Clarify the Prerequisites for Adding a New Generation Resource to the Planning Models (formerly "Clarify the Prerequisites for Adding a New Generation Resource to the Planning Models and Capacity Demand and Reserves Report")
This Planning Guide Revision Request (PGRR) clarifies that ERCOT will add proposed Generation Resources to the planning models only after the Interconnecting Entity (IE) has first: (a) notified ERCOT that it has given the Transmission Service Provider (TSP) a financial commitment sufficient to fund the interconnection facilities and Notice to proceed with the construction of the interconnection; (b) notified ERCOT that it has obtained all requisite air permits from the Texas Commission on Environmental Quality (TCEQ); and (c) demonstrated that it has obtained the rights to sufficient water to operate the facility. This PGRR also requires the IE to submit all data necessary for including the proposed Generation Resource in the planning models.
Reason:
Currently, new Generation Resources are added to the planning models once an IE signs a Standard Generation Interconnection Agreement (SGIA). In the past it was assumed that signing an SGIA meant that the IE had provided a financial commitment for the interconnection facilities and that the proposed Generation Resource was likely to be constructed. However, there have been several instances where IEs signed SGIAs with no financial commitment. This has led to proposed Generation Resources being modeled in the planning cases when, in fact, these proposed Generation Resources have made no commitment to construct. Counting on these proposed Generation Resources can negatively impact the planning studies which could lead to future reliability problems.
Additionally, the air permit requirement is added to synchronize with the existing prerequisite for inclusion of new Generation Resources in the calculation of the Planning Reserve Margin.
Finally, a water supply requirement is also included to ensure that proposed Generation Resources will be able to operate.