NOTICE DATE: December 19, 2022

NOTICE TYPE: M-A120622-02 General

SHORT DESCRIPTION: Update Regarding Eligibility for Participation in Interim Voluntary Curtailment Program for Large Flexible Loads

INTENDED AUDIENCE: All Market Participants and Customers with Large Flexible Loads

DAYS AFFECTED: December 19, 2022 and thereafter

LONG DESCRIPTION: After considering feedback from a number of parties, ERCOT is expanding the scope of the interim voluntary curtailment program for large flexible Loads to allow participation by Loads that may be qualified to provide Ancillary Services or ERS but that do not have an active obligation to provide those services.

ERCOT’s December 6, 2022 Market Notice announcing the program provided that “[t]he amount of Load that may be registered by a customer to participate in this program must be energized at the time of registration and may not include any amount of Load that is, or may be, qualified, offered, committed, or used to provide any Ancillary Service or ERS.” Some customers have noted that this restriction forecloses participation by Loads that happen to be qualified to provide Ancillary Services or ERS even if they are not actively providing those services.

To address this concern, ERCOT now updates the terms of this Notice to provide that the qualification of a Load to provide an Ancillary Service or ERS does not, by itself, render that Load ineligible to participate. Rather, only Loads that are in fact actively obligated to provide Ancillary Service or ERS are ineligible to participate, and only to the extent of, and for the duration of, that obligation. To facilitate this, if a Load at the Premise is qualified to provide one or more Ancillary Services or is providing ERS, then ERCOT would model a new telemetry point for the Load participating in the voluntary curtailment program, and the QSE for the affected Resource Entity would be required to telemeter this value as the “Voluntary Interruptible Load” (VINT).

So, for example, a customer with a 100 MW Load that is qualified as a Load Resource to provide Responsive Reserve Service (RRS) may register 100 MW of that Load to participate in this program. If the QSE for that Load Resource offers 60 MW of the 100 MW Load into RRS for a given hour and is awarded 60 MW of RRS, the QSE for that Load would, for that hour, be required to reduce the telemetered VINT by the 60 MW quantity of the RRS award.

ERCOT underscores that this update to the program terms in no way affects any responsibility that a QSE or Resource Entity may have with respect to the provision of any Ancillary Service or ERS.

ADDITIONAL INFORMATION: Please review the ERCOT website for previous Market Notices 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].

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