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NPRR #385 · Revision Request

NPRR385  Negative Price Floor (formerly "Security Violation Analysis and Reporting and Negative Price Floor")

Approved sponsor Luminant Energy Company LLC posted 2011-06-14 ercot.com
  1. PRS Nov 15 '12
  2. TAC Nov 29 '12
  3. BOARD Dec 11 '12
  4. PUCT —
ReasonAs part of the holistic approach towards congestion irresolvable by Security-Constrained Economic Dispatch (SCED), the Congestion Irresolvable by SCED Task Force discussed the impact of Generation Resources on the other side of the constraints, in which ERCOT needs to back down. Those Generation Resources seem to be inequitably harmed as Real-Time Settlement Point Prices can drop to extremely negative values, which are unnecessary to send the proper price signal. This NPRR proposes an administrative price floor for Real-Time Settlement Point Prices of negative $251/MWh, consistent with the Energy Offer Curve offer floor described in Section 4.4.9.3.1, Energy Offer Curve Criteria, and the SCED over-generation power balance penalty curve of negative $251/MWh as established in the ERCOT Business Practice document "Setting the Shadow Price Caps and Power Balance Penalties in Security Constrained Economic Dispatch." The same negative $251/MWh price floor would also be applied to Day-Ahead Settlement Point Prices (DASPPs).
Created2011-07-21
Approved2012-12-11
Sections Affected
4.6.1.16.1.16.6.1.16.6.3.1
Summary
This Nodal Protocol Revision Request (NPRR) adds an administrative Settlement Point Price floor of negative $251/MWh.
Timeline