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NOTICE DATE:  March 22, 2019

NOTICE TYPE:  M-D030119-02 NPRR

SHORT DESCRIPTION:  Reminder - Implementation Details of NPRR845

INTENDED AUDIENCE:  ERCOT Market Participants

DAY AFFECTED:  April 5, 2019

LONG DESCRIPTION:  On April 5, 2019, Protocol language related to Nodal Protocol Revision Request (NPRR) 845, RMR Process and Agreement Revisions, will be implemented.

NPRR845 modifies the calculation for the Reliability Must-Run (RMR) Hourly Rolling Equivalent Availability Factor RMRHREAF taking into account the High Sustained Limit (HSL) and contracted capacity along with availability. It also allows for the Standby Costs to be revised during the contract period in accordance with paragraph (2) of Section 3.14.1.13, Updated Budgets During the Term of an RMR Agreement. Furthermore, this NPRR approves the method for reconciling RMR actual eligible costs, RMR and Must-Run Alternative (MRA) contributed capital expenditures and miscellaneous expenses.

********* Settlement calculation revisions:

6.6.6.1 RMR Standby Payment

RMR Hourly Rolling Equivalent Availability Factor

RMRHREAF q, r = Min (1,  (RMRAFLAG q, r, hr *  HSLq, r, hr)  /  RMRCCAP q, r)



6.6.6.6   Method for Reconciling RMR Actual Eligible Costs, RMR and MRA Contributed Capital Expenditures, and Miscellaneous RMR Incurred Expenses

(1)    For any overpayments to the QSE representing the RMR Unit as described in Section 3.14.1.16, Reconciliation of Actual Eligible Costs, and contributed capital expenditures described in Section 3.14.1.19, Charge for Contributed Capital Expenditures:

The one-time charge to the QSE to collect the lump sum of over-payments and contributed capital expenditures is calculated as follows:

RMRRAMT q, r, c   = RMRCE q, r, c + RMROP q, r, c, m

The one-time payment is calculated as follows:

LARMRRAMT q  =   (-1) *  (MRMRCE m + RMROP q, r, c, m) / MH m * HLRS q, m

Where:

MRMRCE m   =    RMRCE q, r, c / CM q, r, c

(2)    For expenses incurred related to the processing of an RMR Agreement or validation and/or processing of RMR budgets:

The one-time charge is calculated as follows:

LARMROEIAMT q   =  (-1) *  RMROEIAMT m / MH m * HLRS q, m

ACTION REQUIRED:  Implement changes to shadow Settlement systems for NPRR845.

ADDITIONAL INFORMATION:  Pursuant to Nodal Protocol Section 21.6, Nodal Protocol Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.

NPRR845<http://www.ercot.com/mktrules/issues/NPRR845> and associated documents can be found on the ERCOT website.

Please review the ERCOT website for previous Market Notices<http://www.ercot.com/services/comm/mkt_notices/archives/search?nc=all&per=&pg=&q=M-D030119&sort=> related to this subject.

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]>.

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