NPRR #342 · Revision Request
NPRR342 Notification and Actions to Address Outcomes Inconsistent With Efficient Operation of the ERCOT Market
ReasonP.U.C. Subst. R. 25.503(f)(12) places duties on Market Participants and ERCOT Staff to identify to the appropriate ERCOT subcommittee any "provision in the ERCOT procedures that produces an outcome inconsistent with the efficient and reliable operation of the ERCOT-administered markets." P.U.C. Subst. R. 25.503(c)(2) defines "efficient operation of the market" as "[o]peration of the markets administered by ERCOT, consistent with reliability standards, that is characterized by the fullest use of competitive auctions to procure ancillary services, minimal cost socialization, and the most economical utilization of resources, subject to necessary operational and other constraints." Since the Nodal market began operations in December 2010, market outcomes have been identified that ERCOT contends are inconsistent with the efficient operation of the market. These anomalous outcomes have resulted from flaws in the design or implementation of Nodal market procedures or systems that created unintended consequences in ERCOT-administered markets. The current Protocols do not sufficiently prevent or control the impact of such problems. ERCOT may put Market Participants on Notice that such problems have arisen in the market, but there is very limited ability to correct prices so as to eliminate the market distortions created by such issues. The NPRR authorizes ERCOT to implement corrective measures and advise Market Participants to discontinue practices that are inconsistent with efficient operation of the ERCOT-administered markets. This NPRR recognizes that once problems are identified, their resolution may require Protocol and system changes that cannot be implemented immediately. In order to mitigate future inconsistent market outcomes, this NPRR gives ERCOT authority to notify Market Participants of these outcomes and instruct corrective measures going forward. Any such corrective measures will be subject to ERCOT Board review.
Created2011-04-01
Approved2011-04-19
Sections Affected
4.14.5.36.16.3
Summary
This Nodal Protocol Revision Request (NPRR) details the process for notifying Market Participants of market outcomes in the Day-Ahead Market (DAM) and Real-Time Market (RTM) that are inconsistent with the "efficient operation of the market" in the ERCOT Region, as that term is defined in paragraph (c)(2) of P.U.C. Subst. R. 25.503, Oversight of Wholesale Market Participants. This NPRR gives ERCOT discretion to implement corrective measures and advise Market Participants to discontinue practices that are inconsistent with efficient operation of the ERCOT-administered markets. This NPRR allows the ERCOT CEO to deem any NPRR designed to correct such activity as Urgent. It is assumed that prior to taking actions allowed by NPRR342, ERCOT shall consult with the Independent Market Monitor (IMM) and Public Utility Commission of Texas (PUCT) Staff regarding actions that are inconsistent with the efficient operation of ERCOT-administered markets.
Action Log 3 milestones
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Apr 1
PRSRecommended for Approval→ PRS consideration
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Apr 7
TACRecommended for Approval→ ERCOT Board Consideration
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Apr 19
BOARDApproved
Amendments
| Date | Body | Motion | Result |
|---|---|---|---|
| Apr 7 '11 | TAC | To recommend approval of NPRR342 as amended by the 4/6/11 Macquarie comments and as revised by TAC | Passed |
Documents 12
| Name | Type | Posted | Classification |
|---|---|---|---|
| 342NPRR-01 Notification and Actions to Address Outcomes Inconsis | doc | Mar 30 '11 | Revision Request |
| 342NPRR-02 Impact Analysis 033011 | doc | Mar 30 '11 | Staff Report |
| 342NPRR-03 Reliant Energy Comments 033111 | doc | Mar 31 '11 | Revision Request Comments |
| 342NPRR-04 Luminant Energy Comments 040111 | doc | Apr 1 '11 | Revision Request Comments |
| 342NPRR-05 PRS Report 040111 | doc | Apr 4 '11 | Committee Report |
| 342NPRR-06 PRS Voting Ballot 040111 | xls | Apr 4 '11 | Revision Request Ballot |
| 342NPRR-07 Calpine Comments 040411 | doc | Apr 4 '11 | Revision Request Comments |
| 342NPRR-08 Macquarie Comments 040611 | doc | Apr 6 '11 | Revision Request Comments |
| 342NPRR-09 NRG Comments 040611 | doc | Apr 6 '11 | Revision Request Comments |
| 342NPRR-10 TAC Report 040711 | doc | Apr 8 '11 | Committee Report |
| 342NPRR-11 TAC Voting Ballot 040711 | xls | Apr 8 '11 | Revision Request Ballot |
| 342NPRR-12 Board Report 041911 | doc | Apr 19 '11 | Committee Report |
Meetings That Took It Up 3
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Apr 19 '11 | Board of Directors Meeting | BOARD | Concluded |
| Apr 7 '11 | TAC Meeting | TAC | Concluded |
| Apr 1 '11 | Special PRS Meeting | PRS | Concluded |