NPRR #284 · Revision Request
NPRR284 Cost Allocation Zones as They Relate to NOIE Load Zones -- As Built Systems
ReasonThis Nodal Protocol Revision Request (NPRR) synchronizes the Nodal Protocols with the as-built system. In regards to the association of a Non-Opt-In Entity (NOIE) Load Zone with a Cost Allocation Zone (i.e., a 2003 CM Zone), the ERCOT system was built in alignment with paragraph (2) of Section 7.5.7, Method for Distributing CRR Auction Revenues, not Section 3.4.3(2)(c). Current Protocols apply one mapping methodology when assigning the Congestion Revenue Right (CRR) Auction revenue to a Cost Allocation Load Zone but apply a different mapping methodology when distributing the money from the Cost Allocation Load Zone buckets to Qualified Scheduling Entities (QSEs) who represent load. Following this approach, the result of the difference in these methodologies is that a NOIE would recover less of the CRR Auction revenue than is actually associated with its NOIE Load Zone. While the NOIE will have a zonal Load Ratio Share (LRS) for each of the Cost Allocation Load Zones to which it maps, the CRR Auction revenue would only be assigned to a single Cost Allocation Load Zone. Thus the NOIE is not able to receive a share of the CRR Auction Revenue from all CRRs which source or sink at its NOIE Load Zone. As currently built, the ERCOT system can only support a single mapping for a NOIE Load Zone to a Cost Allocation Load Zone. The system implementation was done in alignment with Section 7.5.7(2). This is described in the Data Aggregation system requirements and was addressed with the Transition Plan Task Force (TPTF) in January of 2009. The mapping is used for two purposes: To determine the Cost Allocation Load Zone "bucket" to which the CRR Auction revenue should be assigned; and To determine the monthly LRS for purpose of allocating revenues from the Cost Allocation Load Zone "buckets" to QSEs representing load.While the system is currently not able to support multiple NOIE Load Zone to Cost Allocation Load Zone mappings, the benefit is that the assignment of revenue to a Cost Allocation Load Zone is in alignment with the calculation of the NOIE’s LRS for Cost Allocation Load Zone. In other words, all CRR Auction revenue is assigned to the Cost Allocation Load Zone that represents the largest Load for that NOIE or group of NOIEs in 2003, and the NOIE’s monthly LRS for the Cost Allocation Load Zone is calculated by assigning all of the NOIEs load to the Cost Allocation Load Zone that represents the largest Load for that NOIE or group of NOIEs in 2003. Thus, the NOIE ends up with a share of the CRR Auction revenue from all CRRs which source or sink at its NOIE Load Zone.
Created2010-10-04
Approved2010-10-19
Sections Affected
3.4.3
Summary
Changes the Cost Allocation Load Zone assignment for NOIE Load Zones to a single 2003 Congestion Management Zone (CMZ) for go-live.
Action Log 3 milestones
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Oct 4
PRSRecommended for Approval→ TAC for consideration.
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Oct 7
TACRecommended for Approval→ ERCOT Board for consideration.
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Oct 19
BOARDApproved
Documents 6
| Name | Type | Posted | Classification |
|---|---|---|---|
| 284NPRR-01 Cost Allocation Zones as They Relate to NOIE Load Zon | doc | Sep 30 '10 | Revision Request |
| 284NPRR-02 CEO Revision Request Review 093010 | doc | Sep 30 '10 | Revision Request Comments |
| 284NPRR-03 Impact Analysis 093010 | doc | Sep 30 '10 | Staff Report |
| 284NPRR-04 PRS Report 100410 | doc | Oct 5 '10 | Committee Report |
| 284NPRR-05 TAC Report 100710 | doc | Oct 8 '10 | Committee Report |
| 284NPRR-06 Board Report 101910 | doc | Oct 21 '10 | Committee Report |
Meetings That Took It Up 2
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Oct 7 '10 | TAC Meeting | TAC | Concluded |
| Oct 4 '10 | Special PRS Meeting | PRS | Concluded |