Articles
November 8, 2024
Meeting Summary - 10/07/24 WMS Meeting
0 – Validation for WMS Standing Representatives – Pamela Hanson
1 – Antitrust Admonition – Eric Blakey
2 – Agenda Review – Eric Blakey
3 – Approval of WMS Meeting Minutes – Vote – Eric Blakey
- Motion to approve the August 7, 2024 WMS meeting minutes as submitted added to the combo ballot.
4 – Technical Advisory Committee TAC Update – Eric Blakey
- Discussion focused on enhancing stakeholder processes.
- Emphasis on clarifying ERCOT’s role between stakeholders and the board.
- Need for more representation of TAC decisions at the board level.
- Further discussions on these topics are planned for the next TAC meeting.
- Issues in RTC+B and ancillary service demand curves discussed, aiming for policy decision by year-end.
- Approval of the 2025 ancillary services methodology, aligned with previous recommendation.
- Upcoming board meetings on Wednesday and Thursday, with committees meeting on Wednesday.
5 – ERCOT Operations and Market Items
- Introduction of Keith Collins, Vice President of Commercial Operations, and his discussion on ERCOT’s market design framework.
- Reference to a previous discussion at the August board meeting led by Pablo regarding market design.
- Emphasis on key concepts from ERCOT’s mission and vision statements such as reliability, efficiency, open access, and retail choice.
- Review of strategic objectives from a strategic plan document issued in 2023, highlighting goals like grid reliability and enhancing regional economic competitiveness.
- The importance of using the right tools for the job to achieve efficiency in market design.
- Explanation of how different tasks require different tools and alignment of these tools to accomplish strategic objectives reliably and affordably.
- Focus on avoiding inefficiencies and unintended consequences by using appropriate tools for each task within market operations, drawing analogies with tools like shovels and rakes.
5.1 – ERCOT’s Framework for Evaluating Market Design – as discussed at August Board – Keith Collins
05-kcollins-market-design-framework.pdf
- Introduction of a framework to guide ERCOT’s market design focused on dependability, efficiency, and resiliency, aligning with reliability and affordability goals.
- Emphasized that discussion of various market elements such as ECRS, DRRS, and PCM should focus on what attributes support reliability and affordability.
- Discussion of the key framework attributes of various market elements..
- Importance of flexibility in resources to adjust to system demands, and the value of DRRS as a tool for flexibility.
- Discussion on dependability and availability, emphasizing the role of weatherization and PCM in promoting resource availability.
- Introduction of resiliency tools like ECRS, and how it compares to other regional systems such as SPP.
- Consideration of resource qualities such as nuclear energy value, and federal incentives for wind and solar as key aspects.
- RTC as an example of an efficiency tool, with a target go-live date set for December 5 of the next year.
- The value of locational proximity of resources, and the role of transmission in optimizing that value.
- Stakeholder feedback highlighted the necessity of resource adequacy and how it integrates with other framework attributes.
- Formalizing feedback processes was considered, with emphasis on setting timelines and metrics for evaluating resource adequacy and availability.
- Acknowledgment of ongoing assessment and refinement of the proposed framework to ensure alignment with ERCOT’s reliability and affordability objectives.
6 – Congestion Management Working Group – CMWG – Alex Miller
06-cmwg-update-2024-10-wms.pdf
- SCR819 and NPRR1111 Implementation
- Implementation aimed at improving control of flows on GTCs by limiting resources during SCED intervals.
- Implemented in June; Monitoring through summer showed improvement in generation staying close to set limits.
- Observing some oscillation in dispatch around limits; working on mitigation.
- Continuing observation and training for control room operators.
- More data expected after fall period with higher wind production.
- CRR Solution Times in Long Term Auctions
- Performance issues due to rising bid volumes.
- Explored three paths: administrative guardrails, market incentives, and market redesign.
- Least popular option among stakeholders: raising minimum bid price.
- Stakeholders suggested ways to increase data transparency.
- ERCOT studying discontinuation of multi-month bids and working on an NPRR for limits on transactions.
- NPRR1214 RDPA Locational Fix
- Concern about treatments of storage and controllable load resources.
- Draft red lines prepared; to be further discussed.
- Efforts to align with ERCOT feedback and streamline proposals.
- Preparing for future voting on implementation post-RTC.
- General Discussion
- Bill Barnes and others emphasized preparing for a vote on NPRR1214 and the importance of efficiency in dispatch.
- Concerns about compatibility with RTC and focus on post-RTC implementation.
- Request for IMM participation in future discussions.
- CMWG 2025 Meeting Calendar
- Meeting planned for Thursdays around the middle of the month.
- WebEx only format for now, with possible in-person meetings if needed.
7 – Supply Analysis Working Group – SAWG – Kevin Hanson
07-241007-sawg-report-to-wms-v1.pdf
- Dispatchable Resource Reserve Service (DRRS) NPRR1235
- Katie Rich Vistra presented on DRRS.
- Commenters suggested DRRS as a resource tool is a policy issue for the commission to address.
- ERCOT plans to file comments on NPRR1235.
- NPRR is expected to return for further discussions in the next SAWG meeting.
- Long Term Load Forecast (LTLF)
- Discussion on incorporating large load forecasts into the LTLF for the CDR to determine reserve margins.
- Internal meeting planned to address how to handle the load forecast presentation, considering different scenarios for large loads.
- Future Meetings
- Next SAWG meeting scheduled for October 25.
- Intent to present on load forecasts, CDR updates, and NPRR1219.
- Resource Adequacy and DRRS
- Concerns expressed about using DRRS primarily for resource adequacy instead of as an operational tool.
- Comments filed regarding the design of the demand curve and its importance.
- Commission and Stakeholder Involvement
- Commission requested stakeholders to develop counterarguments if any exist regarding NPRR and DRRS.
- Luminant comments on NPRR were recently filed, requiring further consideration.
8 – Wholesale Market Working Group – WMWG – Blake Holt
Discussion Points:
- NPRR1229 was discussed. Its aim is to add financial protection for resources operating in a mandatory CMP if they are tripped offline uncontrollably. There were concerns about excessive coverage.
- The IMM suggested a sloped demand curve for the product. There was discussion on whether to consolidate these discussions at SAWG.
- Calpine discussed a combined cycle concept with ERCOT, but the discussion is not yet ripe for WMWG.
- Consensus to move discussions on resource adequacy and demand curves to SAWG, with a focus on other issues at WMWG if needed.
- No vote on NPRR1238 was suggested as it was not deemed ready.
- NPRR1241 introduces a potential clawback mechanism for firm fuel supply which will require further discussion next month.
- CRR Auction Revenue Distribution (CARD) allocation discussion suggested potential exploitation by large flexible loads. Three methods were proposed by entities including IMM, Georgetown, and Luminant.
- The complexity of the methods for card allocation could cause reallocation concerns. Further discussion planned for October 18.
Next Steps and Actions:
- Keep NPRR1229 in the discussion queue for further consideration next month.
- Continue discussions on card allocation methods in the next meeting set for October 18.
- Seek further input on resource adequacy and demand curve issues at SAWG meetings.
- Prepare to file an NPRR after compiling feedback from next month’s discussions.
8.1 – Break
9 – WMS Revision Requests Tabled at WMS – Possible Vote – Eric Blakey
9.1 – SMOGRR028, Add Series Reactor Compensation Factors – MWG
- SMOGRR028 is still under consideration within the working group (MWG).
- No significant progress or meetings have occurred regarding this item.
- The decision is to keep this item tabled for now.
9.2 – VCMRR042, SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations – RCWG
- VCMRR042 is still awaiting discussion at RCWG.
- Item will remain tabled.
9.3 – NPRR1242, Related to VCMRR042 SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations – Possible Vote
- NPRR1242 is still pending discussion at RCWG.
- No further discussion or comments were made on NPRR1242 during the meeting.
- Item will remain tabled.
10 – New Protocol Revision Subcommittee – PRS – Referrals – Vote – Eric Blakey
- Introduction to new protocol revision referrals.
- Referrals were submitted by PRS for review and voting.
10.1 – NPRR1250, RPS Mandatory Program Termination
- A motion was approved to table NPRR1250 with unanimous support until further notice.
- NPRR1250 discusses the termination of the Renewable Portfolio Standard (RPS) mandatory program in compliance with HB 1500.
- ERCOT commented on the transition from a mandatory to a voluntary renewable energy credit trading program.
- Implementation of changes will not occur until September 1, 2025.
- Comments were filed by ERCOT in response to input from the Solar Energy Industries Association.
- Discussion on possible tabling of the proposal to allow for additional NPRR revisions.
- Concerns were raised about the overlap with another NPRR concerning voluntary REC attributes.
- Agreement to potentially table the decision until further discussions and revisions can be completed.
- Clarification sought on effective dates and protocol modifications with use of gray boxes for transitions.
10.2 – NPRR1251, Updated FFSS Fuel Replacement Costs Recovery Process
- Motion to request PRS continue to table NPRR1251 for further review by the RCWG added to the combo ballot.
- ERCOT aims to clarify the process for resources providing fuel supply services to restock reserved fuel using existing fuel inventories.
- Compensation is provided for fuel utilized, either through new purchases within 30 days or based on the fuel oil price, which includes a five-cent per gallon transportation cost.
- Katie Rich suggested referring the item to the Resource Cost Working Group (RCWG) for further review.
- There was no opposition, and the proposal was moved to a combo ballot to be referred to RCWG.
11 – Revision Requests Tabled at PRS and Referred to WMS – Possible Vote – Eric Blakey
- Discussion focused on the status of current revision requests tabled at the Protocol Revision Subcommittee (PRS).
- Eric Blakey emphasized the necessity to review each request in detail to understand the impact on market operations.
- Debate over the priority of revision requests that have been referred to the Wholesale Market Subcommittee (WMS).
- Consideration of feedback from stakeholder engagements and its influence on decision-making.
- Potential vote on whether to advance revision requests from tabled status depending on WMS recommendations.
11.1 – NPRR1070, Planning Criteria for GTC Exit Solutions
- No new updates were provided for NPRR1070.
11.2 – NPRR1200, Utilization of Calculated Values for Non-WSL for ESRs – MWG
- No new updates were provided for NPRR1200.
11.3 – NPRR1202, Refundable Deposits for Large Load Interconnection Studies – WMWG
- WMWG’s involvement with NPRR1202 has been removed.
- Currently waiting on updates from the large load task force.
- Item to remain tabled at WMS.
11.4 – NPRR1214, Reliability Deployment Price Adder Fix to Provide Locational Price Signals, Reduce Uplift and Risk – CMWG
- Discussed in the report by Alex.
- Recommendation was to keep the item tabled.
- Red lines to be discussed at the next meeting.
11.5 – NPRR1229, Real-Time Constraint Management Plan Energy Payment – WMWG
- Discussions are ongoing between STEC and ERCOT regarding NPRR1229.
- A report or update will be presented next month.
- There were no further discussions or comments during this meeting.
11.6 – NPRR1235, Dispatchable Reliability Reserve Service as a Stand-Alone Ancillary Service – SAWG and WMWG
- SAWG and WMWG had in-depth discussions on NPRR1235.
- Consensus reached to consolidate discussions at SAWG instead of WMWG.
- Pending policy issues need addressing before proceeding or presenting to the commission.
- Michael Jewell emphasized addressing DRRS as a resource adequacy tool by the commission first.
- Some concerns raised about taking preemptive actions without policy clarity.
- Stakeholder process improvements needed for board input, ensuring feedback inclusion.
- Caitlin Smith highlighted the importance of recognizing ongoing discussions in board presentations.
- John Ross Hubbard emphasized policy issues should be addressed by the commission, not stakeholders.
- WMS will continue monitoring SAWG discussions and looking for policy-related opportunities.
11.7 – NPRR1238, Voluntary Registration of Loads with Curtailable Load Capabilities – WMWG
- NPRR1238 was mentioned in the WMWG report.
- There is a request for NPRR1238 to remain tabled.
- Comments from ERCOT are pending regarding NPRR1238.
11.8 – NPRR1241, Firm Fuel Supply Service FFSS Availability and Hourly Standby Fee – WMWG
- NPRR1241 was discussed by WMWG.
- WMWG requested that NPRR1241 remain tabled for further discussion.
12 – Combo Ballot – Vote – Eric Blakey
- Motion to approve combo ballot carries unamiously.
13 – Other Business – Eric Blakey
13.1 – Review Open Action Items – Jim Lee
- Mentioned a couple of important points relating to open action items.
- Discussion involved reviewing the status and progress of pending tasks.
13.2 – Update Future Large Load Interconnection Reports
- Discussion on the current status of the large load interconnect report.
- Indication of moving forward to the next agenda topic regarding the removal of parking lot items.
- Discussion on revising TAC assignments under current purview, particularly regarding EPA regulation assignment.
- Consideration of whether future EPA regulations should be reviewed by WMS as a regular role.
- NPRR1230 recently approved; discussion on keeping it on the list due to lack of progress on shadow price caps and IROLS.
- Large load interconnection report to be discussed under TAC henceforth, with suggestions for formalization.
- Proposal to create a formal report in the protocols that retains customer confidentiality while providing aggregated data.
- Discussion on how to incorporate additional specificity into reports without compromising customer information.
- Division on whether formal protocols are necessary for reports or if they should be more flexible.
- Agreement to continue reporting as long as it is deemed helpful, even if not mandated by protocols.
- Acknowledgment that TAC prefers reports to be handled at their level to avoid multiple venues.
- Potential assignment to a working group, potentially WMWG or SAWG, to handle specifics of the report.
13.3 – Proposal to Remove Parking Lot Items from Monthly WMS Agenda
- Concerns about parking lot items dating back to 2018 and 2019 that have not been addressed.
- Acknowledgment that these items were important at the time but have been inactive since.
- Suggestion to remove dormant parking lot items from the agenda to streamline focus.
- Future important items can be re-added with better refinement if they become relevant again.
13.4 – 2025 ERCOT Membership/Segment Representative Elections
- Leadership proposed clearing items they believe are outdated or unexamined by working groups.
- David Dietlidge asked if posting of wholesale storage load in various reports resolves corresponding issues.
- Concern that the ‘parking lot’ list has been largely ignored for over two years, creating a false sense of progress.
- Suggestion made to set a deadline for members to speak up if they want to keep any items on the list.
- Decision to delay action on the list until the next meeting, allowing more discussion.
- Information about the upcoming 2025 membership and segment representative elections was provided by Pamela.
- Key dates include November 1 as the date of record and elections beginning the following Tuesday.
- Members were encouraged to log in, sign up, and pay fees to ensure membership for the upcoming year.
13.5 – No Report
- There were no reports for this agenda item.
- The next meeting is
- s planned to be in person, scheduled for November 6th.