NOTICE DATE: October 16, 2023

NOTICE TYPE: M-A101623-01 General

SHORT DESCRIPTION: Implementation of the multi-step price floor for the Operating Reserve Demand Curve (ORDC)

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: November 1, 2023 and thereafter

LONG DESCRIPTION: At the October 12, 2023 Public Utility Commission of Texas (PUCT) Open Meeting, the Commission approved Other Binding Document Revision Request (OBDRR) 048 requiring ERCOT to implement a multi-step price adder floor to be used in the calculation of the ORDC price adders when Real-Time On-Line Reserve Capacity (RTOLCAP) falls below certain on-line reserve thresholds.  Specifically:

• A price floor of $20 per megawatt hour (MWh) will be applied to the Real-Time On-Line Reserve Price Adder (RTORPA) when the RTOLCAP is at or less than 6,500 MW; and
• A price floor of $10 per MWh will be applied to the RTORPA when the calculated RTOLCAP is at or less than 7,000 MW but greater than 6,500 MW.

The updated methodology for the calculation of the RTORPA to effectuate the ORDC multi-step price floor will take effect beginning at midnight on November 1, 2023.

ADDITIONAL INFORMATION: OBDRR048 contains amendments to the Other Binding Document "Methodology for Implementing Operating Reserve Demand Curve (ORDC) to Calculate Real-Time Reserve Price Adder."  On August 31, 2023, the ERCOT Board of Directors voted to recommend approval of OBDRR048 as recommended by the Technical Advisory Committee (TAC) in the August 22, 2023 TAC Report.

CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at [log in to unmask].

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