VCMRR #5 · Revision Request

VCMRR005 Fuel Index Price for Resource Definition and Real-Time Make-Whole Payments for Exceptional Fuel Cost Events

Approved Urgent sponsor RCWG posted 2014-10-27 ercot.com

ReasonMarket efficiencies or enhancements Other: Revises the Verifiable Cost Manual to incorporate and provide the appropriate verification for FIPRr and Real-Time Make-Whole Payment for exceptional fuel cost provisions.

Created2014-10-29

Sections Affected

Sections 123and 7; Appendices 35678 and 9.

Summary

This Verifiable Cost Manual Revision Request (VCMRR) will modify the Verifiable Cost Manual to incorporate the Fuel Index Price for Resource (FIPRr) and Real-Time Make-Whole Payment for exceptional fuel cost provisions. Resources may designate FIPRr based on the Gas Daily’s Waha index price (Waha Fuel price (WFP)), or the weighted price of the Gas Daily Fuel Index Price (FIP) and the WFP. The default FIPRr shall be the FIP. Resources that designate FIPRr based on WFP or the weighted price must submit documentation to ERCOT indicating such designation and provide proof of physical delivery from such areas, as described in the Verifiable Cost Manual. In addition, this VCMRR modifies the Verifiable Cost Manual to specify the verification requirements for the Real-Time Make-Whole Payment provision.

Action Log 3 milestones

Oct 29
WMSRecommended for Approval
→ TAC for consideration
Nov 20
TACDeferred/Tabled
→ TAC for consideration
Dec 18
TACApproved

Amendments

Date	Body	Motion	Result
Dec 18 '14	TAC	To approve VCMRR005 as recommended by WMS in the 10/29/14 WMS Report and as amended by the 11/14/14 ERCOT comments; with an effective date of January 1, 2015 for the "Verification for Real-Time Make-Whole Payments for Exceptional Fuel Costs" provision and to discontinue the manual workaround of this section on May 1, 2015 (grey-box); and for VCMRR005 to be effective upon system implementation of NPRR664 of which ERCOT will revisit with TAC the rank and priority prior to project initiation.	Passed

Date

Body

Motion

Result

Dec 18 '14

TAC

To approve VCMRR005 as recommended by WMS in the 10/29/14 WMS Report and as amended by the 11/14/14 ERCOT comments; with an effective date of January 1, 2015 for the "Verification for Real-Time Make-Whole Payments for Exceptional Fuel Costs" provision and to discontinue the manual workaround of this section on May 1, 2015 (grey-box); and for VCMRR005 to be effective upon system implementation of NPRR664 of which ERCOT will revisit with TAC the rank and priority prior to project initiation.

Passed

Documents 7

Name	Type	Posted	Classification
005VCMRR-01, Index Fuel Price 102714	doc	Oct 27 '14	Revision Request
005VCMRR-02 Argus Media Comments 102814	doc	Oct 28 '14	Revision Request Comments
005VCMRR-03 WMS Report 102914	doc	Nov 3 '14	Committee Report
005VCMRR-04 ERCOT Comments 111414	doc	Nov 14 '14	Revision Request Comments
005VCMRR-05 Impact Analysis 111914	doc	Nov 19 '14	Staff Report
005VCMRR-06 TAC Report 112014	doc	Nov 21 '14	Committee Report
005VCMRR-07 TAC Report 121814	doc	Dec 19 '14	Committee Report

Name

Type

Posted

Classification

005VCMRR-01, Index Fuel Price 102714

doc

Oct 27 '14

Revision Request

005VCMRR-02 Argus Media Comments 102814

doc

Oct 28 '14

Revision Request Comments