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Exceptionally High Congestion Rent Trigger for ERCOT Investigation

This proposal highlights the issue of exceptionally high congestion rent and urges ERCOT to investigate and report the cause of such congestion. It also suggests developing strategies to resolve the issue and mitigate future recurrence.

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Exceptionally High Congestion Rent Trigger for ERCOT Investigation

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  1. Exceptionally High Congestion Rent Trigger for ERCOT Investigation Shams Siddiqi, Ph.D. Representing Georgetown Utility System (GUC) (512) 619-3532 shams@crescentpower.net CMWG Meeting March 25, 2019

  2. Background: BARL_FTSW1_1 • 35MVA 69kV binding element BARL_FTSW1_1 with contingency SWCSBOO8 had very high congestion rent for a minor line of: • $3,967,313 in February 2019 • $682,389 in January 2019 • ERCOT declared this constraint “Irresolvable” on December 31, 2018 • Surprising such very high congestion rent (that is severely hurting some resources) doesn’t automatically trigger some ERCOT investigation or at least reporting to CMWG as to the cause of such congestion and how/when they expect it to be resolved. • ERCOT action triggered when an irresolvable constraint accumulates a net margin that exceeds $95,000/MW, e.g.: • Review transmission outages and recall outages if feasible. • Review and develop RAPs or TOAPs if feasible. • Review and develop or identify RASs or transmission proposal(s) if feasible • Identify projects that will mitigate the risk of future recurrence at RTP. • However, Net Margin is based on (SPP at import side resource – 10xFIP) is not a good measure for hurt on the export side on constraint

  3. Proposal • For exceptionally high congestion rent (e.g. exceeding $10,000/MW of binding element rating in any one month), whether irresolvable or not, ERCOT shall: • Report to CMWG the cause of such congestion and how/when they expect it to be resolved. • If congestion rent has exceeded $95,000/MW of binding element rating within any 12 month period, ERCOT shall: • Review transmission outages and recall outages if feasible, • Review and develop RAPs or TOAPs if feasible, • Review and develop or identify RASs or transmission proposal(s) if feasible, and • Identify projects that will mitigate the risk of future recurrence at RTP.

  4. Request for April 1 CMWG • ERCOT present to CMWG the cause of the exceptionally high congestion and how/when they expect it to be resolved for the 35MVA 69kV binding element BARL_FTSW1_1 with contingency SWCSBOO8 • CMWG to consider Proposal for Exceptionally High Congestion Rent

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