NOTICE DATE:  September 11, 2014
NOTICE TYPE:  M-C091114-01 PRR/SCR
SHORT DESCRIPTION:  Implementation details for VCMRR001 and NPRR485 (automated solution)
INTENDED AUDIENCE:  ERCOT Market Participants
DAY AFFECTED:  October 6, 2014
LONG DESCRIPTION:  On October 6, 2014, ERCOT will implement the automated solution for NPRR485, Clarification for Fuel Adder Provisions, which was approved by the ERCOT Board on November 13, 2012; and the associated Verifiable Cost Manual Revision Request (VCMRR) 001, Submission of Fuel Costs, which was approved by TAC on January 28, 2014.
NPRR485 compensates Resources for the actual cost of transporting and purchasing fuel on the spot market across Mitigated Offer Caps and Startup and Minimum-Energy Offer Caps, and allows for Resource- Specific verifiable fuel adders to be submitted and verified by ERCOT.
VCMRR001 modifies the types of fuel costs Resources may submit, and defines the timeline for the verifiable fuel cost process.
With the implementation of NPRR 485 and VCMRR001, ERCOT will no longer calculate the Value of X (VOX) that is currently published in the MIS Public reference Data Extract (PRDE). The published VOX value will be zero beginning on November 1, 2014. ERCOT will calculate a new Resource-specific VOX for each individual Resource, but this data will not be published on the MIS. However, Market Participants can calculate the new Resource-specific VOX by dividing the fuel adder by the average Fuel Index Price (AVGFIP) for the month, which is published on the PRDE.
ADDITIONAL INFORMATION:  Pursuant to Verifiable Cost Manual Section 12.6, Verifiable Cost Manual Revision Implementation, ERCOT is required to provide notice of implementation of any VCMRR that is not implemented the first date of the month following TAC approval.  This notice must be provided as soon as practicable, but no later than ten days prior to implementation.
NPRR485<http://www.ercot.com/mktrules/issues/nprr/476-500/485> and associated documents can be found on the ERCOT website.
VCMRR001<http://www.ercot.com/mktrules/issues/vcmrr/001-025/001#keydocs> and 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]<mailto:[log in to unmask]>.
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