NOTICE TYPE: W-A123013-01 Operations SHORT DESCRIPTION: Implementation of maximum shadow prices for irresolvable non-competitive constraints in SCED INTENDED AUDIENCE: ERCOT Market Participants DATES AFFECTED: January 1 and January 29, 2014 LONG DESCRIPTION: ERCOT Business Practice, Setting the Shadow Price Caps and Power Balance Penalties in Security Constrained Economic Dispatch, Section 3.6.2 requires ERCOT to periodically review each constraint previously determined irresolvable by Security Constrained Economic Dispatch (SCED) and determine (1), if the constraint has become SCED resolvable, and, if not, (2) re-determine the Shadow Price for a constraint that continues to be irresolvable by SCED. Effective January 1, 2014, the following changes to the set of constraints that are consistently irresolvable by SCED will be made: Contingency Name Constraint Name Description Current Maximum Shadow Price Maximum Shadow Price effective January 1, 2014 BASE CASE VALIMP Valley Import Base Case $2,000.00 $2,000.00 DGRSLNC5 6856__B Graham to Long Creek 345 kV overloads Bomarton - Seymour 69 kV $2,000.00 $2,000.00 DW_DDEN8 AIR_W_DE_1 Denton - Argyle / West Denton 138 kV overloads Jim Crystal - West Denton 69 kV $2,000.00 $2,000.00 SNCWHLT9 6915__A Odessa North to Holt Sw 69 kV overloads Odessa Basin Sw - Odessa North 69 kV $2,800.00 $2,800.00 SNCWMOS8 ODNTH_FMR1 Holt Sw - Moss Sw 138 kV overloads Odessa North xfmr $2,000.00 $2,000.00 SODBODN9 6860__A Odessa Basin Sw to Odessa North 69 kV overloads Holt Sw - Ector Shell Tap 69 kV $2,320.68 $2,320.68 DODEQAL5 6215__A Odessa - Morgan Creek / Quail Sw 345 kV overloads China Grove to Bluff Creek Switch 138 kV $2,000.00 $2,000.00 SSUNMGS8 6215__A Sun Switch to Morgan Creek SES 138 kV overloads China Grove Switch to Bluff Creek Switch 138 kV $2,000.00 $3,500.00 XMGS58 MGSES_MR1H Morgan Creek Autotransformer #4 345 kV/138 kV overloads Morgan Creek Autotransformer #1 345 kV/138 kV $2,000.00 $2,000.00 XWI2N89 6920_E_1 Wink Tnp Winkat1 138/69 KV overloads Wink Tnp to Wink Substation 69kV $2,000.00 $2,000.00 Additionally, effective January 29, 2014, the following constraints will no longer be considered irresolvable by SCED: Contingency Name Constraint Name Description DGRSLNC5 6856__B Graham to Long Creek 345 kV overloads Bomarton - Seymour 69 kV SODBODN9 6860__A Odessa Basin Sw to Odessa North 69 kV overloads Holt Sw - Ector Shell Tap 69 kV DW_DDEN8 AIR_W_DE_1 Denton - Argyle / West Denton 138 kV overloads Jim Crystal - West Denton 69 kV SNCWMOS8 ODNTH_FMR1 Holt Sw - Moss Sw 138 kV overloads Odessa North xfmr XWI2N89 6920_E_1 Wink Tnp Winkat1 138/69 KV overloads Wink Tnp to Wink Substation 69kV Section 3.6 of the business practice document requires a 30-day notice before the shadow price caps for SCED resolvable constraints are reset to their default values. Due to this requirement, the identified constraints will have their shadow price caps changed on January 1, as indicated in the previous table, before being reset to their default shadow price cap values on January 29. ADDITIONAL INFORMATION: Per Section 3.6.3 of the business practice document, the net margin values for all of the above listed constraints will also be reset to zero on January 1, 2014. 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. sa