NPRR #398 · Revision Request
NPRR398 Changes to Resource Category Minimum-Energy Generic Heat Rates
ReasonERCOT conducted a comprehensive study to determine actual Resource-specific heat rates, compare them to the Resource Category Minimum-Energy Generic Heat Rate values published in the Nodal Protocols, and ascertain the accuracy of the generic heat rate values used to establish minimum-energy costs. This comparison was done under the assumption that the Generic Heat Rates should represent the weighted average of Minimum Energy heat rates for similar fuel type Resources. The results of this study clearly indicate that most of the generic heat rates are higher than typical actual Resource-specific values. High generic heat rates allow Resources to submit higher Minimum-Energy Offers into the Day-Ahead Market (DAM) and Reliability Unit Commitment (RUC), which are used to compensate Resources via Make-Whole Payments. Generic rates serve as a proxy for actual Resource heat rate values and should not be used to artificially reduce the efficiency of generating units offering into the DAM or RUC. That is, the generic heat rates should represent typical Resource type fuel consumption as a function of power produced. High generic heat rates imply lower Resource efficiencies and higher costs to operate these units in the ERCOT market, which could result in higher costs since Resource offers would be capped at higher value. However, the main reason for this NPRR is to improve the accuracy of the generic heat rates used for capping Minimum-Energy Offers and to better align these efficiency parameters with typical average actual values submitted by Resources.
Created2011-08-18
Approved2011-12-12
Sections Affected
4.4.9.2.3
Summary
This Nodal Protocol Revision Request (NPRR) changes the Resource Category Minimum-Energy Generic Heat Rates for several fuel type Resource categories as described below.
Action Log 4 milestones
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Aug 18
PRSRecommended for Approval→ PRS Impact Analysis review
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Sep 22
PRSRecommended for Approval→ TAC consideration of NPRR398
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Oct 6
TACRecommended for Approval→ ERCOT Board consideration of NPRR398
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Dec 12
BOARDApproved
Ballots
| Date | Body | Result | Yes | No | Abstain | |
|---|---|---|---|---|---|---|
| Aug 10 '11 | WMS | Motion Carries | 5 | 2.5 | 3 | xls |
Documents 9
| Name | Type | Posted | Classification |
|---|---|---|---|
| 398NPRR-01 Changes to Resource Category Minimum-Energy Generic H | doc | Aug 3 '11 | Revision Request |
| 398NPRR-02 Impact Analysis 080311 | doc | Aug 3 '11 | Staff Report |
| 398NPRR-03 White Paper - Evaluation of Heat Rates used in Determ | doc | Aug 3 '11 | Staff Report |
| 398NPRR-04 WMS Comments 081211 | doc | Aug 12 '11 | Revision Request Comments |
| 398NPRR-05 WMS Voting Ballot 081211 | xls | Aug 12 '11 | Revision Request Ballot |
| 398NPRR-06 PRS Report 081811 | doc | Aug 22 '11 | Committee Report |
| 398NPRR-07 PRS Report 092211 | doc | Sep 26 '11 | Committee Report |
| 398NPRR-08 TAC Report 100611 | doc | Oct 7 '11 | Committee Report |
| 398NPRR-09 Board Report 121211 | doc | Dec 12 '11 | Committee Report |
Meetings That Took It Up 5
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Dec 12 '11 | Board of Directors Meeting | BOARD | Concluded |
| Oct 6 '11 | TAC Meeting | TAC | Concluded |
| Sep 22 '11 | PRS Meeting | PRS | Concluded |
| Aug 18 '11 | PRS Meeting | PRS | Concluded |
| Aug 10 '11 | WMS Meeting | WMS | Concluded |