Meeting Summary -08/15/24 Request for Proposals for Must-Run Alternatives Workshop

- CPS filed their notice of suspension of operations (NSOs) in early March.
- Three Braunig units are likely to be brought under Reliability Must-Run (RMR) service, set to retire on March 31, 2025.
- An MRA Request for Proposal (RFP) is being initiated for the period from April 1, 2025, through March 31, 2027, to find a potentially less expensive alternative to the three units.
- An open RFP process is seeking proposals from Qualified Scheduling Entities (QSEs).
- Possible alternatives include various generation resources, energy storage, other generation types, and demand response.
- NPRR885 play a critical role in the process.
- ERCOT’s Board of Directors will decide on entering into RMR or MRA agreements with a recommendation likely to occur in October or December.
- Evaluation will consider the costs, benefits, and risks associated with both RMR and MRA options.
3 – Summary of ERCOT’s Analysis – Tanzila Ahmed
- ERCOT conducted congestion analysis using UPLAN to perform an 8760 evaluation for 2025 to determine hours of overloads on key transmission lines related to an IROL.
- - Results may be subject to change upon further refinement.
  4 – Procurement Timeline
- - Initial RFP version was sent out on July 25, same date CPS filed their part three of NSO.
  - Questions regarding the RFP were received and answered by the following Monday.
  - Target date to send amended RFP package, including updated submission forms, language, must run, and governing document, is set for Wednesday, August 21.
  - Optional statements of intent to respond to the RFP are requested for better resource estimate.
  - Deadline for RFP submissions is Monday, September 9, 03:00 p.m.
  - Plan to evaluate updated RMR unit cost information alongside MRA proposals, with potential board action in October followed by contract execution.
  - A market notice will be sent post-board approval.
  5 – Key Details of the RFP
  - Numbers presented are duplicates and subject to change; final numbers to be posted on August 21 with the new RFP package.
  - Example of deployment numbers: Summer 2025 may have up to 80 deployments out of 122 contract days for Doctor MRA.
  - Maximum number of deployments and duration requirements are highlighted and may be revised.
  - Seasons have specific windows with defined duration requirements (e.g., winter season has a 5-hour window but 4-hour duration requirement).
  - Four different offer submission forms for various resources: generation, energy storage, other generation, and doctor resources.
  - Offer submission can be for one season or all seasons; ERCOT will evaluate must run alternatives submitted through the RFP process.
  - Timeline review followed by opportunity for questions.
  5.1 – Key Details – MRA Payments
- 5.2 – Key Details – Settlement
- - Costs, including standby, deployment, variable payments, and capital contributions, will be allocated based on an hourly low ratio share after the final settlement.
  - ERCOT aims to utilize existing systems for settlements if possible, otherwise, a manual process will be used.
  - If questions arise regarding compensation, stakeholders are invited to reach out for further clarification.
  5.3 – Key Details – Additional Information
- - Submitted an RFP package on July 25.
  - Identified 20 items for change in the next version of the RFP package.
  - Clarifications provided for an MRA site in a NoE service area.
  - Timeline and details for data requests at an MRI site in the NOAA service area are being worked out.
  - Changes will be posted on August 21.
  - Ramp period for doctor MRAs and other generation MRAs set to 30 minutes.
  6 – Key Questions & Responses