NOTICE DATE: November 30, 2012 NOTICE TYPE: M-A062211-07 NPRR SHORT DESCRIPTION: URGENT - Update to implementation of NPRR322 with WebEx INTENDED AUDIENCE: QSEs and CRR Account Holders DAYS AFFECTED: December 3 and 6, 2012 LONG DESCRIPTION: On December 6, 2012, ERCOT will complete the implementation of Nodal Protocol Revision Request (NPRR) 322, Real-Time PTP Option Modeling, which was approved by the ERCOT Board on June 21, 2011. The changes associated with NPRR322 will be effective for the Day-Ahead Market (DAM) run on December 6 for Operating Day December 7, 2012. NPRR322 (as revised by NPRR470, Real-Time PTP Option Modeling Language Cleanup) modifies Point-to-Point (PTP) Options in the DAM that have been declared by a Non-Opt-In Entity (NOIE) before the DAM execution to be settled in Real-Time, and are still held by that NOIE in Real-Time, such that they are considered as PTP Obligations for purposes of the DAM model. During integration testing for NPRR322, it was discovered that the NPRR introduced inconsistent Protocol language and that a settlement formula was not aligned with the intent of the NPRR. Specifically, the definition of the Real-Time PTP Obligations with Links to an Option (RTOBLLO) billing determinant is correct and is aligned with the intent of the NPRR. However, the formula for calculating the RTOBLLO billing determinant, as currently defined in the grey-boxed language of section 4.6.3 of the Protocols, will result in incorrect settlement quantities, therefore inconsistent with the intent of the NPRR. ERCOT's system implementation for NPRR322 is aligned with the RTOBLLO billing determinant definition and is therefore aligned with the intent of the NPRR. ERCOT is not implementing the RTOBLLO settlement formula described in the grey-boxed language of Section 4.6.3. Upon system implementation of NPRR322, the RTOBLLO formula will remain grey-boxed until an NPRR corrects the grey-boxed language. ERCOT is drafting an NPRR to refine and correct the grey-boxed language in Section 4.6.3, and will request Urgent status to fully align the Protocols with the intent and system implementation of NPRR322. However, ERCOT does not expect Board approval of the new NPRR until after the implementation of NPRR322. ADDITIONAL INFORMATION: A WebEx on this topic has been scheduled for Monday, December 3, 2012, 13:00 - 14:00 CPT. ERCOT will describe the issue and describe how the change will affect shadow settlement of the PTP Obligation Bids linked to an Option. The WebEx details are as follows: Topic: NPRR322 Implementation Update Date: Monday, December 3, 2012 Time: 13:00 - 14:00 CPT (Chicago, GMT-05:00) WebEx URL: https://ercot.webex.com/ercot/j.php?ED=208790692&UID=0&PW=NZTc2ZDE5NzM0&RT=MiM3 Meeting Number: 656 918 788 Meeting Password: Ercot123!! Dial in Number: 1-877-668-4493 Press # when prompted for pin number. NPRR322 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/301-325/322/index. NPRR470 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/451-475/470/index. 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]>. If you are receiving email 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. dh