This Nodal Protocol Revision Request (NPRR) enables participation in the Non-Spinning Reserve (Non-Spin) Service market for Load Resources whose provision of Demand response is most accurately measured and verified using a baseline performance evaluation methodology. The NPRR establishes a method for evaluating Non-Spin performance using a baseline methodology, which compares actual Load to a reliable estimate of what the Load would have been in the absence of the deployment. This NPRR also establishes new telemetry requirements for Qualified Scheduling Entities (QSEs) representing Load Resources in the Non-Spin market to allow ERCOT’s systems to monitor the status and performance of those Load Resources in Real-Time.
Reason:
Current market rules relating to Load Resource performance evaluation in Ancillary Services are limited to a methodology best described as "meter-before/meter-after" (as defined in North American Energy Standards Board (NAESB) Demand Response Measurement & Verification standards, adopted by the Federal Energy Regulatory Commission (FERC)). Under this existing methodology, a Load reduction in a deployment event is measured from the Load Resource’s static Load level at the time of Dispatch; the Load Resource must maintain such reduction throughout the event. This works well for industrial consumers with high Load factors, but can lead to either over-provision or under-provision of Demand response by other types of consumers, especially weather-sensitive Loads. NAESB and FERC standards also provide for the baseline methodology, which measures and verifies performance by comparing actual Load to a reliable estimate of what the Load would have been in the absence of the deployment.