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PRR772

Summary

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

Action

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

Voting Record

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

Background

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.

Key Documents

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