NPRR #91 · Revision Request
NPRR091 Scarcity Pricing and Mitigated Offer Cap During the Period Commencing on the Nodal Market Implementation Date and Continuing for a Total of 45 Days
Reason(1) The purpose of these changes is to add safeguards during an initial shake-down period of nodal market operations to limit the economic consequences of bids and offers as reflected in the Day Ahead Market (DAM) and Real Time Settlement Point Prices. The shake-down period has been selected to allow Market Participants sufficient time to build experience by becoming familiar with the operation of the DAM and Real Time nodal market systems. The methodology selected implements the safeguards described in this NPRR by utilizing the existing ERCOT nodal system designs and will not, and are not intended, to require ERCOT to change or modify the market system design. In all cases, either during this shake-down period or during normal operation of the nodal market systems, all DAM and Adjustment Period and Real Time Energy Offers and DAM Ancillary Service Offers are validated against the SWCAP to assure that no offers used in the nodal price calculations for energy or ancillary service capacity exceed the SWCAP in both the DAM and Real Time Market. Therefore, no special changes are required to the functionality of ERCOT or Market Participant systems during the initial shake-down period or upon its expiration and the assumption of normal system operations. (2) This NPRR creates a set of offer caps for the 45 day period after Nodal startup. (3) This NPRR incorporates the concept into the Nodal Protocols of the Nodal Startup Transition Rules proposal from the Independent Market Monitor (IMM), which was approved by TPTF on September 25, 2007.(4) This NPRR incorporates into nodal Protocols a set of Nodal Startup Transition Rules in response to the PUCT Chairman Memo of July 28, 2005 (filed in PUCT Project 28500, Activities Related to the Implementation of a Nodal Market for the Electric Reliability Council of Texas) and "requiring cost based offer limitations for an appropriate time period."
Created2007-12-13
Approved2010-08-17
Sections Affected
3.194.4.11.2
Summary
This Nodal Protocol Revision Request (NPRR) adds: (1) A provision to Section 3.19 that all transmission constraints are treated as non-competitive constraints during an initial 45 Operating Day period, beginning with the Texas Nodal Market Implementation Date (TNMID). (2) New Section 4.4.11.2, which requires that the System-Wide Offer Cap (SWCAP) be set to the higher of $180 per MWh or 18 mmBtu per MWh times the Fuel Index Price (FIP) during an initial 45 Operating Day period, beginning with the TNMID, provided that a Market Participant who burns fuel oil rather than natural gas may dispute the use of $180 per MWh or 18 mmBtu heat rate per MWh times FIP if the Generation Resource’s Settlement Point Price does not cover the cost incurred by the Market Participant to provide energy or Ancillary Services. This new section also establishes an Energy Offer Curve floor adjusted to -$50 per MWh.
Action Log 16 milestones
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Dec 13
PRSDeferred/Tabled→ PRS consideration
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Jan 17
PRSDeferred/Tabled→ Continued consideration of NPRR091 by PRS at its February 21, 2008 meeting.
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Feb 21
PRSRecommended for Approval→ PRS review of the Impact Analysis and Recommendation Report.
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Mar 20
PRSDeferred/Tabled→ Review of final Impact Anaysis and Recommendation Report
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May 22
PRSDeferred/Tabled→ Review of Impact Analysis and Recommendation Report.
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Mar 4
TACDeferred/Tabled→ TAC consideration of NPRR091
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Jun 15
BOARDDeferred/Tabled→ ERCOT Board consideration of NPRR091
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Jun 3
TACRecommended for Approval→ ERCOT Board consideration of NPRR091
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Feb 4
TACDeferred/Tabled→ TAC consideration of NPRR091
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May 19
WMS→ TAC consideration of NPRR091
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Apr 8
TACRecommended for Approval→ ERCOT Board consideration of NPRR091
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Jan 6
TACDeferred/Tabled→ Consideration of NPRR091 by TAC.
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Jul 17
PRSRecommended for Approval→ Consideration of NPRR091 by TAC.
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Aug 7
TACDeferred/Tabled→ Consideration of NPRR091 by TAC.
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Aug 17
BOARDApproved
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Aug 16
BOARDApproved
Amendments
| Date | Body | Motion | Result |
|---|---|---|---|
| Jun 3 '10 | TAC | To recommend approval of NPRR091 as amended by the 5/26/10 WMS comments. | Passed |
| Apr 8 '10 | TAC | To recommend approval of NPRR091 as recommended by PRS in the 7/17/08 PRS Report and as amended by the 3/29/10 WMS comments. | Passed |
| Aug 7 '08 | TAC | To table NPRR091 until the TAC meeting following the establishment of a revised Texas Nodal Market Implementation Date. | Passed |
Ballots
| Date | Body | Result | Yes | No | Abstain | |
|---|---|---|---|---|---|---|
| Feb 4 '10 | TAC | Motion Fails | 8 | 13 | 8 | xls |
Documents 45
| Name | Type | Posted | Classification |
|---|---|---|---|
| 091NPRR-01 Scarcity Pricing and Mitigated Offer Cap During 12050 | doc | Dec 5 '07 | Revision Request |
| 091NPRR-02 TPTF Vote Tally 112707 | xls | Dec 5 '07 | Revision Request Ballot |
| 091NPRR-03 NRG Texas LLC Comments 121007 | doc | Dec 10 '07 | Revision Request Comments |
| 091NPRR-04 PRS Action Report 121307 | doc | Dec 17 '07 | Committee Report |
| 091NPRR-05 Calpine Comments 121907 | doc | Dec 19 '07 | Revision Request Comments |
| 091NPRR-06 TPTF Vote Tally 121807 | xls | Dec 20 '07 | Revision Request Ballot |
| 091NPRR-07 REP Nodal Group Comments 122007 | doc | Dec 20 '07 | Revision Request Comments |
| 091NPRR-08 NRG Texas Comments 011008 | doc | Jan 10 '08 | Revision Request Comments |
| 091NPRR-09 Credit WG Comments 011408 | doc | Jan 14 '08 | Revision Request Comments |
| 091NPRR-10 PRS Action Report 011708 | doc | Jan 22 '08 | Committee Report |
| 091NPRR-11 City of Dallas Comments 021308 | doc | Feb 13 '08 | Revision Request Comments |
| 091NPRR-12 NRG Texas Comments_021908 | doc | Feb 19 '08 | Revision Request Comments |
| 091NPRR-13 PRS Voting Ballot 022108 | xls | Feb 21 '08 | Revision Request Ballot |
| 091NPRR-14 PRS Recommendtion Report 022108 | doc | Feb 26 '08 | Committee Report |
| 091NPRR-15 Preliminary Impact Analysis Report 031308 | doc | Mar 13 '08 | Staff Report |
| 091NPRR-16 PRS Action Report 032008 | doc | Mar 25 '08 | Committee Report |
| 091NPRR-17 PRS Action Report 052208 | doc | May 28 '08 | Committee Report |
| 091NPRR-18 Preliminary Impact Analysis Report 061308 | doc | Jun 13 '08 | Committee Report |
| 091NPRR-19 Impact Analysis Report 061808 | doc | Jun 18 '08 | Staff Report |
| 091NPRR-20 PRS Recommendation Report 071708 | doc | Jul 21 '08 | Committee Report |
| 091NPRR-21 TAC Action Report 080708 | doc | Aug 11 '08 | Committee Report |
| 091NPRR-22 ERCOT Comments 031009 | doc | Mar 10 '09 | Revision Request Comments |
| 091NPRR-23 TAC Report 010610 | doc | Jan 7 '10 | Committee Report |
| 091NPRR-24 CEO Revision Request Review 012710 | doc | Jan 27 '10 | Revision Request Comments |
| 091NPRR-25 Luminant Comments 012910 | doc | Jan 29 '10 | Revision Request Comments |
| 091NPRR-26 ERCOT Comments 020110 | doc | Feb 1 '10 | Revision Request Comments |
| 091NPRR-27 REP Nodal Group Comments 020110 | doc | Feb 1 '10 | Revision Request Comments |
| 091NPRR-28 Steel Group Comments 020210 | doc | Feb 2 '10 | Revision Request Comments |
| 091NPRR-29 TAC Report 020410 | doc | Feb 8 '10 | Committee Report |
| 091NPRR-30 TAC Voting Ballot 020410 | xls | Feb 8 '10 | Revision Request Ballot |
| 091NPRR-31 Steel Group Comments 021910 | doc | Feb 19 '10 | Revision Request Comments |
| 091NPRR-32 Luminant Comments 022310 | doc | Feb 23 '10 | Revision Request Comments |
| 091NPRR-33 Luminant Comments 022310 | doc | Feb 23 '10 | Revision Request Comments |
| 091NPRR-34 WMS Comments 022510 | doc | Feb 25 '10 | Revision Request Comments |
| 091NPRR-35 TAC Report 030410 | doc | Mar 8 '10 | Committee Report |
| 091NPRR-36 ERCOT Comments 031610 | doc | Mar 16 '10 | Revision Request Comments |
| 091NPRR-37 Luminant Comments 032310 | doc | Mar 23 '10 | Revision Request Comments |
| 091NPRR-38 WMS Comments 032910 | doc | Mar 29 '10 | Revision Request Comments |
| 091NPRR-39 ERCOT Comments 040510 | doc | Apr 5 '10 | Revision Request Comments |
| 091NPRR-40 TAC Report 040810 | doc | Apr 12 '10 | Committee Report |
| 091NPRR-41 WMS Comments 051910 | doc | May 19 '10 | Revision Request Comments |
| 091NPRR-42 WMS Comments 052610 | doc | May 26 '10 | Revision Request Comments |
| 091NPRR-43 TAC Report 060310 | doc | Jun 4 '10 | Committee Report |
| 091NPRR-44 Board Report 061510 | doc | Jun 17 '10 | Committee Report |
| 091NPRR-45 Board Report 081710 | doc | Aug 17 '10 | Committee Report |
Meetings That Took It Up 22
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Jun 3 '10 | TAC Meeting | TAC | Concluded |
| May 19 '10 | WMS Meeting | WMS | Concluded |
| Apr 21 '10 | WMS Meeting | WMS | Concluded |
| Apr 8 '10 | TAC Meeting | TAC | Concluded |
| Mar 24 '10 | WMS Meeting | WMS | Concluded |
| Mar 4 '10 | TAC Meeting | TAC | Concluded |
| Feb 22 '10 | Special WMS Meeting | WMS | Concluded |
| Feb 17 '10 | WMS Meeting | WMS | Concluded |
| Feb 4 '10 | TAC Meeting | TAC | Concluded |
| Jan 20 '10 | WMS Meeting | WMS | Concluded |
| Jan 6 '10 | TAC Meeting | TAC | Concluded |
| Dec 3 '09 | TAC Meeting | TAC | Concluded |
| Mar 5 '09 | TAC Meeting | TAC | Concluded |
| Aug 7 '08 | TAC Meeting | TAC | Concluded |
| Jul 17 '08 | PRS Meeting | PRS | Concluded |
| Jun 19 '08 | PRS Meeting | PRS | Concluded |
| May 22 '08 | PRS Meeting | PRS | Concluded |
| Mar 20 '08 | PRS Meeting | PRS | Concluded |
| Feb 21 '08 | PRS Meeting | PRS | Concluded |
| Jan 17 '08 | PRS Meeting | PRS | Concluded |
| Dec 17 '07 | TPTF Meeting | TPTF | Concluded |
| Dec 13 '07 | PRS Meeting | PRS | Concluded |