protocol revision subcommittee

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Protocol Revision Protocol Revision SubcommitteeSubcommittee

Presentation to thePresentation to the

ERCOT Technical Advisory CommitteeERCOT Technical Advisory Committee

October 6, 2004October 6, 2004

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PRS SummaryPRS Summary

• 5 PRRs for Approval5 PRRs for Approval

• 1 PRR Withdrawal Notice1 PRR Withdrawal Notice

• System Prioritization UpdateSystem Prioritization Update

• PRR CommunicationsPRR Communications

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PRR 523 – Revisions to Protocol PRR 523 – Revisions to Protocol Section 21Section 21

• PRR submitted by ERCOTPRR submitted by ERCOT

• Updates PRR section to:Updates PRR section to:– Revise Impact Analysis sectionRevise Impact Analysis section– Include system project prioritizationInclude system project prioritization– Formalize the System Change Request Formalize the System Change Request

processprocess– Clarify deadlinesClarify deadlines

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XXXX XXXXXXXX

21 Day Comment 21 Day Comment PeriodPeriod

ERCOT PostsERCOT PostsPRRPRR

August 26August 26PRSPRS

ConsiderationConsideration

Nov 30Nov 30July 23July 2321 Day Comment 21 Day Comment

PeriodPeriodOctober 7October 7

TACTACConsiderationConsideration

ERCOT PostsERCOT PostsIAIA

ERCOT PostsERCOT PostsPRS RecPRS Rec

ERCOT PostsERCOT PostsTAC RecTAC Rec

October 19October 19BODBOD


ERCOT PostsERCOT PostsBOD DecisionBOD Decision

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XXXX XXXXXXXX

21 Day Comment 21 Day Comment PeriodPeriod

ERCOT PostsERCOT PostsPRRPRR

August 26August 26PRSPRS

ConsiderationConsideration11stst Consideration Consideration

Nov 30Nov 30July 23July 2321 Day Comment 21 Day Comment

PeriodPeriodOctober 7October 7

TACTACConsiderationConsideration

ERCOT PostsERCOT PostsIAIA

ERCOT PostsERCOT PostsPRS RecPRS Rec

ERCOT PostsERCOT PostsTAC RecTAC Rec

October 19October 19BODBOD


ERCOT PostsERCOT PostsBOD DecisionBOD Decision

25-Day IA25-Day IAPeriodPeriod

September 25September 25PRSPRS

ConsiderationConsideration2nd Consideration2nd Consideration

XX

ERCOT UpdatesERCOT UpdatesPRS RecPRS Rec

XX

November 16November 16BODBOD


30-Day IA30-Day IAPeriodPeriod

Similar process applies to System Change RequestsSimilar process applies to System Change Requests

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• Unanimous recommendation to approve PRR Unanimous recommendation to approve PRR (all market segments present) as revised by (all market segments present) as revised by Austin Energy, CenterPoint, ERCOT, TXU and Austin Energy, CenterPoint, ERCOT, TXU and PRSPRS

• Minor staffing impact -- requires update of Minor staffing impact -- requires update of ERCOT internal processesERCOT internal processes

• Allows ERCOT to provide a more thorough Allows ERCOT to provide a more thorough impact analysis to PRSimpact analysis to PRS

• No credit monitoring or liability calculation No credit monitoring or liability calculation changes requiredchanges required

• Effective November 1, 2004Effective November 1, 2004

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PRR 526 – OOMC Verifiable Cost PRR 526 – OOMC Verifiable Cost DocumentationDocumentation

• PRR submitted by AEP, IOU SegmentPRR submitted by AEP, IOU Segment

• PRR clarifies the Protocols for PRR clarifies the Protocols for OOMC verifiable costsOOMC verifiable costs– Defines the required documentation Defines the required documentation

standards required when ERCOT standards required when ERCOT cancels/delays a unit’s planned and cancels/delays a unit’s planned and approved maintenance outage due to an approved maintenance outage due to an OOMC instructionOOMC instruction

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PRR 526 – OOMC Verifiable Cost PRR 526 – OOMC Verifiable Cost DocumentationDocumentation

• Unanimous recommendation to approve Unanimous recommendation to approve PRR (all market segments present) PRR (all market segments present)

• No impacts to ERCOT systems; minor No impacts to ERCOT systems; minor impacts to business processes but impacts to business processes but application of the PRR is predicted to be application of the PRR is predicted to be infrequentinfrequent

• No credit monitoring or liability calculation No credit monitoring or liability calculation changes requiredchanges required


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PRR 531 – Load ClarificationPRR 531 – Load Clarification

• PRR submitted by AEP, IOU SegmentPRR submitted by AEP, IOU Segment• BLT move a load obligation to or from BLT move a load obligation to or from

another power pool into or out of ERCOT in another power pool into or out of ERCOT in an emergency and only under a specific an emergency and only under a specific ERCOT Dispatch InstructionERCOT Dispatch Instruction

• PRR clarifies that load points involved in PRR clarifies that load points involved in Block Load Transfers (BLT) will be treated Block Load Transfers (BLT) will be treated as non-competitive load and registered as non-competitive load and registered similarly to NOIEssimilarly to NOIEs– Will be responsible for UFE and transmission Will be responsible for UFE and transmission

losses similar to NOIEslosses similar to NOIEs

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PRR 531 – Load ClarificationPRR 531 – Load Clarification

• Unanimous recommendation to Unanimous recommendation to approve PRR (all market segments approve PRR (all market segments present) as revised by PRSpresent) as revised by PRS

• ERCOT system impact consists of ERCOT system impact consists of adding a new TDSP to Lodestaradding a new TDSP to Lodestar

• No credit monitoring or liability No credit monitoring or liability calculation changes requiredcalculation changes required


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PRR 532 – Implementation of Non-PRR 532 – Implementation of Non-Transmission Alternatives to RMRTransmission Alternatives to RMR

• PRR submitted on behalf of WMS by ANP, PRR submitted on behalf of WMS by ANP, Independent Generator SegmentIndependent Generator Segment

• Protocols require ERCOT to evaluate non-Protocols require ERCOT to evaluate non-transmission exit strategies to RMR situationstransmission exit strategies to RMR situations

• PRR proposes a Must-Run Alternative (MRA) PRR proposes a Must-Run Alternative (MRA) agreement and selection and settlement agreement and selection and settlement processes to support the MRAprocesses to support the MRA– Relies on the Regional Planning Group process to aid Relies on the Regional Planning Group process to aid

in the evaluationin the evaluation– MRA will provide a more cost-effective alternative to MRA will provide a more cost-effective alternative to

an RMR agreementan RMR agreement– Effort to reduce uplifted costs to the marketEffort to reduce uplifted costs to the market

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• Relies on the Regional Planning Group Relies on the Regional Planning Group process to aid in the evaluationprocess to aid in the evaluation

• MRA will provide a more cost-effective MRA will provide a more cost-effective alternative to an RMR agreementalternative to an RMR agreement

• MRA agreement term is limited to the time MRA agreement term is limited to the time necessary for the cost-effective transmission necessary for the cost-effective transmission alternative to be implementedalternative to be implemented

• If the MRA forecloses another viable technical If the MRA forecloses another viable technical solution, the agreement shall limit the MRA’s solution, the agreement shall limit the MRA’s ability to terminate MRA service or increase ability to terminate MRA service or increase pricesprices

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• PRS recommendation to approve PRR (all PRS recommendation to approve PRR (all market segments present) as revised by CPS, market segments present) as revised by CPS, Austin Energy and PRSAustin Energy and PRS– 2 votes in opposition; 4 abstentions2 votes in opposition; 4 abstentions– Note: PRS previously rejected “urgent” status for Note: PRS previously rejected “urgent” status for

this PRRthis PRR

• ERCOT requires 1 FTE for Legal (contact ERCOT requires 1 FTE for Legal (contact negotiation and administration); future MRAs negotiation and administration); future MRAs may impact ERCOT computer systems; grid may impact ERCOT computer systems; grid operations may be impacted by future MRAsoperations may be impacted by future MRAs


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• Credit Work Group submitted comments Credit Work Group submitted comments to TAC subsequent to PRS’ consideration to TAC subsequent to PRS’ consideration and recommendation of PRR 532and recommendation of PRR 532

• CWG determined that the MRA’s financial CWG determined that the MRA’s financial stability must be evaluatedstability must be evaluated

• CWG proposed language that MRAs meet CWG proposed language that MRAs meet ERCOT requirements for the appropriate ERCOT requirements for the appropriate tenor of the MRA agreementtenor of the MRA agreement– The specific requirements will need to be The specific requirements will need to be

developeddeveloped

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PRR 535 – Reactive TestingPRR 535 – Reactive Testing

• PRR submitted on behalf of the PRR submitted on behalf of the Generator Reactive Testing Generator Reactive Testing Procedures TF by LCRA, Electric Procedures TF by LCRA, Electric Cooperative SegmentCooperative Segment

• Revises wording to reflect that Revises wording to reflect that “capability” is being tested “capability” is being tested (previously stated “capacity”)(previously stated “capacity”)

• Clarifies the timing of reactive testingClarifies the timing of reactive testing

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PRR 535 – Reactive TestingPRR 535 – Reactive Testing

• Unanimous recommendation to Unanimous recommendation to approve PRR (all market segments approve PRR (all market segments present) as amended by PRSpresent) as amended by PRS

• No impacts on ERCOT systems or No impacts on ERCOT systems or business processesbusiness processes

• No credit monitoring or liability No credit monitoring or liability calculation changes requiredcalculation changes required


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PRR 524 – Clarification of Timeline PRR 524 – Clarification of Timeline for Cost Submissionfor Cost Submission

• PRR submitted and withdrawn by PRR submitted and withdrawn by Centrica, Independent REP SegmentCentrica, Independent REP Segment

• PRR would revise the submission PRR would revise the submission timeline for verifiable coststimeline for verifiable costs– Impacts settlement timeline work Impacts settlement timeline work

ongoing in COPsongoing in COPs

• PRS affirmed withdrawalPRS affirmed withdrawal

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Recommended TAC ActionsRecommended TAC Actions

Urgent Status None

Approval – PRR 523 – (Section 21 Revision) PRR 526 – (OOMC Verifiable Cost Documentation) PRR 531 – (Load Clarification for BLTs) PRR 532 – (Implementation of MRAs) PRR 535 – (Reactive Testing)

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System Prioritization UpdateSystem Prioritization Update

• ERCOT informed PRS that more information ERCOT informed PRS that more information was needed to quantify system change was needed to quantify system change benefitsbenefits– Criteria worksheets consist of weight factors for Criteria worksheets consist of weight factors for

various categories (e.g., criticality of project for various categories (e.g., criticality of project for Regulatory Requirement or Reliability)Regulatory Requirement or Reliability)

– Information required by October 6 for submission Information required by October 6 for submission to BODto BOD

• ERCOT will develop information in draft form ERCOT will develop information in draft form for submission to BOD and PRS reviewfor submission to BOD and PRS review

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““Improving PRR Improving PRR Communications”Communications”

Or “What Was PRS/TAC Or “What Was PRS/TAC Thinking?”Thinking?”

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Improving CommunicationsImproving Communications

• Desire for more information on PRRs Desire for more information on PRRs requested by BOD membersrequested by BOD members– Insights to the deliberations at PRS and TACInsights to the deliberations at PRS and TAC– Cost-benefit analysisCost-benefit analysis– Market segments impactsMarket segments impacts

• PRS discussed BOD comments at its last PRS discussed BOD comments at its last meetingmeeting– Revised PRR Recommendation ReportRevised PRR Recommendation Report– Discussed the quantification of benefitsDiscussed the quantification of benefits

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Communication ObjectivesCommunication Objectives

• To better communicate more information To better communicate more information to TAC/BODto TAC/BOD– Clearer statement of what the PRR doesClearer statement of what the PRR does– Who submitted the PRRWho submitted the PRR– Who commented on the PRRWho commented on the PRR– Procedural history (e.g., developed in another Procedural history (e.g., developed in another

TAC subcommittee)TAC subcommittee)– Summary of PRS discussionSummary of PRS discussion– Priority and ranking for system projectsPriority and ranking for system projects

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Communication ObjectivesCommunication Objectives

• To better communicate information To better communicate information related to PRR costs and benefitsrelated to PRR costs and benefits– ERCOT’s costs currently captured in the ERCOT’s costs currently captured in the

impact analysisimpact analysis– Looking for ways to quantify PRR Looking for ways to quantify PRR

benefitsbenefits

protocol revision subcommittee

Documents

ercotupdates prr section

ercot cancelsdelays

day comment periodoctober

load points

load clarificationprr

load obligation

noncompetitive load

oomc instructionprr