Executive Summary
Only two issues of ERCOT market note were discussed at today’s PUC Open meeting. In a discussion on conservative operations, reliability unit commitment, and price formation the commission seemed to come to the conclusion that ERCOT needs to start deploying Non-Controllable Loads providing RRS before EEA (like they do for Emergency Response Service) and when they get that change implemented start including them in the amount of reserve capacity that they count towards the 6500MW capacity that they RUC for. (Currently they RUC so that they have at least 6500MW of generator carried reserves). ERCOT pointed out that the implementation of NPRR939 would allow them to do this. Expect that to get expedited promptly.
The other issue was a report on the fuel storage survey results.
Notes
- The Independent Market Monitor (Carrie Bivens) and ERCOT (Kenan Ogelman) were called on to discuss the possible lack of harmony between the conservative operations and price formation.
- The fact that ERCOT counts Non Controllable Load Resources towards the RRS requirement for Day Ahead procurement, but not towards the ~6500MW of up reserves that they will RUC for was highlighted and the commissioners definitely took note.
- Kenan said that once NPRR939 gets implemented (group load RRS into 500MW buckets) they will be able to deploy RRS before EEA and thus count it in the 6500MW that they RUC for.
- ERCOT (Jeff Billo) put some color around their filing of how much fuel storage is available in ERCOT.
- Bucket 1: Dual fuel capable with operational storage tanks (4400MW with 72 hour capacity, 3900MW if measured at 96 hour capacity; 500MW of which is associated with black start resources)
- Bucket 2: Dual Fuel capable, but inoperational dual fuel infrastructure (18 resources at 6 sites, ~2100MW at 72-96 hours; 5 of the 6 sites pessimistic about their ability to become operational)
- Bucket 3: Gas storage with generator owned pipeline to a resource (two resources, one with owned storage -550MW and one with contracted storage -240MW)
