ERCOT WMS Meeting Summary – June 5, 2024

ERCOT WMS Meeting Summary – June 5, 2024

The meeting commenced with an antitrust admonition delivered by Eric Blakey, followed by an agenda review covering various items slated for discussion. Minutes from the previous meeting on May 1, 2024, were put to vote and approved.

The Technical Advisory Committee (TAC) update, presented by Eric Blakey, highlighted significant developments. Discussion centered on NPRR1224, which focuses on triggers and is scheduled for board review in the coming weeks. Additionally, NPRR1230, addressing interconnection reliability operating limits for the summer, was tabled until the next TAC meeting scheduled for June 24.

Magie Shanks presented on behalf of ERCOT Operations and Market Items, focusing on NPRR1231 concerning FFSS Program Communication Improvements. Proposed enhancements included the addition of a new distribution list for communication, an extension of reporting times for deployments from 30 to 45 days post-FFSS season, and clarifications on disqualification processes during settlements. Stakeholders raised queries about the process of notifying switches from primary to alternate resources and sought confirmation on tracking mechanisms for new email communications. In response, a special webex meeting was scheduled by TAC to delve deeper into these concerns.

Joe Lara presented the 2023 Annual Unaccounted For Energy (UFE) Report, detailing discrepancies between generated and consumed energy. The report highlighted a negative 1,078,199 megawatt-hours of UFE, costing approximately $92 million. Lara emphasized seasonal fluctuations, with significant negative UFE observed during winter and mid-summer periods. Discussions also addressed the impact of non-metered accounts contributing to UFE, alongside plans to enhance UFE calculations using state estimator data for transmission losses, expected to commence in Q3 of 2024. Additional topics covered historical trends, transmission loss factor calculations, and forecasts for 2024 and 2025, with implications discussed under NPR1145 regarding state estimates for Transmission Loss Factors (TLFs) in settlement calculations.

Blake Holt led the Resource Cost Working Group (RCWG) session, focusing on maintaining sulfur dioxide and nitrogen oxide emission prices at $2 and $3 per short ton respectively, unchanged since 2020. ERCOT’s proposal included retaining these values until new EPA regulations or market conditions prompt updates. The RCWG expressed interest in reviewing alternatives, scheduling further discussions for June 25.

Under WMS Revision Requests, approvals were granted for VCMRR039 and VCMRR040. VCMRR039, related to NPRR1216 on the Emergency Pricing Program implementation, saw approval of language adjustments from the previous month. VCMRR040 introduced a methodology shift in calculating fuel adders for coal-fired resources, removing the necessity for ERCOT to procure an annual coal price index and allowing generators to submit their costs directly.

Alex Miller from the Congestion Management Working Group (CMWG) discussed the implementation plan for SCR819, slated for release by the end of May. The plan included testing processes for generators’ responses and honoring operational flags during Security-Constrained Economic Dispatch (SCED) intervals. Discussions also covered mitigation strategies for Emergency Shortage Resources (ESRs), with a draft NPRR for ESR mitigation expected for discussion in July. Other items, such as the CRR auction solution time and RDPA adder adjustments for locational price signals, were tabled for future deliberation.

Greg Lackey presented updates from the Supply Analysis Working Group (SAWG), including a new methodology study on Baseline Eligibility and Equivalency (BES ELCC) by Kevin Kaden (Astrape). Draft CONE study results, presented by Sam Newell (Brattle), highlighted proposed methodologies for investigating Effective Load Carrying Capacities (ELCCs) among non-dispatchable technologies. Updates on ERCOT’s Excel workbook and final CONE study report filing were also provided, alongside discussions on Voltage Optimization Loss (VOLL) survey outcomes and response rates across various customer classes. SAWG scheduled its next meeting for June 26 to further explore these findings.

Various WMS Revision Requests were tabled or referred for further review. Notably, SMOGRR028 at the Market Working Group (MWG) was tabled for future consideration, while NPRR1226 on Demand Response Monitor at the Protocol Revision Subcommittee (PRS) was referred to the Demand-Side Working Group (DSWG) for additional discussion.

In conclusion, the ERCOT WMS Meeting on June 5, 2024, encompassed comprehensive updates and discussions critical to ERCOT’s operational frameworks, market enhancements, and regulatory compliance. Ongoing deliberations and scheduled meetings reflect ongoing efforts to streamline processes and address emerging challenges within the energy sector.

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