NOTICE DATE: January 5, 2022

NOTICE TYPE: W-A010522-01 Operations

SHORT DESCRIPTION: ERCOT has corrected the Commercial Operations Dates (CODs) for several Generation Resources in its Market Participant Registration System (Siebel) so that each Generation Resource’s COD matches the COD provided by the Resource Entity in its most recent Resource Asset Registration Form (RARF). 

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: December 1, 2010 – December 12, 2021

LONG DESCRIPTION: ERCOT identified an issue regarding the CODs for certain Generation Resources in Siebel not matching the CODs provided by the Resource Entities in their RARFs.  The definition of “Commercial Operations Date” in ERCOT Protocol Section 2.1 states that the COD is provided by the Resource Entity or the Interconnecting Entity prior to the Resource’s Commercial Operations Date.  Section 2 of ERCOT’s Resource Registration Glossary clarifies that after the Resource completes operational performance testing, the Resource Entity is responsible for providing the actual Commercial Operations Date.  A Resource Entity provides a Generation Resource’s COD in its RARF.   

The COD entered in Siebel affects the calculation of the Mitigated Offer Cap curve for Generation Resources in ERCOT’s Real Time Market, under ERCOT Protocols Section 4.4.9.4.1. The formula for calculating the Mitigated Offer Cap includes a variable, the Generic Incremental Heat Rate, that varies depending on whether a Generation Resource has a COD on or before January 1, 2004 versus after January 1, 2004.  The Mitigated Offer Cap curve does not apply to a Generation Resource in all intervals; rather, it only applies when a Resource is mitigated for the second step within the SCED process.  Thus, if a COD incorrectly identifies a Resource being in commercial operations before or after January 1, 2004, the error may affect Real- Time Market operations and settlements.  The Mitigated Offer Cap curve also may be applied in reviewing a Resource’s submission of verifiable cost data for recovery of costs from certain out-of-market actions taken for reliability such as an Outage Schedule Adjustment.

ERCOT determined that 35 Generation Resources at 15 substations had CODs in Siebel that were before January 1, 2004; however, the CODs provided by the Resource Entities in their RARFs were after January 1, 2004.  Those affected Generation Resources were

3 Generation Resources at one substation had CODs in Siebel that were after January 1, 2004 where the CODs provided by the Resource Entities in their RARFs were before January 1, 2004.  Those affected Generation Resources were 

Approximately 190 other Generation Resources also had mismatched CODs, but these Resources were not affected because the differing dates were on the same side of the delineating date of January 1, 2004. 

The mismatched CODs in Siebel involved multiple generation units at the same substation; in Siebel, the oldest COD for a Generation Resource at a substation was entered for all Generation Resources at the same substation, regardless of whether other Generation Resources at the same substation have different CODs.  For most of the implicated Generation Resources, including all of the 38 affected Generation Resources, the incorrect entry of Resources’ CODs occurred during a mass migration of Resource information into Siebel in 2009 in preparation for implementation of ERCOT’s Nodal Market.  For another 20 implicated, but unaffected Generation Resources, incorrect entries occurred thereafter and are associated with data-entry or validation errors.

ERCOT has corrected the CODs in Siebel for all the implicated Generation Resources and double-checked the CODs for all Generation Resources in Siebel to confirm the CODs match the information provided in the Generation Resource’s most recent RARF.  Additionally, ERCOT has made changes to its processes for entry of Resource information into Siebel to avoid similar concerns moving forward.  ERCOT will be contacting all Resource Entities of the 38 affected Generation Resources. 

Because the error impacted SCED, Real-Time Market prices may have been impacted.  ERCOT analyzed the potentially impacted SCED intervals during a sampled month (November 12 through December 11, 2021) with corrected Mitigated Offer Caps for the affected Generation Resources.  ERCOT found 14 SCED intervals with changes to System Lambda that were greater than 1 cent.  Of those 14 SCED intervals, the largest impact was a change to System Lambda of approximately $2.89.   

ERCOT Protocol Section 6.3(4) requires ERCOT to correct Real-Time Market prices for an Operating Day when accurate prices can be determined, the impact of the price correction is determined to be significant, and other conditions apply.  Protocol Section 6.3(7)(b) requires ERCOT to seek ERCOT Board review for correction of final prices if the change in RTM Settlement Statement(s) would result in the absolute value impact to any single Counter-Party to be greater than 2% and $20,000 or 20% and also greater than $2,000.  Because impacts to Real- Time Market prices were not significant and outside the timeline for eligibility for ERCOT Board review, ERCOT will not be seeking price corrections.

ADDITIONAL INFORMATION: ERCOT staff expects to discuss the issue described in this Market Notice in more detail at a future stakeholder committee or subcommittee meeting.

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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