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Nodal Prices for Load Resources

Table of Contents

The Gist

As part of Phase 1 of the PUC’s Market Redesign efforts, the PUC called for ERCOT to “Improve transparency of price signals to load resources, including changing demand response pricing from zonal to nodal”. 

ERCOT is looking into doing so, and their initial thoughts are:

  • to first implement this only for large, single site, Controllable Load Resources (CLRs). 
  • Nodal prices for loads is a possible problem if this significantly increases the number of bidding Resource Nodes in the system.  Current software/hardware is nearing the limit of what it can handle in terms of performance.  Distributed Generation will only add to the number of Resource Nodes, so this might be a problem even without CLR resource nodes. 
  • For situations where load resources and generation resources are inherently co-located, ERCOT is currently holding a principle that the settlement $ should net the same under any proposed design as they would if the two resources were not co-located.  
  • They don’t appear to be extending this principle to 4CP, however.  
  • Finally, there remain a lot of issues still very open (do load resources have to file outages in the outage scheduler? How should the planning process adjust to large flexible load, etc.)

Important Actions

  • 12/6/21 PUC files blueprint for Phase 1 and 2 of Market Redesign 
  • 1/24/22 Initial thoughts of ERCOT presented by Sai Moorty at 1/24/22 CMWG.
  • 2/21/22 ERCOT (Sai Moorty) publishes a white paper detailing outstanding issues and concepts related to nodal prices for controllable load resources; many of which need to be thought through before an NPRR can be written.
  • 3/21/22 Further discussion at CMWG; no resolution on netting.



Meeting Notes

3/21/22 CMWG

2/21/22 CMWG

1/24/22 CMWG


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