Meeting Summary – 10/07/24 WMS Meeting

0 – Validation for WMS Standing Representatives – Pamela Hanson

1 – Antitrust Admonition – Eric Blakey

2 – Agenda Review – Eric Blakey

3 – Approval of WMS Meeting Minutes – Vote – Eric Blakey

• Motion to approve the August 7, 2024 WMS meeting minutes as submitted added to the combo ballot.

4 – Technical Advisory Committee TAC Update – Eric Blakey

• Discussion focused on enhancing stakeholder processes.
• Emphasis on clarifying ERCOT’s role between stakeholders and the board.
• Need for more representation of TAC decisions at the board level.
• Further discussions on these topics are planned for the next TAC meeting.
• Issues in RTC+B and ancillary service demand curves discussed, aiming for policy decision by year-end.
• Approval of the 2025 ancillary services methodology, aligned with previous recommendation.
• Upcoming board meetings on Wednesday and Thursday, with committees meeting on Wednesday.

5 – ERCOT Operations and Market Items

• Introduction of Keith Collins, Vice President of Commercial Operations, and his discussion on ERCOT’s market design framework.
• Reference to a previous discussion at the August board meeting led by Pablo regarding market design.
• Emphasis on key concepts from ERCOT’s mission and vision statements such as reliability, efficiency, open access, and retail choice.
• Review of strategic objectives from a strategic plan document issued in 2023, highlighting goals like grid reliability and enhancing regional economic competitiveness.
• The importance of using the right tools for the job to achieve efficiency in market design.
• Explanation of how different tasks require different tools and alignment of these tools to accomplish strategic objectives reliably and affordably.
• Focus on avoiding inefficiencies and unintended consequences by using appropriate tools for each task within market operations, drawing analogies with tools like shovels and rakes.

5.1 – ERCOT’s Framework for Evaluating Market Design – as discussed at August Board – Keith Collins

05-kcollins-market-design-framework.pdf

• Introduction of a framework to guide ERCOT’s market design focused on dependability, efficiency, and resiliency, aligning with reliability and affordability goals.
• Emphasized that discussion of various market elements such as ECRS, DRRS, and PCM should focus on what attributes support reliability and affordability.
• Discussion of the key framework attributes of various market elements..
• Importance of flexibility in resources to adjust to system demands, and the value of DRRS as a tool for flexibility.
• Discussion on dependability and availability, emphasizing the role of weatherization and PCM in promoting resource availability.
• Introduction of resiliency tools like ECRS, and how it compares to other regional systems such as SPP.
• Consideration of resource qualities such as nuclear energy value, and federal incentives for wind and solar as key aspects.
• RTC as an example of an efficiency tool, with a target go-live date set for December 5 of the next year.
• The value of locational proximity of resources, and the role of transmission in optimizing that value.
• Stakeholder feedback highlighted the necessity of resource adequacy and how it integrates with other framework attributes.
• Formalizing feedback processes was considered, with emphasis on setting timelines and metrics for evaluating resource adequacy and availability.
• Acknowledgment of ongoing assessment and refinement of the proposed framework to ensure alignment with ERCOT’s reliability and affordability objectives.

6 – Congestion Management Working Group – CMWG – Alex Miller

06-cmwg-update-2024-10-wms.pdf

• SCR819 and NPRR1111 Implementation
  • Implementation aimed at improving control of flows on GTCs by limiting resources during SCED intervals.
  • Implemented in June; Monitoring through summer showed improvement in generation staying close to set limits.
  • Observing some oscillation in dispatch around limits; working on mitigation.
  • Continuing observation and training for control room operators.
  • More data expected after fall period with higher wind production.
• CRR Solution Times in Long Term Auctions
  • Performance issues due to rising bid volumes.
  • Explored three paths: administrative guardrails, market incentives, and market redesign.
  • Least popular option among stakeholders: raising minimum bid price.
  • Stakeholders suggested ways to increase data transparency.
  • ERCOT studying discontinuation of multi-month bids and working on an NPRR for limits on transactions.
• NPRR1214 RDPA Locational Fix
  • Concern about treatments of storage and controllable load resources.
  • Draft red lines prepared; to be further discussed.
  • Efforts to align with ERCOT feedback and streamline proposals.
  • Preparing for future voting on implementation post-RTC.
• General Discussion
  • Bill Barnes and others emphasized preparing for a vote on NPRR1214 and the importance of efficiency in dispatch.
  • Concerns about compatibility with RTC and focus on post-RTC implementation.
  • Request for IMM participation in future discussions.
• CMWG 2025 Meeting Calendar
  • Meeting planned for Thursdays around the middle of the month.
  • WebEx only format for now, with possible in-person meetings if needed.

7 – Supply Analysis Working Group – SAWG – Kevin Hanson

07-241007-sawg-report-to-wms-v1.pdf

• Dispatchable Resource Reserve Service (DRRS) NPRR1235
  • Katie Rich Vistra presented on DRRS.
  • Commenters suggested DRRS as a resource tool is a policy issue for the commission to address.
  • ERCOT plans to file comments on NPRR1235.
  • NPRR is expected to return for further discussions in the next SAWG meeting.
• Long Term Load Forecast (LTLF)
  • Discussion on incorporating large load forecasts into the LTLF for the CDR to determine reserve margins.
  • Internal meeting planned to address how to handle the load forecast presentation, considering different scenarios for large loads.
• Future Meetings
  • Next SAWG meeting scheduled for October 25.
  • Intent to present on load forecasts, CDR updates, and NPRR1219.
• Resource Adequacy and DRRS
  • Concerns expressed about using DRRS primarily for resource adequacy instead of as an operational tool.
  • Comments filed regarding the design of the demand curve and its importance.
• Commission and Stakeholder Involvement
  • Commission requested stakeholders to develop counterarguments if any exist regarding NPRR and DRRS.
  • Luminant comments on NPRR were recently filed, requiring further consideration.

8 – Wholesale Market Working Group – WMWG – Blake Holt

Discussion Points:

• NPRR1229 was discussed. Its aim is to add financial protection for resources operating in a mandatory CMP if they are tripped offline uncontrollably. There were concerns about excessive coverage.
• The IMM suggested a sloped demand curve for the product. There was discussion on whether to consolidate these discussions at SAWG.
• Calpine discussed a combined cycle concept with ERCOT, but the discussion is not yet ripe for WMWG.
• Consensus to move discussions on resource adequacy and demand curves to SAWG, with a focus on other issues at WMWG if needed.
• No vote on NPRR1238 was suggested as it was not deemed ready.
• NPRR1241 introduces a potential clawback mechanism for firm fuel supply which will require further discussion next month.
• CRR Auction Revenue Distribution (CARD) allocation discussion suggested potential exploitation by large flexible loads. Three methods were proposed by entities including IMM, Georgetown, and Luminant.
• The complexity of the methods for card allocation could cause reallocation concerns. Further discussion planned for October 18.

Next Steps and Actions:

• Keep NPRR1229 in the discussion queue for further consideration next month.
• Continue discussions on card allocation methods in the next meeting set for October 18.
• Seek further input on resource adequacy and demand curve issues at SAWG meetings.
• Prepare to file an NPRR after compiling feedback from next month’s discussions.

8.1 – Break

9 – WMS Revision Requests Tabled at WMS – Possible Vote – Eric Blakey

9.1 – SMOGRR028, Add Series Reactor Compensation Factors – MWG

• SMOGRR028 is still under consideration within the working group (MWG).
• No significant progress or meetings have occurred regarding this item.
• The decision is to keep this item tabled for now.

9.2 – VCMRR042, SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations – RCWG

• VCMRR042 is still awaiting discussion at RCWG.
• Item will remain tabled.

9.3 – NPRR1242, Related to VCMRR042 SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations – Possible Vote

• NPRR1242 is still pending discussion at RCWG.
• No further discussion or comments were made on NPRR1242 during the meeting.
• Item will remain tabled.

10 – New Protocol Revision Subcommittee – PRS – Referrals – Vote – Eric Blakey

• Introduction to new protocol revision referrals.
• Referrals were submitted by PRS for review and voting.

10.1 – NPRR1250, RPS Mandatory Program Termination

• A motion was approved to table NPRR1250 with unanimous support until further notice.

• NPRR1250 discusses the termination of the Renewable Portfolio Standard (RPS) mandatory program in compliance with HB 1500.
• ERCOT commented on the transition from a mandatory to a voluntary renewable energy credit trading program.
• Implementation of changes will not occur until September 1, 2025.
• Comments were filed by ERCOT in response to input from the Solar Energy Industries Association.
• Discussion on possible tabling of the proposal to allow for additional NPRR revisions.
• Concerns were raised about the overlap with another NPRR concerning voluntary REC attributes.
• Agreement to potentially table the decision until further discussions and revisions can be completed.
• Clarification sought on effective dates and protocol modifications with use of gray boxes for transitions.

10.2 – NPRR1251, Updated FFSS Fuel Replacement Costs Recovery Process

• Motion to request PRS continue to table NPRR1251 for further review by the RCWG added to the combo ballot.
  • ERCOT aims to clarify the process for resources providing fuel supply services to restock reserved fuel using existing fuel inventories.
  • Compensation is provided for fuel utilized, either through new purchases within 30 days or based on the fuel oil price, which includes a five-cent per gallon transportation cost.
  • Katie Rich suggested referring the item to the Resource Cost Working Group (RCWG) for further review.
  • There was no opposition, and the proposal was moved to a combo ballot to be referred to RCWG.

11 – Revision Requests Tabled at PRS and Referred to WMS – Possible Vote – Eric Blakey

• Discussion focused on the status of current revision requests tabled at the Protocol Revision Subcommittee (PRS).
• Eric Blakey emphasized the necessity to review each request in detail to understand the impact on market operations.
• Debate over the priority of revision requests that have been referred to the Wholesale Market Subcommittee (WMS).
• Consideration of feedback from stakeholder engagements and its influence on decision-making.
• Potential vote on whether to advance revision requests from tabled status depending on WMS recommendations.

11.1 – NPRR1070, Planning Criteria for GTC Exit Solutions

• No new updates were provided for NPRR1070.

11.2 – NPRR1200, Utilization of Calculated Values for Non-WSL for ESRs – MWG

• No new updates were provided for NPRR1200.

11.3 – NPRR1202, Refundable Deposits for Large Load Interconnection Studies – WMWG

• WMWG’s involvement with NPRR1202 has been removed.
• Currently waiting on updates from the large load task force.
• Item to remain tabled at WMS.

11.4 – NPRR1214, Reliability Deployment Price Adder Fix to Provide Locational Price Signals, Reduce Uplift and Risk – CMWG

• Discussed in the report by Alex.
• Recommendation was to keep the item tabled.
• Red lines to be discussed at the next meeting.

11.5 – NPRR1229, Real-Time Constraint Management Plan Energy Payment – WMWG

• Discussions are ongoing between STEC and ERCOT regarding NPRR1229.
• A report or update will be presented next month.
• There were no further discussions or comments during this meeting.

11.6 – NPRR1235, Dispatchable Reliability Reserve Service as a Stand-Alone Ancillary Service – SAWG and WMWG

• SAWG and WMWG had in-depth discussions on NPRR1235.
• Consensus reached to consolidate discussions at SAWG instead of WMWG.
• Pending policy issues need addressing before proceeding or presenting to the commission.
• Michael Jewell emphasized addressing DRRS as a resource adequacy tool by the commission first.
• Some concerns raised about taking preemptive actions without policy clarity.
• Stakeholder process improvements needed for board input, ensuring feedback inclusion.
• Caitlin Smith highlighted the importance of recognizing ongoing discussions in board presentations.
• John Ross Hubbard emphasized policy issues should be addressed by the commission, not stakeholders.
• WMS will continue monitoring SAWG discussions and looking for policy-related opportunities.

11.7 – NPRR1238, Voluntary Registration of Loads with Curtailable Load Capabilities – WMWG

• NPRR1238 was mentioned in the WMWG report.
• There is a request for NPRR1238 to remain tabled.
• Comments from ERCOT are pending regarding NPRR1238.

11.8 – NPRR1241, Firm Fuel Supply Service FFSS Availability and Hourly Standby Fee – WMWG

• NPRR1241 was discussed by WMWG.
• WMWG requested that NPRR1241 remain tabled for further discussion.

12 – Combo Ballot – Vote – Eric Blakey

• Motion to approve combo ballot carries unamiously.

13 – Other Business – Eric Blakey

13.1 – Review Open Action Items – Jim Lee

• Mentioned a couple of important points relating to open action items.
• Discussion involved reviewing the status and progress of pending tasks.

13.2 – Update Future Large Load Interconnection Reports

• Discussion on the current status of the large load interconnect report.
• Indication of moving forward to the next agenda topic regarding the removal of parking lot items.
• Discussion on revising TAC assignments under current purview, particularly regarding EPA regulation assignment.
• Consideration of whether future EPA regulations should be reviewed by WMS as a regular role.
• NPRR1230 recently approved; discussion on keeping it on the list due to lack of progress on shadow price caps and IROLS.
• Large load interconnection report to be discussed under TAC henceforth, with suggestions for formalization.
• Proposal to create a formal report in the protocols that retains customer confidentiality while providing aggregated data.
• Discussion on how to incorporate additional specificity into reports without compromising customer information.
• Division on whether formal protocols are necessary for reports or if they should be more flexible.
• Agreement to continue reporting as long as it is deemed helpful, even if not mandated by protocols.
• Acknowledgment that TAC prefers reports to be handled at their level to avoid multiple venues.
• Potential assignment to a working group, potentially WMWG or SAWG, to handle specifics of the report.

13.3 – Proposal to Remove Parking Lot Items from Monthly WMS Agenda

• Concerns about parking lot items dating back to 2018 and 2019 that have not been addressed.
• Acknowledgment that these items were important at the time but have been inactive since.
• Suggestion to remove dormant parking lot items from the agenda to streamline focus.
• Future important items can be re-added with better refinement if they become relevant again.

13.4 – 2025 ERCOT Membership/Segment Representative Elections

• Leadership proposed clearing items they believe are outdated or unexamined by working groups.
• David Dietlidge asked if posting of wholesale storage load in various reports resolves corresponding issues.
• Concern that the ‘parking lot’ list has been largely ignored for over two years, creating a false sense of progress.
• Suggestion made to set a deadline for members to speak up if they want to keep any items on the list.
• Decision to delay action on the list until the next meeting, allowing more discussion.
• Information about the upcoming 2025 membership and segment representative elections was provided by Pamela.
• Key dates include November 1 as the date of record and elections beginning the following Tuesday.
• Members were encouraged to log in, sign up, and pay fees to ensure membership for the upcoming year.

13.5 – No Report

• There were no reports for this agenda item.
• The next meeting is 
• s planned to be in person, scheduled for November 6th.

14 – Adjourn – Eric Blakey