Meeting Summary – 11/20/2024 – TAC Meeting

1 – Antitrust Admonition – Caitlin Smith

2 – Stakeholder Process and Communication Discussion – Caitlin Smith

2.1 – ERCOT Board/Stakeholder Engagement Update – Rebecca Zerwas/Ann Boren

Board Stakeholder Engagement Update (11.24 TAC) (002).pdf

• ERCOT is continuing to enhance stakeholder communications with the PUC and the board by implementing several new practices.
• Increasing information on revision requests with opposing votes and adding substantive information in TAC reports.
• Introduction of TAC leadership briefings with R&M leadership is seen as a positive reform move.
• ERCOT Board Chairman, Bill Flores, expressed appreciation for stakeholder engagement and highlighted efforts to improve protocol processes.
• Plans are underway to improve board familiarity with stakeholders and expand stakeholder engagement opportunities beyond 2024.
• Rebecca Zerwas explained the aim for greater direct interaction between stakeholders and the board, especially independent directors.
• Concerns were raised about avenues for stakeholders to address issues at the board level and requests for board member meetings to be facilitated.
• The board aims to expand engagement sessions in 2025 and improve discussion towards strategic objectives and policy issues.
• Board engagement sessions are planned to be more formalized with prior information sharing and potential virtual formats.
• ERCOT is committed to ongoing processes to enhance board-stakeholder interactions for high-impact projects.
• Feedback from stakeholders emphasized appreciation of the engagement process and requests for more interactions with board members.

3 – Approval of TAC Meeting Minutes – Vote – Caitlin Smith

3.1 – October 30, 2024

• Motion to approve the October 30, 2024 TAC meeting minutes as presented added to the combo ballot.

4 – Review of Revision Request Summary/ERCOT Market Impact Statement/ Opinions – Ann Boren/IMM

4-revision-request-summary-112024_rev3.pdf

• 15 revision requests on the TAC agenda this month.
• NPRR1239 has a $50k-$100k impact, NPRR1240 has a $40k-$60k impact, and NPRR1247 has a $360k-$440k O&M impact.
• 4 revision requests in the regulatory category, and 11 for general system process improvements.
• ERCOT supports all revision requests and provided positive market impact statements.
• Credit finance subgroup review found no credit impacts for any NPRRs.
• IMM has mostly no opinion but supports NPRR1247 and NPRR1180, conditionally supporting associated PGRR107.
• IMM changed their stance from no opinion to support NPRR1190.
• Discussion focused on the importance of PGRR107 related to NPRR1180, emphasizing the need for incorporating forecasted load in planning analysis.
• Concerns raised about ERCOT’s use of forecast data, stressing the need for discretion and accuracy.

5 – PRS Report – Diana Coleman

PRS Presentation to TAC 112024.pdf

• Motion made by Bob Helton and seconded by David Key to waive notice on NPRR1239, NPRR1240, NPRR1246, NPRR1247, and NPRR1254 approved unanimously with no abstentions.
• Confirmation that the notice is officially waived, allowing subsequent motions to be made regarding these NPRRs.
• Agreement to handle unopposed revision requests before addressing more contentious issues.
• Five proposed recommendations for tax consideration were discussed.
• Two recommendations are unopposed and have no impact.
• A proposal from ERCOT involves adding language related to energy storage resources.

5.1 – NPRR1239, Access to Market Information – Waive Notice

• Motion to recommend approval of NPRR1239 as recommended by PRS in the 11/14/24 PRS Report added to the combo ballot.
  • Discussion of NPRR1239, which relates to access to market information.
  • This will not include any ECEII information.
  • NPRR1239 and NPRR1240 share a joint priority of 2025 and a rank of 4540.
  • Emphasis was placed on the close relation between the two items.

5.2 – NPRR1240, Access to Transmission Planning Information (Waive Notice)

• Motion to recommend approval of NPRR1240 as recommended by PRS in the 11/14/24 PRS Report added to the combo ballot. 
  • NPRR1240 involves moving certain transmission planning reports to the public section of ERCOT’s website.
  • Both NPRR1239 and NPRR1240 have a project priority of 2025, rank 45 for NPRR1240 and 40 for NPRR1239.
  • Unanimous approvals noted: September 12 and November 14 endorsement of reports.
  • Concerns raised about potential impacts on pipeline projects during transition periods.
  • Clarification needed on upcoming network model dates to ensure no interference with current planning.
  • General agreement to include the approvals on the combo ballot.

5.3 – NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era Waive Notice

• Motion to recommend approval of NPRR1246 as recommended by PRS in the 11/14/24 PRS Report added to the combo ballot. 
  • The proposal aims to align provisions and requirements for energy storage resources with those already in place for generation and controllable load resources.

5.4 – NPRR1247, Incorporation of Congestion Cost Savings Test in Economic Evaluation of Transmission Projects – URGENT – Waive Notice

• Motion to To recommend approval of NPRR1247 as recommended by PRS in the 11/14/24 PRS Report.
• Motion passes with 89% in favor, 3 No’s, and 1 abstention

• • Incorporation of Consumer Energy Cost Reduction test for economic project evaluation was discussed, following recent Public Utility Commission amendments.
  • There were debates on including reference white papers in protocols and approval expediency.
  • Comments from Luminant, ERCOT, and others were presented, highlighting concerns with discount factors and test designs.
  • Various stakeholders expressed the need for detail in methodology and concerns about double counting benefits.
  • Discussions included the effectiveness of a proposed 0.25 multiplier on calculated congestion cost savings.
  • Differences of opinion were noted regarding the benefits and costs to consumers, particularly concerning congestion revenue distribution.
  • ERCOT clarified process and data challenges, emphasizing system-wide gross load test as optimal currently.
  • Motion to to table NPRR1247 failed

5.5 – NPRR1254, Modeling Deadline for Initial Submission of Resource Registration Data – Waive Notice

• Motion to recommend approval of NPRR1254 as recommended by PRS in the 11/14/24 PRS Report with a recommended effective date of March 1, 2025 added to the combo ballot.
  • NPRR1254 is a proposal from ERCOT.
  • It requires resource entities to submit initial resource registration data.
  • For generator interconnection or modification projects to submit the initial resource registration data four months prior to target inclusion

6 – Revision Requests Tabled at TAC – Possible Vote – Caitlin Smith

6.1 – NPRR1180, Inclusion of Forecasted Load in Planning Analyses

• Motion to recommend approval of NPRR1180 as recommended by PRS in the 10/17/24 PRS Report and the 10/28/24 Revised Impact Analysis added to the mini combo ballot.
• Motion passed with four abstentions.

• • Discussion centered on NPRR1180, focusing on comments from various stakeholders, including OPUC, Oncor, and others.
  • OPUC highlighted the importance of accurate load projections to avoid unnecessary costs from overbuilding transmission infrastructure.
  • There’s consensus on the need for validation and substantiation of forecasted load growth, with quantifiable evidence required under commission rules.
  • Some members, like Mark and Bob, expressed support for moving forward with the NPRR, emphasizing the need for a follow-up revision to address validation process details.
  • Concerns were raised regarding transparency and standardization in projecting loads, specifically related to TDSP attestations.
  • Oncor and other TDSPs committed to increasing transparency and standardizing the attestation process, planning to develop a strawman proposal for another NPRR.
  • There was a collective acknowledgment of significant load growth and the challenges it poses, with emphasis on the need for forecast transparency to aid market participants in decision-making.
  • The motion to move NPRR1180 forward as recommended by PRS was accepted, accompanied by a related PGRR107 as recommended by ROS, with four abstentions recorded.

6.2 – NPRR1190, High Dispatch Limit Override Provision for Increased Load Serving Entity Costs

• NPRR1190 was remanded from the board and tabled at the October TAC meeting.
• A discussion focused on the need for a mechanism to prevent high dispatch limit (HDL) overrides from becoming prevalent in the market.
• A concept was proposed for an annual settlement trigger. If ERCOT exceeds a certain dollar amount in HDL override payments, a review of the language will be triggered.
• The review would aim to tighten contracts eligible for HDL settlements, ensuring these payments remain rare and do not lead to increased costs.
• It was suggested to refer the discussion to WMS or a working group for further development of the proposal details.
• There was a general consensus that this issue needs more discussion and details should be worked out at a subgroup level.
• Different stakeholders, including Blake Holt and John Russ Hubbard, expressed varying levels of concern and interest in the proposal.
• Formal comments and further discussions at WMS were recommended before taking official action.

6.3 – NOGRR264, Related to NPRR1235, Dispatchable Reliability Reserve Service as a Stand-Alone Ancillary Service

• Decision to keep NOGRR264 tabled, awaiting NPRR1235 

6.4 – NOGRR266, Related to NPRR1239, Access to Market Information

• Motion to recommend approval of NOGRR266 as recommended by ROS in the 10/3/24 ROS Report added to the combo ballot.

6.5 – NOGRR267, Related to NPRR1240, Access to Transmission Planning Information

• Motion to recommend approval of NOGRR267 as recommended by ROS in the 10/3/24 ROS Report added to the combo ballot.

6.6 – OBDRR052, Related to NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era

• Motion to recommend approval of OBDRR052 as amended by the 10/14/24 ERCOT comments; and the 7/31/24 Impact Analysis added to the combo ballot
  • ERCOT has comments on OBDRR052 specifically to clarify the use of Energy Storage Resource.
  • The comments are primarily clarifications, without substantial changes.
  • ERCOT had attempted to introduce ESR terminology extensively, but on further review with legal advisors, concluded that existing language was adequate.
  • Similar comments were addressed in NPRR1246, and PRS had included these in their report.
  • ERCOT proposed to back out some changes in NPRR and PGRR that ROS and PRS voted on to rely on existing language.
  • Additional edits for OBDRR were proposed to adjust the extensive use of ESR terminology.
  • ERCOT agreed to add four items to the combo ballot.

6.7 – PGRR116, Related to NPRR1240, Access to Transmission Planning Information

• Motion to recommend approval of PGRR116 as recommended by ROS in the 10/30/24 ROS Report added to the combo ballot.

7 – RMS Report – Debbie McKeever

• RMS did not meet in November.
• Successful implementation of Texas 5.0 and Market Track SCR817 over the weekend of November 9th and 10th.
• Seven market rules needed for implementation, including BRR, 2 system change requests, 4 retail mark guide revision requests, and tons of Texas SET change controls.
• Numerous Texas set change controls were involved, previously presented for TAC approval.
• All existing TDSPs and REPs migrated successfully; 24 new REPs, primarily DUNS plus fours.
• Initial transactional issues were encountered but mostly resolved; ongoing work with some parties to fix remaining issues.
• Acknowledgement of extensive effort and support from ERCOT, especially Dave Michelson and his team.
• It had been 12 years since the last Texas SET version release.

8 – ROS Report – Vote – Katie Rich

ROS_Update_to_TAC 11 20 24.pdf

8.1 – PGRR107, Related to NPRR1180, Inclusion of Forecasted Load in Planning Analyses

• Motion to recommend approval of PGRR107 as recommended by ROS in the 11/7/24 ROS Report added to the mini combo ballot.

8.2 – PGRR118, Related to NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era

• Motion to recommend approval of PGRR118 as recommended by ROS in the 11/7/24 ROS Report added to the combo ballot. 
  • Relation of PGRR118 to NPRR1246 was addressed.
  • Terminology improvements aim to streamline communication and reduce confusion.
  • Emphasis placed on consistency in terminology as part of the transition to a Single-Model Era.

8.3 – NOGRR268, Related to NPRR1246, Energy Storage Resource Terminology Alignment for the Single-Model Era

• Motion to recommend approval of NOGRR268 as recommended by ROS in the 11/7/24 ROS Report added to the combo ballot. 
  • NOGRR268 discussed and actions taken.
  • Noted three votes against and many abstentions on 1247, despite a special PLWG meeting.
  • 1257 tabled and referred to PDCWG, expected to return to ROS in December.
  • PLWG approved moving forward with PGRR117.
  • PGRR120, related to SSO prevention, is new and referred to PLWG and DWG.
  • NOGRR271 connected to 1257; procedural manual for DWG approved after adding missing language.
  • Next ROS meeting scheduled for December 5th, Webex only.
  • Recommendations for approval of PGRR118 and NOGRR268 by ROS mentioned.
  • Call for a break.

9 – WMS Report – Eric Blakey

WMS Report To TAC – November 20 2024 rev1.pdf

• The Q3 unregistered distributed generation (DG) report indicated a total of 2724 megawatts installed, an 80 megawatt increase over Q2.
• The 2024 settlement stability report showed no price changes in Q3.
• Upcoming capacity demand report to be presented by Pete Warrenkin in a few weeks.
• A significant topic was the CRR auction revenue distribution issue identified by ERCOT in July, requiring guidance from WMS.
• The issue was referred to WMWG, which developed three options concerning CARDallocation methodology.
• The subcommittee and working group collaborated with ERCOT and IMM to develop options before filing a protocol request change.
• A vote on these options is scheduled for the next WMS meeting.
• Tabled revision request 1250 was endorsed for approval.
• The next WMS meeting is on December 4th.

10 – Credit Finance Sub Group Report – Vote – Brenden Sager

TAC_CFSG_19Nov2024.pdf

• The meeting discussed operational NPRRs with no credit impact, EAL change proposals, system reporting and enhancements, credit updates, and regular credit exposures.
• ERCOT credit is implementing 1184 for managing interest collateral, changing from annual to monthly.
• Formatting changes in ERCOT reports are expected; users should be aware if they copy/paste from these reports.
• Discussion of automated emails for counterparty credit contacts regarding changes in LCs or surety bonds.
• Emphasis on a new form for estimating aggregate liability, driven by forward adjustment factors applied to netted real-time and day-ahead factors.
• A proposal was made for a simplified method to avoid over-collateralization by taking the highest combination of related values rather than separate max values.
• Recognizing over-collateralization issues where market participants over collateralized by tens of millions of dollars above actual exposure.
• Primary goal: avoid under collateralization while preventing unnecessary over collateralization.
• ERCOT evaluated multiple scenarios to prevent both over and under collateralization with priority given to preventing under collateralization.
• A practical and expedited implementation strategy was discussed to reduce complexities and cater to ERCOT’s limited resources.
• Highlighting the need to expedite this strategy before another major pricing event like summer 2023.
• Vote planned in support of the committee with ERCOT Credit presenting further in January.
• Monthly highlights: total expense potential exposure remains at 1.73 billion, minor drop in discretionary collateral ($3.92 to $3.82 billion), no unusual calls, adequate historical collateral postings.
• ERCOT resolved compliance issues by increasing LC limits.

10.1 – Approval of CFSG Membership

Don Meek – Habitat Energy – ERCOT CFSC Membership Application.pdf

• Motion to approve the CFSG membership addition as presented (Don Meek, Habitat Energy, IPM) added to the combo ballot.

11 – RTC+B Task Force Report – Matt Mereness

RTCBTF_TAC_Update_11202024.pdf

• Schedule for readiness and policy pieces remains unchanged, with highlights on key issues.
• Received RTC scared from the vendor and are working on integration.
• Policy issues need addressing for market readiness, including getting NPRR in place and IMM proposal walkthrough on AS demand curves.
• Market trials are set to start on May 5th, with an early release to the market in March and April for testing purposes.
• Policy issues from 2019 need to be finalized and approved by TAC, wrapped into a single NPRR.
• AS demand curves are being evaluated through simulations to determine appropriateness.
• Training updates provided, including initial training videos and training modules for operator training seminar in March.
• Discussion on AS proxy offers and decision-making on bid values.
• Simulator updates with different operational days to evaluate impacts on price and congestion.
• Ongoing analysis and adjustments to AS demand curves to improve price formation and award efficiency.
• Discussion about constraints related to AS demand curves and potential for redesigning without technical issues.
• Plan for filing NPRRs by December, aiming for a complete analysis by March with approvals in March/April.
• Concerns on ASDC policy changes and their window for implementation before Go Live date.
• Plan to evaluate simulator outputs and market trial handbooks by December.

12 – ERCOT Reports

12.1 – Segment Membership Discussion – Katherine Gross

ERCOT 2025 Membership Nov 20 TAC3_11.19.24.pdf

• Katherine Gross from ERCOT’s Legal department reviewed segment membership changes since 2014.
• A possibility for changing segment structure was discussed, with workshops potentially starting after the holidays.
• Industrial consumer segment changes and cryptocurrency/data center segment placement discussed.
• Recent legislative changes removed requirements from the Public Utility Regulatory Act, making segment definitions solely a bylaw matter.
• Total membership has increased steadily from 2014 to 2024, with 2025 seeing a slight decrease to 326 members.
• Changes in membership segments noted: increase in independent generators and industrial consumer segment, and decrease in REP segment.
• Discussion around segment definition challenges, particularly with data centers and cryptocurrency miners.
• Plans to resolve current segment issues focusing on data and cryptocurrency centers before the next membership year.
• Importance of maintaining balance among segments mentioned, with attention to not allowing any segment to dominate.
• Potential for ERCOT to look at practices from other ISOs and membership fee structures.
• Confirmation that bylaw changes would need board approval, and potentially PUC involvement.
• Intention to work collaboratively with stakeholders on segment structure, possibly requiring corporate member proposal for bylaw changes.
• Workshop planned for January to further discuss and update findings.
• A need to redefine ‘industrial consumer’ to accommodate cryptocurrency and data centers discussed.
• Acknowledgment that the issue partly arises from how industrial classification affects outage scheduling exemptions.

12.2 – Price Correction – Nov. 1, 2024 – Incomplete Weekly Database Load – Gordon Drake

• The price correction is intended to be presented to the December R&M committee and board meeting for approval.
• An issue was identified where a routine weekly database load failed, affecting real-time intervals from 12:00am to 12:30pm on November 1st.
• Market notices were issued on November 8th and November 12th to inform about the investigation and intent for approval.
• The price correction evaluation criteria involve a 2% relative impact and a $20,000 absolute impact, or a 20% or greater impact and $2,000 impact to a single counterparty.
• Two counterparties were impacted under the second criteria, with one having a maximum exposure of $2,758, equating to a 45% impact.
• The overall impact on ERCOT market settlement was $1,977, considered a very small market impact.
• The price correction will be brought to the Reliability Markets Committee on December 2 for a recommendation to the board for approval on December 3.

12.3 – Oncor Delaware Basin Stages 3 and 4 RPG Project – EIR Possible Vote – Prabhu Gnanam

Delaware Basin Stages 3 and 4 Regional Planning Group Project EIR TAC November 2024

• Motion to endorse the Oncor Delaware Basin Stages 3 and 4 Project to address reliability needs in the Culberson, Loving, Reeves, and Ward Counties in the Far West Weather Zone added to the combo ballot. 
  • Presentation by Prabhu Gnanam on the Oncor Delaware Basin Stage 3 and 4 RPG projects.
  • Project submitted by Oncor estimated at $202.2 million requiring CCN.
  • Addresses reliability issues in Culberson, Loving, Reeves, and Ward counties in Far West Texas.
  • Originated from the 2019 ERCOT Delaware Basin Study to handle load growth.
  • Incorporates local projects IDC L1, L3, and L5 for the 2024 Permian Basin reliability needs.
  • Project exceeds $100 million threshold, requiring ERCOT to present findings to TAC for board presentation.
  • Planning criteria highlighted voltage violations and power flow issues necessitating the project.
  • SSR screening showed no adverse impact on existing or planned resources.
  • Congestion and sensitivity analyses revealed no new congestion or impact from future projects.
  • ERCOT recommends board approval for the project to meet reliability needs.
  • Projected completion date is June 2027.
  • Key components include a new 345kV line from Riverton to Drill Hole and upgrades to existing lines.

12.4 – MDRPOC Update and Outage Performance Review – Fred Huang

MDRPOC Performance TAC_11202024_rev1.pdf

• An overview of 2023 outage performance was given, including aggregate resource outages and comparisons between calculated MDRPOC and approved plan outages.
• The significant impact of the 2023 ice storm on outages was noted.
• Comments from previous meetings were addressed, with a focus on tying the associated risk of MDRPOC to system reliability.
• Reviewed the MDRPOC calculation versus planned thermal outages for each day in 2023.
• Addressed the issue of plan outages exceeding MDRPOC and ensured continued support for approved outages.
• Discussed long-term load forecast impacts on MDRPOC, noting significant growth that could reduce MDRPOC.
• Emphasized the need to maintain sufficient capacity for real-time operations and future outage needs.
• Proposed a probabilistic approach for future MDRPOC calculations to better quantify risk levels.
• An ongoing project will quantify risk and refine the MDRPOC process with stakeholder input.
• Significant load forecasts might necessitate revising MDRPOC methodologies by Q2 2025.
• Several participants provided feedback and suggestions to improve transparency and efficiency in the MDRPOC process.
• Plans to continue using the current MDRPOC methodology until new methods are approved and implemented.
• Stakeholders expressed concerns over issues like the withdrawal of outages based on current approvals and advocated for improvements in the AAN process.
• The probabilistic approach’s potential for smoothing out MDRPOC volatility over time was discussed.

12.5* – Large Load Interconnection Status Update – Julie Smittman

*not an official agenda item* 

LLI Queue Status Update – 2024-11-20.pdf

• Peak load of 63,000 MW in the November 2024 queue.
• Net increase of 1,050 MW in queue capacity after including new, canceled, and co-located projects.
• Queue capacity projection for in-service dates up to 2028.
• Projects categorized by study status:
  • Orange: No studies submitted.
  • Gray: Planning studies approved.
  • Purple: Under ERCOT review.
  • Teal: Approved to energize.

Approved Load to Energize:

• 6,297 MW total approved to energize.
• 3,055 MW in Load Zone West, the rest in other zones.
• 5,000 MW from standalone projects, 1,000 MW from co-located projects.

Consumption Peaks:

• Non-simultaneous peak consumption: 3,700 MW.
• Coincident peak consumption: 2,834 MW.

Key Questions & Discussions:

• Clarification on Energized Projects:
  • Energized means approval from ERCOT and TSP, but construction may take years.
• Data Center Load Cap:
  • Discussed 1,000 MW contingency cap (PGRR115) related to stability and frequency issues.
• Segmentation of Load Zones:
  • Request to avoid grouping multiple zones under “other.”
• Ramp-Up and Forecasting:
  • Emphasis on the need for detailed ramp-up data for load forecasting and resource adequacy planning.
  • Suggestion to track and share how loads ramp up over time for better forecasting and planning for outages.

Feedback:

• Request for more data on load ramp-up and its impact on resource adequacy.
• Participants suggested that more granular data (e.g., monthly ramp data) would improve forecasting.
• Interest in expanding and standardizing the report for future TAC updates.

13 – Other Business

• Corey was requested to change the NPRR1240 motion due to a typo.
• A typo regarding Bob Helton’s discussion on item 1254 and discussed adjusting the enactment date to March 1st instead of February 1st for extra time.

14 – Combo Ballot – Vote – Caitlin Smith

• Motion to approve the combo ballot as presented passed unanimously with no abstentions.

15 – Adjourn