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August 27, 2015 Technical Advisory Committee (TAC) Update to RMS

Summary of key updates from ERCOT's Technical Advisory Committee's August 2015 meeting, including NPRR approvals, implementation discussions, and upcoming initiatives.

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August 27, 2015 Technical Advisory Committee (TAC) Update to RMS

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  1. August 27, 2015 Technical Advisory Committee (TAC) Update to RMS Kathy Scott TAC Update to RMS

  2. ERCOT Board Update • August 11, 2015 Board Meeting: • All Revision Requests submitted by TAC to the ERCOT Board was approved through a consent vote. • Meeting was Uneventful! TAC Update to RMS

  3. PRS Initiatives and Votes • Nodal Protocol Revision Requests (NPRRs) • NPRR704, Revisions to the Size of Aggregate Generation Resources- Unanimously Approved by TAC • Discussion of Implementation of Revision Requests via ERCOT Manual Processes: • Concerns voiced was cost of implementing automated processes for projects that were expected to be short-term or stop gap solutions. • ERCOT seemed to be advocating for more automated processes that increases overall project costs, ERCOT’s response was they are trying to mitigate risk to the market and ERCOT’s reputation. • Action Item for PRS: Conduct additional discussions and come back to TAC with recommendations, per TAC Leadership Consider how the market should mitigate risk? TAC Update to RMS

  4. Tabled and/or Withdrawn Revisions • Request Previously Tabled at TAC (Possible Vote): • RMGRR129, Revision to Customer Rescission Completion Timeline • 8/27/15: TAC Unanimously Approved with an implementation date of October 1, 2015 that was unanimously approved by RMS and recommended by the MarkeTrak Taskforce. • VCMRR007, Alignment with NPRR699, Energy Offer Curve Caps for Make-Whole Calculations for Resource Type Other • 8/27/15: TAC Unanimously Approved • VCMRR008, Alignment with NPRR700, Utilizing Actual Fuel Cost in Startup Offer Caps • 8/27/15: TAC Unanimously Approved TAC Update to RMS

  5. ROS and WMS Initiatives and Votes: • Reliability Operations Subcommittee (ROS) • RRGRR006, Clarification of Descriptions and Alignment with Resource Asset Registration Forms (Vote) • 8/27/15: TAC Unanimously Approved. • RRGRR006 will need to go before the Board for final approval because of it includes cost impacts to implement. • Wholesale Market Subcommittee (WMS) • SAWG Update on Real-Time Co-optimization • WMS, and maybe ROS, will need to do a deeper dive into this project and on the cost issues can ERCOT refine their cost estimates? • Can changes that have already occurred in the market impact the estimates that ERCOT has previously completed? • Cost Estimates will need to be performed by both Market Participants and ERCOT that will be discussed at TAC in a couple of months. TAC Update to RMS

  6. RMS/COPS Initiatives and Votes • Retail Market Subcommittee (WMS) • RMGRR131, Guidelines for Notification of Invoice Dispute (Vote) • 8/27/15: TAC Unanimously Approved • NOTE: These changes were implemented and effective on Tuesday, September 1, 2015 • Commercial Operations Subcommittee • LPGRR055, Extend Load Profile Model Calendar Inputs to 2030 (Vote) • 8/27/15: Unanimously Approved “Tabling”for another month to allow the implementation date to be October 1, 2015 as recommended by COPS and PWG TAC Update to RMS

  7. DREAM Taskforce Update • Distributed Resource Energy and Ancillaries Market Taskforce (DREAM) • DREAM Taskforce Update: • DREAM meeting planned each month will focus on: • September: Definitions, Reporting, Distribution Awareness, and DR Aggregation Rules • October: Interconnection Procedures, Metering, and Modeling • November: Local Pricing (Nodal), Resource Optionality • December: Compliance Metrics, Review of TAC-level Policy Cuts • January: TAC Presentation: Policy Cuts • http://www.ercot.com/content/wcm/key_documents_lists/72879/10._DER_Whitepaper_082015.docx TAC Update to RMS

  8. Ancillary Services Re-design Update • FAS (NPRR 667) • 2024 Ancillary Services requirements planning documents will be posted in a couple of weeks. • Plans are to complete by Friday, September 4th – • Cancelled August FAS meeting and rescheduled for September 21, 2015. • http://www.ercot.com/calendar/2015/9/21/73816-FAST • Planning to have Brattle report by end of October 2015 • November 9th FAS CBA presentation • http://www.ercot.com/calendar/2015/11/9/73769-FAST • Preparing comments for NPRR667 TAC Update to RMS

  9. Operations, Planning and IT Report • Reserves Analysis of Reserves and Prices • Why so High or Why so Low? • http://www.ercot.com/content/wcm/key_documents_lists/72879/12._07272015_08232015_Analysis_of_Reserves_and_Prices_TAC.pptx • Monthly Responsive Reserve (RRS) requirements in July and August 2015 • Per ERCOT the reason for variances are due to errors created by manual processes and manual inputs. • ERCOT would like to come to the market with an SCR to automate these processes to remove this risk. • Action Item: ERCOT will provide TAC with reports and analysis provided to the Board EC meetings. TAC Update to RMS

  10. Operations, Planning and IT Report • Impacts of EMS Coding Issue and Update on Communication’s Plan: • Three Options: • Discover the coding issue that ERCOT knew was a bug, ERCOT fixed it and used the next 10 days to explore impacts to the market to be prepared for questions from the Market . • Fix the bug immediately and communicate – may not know root cause, market impacts and long term affects until later • Fix the bug immediately, communicate once information is available. • Find the bug, but don’t fix until communicated with the market. • Additional Suggestion: Use the Retail Market Subcommittee’s Notification model and establish a Market Call. • TAC membership agreed that Option 1 – Fix the bug immediately and communicate to market- ERCOT may not know root cause, market impacts and long term affects until later—Use RMS Notification model and establish a Market Call to allow for Q&A. TAC Update to RMS

  11. Other Business • Revisions to TAC Procedures (Vote) • Unanimously Approved as submitted to TAC. Board will need to confirm these changes during their October meeting. • Draft 2016 Block Committee Calendar TAC Update to RMS

  12. 2015 TAC Structural Review & Goals • TAC Subcommittee Structural and Procedural Review and TAC Goals Review • Alignment of TAC Goals and Approved Revision Requests with TAC Goals and ERCOT Strategic Plan • http://www.ercot.com/content/wcm/key_documents_lists/72881/02._2015_TAC_Goals.doc • http://www.ercot.com/content/wcm/key_documents_lists/72881/02.__Revision_Request_Alignment_with_2015_TAC_Goals_081815.xls • TAC Subcommittee Structural Review • Committee Strategic Alignment • Frequency/Efficiency of Meetings • Working Groups/Taskforces • http://www.ercot.com/content/wcm/key_documents_lists/72881/03._2015_List_of_Subcommittees_WGs_TFs.v2.xls • Review of ERCOT Membership Categories TAC Update to RMS

  13. 2015 TAC Structural Review & Goals • Key Discussions and Highlights: • At the October Board the TAC Leadership will provide updates on the status of the TAC goals that align with approved revision requests. • Stressed: Working Groups and Taskforces need to get their agendas out along with any key documents posted to the ERCOT calendar 7 Days prior to meeting. • Reviewed each Subcommittees list of Working Groups and Taskforces– for the most part the major concerns were not with COPS and/or RMS’ Working Groups and Taskforces. • Discussed Meeting schedules and if there are meetings that can be combined with other meetings, held by web conference or cancelled to allow for the best use of $$$ and attendance. TAC Update to RMS

  14. 2015 TAC Structural Review & Goals • Key Discussions and Highlights: • Discussed if TAC meetings should meet on a by-monthly schedule opposite the Board Meetings or go to quarterly: • Majority of attendees didn’t support quarterly, but could support by-monthly meetings opposite the Board meetings to take care of voting items and to prepare for the Board updates. • Suggestion – Informational/update meetings could be held in between face to face meetings to address any Adhoc issues or significant market impacts. Also, could call emergency meeting(s) on an Adhoc basis. • Consensus: Keep a placeholder each month on the ERCOT calendar and plan to have face to face meetings by-monthly opposite the ERCOT Board meetings. • . • . TAC Update to RMS

  15. 2015 TAC Structural Review & Goals • Key Discussions and Highlights: • Review of ERCOT Membership Categories: • What are the different categories for membership? • Who can become a member? • Could Distributed Generation Providers be the equivalent of an Independent Generator? • ERCOT legal will look at this to determine what changes are needed if any and discuss at TAC at a later meeting. • Structural Review Discussions/Recommendations will be brought forward to the September TAC meeting! TAC Update to RMS

  16. Questions? TAC update to RMS

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