Protocol Revision Protocol Revision SubcommitteeSubcommittee

Presentation to thePresentation to the

ERCOT Technical Advisory CommitteeERCOT Technical Advisory Committee

June 3, 2004June 3, 2004

PRS SummaryPRS Summary

• 3 PRR for Urgent Status 3 PRR for Urgent Status • 11 PRRs for Approval11 PRRs for Approval• 3 PRRs for Rejection3 PRRs for Rejection• 2 PRRs Withdrawn2 PRRs Withdrawn• Note that a PRR substantially Note that a PRR substantially

revising Section 21 was submitted revising Section 21 was submitted June 2 – initial review will be at the June 2 – initial review will be at the June PRS meetingJune PRS meeting

PRR 476 – Ramp Rate Adherence PRR 476 – Ramp Rate Adherence During Local CongestionDuring Local Congestion

• Urgent Status previously grantedUrgent Status previously granted• Clarifies that ERCOT dispatch instructions will Clarifies that ERCOT dispatch instructions will

adhere to, and not exceed the ramp rates in a adhere to, and not exceed the ramp rates in a QSE’s Resource PlanQSE’s Resource Plan

• Effective upon determination of system Effective upon determination of system requirements and scheduling – earliest requirements and scheduling – earliest implementation would be EMMS 5implementation would be EMMS 5

• EMMS 3 incorporates ramp rate and SCADA data EMMS 3 incorporates ramp rate and SCADA data into dispatch instructions, PRR 499 refines that for into dispatch instructions, PRR 499 refines that for adherenceadherence

• Impact analysis depends on market input for Impact analysis depends on market input for developmentdevelopment

PRR 499 – Eliminate Fuel Shortage PRR 499 – Eliminate Fuel Shortage NoticeNotice

• Eliminates reference to “fuel curtailments” as Eliminates reference to “fuel curtailments” as a reason for either an Operational Condition a reason for either an Operational Condition Notice or an AdvisoryNotice or an Advisory

• Retains ERCOT’s ability to issue an Retains ERCOT’s ability to issue an emergency notice for reasons including fuel emergency notice for reasons including fuel shortagesshortages

• Effective July 1, 2004Effective July 1, 2004• No computer system impacts, staffing or No computer system impacts, staffing or

business function impacts, does impact business function impacts, does impact Operating Guides, operating procedures and Operating Guides, operating procedures and training, no credit impactstraining, no credit impacts

PRR 500 – OOME Down Payments PRR 500 – OOME Down Payments –Verifiable Costs–Verifiable Costs

• Applies verifiable cost recovery to OOME Applies verifiable cost recovery to OOME and ZOOME Down paymentsand ZOOME Down payments

• Specifically adds “fixed energy rates” Specifically adds “fixed energy rates” from PPAs as a verifiable costfrom PPAs as a verifiable cost

• Effective July 1, 2004Effective July 1, 2004• Requires 1 unbudgeted FTE for Requires 1 unbudgeted FTE for

settlement; minor business function settlement; minor business function impacts to add new process; no impacts to add new process; no operational impactsoperational impacts

PRR 501 – A/S Revision to Down PRR 501 – A/S Revision to Down Balancing RequirementBalancing Requirement

• Changes Protocols to account for Changes Protocols to account for Regulation Down as part of the Down Regulation Down as part of the Down Balancing requirementBalancing requirement

• ERCOT comments raise three issues:ERCOT comments raise three issues:– As recommended, PRR 501 does not integrate As recommended, PRR 501 does not integrate

with with §4.5.2§4.5.2– Accounting for BES Down “will be impossible” Accounting for BES Down “will be impossible”

because Regulation is portfolio based and BES because Regulation is portfolio based and BES is zonalis zonal

– Concerned that OOMC instructions could Concerned that OOMC instructions could cause over-commitment of unitscause over-commitment of units

PRR 501 – A/S Revision to Down PRR 501 – A/S Revision to Down Balancing RequirementBalancing Requirement

• ERCOT has submitted language in ERCOT has submitted language in comments to TAC addressing the comments to TAC addressing the concernsconcerns

• PRS recommendation – Effective PRS recommendation – Effective approximately 1 month after BOD approvalapproximately 1 month after BOD approval

• Operations risk cited – may be a “slight Operations risk cited – may be a “slight increase in the risk of running out of Down increase in the risk of running out of Down Balancing”Balancing”

• No other impacts on computer systems, No other impacts on computer systems, staffing or business practicesstaffing or business practices

PRR 502 – Aggregation of CCGTs PRR 502 – Aggregation of CCGTs Providing RRSProviding RRS

• Urgent Status – Received at May PRSUrgent Status – Received at May PRS• Allows RRS obligations awarded to CCGTs to Allows RRS obligations awarded to CCGTs to

be aggregated for all units in a block for be aggregated for all units in a block for compliance purposescompliance purposes

• PRR results from CEDI TF meeting on PRR results from CEDI TF meeting on compliancecompliance

• Effective upon system implementation; could Effective upon system implementation; could be EMMS 4(B)be EMMS 4(B)

• Computer system impacts, no staffing impacts, Computer system impacts, no staffing impacts, some impact on training and monitoring some impact on training and monitoring processesprocesses

PRR 504 – Resource Derating PRR 504 – Resource Derating ClarificationClarification

• Defines “material” derating as a reduction Defines “material” derating as a reduction of 10% of capability or 10 MWof 10% of capability or 10 MW

• Capability is the lesser of seasonal net Capability is the lesser of seasonal net capability or the asset registration capability or the asset registration informationinformation

• Effective July 1, 2004Effective July 1, 2004• No computer system impacts, no staffing No computer system impacts, no staffing

impacts, provides potential operations impacts, provides potential operations improvement, minor business function improvement, minor business function impactimpact

PRR 507 – RMR Process PRR 507 – RMR Process EnhancementsEnhancements

• Provides clarification of RMR decision timeline Provides clarification of RMR decision timeline and generator responsibilitiesand generator responsibilities

• Addresses eligible costs related to capital Addresses eligible costs related to capital expenditures allowed and not allowedexpenditures allowed and not allowed

• Provides a single process for all generation Provides a single process for all generation shut downs, regardless of whether they ask for shut downs, regardless of whether they ask for RMR status or notRMR status or not

• Review conducted at TAC’s instructionReview conducted at TAC’s instruction• Effective July 1, 2004Effective July 1, 2004• No computer system impacts, may require No computer system impacts, may require

future consultant time, no operations impactfuture consultant time, no operations impact

PRR 507 – RMR Process PRR 507 – RMR Process EnhancementsEnhancements

0 18 60

Generator provides Generator provides notice 90 days prior to notice 90 days prior to ceasing operations (60 ceasing operations (60 days on RMR renewal)days on RMR renewal)

ERCOT initial ERCOT initial needs needs

assessmentassessment

Generator prepares Generator prepares pricing informationpricing information

ERCOT final ERCOT final needs needs

assessmentassessment

Need?Need?

Generator ceases Generator ceases operationsoperations

90

Good faith negotiationGood faith negotiationUnit available for OOMUnit available for OOM

Agreement?Agreement?

YesYes

NoNo

NoNo

RMRRMRYesYes

PRR 510 – Remove PIP 134 & 158 PRR 510 – Remove PIP 134 & 158 Boxed LanguageBoxed Language

• PIP 134 – Required distribution of PIP 134 – Required distribution of System and Zonal load forecast System and Zonal load forecast through messaging systemthrough messaging system

• PIP 158 – Added info to dispatch PIP 158 – Added info to dispatch instructionsinstructions

• Consistent low priorityConsistent low priority• Effective July 1, 2004Effective July 1, 2004• No impactsNo impacts

PRR 512 – OOMC & OOME of PRR 512 – OOMC & OOME of LaaRsLaaRs

• Urgent Status previously grantedUrgent Status previously granted• Remanded by TAC to clarify Remanded by TAC to clarify

settlement calculation and verifiable settlement calculation and verifiable cost language related to LaaRscost language related to LaaRs

• Effective July 1, 2004Effective July 1, 2004• No computer system, staffing, No computer system, staffing,

business function or operations business function or operations impactsimpacts

PRR 513 – Verification of PRR 513 – Verification of Operational Model after Recurring Operational Model after Recurring

Local CongestionLocal Congestion• Urgent Status Urgent Status • Specifies communication between ERCOT Specifies communication between ERCOT

and TDSPs when local congestion occurs and TDSPs when local congestion occurs on a repeated basison a repeated basis

• Communications are to ascertain whether Communications are to ascertain whether the operational model is correctthe operational model is correct

• Effective upon ERCOT staffingEffective upon ERCOT staffing• Impacts control room operators slightly, Impacts control room operators slightly,

operations requires 0.5 FTE for analysis operations requires 0.5 FTE for analysis purposes, no impacts to computer systemspurposes, no impacts to computer systems

PRR 519 – ERCOT & TDSP PRR 519 – ERCOT & TDSP Acceptance of Customer Acceptance of Customer

Cancellation of Switch RequestCancellation of Switch Request

• Urgent Status – MIMO integrationUrgent Status – MIMO integration• Clarifies “business” days instead of Clarifies “business” days instead of

calendar days related to ERCOT/TDSP calendar days related to ERCOT/TDSP cancellationscancellations

• Conforms to actual market operationsConforms to actual market operations• Effective July 1, 2004Effective July 1, 2004• No computer system, staffing, business No computer system, staffing, business

function or operations impactsfunction or operations impacts

PRRs with Rejection PRRs with Rejection RecommendationsRecommendations

• PRR 495 – Effective of Short PRR 495 – Effective of Short Payments Owed on EALPayments Owed on EAL

• PRR 498 – Exclusion of Payment for PRR 498 – Exclusion of Payment for Black Start Service from Short Black Start Service from Short Payment ObligationPayment Obligation

• PRR 508 – Date of Congestion Zone PRR 508 – Date of Congestion Zone ChangesChanges

PRRs WithdrawnPRRs Withdrawn

• PRR 503 – Section 8 Coordination of PRR 503 – Section 8 Coordination of Resource Outage Due to TSPResource Outage Due to TSP

• PRR 516 – Curtailment Prioritization PRR 516 – Curtailment Prioritization for Wind Generatorsfor Wind Generators

Recommended TAC ActionsRecommended TAC Actions

Urgency – 502 – Aggregation of CCGTs Providing RRS -- 519 – ERCOT/TDSP – Customer Switch Request -- 513 – Verification of Operational Model

Approval – PRR 476 (Ramp Rate Adherence) PRR 499 (Eliminate Fuel Shortage Notice) PRR 500 (OOME Down Payments – Verifiable Cost) PRR 501 (A/S Revision to Down Balancing Requirement) PRR 502 (Aggregation of CCGTs Providing RRS) PRR 504 (Resource Derating Clarification) PRR 507 (RMR Process Enhancements) PRR 510 (Remove PIP 134 & 158 Boxed Language) PRR 512 (OOMC/OOME of LaaRs) PRR 513 (Verification of Operational Model) PRR 519 (ERCOT/TDSP – Customer Switch Requests)

Recommended TAC ActionsRecommended TAC Actions

Affirm Rejection PRR 495 (EFX of Short Payment on EAL) PRR 498 (Exclusion of Black Start from Short-Pay) PRR 508 (Date of Congestion Zone Changes)