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PRR737

Summary

Title Direct Assignment of RPRS Costs
Next Group
Next Step
Status Rejected on 09/20/2007

Action

Date Gov Body Action Taken Next Steps
09/20/2007 PRS Rejected

Voting Record

Date Gov Body Motion Result
09/20/2007 PRS To recommend approval of PRR737 as submitted. Failed

Background

Status: Rejected
Date Posted: Sep 5, 2007
Sponsor: Coral Power
Urgent: Yes
Sections: 6.6.3.2.1, Specific Procurement Process Requirements for Replacement Reserve Service in the Adjustment Period; 6.8.2.2, Capacity and Minimum Energy Payments; 6.9.2, Obligations for Capacity Services Obtained in the Adjustment Period; 6.9.7.1, OOM Capacity Charge
Description: This PRR modifies the cost allocation methods for RPRS to be exactly the same as PRR676, RPRS Solution with Nodal RUC-Type Procurement and Cost Allocation, with one exception: the cap on the RPRS and Out-of-Merit Capacity (OOMC) charges is a multiple of one times the megawatts that a Qualified Scheduling Entity (QSE) is short. In PRR676, which was approved by the ERCOT Board of Directors and subsequently overturned by the Public Utility Commission (PUCT), the cap on the OOMC and RPRS charges was two times the megawatts that a QSE is short.
Reason: Currently the RPRS costs are uplifted to Load based on a Load Ratio Share (LRS). This has caused ERCOT to procure RPRS almost on a daily basis because Market Participants are not directly assigned the costs and, therefore, have no incentive to change their practice.

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