VCMRR005

    Summary

    Title: Fuel Index Price for Resource Definition and Real-Time Make-Whole Payments for Exceptional Fuel Cost Events
    Next Group:
    Next Step:
    Status: Approved on 12/18/2014
    Effective Dates: 01/01/2015 – Section 7
    05/01/2015 – Grey-box Section 7 until system implementation of NPRR664

    Action

    Date Gov Body Action Taken Next Steps
    12/18/2014 TAC Approved
    11/20/2014 TAC Deferred/Tabled TAC for consideration
    10/29/2014 WMS Recommended for Approval TAC for consideration

    Voting Record

    Date Gov Body Motion Result
    12/18/2014 TAC To approve VCMRR005 as recommended by WMS in the 10/29/14 WMS Report and as amended by the 11/14/14 ERCOT comments; with an effective date of January 1, 2015 for the "Verification for Real-Time Make-Whole Payments for Exceptional Fuel Costs" provision and to discontinue the manual workaround of this section on May 1, 2015 (grey-box); and for VCMRR005 to be effective upon system implementation of NPRR664 of which ERCOT will revisit with TAC the rank and priority prior to project initiation. Passed
    11/20/2014 TAC To table VCMRR005 for one month. Passed
    10/29/2014 WMS To recommend approval of VCMRR005 as submitted. Passed

    Vote tallies here reflect individual votes, not the weight of the votes by market segment. Affirmative votes are not recorded in these vote tallies. For additional details on the voting record, please consult the Recommendation or Action Report, or the official vote tally if available, as posted in the key documents.

    Background

    Status: Approved
    Date Posted: 10/27/2014
    Sponsor: RCWG
    Urgent: Yes
    Sections: Sections 1, 2, 3, and 7; Appendices 3, 5, 6, 7, 8 and 9.
    Description: This Verifiable Cost Manual Revision Request (VCMRR) will modify the Verifiable Cost Manual to incorporate the Fuel Index Price for Resource (FIPRr) and Real-Time Make-Whole Payment for exceptional fuel cost provisions. Resources may designate FIPRr based on the Gas Daily’s Waha index price (Waha Fuel price (WFP)), or the weighted price of the Gas Daily Fuel Index Price (FIP) and the WFP. The default FIPRr shall be the FIP. Resources that designate FIPRr based on WFP or the weighted price must submit documentation to ERCOT indicating such designation and provide proof of physical delivery from such areas, as described in the Verifiable Cost Manual. In addition, this VCMRR modifies the Verifiable Cost Manual to specify the verification requirements for the Real-Time Make-Whole Payment provision.
    Reason: Market efficiencies or enhancements Other: Revises the Verifiable Cost Manual to incorporate and provide the appropriate verification for FIPRr and Real-Time Make-Whole Payment for exceptional fuel cost provisions.

    Key Documents