Thanks Blake – that makes a lot of sense. I wasn’t sure if WMWG was making a decision at this meeting since WMS was almost taking a straw poll on it at its last meeting.
Regards,
Shams
From: Blake Holt <[log in to unmask]>
Sent: Sunday, December 8, 2024 11:06 AM
To: [log in to unmask]
Subject: Re: Revised COG CARD proposal for WMWG meeting
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Thanks, Shams.
I’d like to set some expectations for the WMWG conversation on Tuesday. We will only focus on gathering a list of analysis requests for ERCOT and the IMM to conduct and will not be going through any presentations. It will be more efficient to present your information after ERCOT/IMM have had the time to conduct and present the results of their analysis to the group. This presentation might make more sense in January/February.
Blake
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Sent: Sunday, December 8, 2024 9:51 AM
To: [log in to unmask]
Cc: Blake Holt <[log in to unmask]>; 'Market Support Services' <[log in to unmask]>; [log in to unmask]
Subject: Revised COG CARD proposal for WMWG meeting
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As more results of analysis reveal, such as the ERCOT analysis presented at WMS, COG’s 4CP Allocation proposal is the closest CARD allocation to the current allocation and does not distort energy prices for Loads at all – whereas the other proposals may distort energy prices as high as $40/MWh (ERCOT was requested to provide analysis on these impacts). However, eliminating Zonal CARD allocation will result in a sudden large redistribution of CARD between the Zones and thus not likely to gain overwhelming support from stakeholders. As such, COG provides the attached revised CARD allocation proposal that allocates CARD based on 4CP and maintains the current Zonal CARD allocation (so very closely matches current allocation) and transitions to system-wide CARD allocation by capping each Zone’s CARD allocation to its TCOS allocation (if that limit is reached) and then allocates CARD on a monthly system-wide Load Ratio Share if total CARD/CRRBA ever exceeds TCOS. Although this last system-wide allocation is unlikely anytime soon and favors large C&I, but at that point no Load is “paying” for TCOS and all-hour system-wide allocation minimizes price distortion from such allocation for any particular interval or sets of intervals. If CARD keeps increasing to that point, there would be no need to modify the 4CP allocation of TCOS under COG’s proposal.
Please let me know if you have any questions. I look forward to presenting the attached at WMWG – please post this presentation to the meeting page.
Regards,
Shams Siddiqi, Ph.D.
President, Crescent Power, Inc.
Tel: +1.512.619.3532
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