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 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].

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