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NPRR #18 · Revision Request

NPRR018  Separate LaaR and Generator MCPCs for RRS

Rejected posted 2006-08-11 ercot.com
ReasonOver the past several months the DSWG and WMS have been working on the problems associated with large negative offers being submitted by LaaRs for RRS service. Many LaaRs were submitting large negative RRS offers to ensure they would be selected to provide the service and receive the MCPC. The MCPC is typically a positive number set by offers from generators. However, if a negative offer ever actually sets the MCPC, then suppliers of RRS would be obligated to pay potentially large amounts of money to the market, causing credit concerns. A short-term solution has already been implemented in the current market. LaaRs are precluded from bidding below $0 per MW and this provision has a sunset date of January 1, 2007. In addition, the DSWG developed three alternatives for WMS to consider: Eliminate the sunset date currently in Protocols Eliminate the sunset date in the Zonal Protocols and implement Alternative C (described below) in the Nodal Market Design Implement Alternative C in the Zonal Protocols and in the Nodal Market Design WMS voted to approve option 2. PRR671 is currently pending and if passed will eliminate the sunset date in the current zonal market. Alternative C provides a separate MCPC for LaaRs and generators if the quantity of LaaRs offered exceeds the quantity of LaaRs cleared. LaaRs would be paid the LaaR MCPC and generators would receive the generator MCPC. Load-Serving Entities would pay an average of the two MCPCs for RRS procured by ERCOT on their behalf. This NPRR is being submitted now to allow ERCOT to include it in the nodal market business requirement documents being submitted to vendors.
Created2006-08-17
Rejected2007-01-04
Sections Affected
4.5.14.5.34.6.4.1.3
Summary
Modify the nodal protocols to provide separate RRS MCPCs for LaaRs and generators when the service is oversubscribed by LaaRs, as per the WMS vote taken on May 17, 2006.
Action Log 4 milestones
Amendments
DateBodyMotionResult
Dec 14 '06PRS Recommend approval of NPRR018 as revised by the latest consolidated comments with an effective implementation date to be determined by the nodal team based on value engineering. The motion passed with one opposing vote from the Independent Retail Electric Provider (IREP) Market Segment and three abstentions from the Independent Power Marketer (IPM)(1) and Consumer (2) Market Segments. All Market Segments were present for the vote.Passed
Documents 11
NameTypePostedClassification
018NPRR-01 Separate LaaR and Generator MCPCs for RRS 081106 doc Aug 11 '06 Revision Request
018NPRR-02 Impact Analysis 081606 doc Aug 16 '06 Staff Report
018NPRR-03 Occidental Comments 081606 doc Aug 16 '06 Revision Request Comments
018NPRR-04 PRS Action Report 081706 doc Aug 22 '06 Committee Report
018NPRR-05 NRG Texas Comments 09182006 doc Sep 18 '06 Revision Request Comments
018NPRR-06 ERCOT Staff Comments 111306 doc Nov 13 '06 Revision Request Comments
018NPRR-07 Credit WG Comments 111606 doc Nov 16 '06 Revision Request Comments
018NPRR-08 Impact Analysis Report 111606 doc Nov 16 '06 Staff Report
018NPRR-09 PRS Report 111606 doc Nov 17 '06 Committee Report
018NPRR-10 PRS Recommendation Report 121406 doc Dec 19 '06 Committee Report
018NPRR-11 TAC Action Report 010407 doc Jan 9 '07 Committee Report
Meetings That Took It Up 9
DateMeetingCommitteeStatus
Jan 4 '07 TAC Meeting TAC Concluded
Dec 14 '06 PRS Meeting PRS Concluded
Nov 16 '06 PRS Meeting PRS Concluded
Oct 24 '06 TPTF Meeting TPTF Concluded
Oct 9 '06 TPTF Meeting TPTF Concluded
Sep 27 '06 TPTF Meeting TPTF Concluded
Sep 21 '06 PRS Meeting PRS Concluded
Aug 21 '06 TPTF Meeting TPTF Concluded
Aug 17 '06 PRS Meeting PRS Concluded