NOTICE
DATE: June 17,
2008
NOTICE
TYPE: M-A061708-02
Operations
CLASSIFICATION:
Public
SHORT
DESCRIPTION: Market Clearing Price for Energy (MCPE)
and Shadow Price Caps
INTENDED
AUDIENCE: All Market
Participants
DAY
AFFECTED: June 17,
2008
LONG
DESCRIPTION: On Tuesday, June 17, 2008, the ERCOT
Board of Directors (Board) met and approved the recommendation from TAC and WMS
to implement the Potomac Economics proposal changing the Shadow Price Cap and
instituting a price cap on MCPEs.
ERCOT has implemented the
approved Market Clearing Price for Energy (MCPE) and Shadow Price Caps at 1700
CPT on June 17, 2008. Effective as
of 1700 CPT on June 17, 2008: (1) the Shadow Price Cap for Commercially
Significant Constraints (CSCs) will change from $5,600 per MW to $5,000 per MW;
and (2) the MCPE will be capped at the system-wide offer cap, which is currently
the high system-wide offer cap (HCAP) of $2,250 per MWh. Also, the MCPE will be
limited to the Balancing Energy Service offer cap floor of -$1,000. When the MCPE is capped or limited, any
non-zero Shadow Price for CSCs will be recalculated based on the capped or
limited MCPE.
ACTION REQUIRED:
There is no action required by
ERCOT Market Participants. The HCAP for Balancing Energy Service and Ancillary
Services remains unchanged at $2,250 per MWh. (See ERCOT Protocols
§6.11.3(6)(d)).
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
e-mail at [log in to unmask].
If you are receiving e-mail
from an ERCOT distribution list that you no longer wish to receive, please
follow this link in order to unsubscribe from this list: http://lists.ercot.com.
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