NPRR1006  Update Real-Time On-Line Reliability Deployment Price Adder Inputs to Match Actual Data

When the Real-Time On-Line Reliability Deployment Price Adder was created through NPRR626, Emergency Response Service (ERS) Resources were presumed to return to service on a linear curve over ten hours following recall. However, NPRR626 explicitly stated that: “The restoration period shall be reviewed by TAC at least annually, and ERCOT may recommend a new restoration period to reflect observed historical restoration patterns.” Actual data from summer 2019 provided by ERCOT shows the following: • On August 13th, 38% returned to service after one hour, 78% returned to service after two hours, and 100% returned to service after three hours. • On August 15th, 42% of the ERS MWs returned to service after one hour, 83% returned to service after two hours, and 93% returned to service after three hours. • On January 6, 2014, ERS MWs returned to service after approximately 30 intervals or 7.5 hours. It is appropriate to update the Real-Time On-Line Reliability Deployment Price Adder inputs to reflect a more realistic time period based on the actual data from the ERS deployments last summer as well as those in winter months since ERS is a year-round program. Accordingly, this NPRR proposes to return the ERS resources in a linear curve over a four and a half-hour period following recall, rather than ten hours, to account for the data seen from summer 2019 as well as winter 2014 with the recognition that three days’ data does not provide definitive information for further reduction. The NPRR also changes the process for updating this parameter in the future so that it can be updated by TAC each year as appropriate, without the need to file an NPRR. During periods of EEA 2, ERCOT instructs TDSPs to reduce Load through deployment of any available Load management plans. The December 2019 Capacity Demand and Reserves Report notes TDSP Load management programs account for 257 MW of demand reduction capacity. Inclusion of this capacity in the Real-Time On-Line Reliability Deployment Price Adder is consistent with its intent, which mitigates price distortions resulting from out-of-market actions.