Today’s Wholesale Market Subcommittee was very long and chock full o’ content.
- FFR Implementation likely delayed
- NPRR1096(battery duration for ECRS and NonSpin) being changed by ERCOT, to be discussed at ROS and PDCWG (2 hours for ECRS and 4 hours for NSRS)
- Securitization -all details in a great presentation (presentation attached).
- NPRR1099(Move some resource nodes if POI moves) – Some market participants predictably upset with the entire concept.
- NPRR1084 (Reporting Outages and Derates) – Probably changing to need to report if more than 5% derate, report within the hour. To be discussed at WMWG
- Possible price correction because ERCOT mis modeled the North Edinburg GTC.
- 2022 AS Methodology presented, but NOT endorsed. Most concern about continued flexibility to buy an additional 1000MW of NonSpin a couple days ahead of a high variability day.
- WMWG to look at need for/feasibility of 1 minute SCED runs and 15 minute DAM intervals.
FFR Implementation: The proposed implementation of the new FFR system, which would require system changes for every market participant that wants to offer RRS, whether they offer FFR or not, went over like a lead balloon. Many, many mps complained that they would not be able to implement the required changes to their systems by the proposed date of early December. ERCOT seemed receptive to this and the date will likely be pushed back by a few months.
NPRR1096 (6 hour duration for batteries providing ECRS and NSRS): THere was a lot of complaints about this NPRR at WMWG. ERCOT has filed comments to the NPRR backing the requirement to two hours for ECRS and four hours for Non Spin. In my opinion, what ERCOT really needs is state of charge and duration to be baked into the DAM auction engine via constraints, but until that system change takes place, they will probably need something like this, or else battery offers will not be physical. This should be discussed at ROS and PDCWG before it comes back to WMWG.
NPRR1099 (allow ERCOT to move resource node locations in more circumstances) – ERCOT continues on its quixotic quest to get the flexibility to move resource node locations. In this case, they are most concerned that when NPRR1016 gets implemented and the point of interconnection for some distributed generation resources moves up to the transmission level, they (ERCOT) want to move the resource node as well. Morgan Stanley (Clayton Greer) and Bob Wittmeier (consultant representing Broad reach and Denton among others) are concerned that this is the camel’s nose under the tent and if approved ERCOT will be moving resource nodes willy nilly, hither and yon.
Securitization Update: ERCOT (Mark Ruane with an assist from Sean Taylor) gave an excellent update on the status of the two securitization efforts (M – securitizing short pays caused by defaults of competitive entities, and N – securitizing bad charges to REPs during the February event). The presentation covered amounts and probable timelines (both of dispersals and charges). I strongly recommend reading the entire presentation.
NPRR1084: NRG proposed that they could live with this NPRR if the threshhold was changed to 5% (derate before reporting needed instead of the 2% as witten) and the time given was within an hour (instead of a half hour as written). THis will be discussed next as WMWG.
Possible Price Correction: The recent market notices that ERCOT sent about possible price corrections were due to a software error that caused the North Edinburg GTC to be mis modeled. ERCOT reports that the impact was under $1M.
2022 AS Methodology: ERCOT wanted a recommendation from WMS, but forgot to notice that for a vote. After a lot of discussion where some market participants were unhappy with the amount of reserves being planned for and very unhappy with ERCOT’s plan to buy more Non Spin two days ahead of “high variability” days, a vote was held for urgency, which would have allowed a recommendation vote without prior notice. The vote failed by a thin margin, thus WMS has not recommended endorsement of the AS methodology plan. While it will most likely pass, this seems to be an odd time to slap ERCOT in the face as the PUC has said that they are unhappy with the stakeholder process and want it reorganized.
1 minute SCED: Clayton Greer (Morgan Stanley) suggested that large amounts of price sensitive bit coin load could swing frequency and use up all the regulation if it all turns off at the same time (when prices spike high). He suggested that running SCED every minute (instead of every five minutes as is currently done) could improve that. Someone else suggested that maybe DAM could be run every fifteen minutes (not sure how that helps this particular issue, but whatever), so both ideas will be discussed at the next WMWG.