NOTICE DATE: April 24, 2020

NOTICE TYPE: M-B042420-01

SHORT DESCRIPTION:  Implementation Details of NPRR856 and NPRR884

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED:  May 26-28, 2020

LONG DESCRIPTION:  ERCOT will be implementing system changes between May 26-28, 2020, for Protocol language associated with Nodal Protocol Revision Request (NPRR) 856, Treatment of OFFQS Status in Day-Ahead Make Whole and RUC Settlements, and NPRR884, Adjustments to Pricing and Settlements for Reliability Unit Commitments (RUCs) of On-Line Combined Cycle Generation Resources.

NPRR856 modifies the listed Settlement processes as follows:

• Protocol Section 4.6.2.3, Day-Ahead Make-Whole Settlements – For purposes of determining eligibility for startup and energy cost compensation for a Resource, a telemetered Resource Status of OFFQS shall be considered as Off-Line.

• Protocol Section 5.6.2, RUC Startup Cost Eligibility – For purposes of determining eligibility for startup cost compensation for a Resource, the following applies:

• A telemetered Resource Status of OFFQS shall be considered as Off-Line.
  
  
• A Current Operating Plan (COP) Resource Status of OFFQS will not be considered as Qualified Scheduling Entity (QSE)-committed for the Settlement Interval unless that interval has been committed due to a Day-Ahead Market (DAM) award for energy.

• RUC Capacity-Short Charge (RUCCSAMT):

• Protocol Section 5.7.4.1.1, Capacity Shortfall Ratio Share - RUC Capacity Snapshot at time of RUC (RUCCAPSNAP) – Adjusted to include the High Ancillary Service Limit (HASL), according to the COP and Trades Snapshot, for a Generation Resource that is planning to operate as a Quick Start Generation Resource (QSGR) for the Settlement Interval as shown by the COP Resource Status of OFFQS.
  
  
• Protocol Section 5.7.4.1.1 - RUC Capacity Snapshot during Adjustment Period (RUCCAPADJ) – Adjusted to include the HASL, according to the Adjustment Period snapshot, for a Generation Resource that is planning to operate as a QSGR for the Settlement Interval as shown by the COP Resource Status of OFFQS.

NPRR884 introduces various changes needed for ERCOT systems to effectively manage cases where ERCOT issues a RUC instruction to a Combined Cycle Generation Resource that is already QSE-committed for an hour, with the instruction being that the Resource operate in a configuration with greater capacity for that same hour. 

NPRR884 includes the following changes:

• Capturing the incremental capacity committed by ERCOT in the determination of the Real-Time On-Line Reliability Deployment Price Adder and Real-Time Reserve Price Adder.
  
  
• Modifying the method for creating the Energy Offer Curve for the incremental capacity committed by ERCOT.
  
  
• Modifying settlement processes to consider compensation to the QSE for the transition between configurations in response to the RUC instruction.

NPRR884 also modifies the listed Settlement processes as follows:

• Protocol Section 5.7.1.1, RUC Guarantee (RUCG) – Adjusted to account for the incremental startup and minimum-energy cost of a RUC-Committed Combined Cycle Resource during a RUC-Commitment for Additional Capacity.

• Protocol Section 5.7.1.2, RUC Minimum-Energy Revenue (RUCMEREV) – Adjusted to account for the incremental minimum-energy revenue from the RUC-Committed Combined Cycle Resource during a RUC-Commitment for Additional Capacity.

• Protocol Section 5.7.2, RUC Clawback Charge (RUCCBAMT) – Adjusted to prevent the claw-back of revenues from intervals that are RUC-Committed for Additional Capacity.

• RUC Capacity-Short Charge (RUCCSAMT):

• Protocol Section 5.7.4.1, RUC Capacity Total (RUCCAPTOT) – Adjusted to account for the incremental RUC-Committed capacity during a RUC-Commitment for Additional Capacity.
  
  
• Protocol Section 5.7.4.1.1, RUC Capacity Snapshot at time of RUC (RUCCAPSNAP) – Adjusted to include the HASL, according to the COP and Trades Snapshot, for the Combined Cycle Generation Resource that was QSE-Committed at the time the RUC-Commitment for Additional Capacity was issued.
  
  
• Protocol Section 5.7.4.1.1, RUC Capacity Snapshot during Adjustment Period (RUCCAPADJ) – Adjusted to include the HASL, according to the Adjustment Period snapshot, for the Combined Cycle Generation Resource that was QSE-Committed at the time the RUC-Commitment for Additional Capacity was issued.

• Protocol Section 6.7.5, Real-Time Ancillary Service Imbalance Payment or Charge (RTASIAMT) – Adjusted to prevent the exclusion of capacity in intervals that are RUC-Committed for Additional Capacity.

New Settlement Bill Determinants

ACTION REQUIRED:  Impacted Market Participants should implement changes to their shadow Settlement systems to incorporate the Protocol revisions made by NPRR856 and NPRR884.

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.

NPRR856 and NPRR884 and their associated documents can be found on the ERCOT website.

Additional Settlement details can be found in the Settlements Charge Matrix located on the Settlements Information page on the Market Information System (MIS) Public Area.

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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