Issues

PRR772

Title	Description of MCPE Cap and Shadow Price Cap Methodology
Next Group
Next Step
Status	Approved on 09/16/2008

Date	Gov Body	Action Taken	Next Steps
09/16/2008	BOARD	Approved
09/04/2008	TAC	Recommended for Approval	ERCOT Board consideration
08/21/2008	PRS	Recommended for Approval	TAC consideration of PRR772

Date

Gov Body

Action Taken

Next Steps

09/16/2008

BOARD

Approved

09/04/2008

TAC

Recommended for Approval

ERCOT Board consideration

08/21/2008

PRS

Recommended for Approval

TAC consideration of PRR772

Date	Gov Body	Motion	Result
09/16/2008	BOARD	To approved PRR772 as recommended by TAC.	Passed
09/04/2008	TAC	To approve PRR772 as recommended by PRS with updates to the Impact Analysis.	Passed
08/21/2008	PRS	To recommend approval of PRR772 as amended by Austin Energy comments and as revised by PRS.	Passed

Date

Gov Body

Motion

Result

09/16/2008

To approved PRR772 as recommended by TAC.

Passed

09/04/2008

To approve PRR772 as recommended by PRS with updates to the Impact Analysis.

Passed

08/21/2008

To recommend approval of PRR772 as amended by Austin Energy comments and as revised by PRS.

Passed

Status:	Approved
Date Posted:	Jul 25, 2008
Sponsor:	ERCOT Staff
Urgent:	Yes
Sections:	6.11.1, Balancing Energy Offer Cap Floor; 6.11.2, Responsive Reserve Service (RRS) Offer Cap Floor; and 7.1, Overview of ERCOT Congestion Management
Description:	This PRR clarifies ERCOT’s authority to take action to ensure that the Market Clearing Price of Energy (MCPE) does not exceed the system-wide offer cap established by the Public Utility Commission of Texas (PUCT) in PUC Subst. R. 25.505, Resource Adequacy in the Electric Reliability Council of Texas Power Region. This PRR also proposes that the methodology to make the price adjustments be described in a separate document and that Market Participants be notified of any changes in the Shadow Price caps. In addition, this PRR proposes to change the section title in Section 6.11.1, Balancing Energy Offer Cap Floor, to Balancing Energy Offer Floor, to avoid confusion. A similar change is proposed for Section 6.11.2.
Reason:	On June 17, 2008, the ERCOT Board adopted a proposal submitted by the Independent Market Monitor (IMM) and directed ERCOT Staff to implement the IMM’s recommendation, as follows: · To meet the PUCT’s recently clarified intent to have MCPEs capped at the system-wide offer cap; · To set an MCPE floor consistent with the offer floor; and · To make a downward adjustment to the Shadow Price Cap. This PRR complies with this ERCOT Board directive.