via stakeholder processes and PUC review.

Timeline and Stakeholder Process

• Discussions began in July.
• AS study in parallel with legislature, PUC, IMM, and ERCOT due September 2024.

Regulation Service Changes

• Switch to net load forecast error instead of historical regulation deployment & net load variability.
• Data now incorporates wind/solar ramping; improved visibility.
• Proposed methodology suggests an increase for 2025.

Responsive Reserve Service (RRS) Changes

• No methodology changes.
• IFRO for 2024 updated; RRS-PFR limit = 1365 MW.
• Slight increase of 9 MW due to updated RS table.

Concerns Raised

• Reduction in regulation during winter mornings causes operational concern.
• Risks due to regulation reduction and flat RRS values discussed.

ERCOT Changes

• Three changes: adjust sunset hour coverage; align frequency recovery portion with RRS methodology; use greater of the two capacities for ERCOT quantity.
• Overall decrease in ERCOT quantities for 2025 vs. 2024.

Non-spin Changes

• Use four-hour net load forecast error for hours ending 23–6 (instead of six-hour) to reflect available offline resources.
• Slight increase from last year; would have been higher without methodology change.

Stakeholder Comments and Concerns

• Concerns about reliance on RUC for covering net load forecast errors.
• Questions about impacts on capacity margin and need for more analysis.

Evolution Roadmap

• 2026: Probabilistic analysis.
• 2027: Dynamic calculation of AS closer to the operating day.

Vote on 2025 Methodology

• Motion to endorse passed (one opposed, two abstentions).
• IMM (Jeff McDonald) did not oppose but prefers lessons from AS study be incorporated.

12 – Large Flexible Load Task Force Report – Bill Blevins

• Task force to go into hibernation; some upcoming meetings may be canceled.
• Potential large load growth from 12 GW (2019) → ~54 GW (crypto ~30 GW, AI data centers ~19 GW, hydrogen ~4–5 GW).
• Proposed interconnection rules for loads >1 GW, requiring multiple connections.
• Where to host queue updates (TAC/ROS/WMS) discussed; transparency and centralization emphasized.
• Navigating customer privacy vs statutory obligations.
• Progress recognized: 15 GW approved for future interconnections.
• Need for detailed, transparent reporting on new load development (timelines/impacts).
• Bill Barnes supports NPRR1234 to enable more granular large-load info reporting.

13 – Credit Finance Sub Group Report – Brenden Sager

• Reviewed NPRRs, EAL change calculations, credit exposure updates.
• NPRR1205 updates bank collateral limits; adjusted ratings requirements; doubles credit limits; effective Nov 1.
• Performance/surety bond changes: new credit limits and ratings adjustments.
• EAL calculation determines collateral requirements using max history of real-time liabilities, day-ahead factors, and forward adjustment factors.
• Credit team near a proposal to better match obligations to invoices; request for ERCOT credit department presentation at a future TAC.
• Ongoing discussion on netting real-time/day-ahead, forward adjustment factor changes, caps on RFAF.
• Several NPRRs reviewed with no credit implications; all operational.
• Potential exposure increased from $1.81B → $1.88B (Jul→Aug 2024) due to higher RT/DAM prices.
• No unusual collateral call activity in Aug.
• Breakdown of exposure types and posted collateral reviewed.
• NPRR1205: monthly update shows no over-collateralization.

14 – RTC+B Task Force Report – Matt Mereness

• Two-part presentation: standard slides + AS demand curve white paper.
• Go-live: Dec 5, 2025; market trials start May 5, 2025.
• Completed actions and future milestones, incl. AAS proxy offer curve parameter reviews.
• Remaining issues/policy settings needed pre-trials; simulator now operational; studies coming next meeting.
• Training readiness approach reviewed with task force feedback.
• History and issues for AS demand curves; potential ORDC/AS demand curve changes.
• IMM will provide analysis and recommendations; target to resolve before April 2025.

15 – ERCOT Reports

15.1 – Potential Price Corrections – Matt Young

15.1.1 – Aug 9–10, 2024 – Incorrect Resource Data Impacting the Real-Time Market

• Issue identified Aug 9; fixed Aug 10; SCED intervals rerun with corrected data.
• Market notices issued Aug 20 and Sep 17.
• Criteria for price correction: either ≥ 2% & > $20k or ≥ 20% & > $2k.
• Five counterparties met criteria over the two days.
• Largest impact Aug 9: ~$24k and 3.73%.
• Largest impact Aug 10: ~$4.5k and 42–43%.
• Net charge difference Aug 10: ~$281k with 1.56% difference.
• Approval sought at Oct Board; to be presented at Oct 9 RNM.

15.1.2 – Aug 20, 2024 – Incorrect Recall of ERCOT Contingency Reserve Service (ECRS)

• Software UI defect caused recall of 2000 MW instead of 500 MW.
• System LAMBDA spiked to $5,001/MWh for 25 seconds; then fell to **$284/MWh** after correction.
• Fix implemented Aug 28 to prevent recurrence.
• Market notices sent (board approval period; settlements analysis).
• Impact analysis:
  • 37 counterparties impacted (36 under Criteria 1; 1 under Criteria 2).
  • Max financial impact for a single party: $597k.
  • Total changes to ERCOT charges: ~$3.5M (~2.4% overall).

15.2 – CRR Performance Issues Update – Alfredo Moreno

• High volumes and complexity in CRR auctions; performance risks.
• Increasing variables: more settlement points, CRR account holders, counterparties.
• NPRR1188 adds resource nodes → more paths/transactions.
• Example: sequence six runtime > 365 hours.
• Latest software update shows 10–30% performance boost.
• Studies (reduced capacity) show auction runtimes 230–250 hours, above preferred 100 hours.
• Mitigation: split time-of-use transactions; trigger adjustments if transactions > 133,000.
• Preparedness focus for CRR calendar; ongoing mid/long-term solutions (threshold revisions; cloud options).
• Community input on prioritizing entities with load/resources and aligning with growing solar needs.

15.3 – ERCOT 2025 Membership Application & Agreement – Katherine (Catherine) Gross

• Launching tomorrow.
• Authorized reps may have login issues if they haven’t used the public portal since Apr 24.
• Workarounds: create new credentials or designate a different rep.
• Support via portalsupportercot.com.
• Market notice + email to be sent with details.
• Credentials from last year should still work (with exceptions).
• Data centers & crypto centers classified as industrial consumers for 2025; broader segment updates discussed for 2026.

16 – Other Business

• ERCOT mobile app update: complete rewrite with enhancements.
• New features: improved home screen with real-time data; lower navigation tray.
• Access to popular dashboards (grid conditions, supply/demand, fuel mix).
• Meeting calendar function to add meetings to personal calendars.
• Personalized home settings and dark mode options.
• Push notifications for grid condition changes (Texans alerts, EEA alerts).
• New version will be released by month end; attendees encouraged to download/update.

17 – Combo Ballot – Vote – Caitlin Smith

• Motion carried unanimously.