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NPRR 555 NPRR 532 Aggregate Load Resource OBD

NPRR 555 NPRR 532 Aggregate Load Resource OBD. ERCOT Staff Presentation NDSWG July 29, 2013. NPRR 555: Loads in SCED 1.0. NPRR 555 represents ERCOT’s effort to find a way for demand response to contribute to price formation, with potential for implementation by Summer 2014. Timeline.

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NPRR 555 NPRR 532 Aggregate Load Resource OBD

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  1. NPRR 555 NPRR 532Aggregate Load Resource OBD ERCOT Staff Presentation NDSWG July 29, 2013

  2. NPRR 555: Loads in SCED 1.0 • NPRR 555 represents ERCOT’s effort to find a way for demand response to contribute to price formation, with potential for implementation by Summer 2014 ALR/NPRR 555

  3. Timeline • To meet summer 2014 goal, ERCOT will need to meet following market rules timeline: • May 28 Concept doc distributed to TAC/WMS/DSWG • May 31 DSWG discussion • June 6 TAC discussion • June 10 Loads in SCED Workshop I • June 12 WMS discussion • June 27 NPRR draft posted • June 28 DSWG detailed review of draft NPRR • July 3 NPRR 555 filed with preliminary IA • July 8 DSWG Subgroup – deep dive review • July 10 WMS NPRR discussion (vote deferred) • July 18 PRS NPRR discussion: Urgency granted, votedeferred • July 29NDSWG Webex • Aug. 8 Loads in SCED Workshop II • Aug. 14 WMS (vote) • Aug. 15 ROS (vote) • Aug. 22 PRS (vote) • Sept. 5 TAC (vote) • Sept. 17 BOD (vote) Today’s discussion should inform ROS endorsement vote ALR/NPRR 555

  4. High-level summary (cont.) • Eligibility to participate: LSE QSEs representing Load Resources capable of following 5-minute SCED base point instructions • Existing or new single-site Controllable Load Resources (CLRs) • Aggregate Load Resources (ALRs) (subset of CLR) • Candidates for initial participation are expected to be residential aggregations with centralized load control over AC units • QSEs/aggregators will be able to respond to base points by cycling AC units via compressor switches or thermostat control ALR/NPRR 555

  5. OBD on Aggregate Load Resources: Phase 1 • Implementation is related to adoption of NPRR 532 (CPS Energy: LR Participation in Non-Spin), and… • Other Binding Document on Aggregate Load Resources • Phase 1 of ALR integration: ALR must be composed of multiple sites within a single ERCOT Load Zone • ALRs will be assigned to a single Load in the ERCOT CIM (consistent with current Load Resources) • SCED will dispatch LRs for power balance and congestion management • For congestion management, LRs will be assigned the applicable Load Zone Shift Factor, which is an approximation • This interim approach will work as long as ALR participation remains relatively low ALR/NPRR 555

  6. ALR Evolution • Low levels of ALR participation are expected in the first few years • Limited number of LSEs with this type of DR capability • Many in DR community are citing difficulty of participation and lack of financial incentive • Nevertheless, we need a long-term plan for Network Modeling to ensure consistency with premises of Texas Nodal and Security-Constrained Economic Dispatch • ERCOT will work with stakeholders to develop a workable long-term approach to ALR modeling • May be several options including Texas Load Aggregation Points (TLAPs) • PUC Rulemaking may be necessary ALR/NPRR 555

  7. Why we’re here: NDSWG Action Items 1. How do we define the interim period? • Load Zone approach for ALRs is interim • Assuming regulatory questions are resolved, OBD proposes interim caps on ALR participation • Caps would be in place until long-term approach is developed and system upgrades are implemented • Proposed caps are: • System-wide ALR participation capped at 250 ALRs • Combined demand response capability of all ALRs within any single ERCOT Load Zone capped at 5% of the Load Zone’s summer peak demand • Are these capped at the right levels? ALR/NPRR 555

  8. Why we’re here: NDSWG Action Items 2. What information do the TDSPs need? • TDSPs have expressed concern over potential for growth in ALRs and the location of the participating loads • Growth in distribution-level DR could affect: • Firm load shed capacity at the feeder level • UFLS capacity at the feeder level • Concern not limited to ALRs; it has also been raised relative to Load Resources, ERS Loads and Distributed Generation • Not to mention 4CP, retail price response, and response to media appeals -- all much more difficult to quantify • ERCOT is committed to working with TDSPs to identify scope of issue and find solutions • Informal task force has been formed • ERCOT Staff: Woody Rickerson and Mark Patterson • We encourage NDSWG to get engaged ALR/NPRR 555

  9. Questions? ON OFF paul.wattles@ercot.com 512/248-6578 mark.patterson@ercot.com 512/248-3912 ALR/NPRR 555

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