Issues

NPRR181

Summary
Action
Voting Record
Background
Key Documents

Summary

Title	FIP Definition Revision
Next Group
Next Step
Status	Approved on 01/19/2010

Action

Date	Gov Body	Action Taken	Next Steps
01/06/2010	TAC	Recommended for Approval	ERCOT Board consideration of NPRR181
11/19/2009	PRS	Deferred/Tabled	PRS language consideration
12/17/2009	PRS	Recommended for Approval	TAC consideration of NPRR181
06/18/2009	PRS	Deferred/Tabled	PRS language consideration
01/19/2010	BOARD	Approved	Parking Deck - Impact Analysis and budget review

Date

Gov Body

Action Taken

Next Steps

01/06/2010

TAC

Recommended for Approval

ERCOT Board consideration of NPRR181

11/19/2009

PRS

Deferred/Tabled

PRS language consideration

12/17/2009

PRS

Recommended for Approval

TAC consideration of NPRR181

06/18/2009

PRS

Deferred/Tabled

PRS language consideration

01/19/2010

BOARD

Approved

Parking Deck - Impact Analysis and budget review

Voting Record

Date	Gov Body	Motion	Result
01/06/2010	TAC	To recommend approval of NPRR181 as recommended by PRS in the 12/17/09 PRS Recommendation Report.	Passed
11/19/2009	PRS	To table NPRR181 for one month.	Passed
12/17/2009	PRS	To recommend approval of NPRR181 as submitted; to recommend a priority of High and to forward NPRR181 to TAC.	Passed
06/18/2009	PRS	To table NPRR181 until the "parking deck" issue for NPRRs determined not to be necessary prior to the Texas Nodal Market Implementation Date is resolved.	Passed
01/19/2010	BOARD	To approve NPRR181 as recommended by TAC in the 1/6/10 TAC Report.	Passed

Date

Gov Body

Motion

Result

01/06/2010

TAC

To recommend approval of NPRR181 as recommended by PRS in the 12/17/09 PRS Recommendation Report.

Passed

11/19/2009

PRS

To table NPRR181 for one month.

Passed

12/17/2009

PRS

To recommend approval of NPRR181 as submitted; to recommend a priority of High and to forward NPRR181 to TAC.

Passed

06/18/2009

PRS

To table NPRR181 until the "parking deck" issue for NPRRs determined not to be necessary prior to the Texas Nodal Market Implementation Date is resolved.

Passed

01/19/2010

BOARD

To approve NPRR181 as recommended by TAC in the 1/6/10 TAC Report.

Passed

Background

Status:	Approved
Date Posted:	Jun 10, 2009
Sponsor:	Luminant Energy Company LLC
Urgent:	No
Sections:	2.1
Description:	This Nodal Protocol Revision Request (NPRR) revises the definition of Fuel Index Price (FIP) to correctly account for the timing difference between ERCOT’s application of the FIP in its systems (midnight to midnight) and the timing of natural gas prices reflected by the index (i.e., 10 AM to 9 AM). The fuel price index published in Gas Daily, in the Daily Price Survey, under the heading "East-Houston-Katy, Houston Ship Channel" for any particular day reflects natural gas prices available to users from hour ending 10 AM of the particular day to hour ending 9 AM of the next day (i.e., the normal "gas day"). This NPRR also adds a new definition for the term "Gas Day." This NPRR also proposes non-substantive administrative changes, such as correcting acronym and defined term usage and section references. These are shown below with the author "ERCOT Market Rules."
Reason:	Currently, the FIP is defined as the midpoint price expressed in dollars per million British thermal units ($/MMBtu), published in Gas Daily, in the Daily Price Survey, under the heading "East-Houston-Katy, Houston Ship Channel." However, this definition fails to recognize that the fuel index price effectively changes at hour ending 9 AM each day for current day. That is, the index price published today for gas delivered beginning at hour ending 10 AM today reflects actual gas trades made yesterday. Thus, the published index price represents the price for the "gas day", which goes from hour ending 10 AM on one day (the day of publication) to hour ending 9 AM on the next day (see graphic below). The current FIP definition fails to take this time differential into account because ERCOT’s Settlement systems apply the FIP from midnight to midnight.