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NPRR018
Summary
Title | Separate LaaR and Generator MCPCs for RRS |
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Next Group | |
Next Step | |
Status | Rejected on 01/04/2007 |
Action
Date | Gov Body | Action Taken | Next Steps |
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01/04/2007 | TAC | Rejected | |
12/14/2006 | PRS | TAC consideration | |
11/16/2006 | PRS | PRS consideration. | |
08/17/2006 | PRS | Referred | TPTF review |
Voting Record
Date | Gov Body | Motion | Result |
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01/04/2007 | TAC | To recommend approval of NPRR018 as recommended by PRS. | Failed |
12/14/2006 | PRS | Recommend approval of NPRR018 as revised by the latest consolidated comments with an effective implementation date to be determined by the nodal team based on value engineering. The motion passed with one opposing vote from the Independent Retail Electric Provider (IREP) Market Segment and three abstentions from the Independent Power Marketer (IPM)(1) and Consumer (2) Market Segments. All Market Segments were present for the vote. | Passed |
11/16/2006 | PRS | To defer consideration of NPRR018 to allow ERCOT additional time to develop the IA and bring to PRS a detailed explanation of the 6-8 week projected delay and $500K-$1M cost estimate. | Passed |
08/17/2006 | PRS | To refer to TPTF to review completeness. | Passed |
Background
Status: | Rejected |
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Date Posted: | Aug 11, 2006 |
Sponsor: | |
Urgent: | No |
Sections: | 4.5.1, 4.5.3, 4.6.4.1.3 |
Description: | Modify the nodal protocols to provide separate RRS MCPCs for LaaRs and generators when the service is oversubscribed by LaaRs, as per the WMS vote taken on May 17, 2006. |
Reason: | Over the past several months the DSWG and WMS have been working on the problems associated with large negative offers being submitted by LaaRs for RRS service. Many LaaRs were submitting large negative RRS offers to ensure they would be selected to provide the service and receive the MCPC. The MCPC is typically a positive number set by offers from generators. However, if a negative offer ever actually sets the MCPC, then suppliers of RRS would be obligated to pay potentially large amounts of money to the market, causing credit concerns. A short-term solution has already been implemented in the current market. LaaRs are precluded from bidding below $0 per MW and this provision has a sunset date of January 1, 2007. In addition, the DSWG developed three alternatives for WMS to consider: Eliminate the sunset date currently in Protocols Eliminate the sunset date in the Zonal Protocols and implement Alternative C (described below) in the Nodal Market Design Implement Alternative C in the Zonal Protocols and in the Nodal Market Design WMS voted to approve option 2. PRR671 is currently pending and if passed will eliminate the sunset date in the current zonal market. Alternative C provides a separate MCPC for LaaRs and generators if the quantity of LaaRs offered exceeds the quantity of LaaRs cleared. LaaRs would be paid the LaaR MCPC and generators would receive the generator MCPC. Load-Serving Entities would pay an average of the two MCPCs for RRS procured by ERCOT on their behalf. This NPRR is being submitted now to allow ERCOT to include it in the nodal market business requirement documents being submitted to vendors. |
Key Documents
Aug 11, 2006 - doc - 153 KB
Aug 16, 2006 - doc - 49.5 KB
Aug 16, 2006 - doc - 109 KB
Aug 22, 2006 - doc - 137 KB
Sep 18, 2006 - doc - 120 KB
Nov 13, 2006 - doc - 393.5 KB
Nov 16, 2006 - doc - 103.5 KB
Nov 16, 2006 - doc - 54 KB
Nov 17, 2006 - doc - 146 KB
Dec 19, 2006 - doc - 456.5 KB
Jan 9, 2007 - doc - 458.5 KB