Published: October 9, 2024

General Session Agenda & Notes

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1 – Call General Session to Order – Chair

No notes.

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2 – Notice of Public Comment, if Any – Discussion – Chair

• No public interest was expressed for comments specifically under this item.
• A corporate member signed up to speak under NPRR1190.

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3 – August 19, 2024 General Session Meeting Minutes – Vote – Chair

Reference: August 19, 2024 RM General Session Meeting Minutes

• Draft of the meeting minutes for August 19, 2024, was presented.
• Request for comments or motions on the draft.
• A motion was made and seconded.
• Both parties in favor; no opposition or abstentions.
• Outcome: Meeting minutes approved.

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4 – Notice of Annual Committee Self-Evaluation Questionnaire – Discussion – Chair

Reference: Notice of Annual Committee Self-Evaluation Questionnaire

• Purpose: Discuss the 2024 annual committee self-evaluation questionnaire.
• Contents and format reviewed by the HR & Governance Committee on August 19, 2024.
• ERCOT staff will administer electronically after the meeting.
• Results review scheduled for December 2, 2024.
• Action: Members to submit survey responses by November 1.
• Call for final feedback on content.

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5 – Recommendation regarding 2025 ERCOT Methodologies for Determining Minimum Ancillary Service Requirements – Vote – Chair

Reference: Recommendation regarding 2025 ERCOT Methodologies for Determining Minimum Ancillary Service Requirements

• Agenda item 5.1: ERCOT recommendation (Jeff Billo).
• Agenda item 5.2: TAC endorsement (Caitlin Smith).
• Marks first official approval of the ancillary service methodology by the PUC.
• Feedback anticipated from Board Chair Gleason or Commissioner Kobos before submission to full PUC later this year.

5.1 – ERCOT Recommendation – Discussion – Jeff Billo

• Annual update with studies/analysis to set next year’s ancillary service quantities.
• Methodology changes due to NPRR1222: Board recommends, PUC approves.
• Net effect: Overall decrease in ancillary services quantities for 2025.
• Increased wind/solar affecting forecast errors; reg-up/reg-down adjusted with improved scheduling intelligence.
• ECRS: Use greater of outage vs. forecast-error needs per hour (low likelihood of simultaneous events).
• Minor parameter changes impacting RRS quantities.
• Non-spin: Update reflects 4-hour forecast error coverage at night due to faster starts.
• Total change: ~48 MW decrease in ancillary services for 2025.
• Batteries treated as other resources; risk if longer events exhaust charge.
• Intent: Align procurement with actual system needs → reduced consumer costs.
• Positive feedback for granular approach.

5.2 – TAC Endorsement – Discussion – TAC Chair

• NPRR1222 added PUC involvement.
• Broad stakeholder review (June–August); WMS and ROS endorsed (some abstentions).
• One opposing vote (independent generator segment). IMMs did not oppose.
• Key topics: reduced regulation in certain hours and risks; interaction with RUC; policy concerns.
• Concerns: ECRS/non-spin reductions → investment signals & reliability standards; abstentions tied to potential market-signal shifts and out-of-market costs.
• Motion: Recommend PUC approval effective January 1, 2025 (passed).

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6 – Board-Tabled Revision Request – Vote – Chair

6.1 – NPRR1190, High Dispatch Limit Override Provision for Increased Load Serving Entity Costs – Vote – Chair

• Tabled at committee to consider ERCOT quantitative data before October board.
• ERCOT staff filed additional comments on September 19, 2024.
• Keith Collins to present under 6.1.1; new stakeholder comments to be discussed.

6.1.1 – ERCOT Comments on NPRR1190 – Discussion – Keith Collins

• NPRR1190 extends a policy originally approved in 2017 as NPRR649.
• Current rule: if ERCOT directs curtailment causing loss, QSC may be compensated if they have DAM obligation or bilateral.
• Change: extend eligibility to entities without DAM/bilateral (e.g., muni utilities or competitive entities representing gen+load under one QSC).
• Historical occurrence: very few high-dispatch override payments (five days total since inception).
  • Two days during Feb 2021 winter storm; minor instances in Aug/Sep 2023.
• Expect fewer future instances due to NPRR1230 (higher congestion shadow price).
• Price cap today is lower than during Feb 2021, reducing potential impacts.

6.1.2 – Other Comments on NPRR1190, if any – Discussion – Commenters

• Eric Schubert (Lion Dell Chemical) for joint consumers: Opposed; argues it rewards over-scheduling and forces others to subsidize lack of hedging; cites long-standing PUC Rule 25.501.
• PUC Staff (Barksdale English): Advise remand to TAC for broader scope & unintended-consequence review; do not concur that it violates substantive rules; ADR process exists.
• ERCOT staff: NPRR1190 not urgent; no reliability impact; NPRR1230 may reduce need for HDL overrides.
• Outcome: Motion to remand NPRR1190 to TAC for further consideration passed unanimously.

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7 – TAC Report – Discussion – TAC Chair

• No opposing-vote revisions this meeting.
• Educational overview of stakeholder process & current ERCOT committee structure.
• Subcommittees (esp. Reliability & Operations) have deep expertise; all but PRS have working groups.
• TAC: 30 members; balanced consumer/buyer/seller representation.
• Voting: TAC 2/3 threshold; subcommittees simple majority.
• Revision request process & example pathways (NPRR1190, NPRR1198).
• Emphasis on simultaneous, expertise-focused evaluation.

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8 – Recommendations regarding Market Price Corrections – Discussion – Gordon Drake

8.1 – Real-Time Market Price Correction – Incorrect Recall of ECRS – Vote – Chair

• Issue date: Aug 20, 2024. Incorrect recall of 2000 MW ECRS (intended 500 MW) during under-generation.
• Result: System prices > $5,000/MWh.
• Fix applied Aug 28, 2024; market notice issued.
• Significance criteria met; 37 counterparties impacted.
• Largest single impact ~$600k; total market impact ~$3.5M.
• Outcome: Approve corrections; reclaim excess generator payments. Motion passed.

8.2 – Real-Time Market Price Correction – Incorrect Resource Data – Vote – Chair

• Operating days: Aug 9 & 10, 2024.
• Cause: Erroneous registration effective-date update led to incorrect resource identification; brief system freeze misapplied date.
• Corrected Aug 10 ~1:00 p.m.; market notice issued Aug 20.
• Significance criteria met; counterparties impacted: 1 (Aug 9), 4 (Aug 10).
• Largest impacts: ~$24k (Aug 9), < $5k (Aug 10).
• Total market impact: ~$325k.
• Fix planned post-RTC+B implementation to prevent recurrence.
• Outcome: Recommend board action for price corrections. Motion approved.

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9 – Independent Market Monitor (IMM) Report – Discussion – IMM

• Presenter: Jeff McDonald. Period: June–August.
• 2023 wholesale prices lower due to mild temps & lower natural gas.
• Resource mix relatively unchanged; more solar.
• Ancillary service costs historically low (ECRS prices factor).
• Less-tight supply vs. prior two summers.
• Aug 19–20: operational issues & high prices from steep evening ramps.
• IMM: consider not waiting for scarcity to deploy; ECRS helps preserve regulation & 10-minute reserves; do not recall ECRS until severe conditions end (software issue noted Aug 20).
• Storage providing reserves, acting more as shortage reserve than pure arbitrage.
• ERCOT improving procedures for tight conditions.

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10 – Committee Briefs – Discussion – Staff

10.1 – System Planning and Weatherization Update – Kristi Hobbs

• Commission passed reliability-standard framework (loss-of-load parameters); assessments start 2026.
• ERCOT + TSPs evaluating rotation capabilities; recommendations due Dec 1.
• $2.16B projects energized; $2.5B endorsed (as of July).
• Permian Basin transmission plan approved; import-path voltages under analysis; decision by May 1.
• Exploring 765 kV alternatives; target plan completion by year-end.
• Interconnection queue dominated by solar & batteries; slight uptick in gas.
• Since LL interconnection start: 58k+ requests reviewed; 5.7 GW approved for energization.
• Weatherization: inspection targets exceeded (gen & transmission).
• Storage process improvements (single submissions); full implementation next year.
• Recognition of ERCOT & commission collaboration on Permian study.

10.2 – System Operations Update – Dan Woodfin

• Ancillary-service study & future revisions; SB3 tasked PUC to review.
• PUC staff sought input from ERCOT & IMM; white paper posted.
• Workshop on PUC draft recommendations upcoming.
• Current AS sufficient for reliability.
• Recommend probabilistic/Monte Carlo approach for commitment purposes.
• Suggest determining 50% of AS quantities closer to operating day (updated forecasts).
• Timeline for new processes aims at 2027 implementation.
• Shift criteria toward sufficient quantities, less “edge” operation.
• Policy decisions needed per PUC questions.
• Distinguish operational vs. planning reliability standards.
• Grid-forming inverters to improve stability; rule changes planned.
• Accounting adjustments on system peak demands for batteries.

10.3 – Commercial Markets Update – Gordon Drake

• Summer 2024: lower real-time average hub & ancillary prices vs. prior years.
• More solar & storage capacity; higher reserves; new peak demand record; lower hub averages.
• Significant increase in storage & solar participation.
• Reduced ancillary costs & RT congestion rents.
• Better DA/RT price convergence.
• Lower RUC activity; more diverse resource selections.
• CRR auction challenges (outer years) due to participation; exploring admin/market changes to reduce solve times.

10.3.1 – Real-Time Co-optimization Update – Matt Mereness

• Participant readiness attestations from 106; one delayed.
• Target go-live: Dec 5, 2025.
• Internal/external milestones on track; market trials & training outlined.
• Communications via press release, trending talk paper, etc.
• Issues list restructured (policy vs. readiness).
• Focus: ancillary service proxy offer floor debate.
• RTC simulator developed for historical exploration & policy testing.
• Scarcity pricing alignment with marginal reliability benefits; nested demand curve proposed to fix shortage-pricing issues.
• Simulation tools compare existing vs. nested curves; positive results.
• No anticipated development delay; more simulations in fall/winter; continued readiness work.

10.4 – Market Credit Update – Austin Rosel

• Market credit stable (mild summer & shoulder months).
• Total potential exposure ~$1.7B (Sept).
• Discretionary collateral ~$4B.
• NPRR1205 effective Nov 1 → removes six banks not meeting new requirements.
• Credit limits raised pre-summer; adjusting post-summer.
• NPRR1215: clarification only (no credit impact); TAC requested remand of language; unanimously approved.
• No further questions/issues.

10.5 – Revision Request Status Update – Anne Boren

• 12 requests slated for October board; NPRR1190 previously reviewed here.
• 11 unopposed from TAC → expected on consent agenda.
• 53 requests in process (possibly ~57).
• 8 new requests since August meeting.
• 3 older requests advanced; 9 remain on aging list.
• YTD approvals: 58 through stakeholder process.
• No current RTC+B-impacting requests requiring expedited processing.

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11 – Future Agenda Items – Discussion – Woody Rickerson

• No comments.

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12 – Other Business – Discussion – Chair

• No additional business.
• Committee adjourned the general session; executive session convened.
• No voting items anticipated from executive session.
• General session will not reconvene after executive session.
• Adjournment and conclusion of webcast.

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