NOTICE DATE: February 20, 2024

NOTICE TYPE: M-B022024-01 NPRR

SHORT DESCRIPTION: Implementation Details of NPRR1172 - Phase 1

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: March 1, 2024

LONG DESCRIPTION: On March 1, 2024, Phase 1 Protocol language associated with Nodal Protocol Revision Request (NPRR) 1172, Fuel Adder Definition, Mitigated Offer Caps, and RUC Clawback, will be implemented.

Phase 1 implementation for NPRR1172 includes the following changes to the Protocols:

Section 5.5.2, Reliability Unit Commitment (RUC) Process – Updates the adjustment factor for the Three-Part Supply Offers that ERCOT creates from 150% to 100% of the approved verifiable costs or generic costs.
Section 5.7.2, RUC Clawback Charge (with the exceptions of the grey-box language regarding paragraph (2) and what will become paragraph (4) upon system implementation of Phase 2 of NPRR 1172) – Changes the RUC Clawback Factor for RUC Committed Hours (RUCCBFR) and RUC Clawback Factor for QSE Clawback Intervals (RUCCBFC) to 100%.
Section 6.6.12.1, Switchable Generation Make-Whole Payment – Adds a missed attribute on the Fuel Adder (FA) billing determinant in the Operational Cost (OPC) equation.

Phase 2 of NPRR1172 will be implemented at a later date.

ACTION REQUIRED: Market Participants should implement changes to their shadow systems to incorporate the Protocol revisions made by NPRR1172.

ADDITIONAL INFORMATION: NPRR1172 and the associated documents can be found on the ERCOT website.

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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