NPRR #305 · Revision Request
NPRR305 Timeline for Calculating the Value of X
ReasonAccording to the Verifiable Cost Manual, the Proxy Heat Rate is in effect every first and third Tuesday of each month and its value is based on Day-Ahead Market (DAM) Hub and fuel prices from a 14 calendar day period. The Proxy Heat Rate that is in effect the third Tuesday of the current month must be made available to the market by the first Tuesday of the same month although ERCOT is not able to modify the fuel rates (based on the Proxy Heat Rate) until a few days prior to the third Tuesday of the month because the value of X is not available until such time. The value of X is also used to change the fuel rates but its value is based on the fuel price of the Tuesday prior to the effective day. Hence, the Proxy Heat Rate and value of X both change the approved fuel rates although the timeline for determining these values differ. Therefore, determining and publishing the Proxy Heat Rate two weeks in advance of its effective date serves no purpose since ERCOT cannot modify the fuel rates until a few days prior to the effective date when the value of X is determined. Since the final fuel rates decrease by the Proxy Heat Rate and increase by value of X, both variables should be determined at the same time and using prices for the same period. Currently the Verifiable Cost Working Group (VCWG) and WMS are discussing ways to streamline the process for updating Resources’ costs and better aligning the timelines for determining the Proxy Heat Rate and value of X. By referring to the Verifiable Cost Manual as the source for Resources’ costs, it improves efficiency and visibility to changes made by ERCOT.
Created2011-01-20
Approved2011-03-22
Sections Affected
5.6.1.1
Summary
This Nodal Protocol Revision Request (NPRR) removes from the Nodal Protocols language describing the effective date for the value of X for the purpose of determining verifiable startup costs and instead refers to the Verifiable Cost Manual as the source for such information.
Action Log 3 milestones
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Jan 20
PRSRecommended for Approval→ TAC consideration of NPRR305
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Feb 3
TACRecommended for Approval→ ERCOT Board consideration of NPRR305
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Mar 22
BOARDApproved
Documents 7
| Name | Type | Posted | Classification |
|---|---|---|---|
| 305NPRR-01 Timeline for Calculating the Value of X 011111 | doc | Jan 11 '11 | Revision Request |
| 305NPRR-02 WMS Comments 011311 | doc | Jan 13 '11 | Revision Request Comments |
| 305NPRR-03 Urgency Vote Ballot 011311 | xls | Jan 13 '11 | Revision Request Ballot |
| 305NPRR-04 Impact Analysis 011311 | doc | Jan 13 '11 | Staff Report |
| 305NPRR-05 PRS Report 012011 | doc | Jan 24 '11 | Committee Report |
| 305NPRR-06 TAC Report 020311 | doc | Feb 3 '11 | Committee Report |
| 305NPRR-07 Board Report 032211 | doc | Mar 22 '11 | Committee Report |
Meetings That Took It Up 4
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Feb 3 '11 | TAC Meeting | TAC | Concluded |
| Jan 26 '11 | Joint CWG/MCWG Meeting | CREDITWG | Concluded |
| Jan 20 '11 | PRS Meeting | PRS | Concluded |
| Jan 12 '11 | WMS Meeting | WMS | Concluded |