NOTICE DATE:  October 25, 2021

NOTICE TYPE:  M-A102521-01 Operations

SHORT DESCRIPTION:  Clarification of Energy Offer Practices for Qualified Scheduling Entities Representing Resources Affected by an Outage Schedule Adjustment

INTENDED AUDIENCE:  All ERCOT Market Participants

DAY AFFECTED:  October 25, 2021

LONG DESCRIPTION:  On October 21 and 22, 2021, ERCOT issued Outage Schedule Adjustments (OSA) affecting multiple Generation Resources due to a possible reserve capacity deficiency on October 25, 2021 from Hour Ending (HE) 1300 to HE 2100. Paragraph (3)(g) of Protocol Section, Withdrawal of Approval or Acceptance and Rescheduling of Approved or Accepted Planned Outages of Resource Facilities, provides that a Qualified Scheduling Entity (QSE) representing a Resource affected by an OSA “may choose to show the Resource as OFF in the [Current Operating Plan] or may elect to leave the Resource On-Line due to equipment or reliability concerns or if the Resource Category is coal or lignite.”  If the QSE elects to leave the Resource On-Line, the QSE is required under that same provision to “update the Resource’s Energy Offer Curve to $4,500 for all MWs above [the Resource’s Low Sustained Limit (LSL)].” 

The System-Wide Offer Cap (SWCAP) currently in effect is $2,000/MWh.  Therefore, the highest offer that can currently be accepted by ERCOT’s Market Management System is $2,000/MWh.  Because an offer of $4,500/MWh cannot be accepted, Paragraph (3)(g) of Section can only reasonably be construed to require QSEs representing one or more Resources affected by an OSA that remain online during the OSA Period to offer all energy above LSL at the SWCAP.  ERCOT therefore confirms that, if a Resource subject to an OSA remains online during the OSA Period, the Resource’s QSE must offer all energy from that Resource above LSL at $2,000/MWh during that OSA Period. ERCOT intends to sponsor a Nodal Protocol Revision Request (NPRR) to formalize this clarification in the Protocols. 

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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