The ERCOT TAC Meeting on September 19, 2024, addressed multiple revision requests, changes to the stakeholder process, and updates on the ancillary services methodology, large load interconnections, and credit finance updates. The meeting also highlighted the importance of improving communication between stakeholders, TAC, and the board.
Discussion of Stakeholder Process and Communications
The current stakeholder structure was reviewed, explaining the roles of various subcommittees such as PRS, RMS, ROS, and WMS. Each of these subcommittees serves as voting bodies, which help shape revision requests (NPRRs) and provide recommendations to TAC. The importance of transparent communication, especially on contentious issues, was reiterated, with suggestions for formal comments and process improvements. Proposals included raising subcommittee voting thresholds and allowing more time between PRS and TAC meetings to avoid rushed decisions.
The discussion also included how TAC communicates with the ERCOT Board, with emphasis on ensuring that stakeholders can communicate directly to the board. Historical context regarding policy shifts, such as the change from a zonal to nodal market, was discussed. There were suggestions for creating a more systematic approach to stakeholder engagement and ensuring clarity in the communication process between TAC and the board.
Review of Revision Request Summary/ERCOT Market Impact Statement/Opinions
Eight revision requests were on the TAC agenda this month, with five sponsored by ERCOT and three by market participants. These requests addressed a combination of board/PUC directives, system process improvements, and regulatory changes. Two requests had significant budgetary impacts: NPRR1188 ($1.8-$2.5 million) and NPRR1244 ($70k-$100k). ERCOT and the Credit Finance Sub Group (CFSG) supported all requests, and the Independent Market Monitor (IMM) had no objections to any of the revisions.
PRS Report
The PRS report covered several key items, including:
- NPRR1188: Focused on implementing nodal dispatch and energy settlement for Controllable Load Resources (CLRs). This revision was endorsed with a 2026 priority and a budgetary impact between $1.8M and $2.5M.
- NPRR1237: Addressed retail market qualification testing requirements and received unanimous support.
- NPRR1244: Clarified primary frequency response responsibilities for CLRs and was similarly endorsed with a 2026 priority.
NPRR1247 was tabled due to a need for further clarification and an ERCOT white paper on the subject.
Revision Requests Tabled at TAC
Several revision requests remained tabled, including OBDRR046, related to NPRR1188, and OBDRR052, concerning energy storage resource terminology alignment for the single-model era. NPRR1215, which had been initially approved by TAC but remanded by the board for corrections, was recommended for approval after ERCOT addressed all required changes.
RMS Report
The RMS report focused on the Texas set 5.0 and MarkeTrak SCR817 retail projects. Testing for Texas set 5.0 was underway, with all market participants involved. The plan was in progress, with modifications to the implementation timeline for clarity.
ROS Report
The ROS report covered several updates, including:
- NOGRR263, related to NPRR1244 on primary frequency response responsibilities.
- NOGRR264, concerning Dispatchable Reliability Reserve Service (DRRS), which was tabled for further discussion.
The Major Transmission Elements (MTE) List was also reviewed and added to the combo ballot for approval.
WMS Report
The WMS report highlighted proposed changes to ancillary services for 2025 and congestion revenue rights auction mitigation. The large load interconnection report showed an increase of 4,439 MW in capacity since the August update. NPRR1241 and NPRR1202 remained tabled for future discussion.
Proposed Changes to Ancillary Service Methodology for 2025
ERCOT presented the proposed changes to the 2025 Ancillary Service Methodology. These changes included updates to regulation service to use net load forecast error, adjustments to Responsive Reserve Service (RRS), and methodology changes to non-spin services. The methodology changes aimed to enhance operational flexibility and accuracy in forecasting service requirements.
Concerns were raised regarding operational risks during winter mornings due to reduced regulation. ERCOT committed to continuing improvements for probabilistic analysis in 2026 and dynamic ancillary service calculations closer to real-time for 2027.
The motion to endorse the 2025 Ancillary Service Methodology passed with minor opposition.
Large Flexible Load Task Force Report
The Large Flexible Load Task Force reported significant growth in large load projects, with potential interconnections reaching 54GW. This growth is driven by sectors such as crypto mining, AI data centers, and hydrogen-related projects. The task force suggested putting the group into hibernation mode while continuing efforts to improve transparency and reporting on new load developments.
Credit Finance Sub Group Report
The Credit Finance Sub Group provided updates on NPRR1205, which included changes to credit limits and performance bonds. Collateral requirements were reviewed, and adjustments to forward adjustment factors were discussed. The total potential exposure at ERCOT increased from $1.81 billion to $1.88 billion due to higher real-time and day-ahead prices.
RTC+B Task Force Report
The RTC+B Task Force announced that market trials would begin on May 5, 2025, with a go-live date of December 5, 2025. The task force is working through remaining policy issues and plans to provide further updates on ancillary service demand curves. ERCOT is committed to resolving these issues by April 2025.
Potential Price Corrections
Potential price corrections were discussed regarding issues on August 9 and August 20, 2024. Both incidents involved incorrect resource data and ERCOT Contingency Reserve Service recalls, leading to financial impacts for market participants. ERCOT plans to seek board approval for these corrections in October 2024.
ERCOT Reports
ERCOT also provided updates on CRR performance issues, membership applications for 2025, and the launch of an enhanced ERCOT mobile app, which will include features like grid condition updates and real-time data access.
