Issues

NPRR164

Summary
Action
Voting Record
Background
Key Documents

Summary

Title	Resubmitting Ancillary Service Offers in SASM
Next Group
Next Step
Status	Approved on 01/19/2010

Action

Date	Gov Body	Action Taken	Next Steps
11/19/2009	PRS	Recommended for Approval	TAC consideration of NPRR164
12/03/2009	TAC	Deferred/Tabled	TAC consideration of NPRR164
11/20/2008	PRS	Recommended for Approval	PRS Impact Analysis review
01/06/2010	TAC	Recommended for Approval	ERCOT Board consideration of NPRR164
12/18/2008	PRS	Deferred/Tabled	PRS Impact Analysis review
01/19/2010	BOARD	Approved	Parking Deck - Impact Analysis and budget review
01/22/2009	PRS	Deferred/Tabled	PRS Impact Analysis review

Date

Gov Body

Action Taken

Next Steps

11/19/2009

PRS

Recommended for Approval

TAC consideration of NPRR164

12/03/2009

TAC

Deferred/Tabled

TAC consideration of NPRR164

11/20/2008

PRS

Recommended for Approval

PRS Impact Analysis review

01/06/2010

TAC

Recommended for Approval

ERCOT Board consideration of NPRR164

12/18/2008

PRS

Deferred/Tabled

PRS Impact Analysis review

01/19/2010

BOARD

Approved

Parking Deck - Impact Analysis and budget review

01/22/2009

PRS

Deferred/Tabled

PRS Impact Analysis review

Voting Record

Date	Gov Body	Motion	Result
11/19/2009	PRS	To endorse and forward the 11/20/08 PRS Recommendation Report for NPRR164 to TAC with a priority of Medium and rank of 2.	Passed
12/03/2009	TAC	To table NPRR164 for one month.	Passed
11/20/2008	PRS	To recommend approval of NPRR164 as submitted.	Passed
01/06/2010	TAC	To recommend approval of NPRR164 as recommended by PRS in the 11/19/09 PRS Recommendation Report and with a priority of Medium.	Passed
12/18/2008	PRS	To table NPRR164 until the special 1/8/09 PRS meeting.	Passed
01/19/2010	BOARD	To approve NPRR164 as recommended by TAC in the 1/6/10 TAC Report.	Passed
01/22/2009	PRS	To table NPRR164.	Passed

Date

Gov Body

Motion

Result

11/19/2009

PRS

To endorse and forward the 11/20/08 PRS Recommendation Report for NPRR164 to TAC with a priority of Medium and rank of 2.

Passed

12/03/2009

TAC

To table NPRR164 for one month.

Passed

11/20/2008

PRS

To recommend approval of NPRR164 as submitted.

Passed

01/06/2010

TAC

To recommend approval of NPRR164 as recommended by PRS in the 11/19/09 PRS Recommendation Report and with a priority of Medium.

Passed

12/18/2008

PRS

To table NPRR164 until the special 1/8/09 PRS meeting.

Passed

01/19/2010

BOARD

To approve NPRR164 as recommended by TAC in the 1/6/10 TAC Report.

Passed

01/22/2009

PRS

To table NPRR164.

Passed

Background

Status:	Approved
Date Posted:	Nov 12, 2008
Sponsor:	Transition Plan Task Force (TPTF)
Urgent:	No
Sections:	6.4.8.2.1
Description:	This Nodal Protocol Revision Request (NPRR) revises existing rules for resubmitting Ancillary Service (AS) offers in the Adjustment Period to provide for resubmitting those AS offers not awarded in the previous markets at the higher of the Day-Ahead Market (DAM) Market Clearing Price for Capacity (MCPC) for the corresponding AS or the Resource’s offer price for the corresponding AS in the DAM.
Reason:	This AS resubmission provision was carried forward from the current Zonal Protocols where the provision was meant to mitigate against possible manipulation in the AS market. AS offers in the Zonal market are on a portfolio basis and there is no co-optimization of energy and AS in the Zonal market. However, AS offers in the Nodal market are Resource-specific and the Nodal DAM co-optimizes energy and AS. Due to co-optimization, awarded AS offers linked to energy in DAM are guaranteed to be paid the opportunity cost of providing AS instead of being awarded energy in DAM. Thus, linked AS offers in Nodal DAM should exclude any opportunity costs and, therefore, could be close to zero. On the other hand, Nodal Supplemental AS Market (SASM) is an AS-only market with no co-optimization with energy. If SASM is cleared with resubmitted linked DAM AS offers under the current rules, then the clearing price for AS will certainly not account for any opportunity cost of providing AS instead of energy. As a result, QSEs with linked AS offers in the DAM will have a strong economic incentive to expire those offers prior to any SASM. SASM are typically needed for additional AS, and QSEs expiring their AS offers will be counter-productive. This revision addresses these issues by changing the current rules for resubmitting AS offers in the Adjustment Period to provide for resubmitting those AS offers not awarded in the previous markets at the higher of the DAM MCPC for the corresponding AS or the Resource’s offer price in the DAM. In addition, the current AS offer resubmission rules are difficult to implement as part of the offer validation process -- ERCOT is still struggling to implement this complex resubmission rule. This revision changes the resubmission rules to make them simpler because the DAM AS offers are the only reference for resubmission.