The ERCOT Reliability & Markets Subcommittee (RMS) meeting on August 19, 2024, focused on key topics related to market performance, revision requests, and system planning updates. The meeting covered a wide range of discussions, including responses to the Independent Market Monitor (IMM) report, approval of revision requests, and updates on ongoing projects and market conditions.
June 17, 2024, Meeting Minutes Approval
The meeting began with the approval of the June 17, 2024, general session meeting minutes. The motion to approve the minutes was passed unanimously.
Staff Response to IMM 2023 State of the Market Report
Keith Collins presented ERCOT’s response to the IMM’s 2023 State of the Market Report. The report was generally positive, with the IMM identifying three primary areas for market improvement: real-time co-optimization (RTC+B), an uncertainty reserve product, and multi-interval real-time optimization. ERCOT is actively addressing these recommendations, with ongoing discussions on increasing the shadow price cap in real-time, modifying the proxy offer cap for renewables, and improving the firm fuel supply service and Emergency Condition/Resource Strategies (ECRS) procurement. ERCOT confirmed its commitment to implementing these improvements while maintaining stakeholder engagement and further analyzing the impacts of the proposed changes.
Approval of Board-Tabled Revision Requests
The subcommittee reviewed and voted on several board-tabled revision requests:
- NOGRR245 (Inverter-Based Resource Ride-Through Requirements – URGENT): The motion to approve NOGRR245, as recommended by TAC with amendments from ERCOT on August 16, was passed unanimously. ERCOT’s comments on the revision included clarification on terminology, removal of redundancies, and a proposal to bifurcate the revision into two phases. New inverter-based resources will need to meet IEEE 2800 requirements post-August 2024, and legacy resources must maximize software settings by December 31, 2025.
- NPRR1190 (High Dispatch Limit Override Provision for Increased Load Serving Entity Costs): This request was discussed extensively, with opposing views on its alignment with the nodal market design and the potential disruption of proper dispatch incentives. The motion to table NPRR1190 for further information and revisit it in October was approved unanimously.
- NPRR1215 (Clarifications to the Day-Ahead Market Energy-Only Offer Calculation): This revision aimed to correct a formula error inadvertently causing a policy change. The motion to remand NPRR1215 back to TAC for further review was passed unanimously.
- NPRR1219 (Methodology Revisions and New Definitions for the Capacity, Demand, and Reserves Report – URGENT): The revision introduces changes to the CDR report methodology, including a switch to Effective Load Carrying Capability (ELCC) for renewables and the inclusion of battery energy storage. The motion to approve NPRR1219 was passed unanimously, despite some opposition and abstentions at previous meetings.
- NPRR1230 (Methodology for Setting Transmission Shadow Price Caps for an IROL in SCED – URGENT): This revision, deemed urgent, allows ERCOT to manage power flows within IROLs using existing tools, reducing operational risk during stress conditions. The motion to approve NPRR1230 was passed unanimously.
Oncor Temple Area Regional Planning Group (RPG) Project
The subcommittee discussed and voted on endorsing the Oncor Temple Area project, which addresses reliability needs in Bell County. The project, estimated to cost over $100 million, received unanimous approval for endorsement by the board.
Independent Market Monitor (IMM) Report
The IMM provided a report on market activity for June and July, noting that wholesale energy prices were lower due to mild temperatures and a decrease in natural gas prices. Ancillary service costs were also lower, and the resource mix remained stable with a slight increase in wind generation. The report indicated that there were no major market disruptions during this period, aside from the impact of Hurricane Beryl.
System Planning and Weatherization Update
Kristi Hobbs presented updates on several transmission projects and the ongoing weatherization efforts. The Permian Basin Reliability Plan, EHV Transmission Planning, and the Summer Inspection Program were key highlights, with discussions focusing on cost estimates, stakeholder feedback, and the progress of ongoing studies.
System Operations Update
Dan Woodfin provided an update on system operations, including ERCOT’s management of Hurricane Beryl, changes to ancillary services quantities for 2025, and the ongoing study on Dispatchable Reliability Reserve Service (DRRS). The discussion also covered the implementation of NPRR1149 and the results of a survey on Inverter-Based Resources (IBRs).
Commercial Markets Update
Gordon Drake presented the commercial markets update, focusing on the impact of Hurricane Beryl, current market initiatives, and the progress of ongoing projects such as the Performance Credit Mechanism (PCM) and the Dispatchable Reliability Reserve Service (DRRS). The update emphasized the importance of stakeholder engagement and provided a timeline for upcoming market trials and policy implementations.
Real-Time Co-Optimization Update
Matt Mereness provided an update on the ongoing work related to real-time co-optimization (RTC), including collaboration with vendors, market readiness, and the status of queue submissions. The discussion highlighted the importance of testing, feedback, and aligning protocols to ensure a smooth transition to the new system.
Market Credit Update
Austin Rosel provided a brief update on market credit, noting that there were no major developments due to mild prices. NPRR1205 was approved by the PUC, increasing issuer limits for banks and higher quality standards, with no issues observed during the initial implementation phase.
Revision Request Status Update
Ann Boren provided an update on the status of revision requests, noting that 14 requests were up for consideration at the upcoming board meeting, with 58 requests currently in process. The subcommittee reviewed and discussed several requests, ensuring that the stakeholder process remained transparent and efficient.
