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Technical Advisory Committee (TAC)

Table of Contents

Executive Summary

The HVAC wasn’t the only thing broken at the August TAC meeting, as even after three ballots, TAC failed to endorse any version of the 2027 AS Methodology; not the ‘buy more than ERCOT asked for’ 0% risk credit version, not the ‘buy more than ERCOT asked for with a nod to consumers’ 0% risk credits and modified ERCS/NonSpin constraint version, and not even the ‘buy what ERCOT asked for’ version (though that got pretty close to passing).  This leaves the ERCOT Board in the unenviable position of having to vote on an AS Methodology without a TAC recommendation.  There was also some information on Large Loads; nothing much new, but ERCOT did say that they understood the desire for information about how much provisional baseload and studied load there is and would try to get some aggregated information to the marketplace soon after the 8/31/26 release of specific information to the TSPs.

Beyond that, PGRR144(Dynamic Models for Large Loads) was endorsed, NPRR1342(Mitigated Offer Caps for Contracts for Capacity) was endorsed and ERCOT hopes to have it and NPRR826(Mitigated Offer Caps for RMR Units) implemented by the middle of 2027. ERCOT is seeking feedback on its website redesign, there are two upcoming workshops, one for the new multi-year ERCOT Authentication redesign on 9/21/26 and one for the Ancillary Service Cost Allocation on 9/22/26.  Finally the GRIT team presented a roadmap of their projects, of which “Lookahead Commitment of ESRs” is the most interesting.

So What: The non-endorsement of any AS Methodology was novel. My money is on the Board approving it, but I think there is a chance that the PUC directs ERCOT to use something lower.  However, remember, under the current market design, Ancillary Service Plans have a fairly modest effect on scarcity pricing.  The “Lookahead Commitment of ESRs” project from the GRIT team is interesting, but very far away from any actual proposal, and my sense is that the team developing it has little to no understanding of the market implications, so ERCOT’s initial proposal will need many modifications.

Agenda

Video

Ballots

Notes

  • Ancillary Service Methodology
    • ERCOT presented their reasons for wanting the 2027 Ancillary Service Methodology approved as submitted.
    • There was a lot of discussion about ECRS and NonSpin levels (Regulation and RRS were non controversial)
    • Many generators focused on the risk credits issue.
      • ERCOT has determined that they can buy less ECRS and NonSpin if under similar situations excess unpaid capacity has been on the system.
      • Generators argued that whether the capacity has been provided for free in the past or not, need is need and should be purchased.
      • Tl/dr; generators wanted 0% risk credits which would increase the amount of ancillary service purchased.
    • Another issue that was brought up was the fact that ERCOT compares the amount of ECRS and NonSpin to the amount of RRS and Regulation Up and if ECRS + NonSpin < RRS + Reg Up, they add more ECRS and NonSpin to the plan until they are equal.
      • The idea is that the ECRS and NonSpin would enable ERCOT to ensure that it was capable of replenishing RRS and RegUp within the NERC required 30 minutes should they be simultaneously depleted.
      • Consumers felt this was overly conservative and the odds of RRS and Regulation Up being simultaneously depleted are infinitesimal.
      • Tl/dr; consumers wanted the ECRS + NonSpin < RRS + Reg Up relaxed in a way that would have ERCOT buy less ECRS and NonSpin.
    • A generator version of the AS Methodology with 0% risk credits failed
    • A compromise generator/consumer version of the AS Methodology with 0% risk credits and an ECRS + NonSpin > RRS constraint failed.
    • The ERCOT submitted version almost passed, but there were too many abstentions, so it failed as well.
    • Unless there is a special TAC meeting to re vote on the issue, the September Board will have to vote on the AS Methodology without a TAC recommendation.  I believe this is the first time this has happened.
  • Large Loads
    • ERCOT will issue a provisional classification (to the transmission/distribution service providers) of which large loads are baseload, which are studied load and which are not in batch zero next week (8/31/26)
      • ERCOT will then release that information aggregated in some way after that.  The date and forum has not been determined yet.
    • Interconnecting Large Load Entities (ILLEs) will have 24 days from when they receive a question from ERCOT about their dynamic model to cure the identified problem
    • The questions in the community impact RFI (i.e. are you going to be a good neighbor) will be filed at the PUC.
  • Batch One+ and Comprehensive Transmission Plan
    • There will be a workshop on Monday, 8/31/26 where ERCOT will talk about the initial draft scope of the project.
    • ERCOT hopes to get to the April 2027 Board meeting
    • The Comprehensive Transmission Plan is the stakeholder engagement topic for the September Board of Directors meeting
  • NPRR1214(Nodal Reliability Deployment Price Adder)
    • Approved on the combination ballot
    • Market Participants requested that it be implemented quickly, even having some easy parts implemented early.
      • ERCOT agrees that there are things about 1214 that it likes, but that it would have to fit in among the higher priority firming (NPRR13228) and DRRS (NPRR1309, NPRR1340) implementation efforts.
    • There will be updates on implementation at PRS meetings.
  • PGRR144(Dynamic Models for Loads)
    • Texas Industrial Electric Consumers (TIEC) would like the non-computational loads to be removed from the requirements to submit dynamic models or at the least allow them to submit the models to the TSPs rather than to ERCOT.
      • Their request was denied.
      • Many people like the idea of having a portal where loads can submit their models and other required documents.
  • NPRR1342(Mitigated Offer Cap for Contracts for Capacity) and NPRR826(Mitigated Offer Caps for RMR Resources)
    • ERCOT hopes to have these implemented in mid 2027
  • PUC Staff Update
  • ERCOT website redesign
    • ERCOT wants feedback.  If you like filling out surveys go to this link.
  • ERCOT Identity Management
    • There will be a seminar on 9/21/26 to discuss how ERCOT is changing its access to ERCOT systems (they plan to start with a Market Participant Service Portal in Q1 2027).
  • GRIT Roadmap
    • ERCOT presented the roadmap of things that the GRIT team is exploring.  The “Look Ahead Commitment of ESRs” is the most interesting, but ERCOT did not discuss details on that program.

Discussed Issues