NOTICE DATE:  October 22, 2008

 

NOTICE TYPE:  M-B102208-01 Operations

 

SHORT DESCRIPTION:  New Methodologies for Determining Ancillary Services effective November 1, 2008

 

INTENDED AUDIENCE:  ERCOT Market Participants

 

DAY AFFECTED:  November 1, 2008

 

LONG DESCRIPTION:  On October 21, 2008, the ERCOT Board of Directors (Board) approved the new ERCOT Methodologies for Determining Ancillary Service (AS) Requirements document for 2008-2009. The two affected Ancillary Services are Regulation Reserve (RGS) and Non-Spin Reserve Service (NSRS).  

 

Two changes were made to the method for determining RGS.  First, the increase in installed wind capacity on the ERCOT System and it’s affect on RGS is taken into account when studying the historical data used to determine the upcoming requirements. This was a recommendation that came out of the GE study that was performed for ERCOT. The second change is a provision that allows ERCOT to increase the amount of the RGS if ERCOT begins to observe lower than desired CPS1 scores.

 

For NSRS, the procurement will no longer be a flat 1354 MW around peak Load hours depending on temperature forecasts. Instead, the requirement for each hour during the Operating Day will take into consideration historical errors in the Mid-Term Load Forecast (MTLF) and the Wind Forecasts that are being provided to ERCOT.

 

The methodologies described in the document will be used to calculate the AS requirements starting November 1, 2008.

 

ADDITIONAL INFORMATION:  Please refer to the following link for the approved document and other supporting documentation:

ERCOT - Board of Directors Meeting(October 21, 2008).  The item in the link pertaining to this notice is 7d.

 

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].

 

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