Meeting Summary – 08/14/24 RTCBTF Meeting

2 – RTCBTF Update and Issues Matt Mereness

• RTC+B program update
• Current focus is on development, training, market trials, and sequencing to go live.
• Plan to announce a go-live date by September
• Expected at the end of 2025 at the earliest 
• Efforts are being made to avoid extending into 2026

2.1 – Re-aligning Issues List at Sept Meeting

• Discussed the development of the go-live sequence for the program in the next few weeks.
• Integrated market readiness into the development plan, focusing on timelines, milestones, and deadlines for issue resolution.
• Identified a need to prioritize policy-driven changes that may take up to six months.
• Targeted mid-2025 for the initiation of market trials.
• Flagged that the discussion on AS proxy offers was not ready for today but planned for the next meeting.
• Focused on market readiness and settlements, leaving room for information on demand curves.
• Planned a culling process to streamline and prioritize the issues list, currently containing about 20 items.
• Developed clarifying NPRRs including a singular RTC (Real-Time Co-optimization) NPRR to capture baseline developments since 2019 and identify gaps found during business requirements.
• Shared initial drafts of the NPRR revisions last month, filed with numbers and provided links.
• Scheduled to review the NPRR revisions in the next two to three meetings.

2.2 – Scope of RTC+B Program

• Introduced the RTC+B program for understanding and development in future meetings.
• Key foundational documents include NPRR1007 through 1013 set in 2019-2020 and supporting documents like operating guide revisions and binding OBDR.
• NPRR1204 involves state of charge, 1236 deals with RUC capacity short, and various clarifying NPRRs were discussed.
• NPRR1000 related to Dynamically Scheduled Resources is being formally deleted to save testing time.
• NPRR1054 removes the Oklaunion exemption settlement calculations transparently.
• NPRR1172 includes changes to the RUC clawback.
• Implementing sections of NPRR963 that overlap with NPRR1014 for 1014 to work fully, creating an interdependency.
• NPRR1058 enables QSEs to update energy offer curves in real-time, going live next week.
• Training for RTC+B is planned but not outlined; feedback on critical pieces is welcomed for a future update.
• Specifics of RTC+B training are to be developed in the next few weeks. Update will be provided in next month’s meeting.
• Clarification on whether the listed NPRRs are exhaustive for the RTC+B scope: Current list is what is known now, but updates will continue as necessary. ERCOT aims to minimize market changes to accommodate this scope. 

Questions and Answers:

Participant: Bill Barnes
Question: Inquiry about the development and availability of an RTC+B training program for market participants.
Response: Training is part of the project, with specifics to be anchored in the next few weeks. A detailed update on training will be provided in next month’s meeting.

Participant: Chris Espinosa
Question: Clarification on whether the listed NPRRs are exhaustive for the RTC+B scope.
Response: Current list is what is known now, but updates will continue as necessary. ERCOT aims to minimize market changes to accommodate this scope.

Next Steps:

Discussion on NPRRs, simulator update, market submissions, market readiness, and the agenda for the next meeting in September.

3 – Review RTC and ESR Clarifying Revision Requests for Market Questions Dave Maggio/Kenneth Ragsdale

• Discussion on revision requests for NPRR1245 and single model changes.
• A niche topic related to settlements was identified and presented for NPRR1245.

3.1 – RTC- NPRR1245

• Magie Shanks presented the DAM Omission Settlement update
• While reviewing NPRR1245, an additional necessary edit was discovered.
• In section 9.14.10, settlement procedures need to include real-time market clearing prices.
• Current language assumes awards for AS are only physical, ignoring real-time reallocations.
• Propose changes to settlement section to align with real-time market operations.
• Changes will be submitted as comments for consideration at the September PRS.
• Presentation included current workflow and proposed changes for ancillary services.
• New proposal aligns price calculations between day-ahead and real-time markets.

4 – Issue 3 – RTC Simulator Update verbal update only Raymund Lee

• Raymund Lee provided a quick update on the RTC SCED production scale tool.
• System-wide limits (RSUF, RSFF, ECRSM) have been formulated.
• Implemented logic for NCLRs to self-provide ancillary services, including validation logic.
• Core formulation of the problem completed for the first phase.
• Development done using small test cases; large scale testing and validation are upcoming.
• Intern Luke Gutierrez created a visualization application for tool outputs.
• The next steps include testing and validation on larger cases and resolving bugs.
• Last meeting discussed the original slides for the simulator scope, confirming it as an ERCOT in-house tool to use ERCOT databases and rerun historical system solutions via RTC.
• RTC task force has provided operating days for simulation runs; next phase involves running sample cases and presenting them back to the group.

5 – Issue 9 – Explanation of Market Submission Interface Changes Nathan Smith

• Nathan Smith presented the RTC+B Market Submission Changes 
• Discussion on moving from “AS responsibility” to “AS capability” to represent a resource’s total AS capacity available by AS type.  Changes in COP allowing negative values for ESRs to account for charging and discharging states.
• Explanation of new “AS only offers” for the day-ahead market.

• Introduction of ESR energy bid offer curve for RTC+B, DAM, RUC, and SCED, allowing negative megawatt quantities for charging states.
• Detailed discussion on resource-specific as offers and their applications in DAM, SASM, RUC, and SCED.
• Modifications to the market manager submission UI, including new sub-tabs and drop-down options for DAMs.
• Addition of three new parameters for ESRs: minimum state of charge, max state of charge, and round trip efficiency.
• Changes to reports: removal of DAM AS insufficiency report and the SASM reports
• Replacing DAM AS obligation with DAM Advisory AS Obligations. Adding DAM Final AS obligations report and DAM AS-only Offer Awards report

• Discussion on training needs: preference for modular training units with voice-over narration over comprehensive all-day events.
• Suggestion to incorporate a bulletin board or FAQ system for addressing participant questions asynchronously.

6 – Issue 10 – Market Readiness Matt Mereness

6.1 – Final Review of Market Trials Plan

• Market Trials and Transition Planning Document
• Matt Mereness explained market submissions and system setup timelines, including the planned go-live in May 2025.
• July-August will involve SCED testing and telemetry checkout.
• Control room tests will simulate real dispatch scenarios for 2 to 4 hours.
• Luminant provided comments and noted the need for short technical workshops at each phase.
• Clarifications on QSE attestation and request for at least ten business days advance notice for open or closed loop tests were discussed.
• Discussion included avoiding settlement impacts during closed loop tests and allowing QSEs to test their systems during such tests.
• Comments from Luminant suggested the need for more detailed internal testing, especially related to non-spin reserves.
• ERCOT explained that closed loop tests aim to ensure reliability without financial settlements, suggesting disputes could be raised if financially harmed.
• Monica Jha from Vistra expressed concerns about testing non-spin reserves during closed loop testing.
• Dave Maggio from ERCOT clarified concerns and suggested further offline discussions to address them.
• It was noted that QSE-specific functionalities might need separate testing closer to go-live.

6.2 – Attestation Scorecard going to Board

• Three main points of attestation:
  • Identify accountable executive.
  • Acknowledge ERCOT’s interface specifications as of June 29, 2024.
  • Acknowledge goal to prepare for market trials as early as May 2025.
• Intent was to gauge awareness of deadlines, not to commit to readiness
• Scorecard status: Out of 106 entries, only one company (LCRA) is missing.
• Yellow status for some in-progress PCs lacking resources but will need to build for both current and RTC systems.
• LCRA flagged for modifying attestations, specifically omitting engagement for May 2025 market trials due to uncertainty.
• Purpose of attestation emphasized as market readiness awareness.
• Update on EMIL-related reports: New data products will be added and modifications shown in a report inventory.
• Approximately 50 reports will be added, modified, or deleted.

7 – Issue 18 – Placeholder for MPs Discussion of AS Demand Curves

• AS Demand Curves not discussed

7.1 – Indifference Payment Required under RTC to avoid Incentive Incompatibility – Shams Siddiqi

• Shams Siddiqi introduced the issue of indifference payment related to RTC design, initially thought to be resolved through NPRR1214.
• RTC doesn’t provide indifference payment related to Reliability Deployment Price Adder (RDPA) causing incentive incompatibility for resources.
• Resources might chase higher RDPA prices instead of following their base points, leading to reliability concerns.
• Currently, all resources with available capacity are paid the real-time RDPA ancillary service imbalance amount, creating unnecessary large payments.
• Proposed indifference payment based on 0.5*ΔLMP*ΔMW between pricing run and dispatch run deltas to reduce incentives to chase prices
• Implementation of NPRR1214 is suggested to be in phases, starting with a grid-wide indifference payment, then introducing locational price signals.
• Recommends a further refinement to address AS award differences between the SCED pricing run and dispatch run
• In their latest NPRR1214 comments, ERCOT proposed deferring the consideration of NPRR1214 until after RTC implementation, raising concerns about potential severe scarcity events.
• Discussion included the need for tools to simulate RDPA price adders and look at the risk of not addressing the indifference payment issue.
• Hunt Energy Network recommends pursuing NPRR1214 to implement the indifference payment with RTC implementation, or pursuing a new urgent NPRR to do the same.

8 – Heads-up on Topics for September RTCBTF Meeting Matt Mereness

• Topics for September meeting include
  • Consolidation of list of issues to prioritize most important issues.
  • Further discussion of the scope of the RTC program.
  • Update on simulator.
  • Addressing the load frequency control tests during the market trails plan.
  • Development of RTC+B training
  • AS demand curves, which may potentially be discussed at board meeting next week
  • AS proxy parameters addressing how to set proxy offer prices
• Planned a detailed process involving multiple meetings for setting proxy offer prices.
• Sought feedback on data or analysis needed to inform proxy offer prices.
• Education on the proxy process and its complexities planned.
• Addressed clarifications and questions from attendees regarding proxy offers and related protocols.

9 – Issue 8- Mapping of Bill Determinants to Extracts and Reporting for developing Shadow Settlement Magie Shanks

• Main goal is to outline the settlement changes under RTC+B.

9.1 – Settlements and Billing Deep-Dive

Settlement Changes Overview:

• NPRRs Included in RTC+B Project:
  • NPRR1007-1013: Related to RTC implementation.
  • NPRR1014: Covers Single Model ESR.
  • NPRR1029: Focuses on Market Suspension for ESRs.
  • NPRR963: Addresses Set Point Deviation for ESRs, baseline for NPRR1014.
  • NPRR1054: Removes Oklaunion Exemption; cleans up Settlement System.
  • NPRR1172: Cleans up RUC Clawback Settlement.
  • NPRR1000: Eliminates Dynamically Scheduled Resources (DSR).
  • NPRR1236: RUC State of Charge considerations.
  • NPRR1245 & 1246: Clean-up NPRRs for RTC and ESR.

Day-Ahead Market (DAM) Changes:

• Day-Ahead Make-Whole Payment:
  • ESRs excluded from receiving these payments.
• Day-Ahead Ancillary Service Payment & Charge:
  • New charge type for Ancillary Service Only Offers in DAM Settlement Statement.
• Day-Ahead Congestion Revenue Rights:
  • New category for ESRs in pricing for settlement points.

Cost and Pricing Changes:

• Energy Offer Curve Cost Caps:
  • New category for ESRs, affecting DAM and Real-Time Market (RTM) settlements.
  • ESRs excluded from DAAIEC, impacting Make-Whole Payments.

Real-Time Market (RTM) Changes:

• Real-Time HDLO Energy Payment:
  • ESRs qualify for payment if directed to reduce power.
• Set-Point Deviation:
  • Renamed from Base-Point Deviation; ESR-specific calculations for over/under performance.
• Voltage Support Service Payments:
  • Updates include ESRs, with new intermediate calculations for ESRs.
• Emergency Operations Payment:
  • Includes ESRs, adjusting for their charging side in emergency events.
• Switchable Generation Make-Whole Payment:
  • Updated to include RT Ancillary Service (AS) Revenues.
• Real-Time Ancillary Service Settlement:
  • New charges and payments based on AS Imbalance, AS Only Offers, and AS Trade Overages.
• Real-Time Derated AS Capability Charge:
  • New charge type allocated on LRS basis for RT Derated payments.

Market Suspension and RUC Changes:

• Market Suspension Payment:
  • Includes ESR considerations, allowing submission of actual O&M rates.
• Market Suspension Charge:
  • ESR load removed from LRS allocation for Market Suspension Charges.
• RUC Make-Whole Payments and Clawback Charges:
  • ESRs excluded from RUCMW payments and RUC Clawback Charges.
  • Includes RT AS revenues in RUC Guarantee calculations.
• RUC Decommitment Payment:
  • ESRs excluded from related Clawback Charges.
• RUC Capacity Short:
  • ESRs included in QSE’s capacity calculation and shortfall determination.

Settlement Statements and Miscellaneous Invoices:

• Some charges related to DAM omissions will appear on miscellaneous invoices rather than on settlement statements.
• No structural changes will be made to settlement statements; however, new or removed line items will be added.
• Extracts will remain the same, but they will reflect new or removed bill determinants.

Handling of Removed Settlement Charges:

• Removed settlement charges will still appear on statements for final or true-up settlements, but new charge types will be updated for new operating days.

ESR Price Categories:

• ESRs previously included under the “Other” category are now assigned their own category, maintaining the same minimum and maximum prices (negative $20 and $100, respectively).
• Any changes to these prices would require a new NPRR.

Settlement Changes for RTC and Non-RTC Related NPRRs:

• NPRRs not directly related to RTC or ESR will still be bundled and released with the RTC project.
• Market trials are built to the current scope, and any new NPRRs impacting RTC will be adapted as needed.

Market Trials and Settlement Data:

• Settlement changes will go live with the RTC+B project, not during market trials, as shadow settlements won’t be visible during trials.
• There is a plan to release generic, non-QSE-specific settlement data at the beginning of next year to help market participants understand the impact of the changes.

Clarifications on Settlement and NPRR Errors:

• Future NPRRs flagged in the issues list are intended to correct errors in the language, not to change the functionality.
• Generic statements and extracts will be shared with market participants to illustrate what post-RTC settlement artifacts will look like.