To recommend approval of NPRR581 as amended by the 12/11/13 ERCOT comments and to request that ERCOT present proposed revisions to the relevant Business Practice Manual(s) at the 1/16/13 PRS meeting.
This Nodal Protocol Revision Request (NPRR) defines "Fast Responding Regulation Service (FRRS)" and specifies that FRRS is a subset of Regulation Service. This NPRR includes the necessary clarifications for the qualification, operation and performance monitoring of Resources providing FRRS, and also specifies a maximum amount of Regulation Service for each hour that can be provided by Resources providing FRRS.
Reason:
The 12 month FRRS Pilot Project is currently scheduled to end 2/28/2014, and the implementation of future Ancillary Services as described in the "Future Ancillary Services in ERCOT" concept paper is not likely to be completed for several years. The observations from the pilot project have been positive and this NPRR provides a mechanism for FRRS to continue to be available to ERCOT and a mechanism for Resources capable of providing this service to be able to offer them into the Regulation market until the future Ancillary Service approach outlined in the concept paper is implemented.
Since the MW amounts ERCOT procures through the FRRS pilot are in addition to the MW amounts of Regulation Service that ERCOT requires each hour, FRRS has been (and currently is) an additional cost to Load. This NPRR will eliminate this additional cost and could further reduce Regulation Service costs by allowing more Resources the opportunity to compete in the Regulation Service market. Additionally, this NPRR would eliminate several manual Settlement processes associated with the pilot.