The ERCOT WMS meeting on July 10, 2024, began with an antitrust admonition and an agenda review, followed by a vote to approve the minutes from the June 5, 2024, meeting. The Technical Advisory Committee (TAC) approved all voting items presented, including NPRR1216, OBDRR051, VCMRR039, NPRR1190, NPRR1215, NPRR1225, and PGRR106. TAC also provided feedback on new EPA rules and recommended monitoring developments related to greenhouse gas regulations and mercury and air toxic standards, with working groups Winwig and SAWG assigned to this task.
ERCOT’s operational discussions included several key topics. The issue of Auction Revenue Distribution (CARD) was addressed, with a preference for one solution to be discussed in detail and endorsed at the August meeting. ERCOT plans to present three options for consideration and aims to integrate the chosen option into an NPRR with an associated impact analysis. In the discussion on the CRR Balancing Account (CRRBA), it was noted that the allocation of congestion revenue would shift from a peak interval basis to a monthly load ratio share under NPRR1030, with ERCOT preferring a full monthly load ratio share to address concerns about flexible loads and DC Tie exports.
The IMM presented an analysis of CARD, highlighting potential adverse incentives for load behavior. The IMM’s proposal to shift CARD revenue distribution to a whole month was supported to reduce economic incentives for peak load increases. Discussions also included the impact of 4CP on market efficiency and cost recovery, with suggestions to retain 4CP allocation during summer months. A new report template was introduced to track ancillary service (AS) shortfalls due to insufficient State of Charge (SOC), with feedback from stakeholders being sought. A formal version of the report is expected in August.
The Resource Cost Working Group (RCWG) discussed VCMRR041, which proposes replacing the current index price subscription for NOx and SO2 with fixed prices. ERCOT’s preference is to stop the subscription until a market for emissions arises, while Luminant expressed interest in a seasonal index price approach. The RCWG plans to draft and file new VCMRR and NPRR with feedback in July.
WMS revision requests included the impact analysis vote, which showed zero impact and added the proposal to the combo ballot. Discussions covered various items, including VCMRR040, NPRR1226 for demand response monitoring, and NPRR1214 for price signals and uplift reduction. The Demand Side Working Group (DSWG) reviewed NPRR1226 for demand response monitoring and NPRR1217 for removing verbal dispatch instructions for load resources and ERS deployments.
The Supply Analysis Working Group (SAWG) confirmed leadership and discussed updates on distributive generation and long-term load analysis. Concerns were raised about speculative contracts and ongoing NPRR work. The Wholesale Market Working Group (WMWG) discussed leadership updates, including a new chair and vice chair. The Metering Working Group (MWG) addressed the need for updating procedure documents last reviewed in 2003 and standardizing the group’s name.
Revision requests tabled at PRS and referred to WMS included NPRR1232 for ECRS deployment and NPRR1235 for dispatchable reliability reserve services. These items will be further reviewed in upcoming meetings. The motion for the combo ballot was approved unanimously. The meeting concluded with a review of open action items and a reminder of the next WMS meeting scheduled for August 7, 2024, which will be held in person.
