Although this TAC ran long, there wasn’t anything exciting or new. Probably the most practical highlight was the ERCOT (Mark Ruane) presentation on securitization, which I have attached to the email in case you are curious about what will happen and when. All NPRRs that were recommended by the Protocol Revision Subcommittee got approved, including the NPRRs that had some significant discussion at the Protocol Revision Subcommittee (particularly NPRR1105-use voltage reduction before declaring an emergency, and NPRR1107-Weatherization fees). TAC approved the Ancillary Service methodology for 2022, with the caveat that ERCOT present some data on the cost effects at upcoming meetings. TAC also approved the $1.3B Lower Rio Grande Valley transmission project.
- Market Impact Statements/ERCOT opinions on NPRRs
- ERCOT supports all NPRRs
- NPRR1077 (Self-limiting generator related) – approved with no discussion
- NPRR1091 (Changes to fix NonSpin related pricing issues) – approved with no discussion
- NPRR1094 (Allow Under frequency relay load to be manually shed during EEA3) – approved with no discussion
- NPRR1101 (NonSpin deployment groups) – approved with no discussion (including ERCOT’s comments that true up the protocol language to the current baseline)
- NPRR1103 (Securitization for competitive entity default) – approved with one abstention, but no real discussion
- NPRR1104 (As built for Real-time liability extrapolated – RTLE- credit component) – approved with no discussion
- NPRR1105 (ERCOT can deploy voltage reduction prior to conservation notice) – Lots of concern and thought that this isn’t that good of an idea. When asked, ERCOT said that they wouldn’t implement this in most cases. This issue will be reviewed at the Reliability and Operations Subcommittee and related working groups in the future, even though it passed. (92% for, 8% against, 2 abstentions.)
- NPRR1106 (Deploy ERS prior to Energy Emergency Alert)
- NPRR1107 (Weatherization inspection fees) -There were some complaints about fairness, as this redistributed the inspection fees significantly (generally the fees got distributed more from resources that had issues to all resources and from dispatchable resources to renewable resources). It will almost certainly be changed before the next round (winter of 2022-2023) of inspections.
- NPRR1109 (Reinstate recently retired resources without gen interconnect process) There wasn’t much discussion, but there was still a significant number of abstentions and even two no votes.
- ERCOT Reports
- Lower Rio Grande Valley System Enhancement Project ($1.28 Billion Transmission project to firm up the historically weak Lower Rio Grande Valley) – 351 miles of low impedance 345kV transmission lines. Estimated to be complete by 2027.
- ERCOT presented (again) the AS Methodology for 2022. There was some continued complaints that the load side of the market feels that this is too conservative. ERCOT committed to look at what the cost impacts are at future Wholesale Market Subcommittee meetings, but NOT to base any decisions on costs.
- Alfredo Moreno presented on the Day Ahead Market price correction that will be presented to to Board of Directors for approval at the December 9th meeting. The error was due to a mismodeling of the NE_LOBO generic transmission constraint in the Day Ahead Market (in south Texas) (it was okay in the real time market/energy management system). There were eight days that met the criteria for price correction, Operating Days September 30th and October 6th-12th. The largest daily settlement change to an individual counter party was a change of $94.6k on October 10th.
- Securitization Update
- Securitization webpage will be up on ercot.com pretty soon
- Dates of M (competitive default securitization) are pretty locked now
- Dates of N (securitization of high ancillary service charges and reliability deployment adder uplift during the event) are still slightly in flux.
- Lots of good information regarding Securitization; the presentation was very concise, best to just go look at the source material if you are interested.
- FFR Advancement –
- Implementation still TBD; no earlier than release 3 (May 2022)
- December 7th technical workshop
- Kenan apologizes – ERCOT (Kenan Ogelman) apologized for dropping urgent NPRRs only a day before the Protocol Revision Subcommittee meeting. He is sorry and promises to do better.