NOTICE DATE: December 30, 2016 NOTICE TYPE: W-A123016-01 Operations SHORT DESCRIPTION: Change to maximum Shadow Prices for constraints previously determined as irresolvable by SCED INTENDED AUDIENCE: ERCOT Market Participants DAY AFFECTED: January 1, 2017 and January 30, 2017 LONG DESCRIPTION: Section 3.6.2 of ERCOT's Business Practice, Setting the Shadow Price Caps and Power Balance Penalties in Security Constrained Economic Dispatch, requires ERCOT to review each constraint previously determined irresolvable by Security-Constrained Economic Dispatch (SCED) annually and determine if the constraint has become SCED resolvable and re-determine the maximum Shadow Price for constraints that continue to be irresolvable by SCED. Effective January 1, 2017, the following changes in maximum Shadow Prices will be made to the set of constraints that remain consistently irresolvable by SCED: Contingency Name Constraint Name From Station / kV Description Current Maximum Shadow Price ($/MWh) Maximum Shadow Price Effective 1/1/17 ($/MWh) BASE CASE VALIMP N/A Valley Import Base Case 2,000.00 2,000.00 SMCEABS8 ABNW_ELYT1_1 ABNW / 69 Loss of the 138 kV lines from Eskota Switch to McElmurray Tap Switchyard to Potter LCRA to Abilene South and Potter LCRA to Moore_Taylor Electric Coop overloads the 69 kV line from Abilene Northwest to Ely Rea Tap 2,000.00 2,000.00 SMDFHLT8/SBAKHL48* 6596__F HLTSW / 69 Loss of Bakke Tap to Unocal Parker Bakke 138 kV line overloads the 69 kV line from Emma Tap to Holt Switch 2,800.00 2,000.00 XSA2N89 SACH_69T1 SACH / 138 Loss of the San Angelo North 138/69 kV Auto transformer overloading the San Angelo College Hills 138/69 kV Auto transformer 2,000.00 2,000.00 *The name of contingency SMDFHLT8 was changed to SBAKHL48 during 2016 due to network topology changes. Additionally, effective January 30, 2017, the following constraints will be considered to be SCED resolvable and ERCOT will reset the Shadow Price Caps for these constraints to default values: Contingency Name Constraint Name From Station / kV Description SLA_RIO8 HARLNS_OLEAND1_1 HARLNSW / 138 La Palma - Rio Hondo 138 kV line overloads the Harlingen - Oleander 138 kV Line SLA_RIO8 RIOHND_ERIOHND_1 RIOHONDO / 138 La Palma - Rio Hondo 138 kV line overloads the Rio Hondo - East Rio Hondo sub 138 kV Line Per Section 3.6.3 of the Business Practice document, the net margin values for all of the constraints that are remaining as consistently irresolvable by SCED will be reset to zero on January 1, 2017. ADDITIONAL INFORMATION: The ERCOT Business Practice, Setting the Shadow Price Caps and Power Balance Penalties in Security Constrained Economic Dispatch, may be found on the Other Binding Documents List <http://www.ercot.com/mktrules/obd/obdlist> page of 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]>. 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. nb