NOTICE DATE: December 20, 2022

NOTICE TYPE: W-X122022-01 Operations

SHORT DESCRIPTION: 2023 Minimum Monthly Ancillary Service Requirements

INTENDED AUDIENCE: ERCOT Market Participants

DAYS AFFECTED: January 1, 2023

LONG DESCRIPTION: On December 20, 2022, the ERCOT Board of Directors approved the 2023 ERCOT Methodologies for Determining Ancillary Service Requirements (“2023 AS Methodology”). The approved changes modify the methodology for determining minimum quantities of Non-Spinning Reserve (Non-Spin) Service and add a methodology determining the minimum quantities for ERCOT Contingency Reserve Service (ECRS), which will be effective upon implementation of NPRR863, Creation of ERCOT Contingency Reserve Service and Revisions to Responsive Reserve . ERCOT’s December 20 2022 presentation to the ERCOT Board of Directors provides additional details about these changes. The 2023 AS Methodology will be effective beginning January 1, 2023.

Per the 2023 AS Methodology, the minimum monthly Ancillary Services quantities for 2023 have been posted in the Ancillary Service Requirement Methodology report (EMIL ID NP3-783-M, Report ID 13036) on ERCOT’s Market Information System (MIS). The posted quantities reflect minimum requirements only. ERCOT will follow-up with a Market Notice if any upward adjustments to these minimum quantities are made.

Note that, the 2023 AS Methodology sets the minimum capacity required from Resources providing RRS by using Primary Frequency Response to 1,390 MW. This updated limit will be effective beginning January 1, 2023.

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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