Report to TACReport to TAC

August 2009August 2009

In BriefIn Brief Working Group ReportsWorking Group Reports

CMWGCMWG DSWG (No report)DSWG (No report) MCWGMCWG MWG (No report)MWG (No report) QMWG QMWG VCWGVCWG

Task ForcesTask Forces Generation Adequacy – is reactivated.Generation Adequacy – is reactivated.

Other IssuesOther Issues RPRS ProcurementRPRS Procurement Multiple Interconnection for GenerationMultiple Interconnection for Generation Issues with North to South CongestionIssues with North to South Congestion

Active Task ForceActive Task Force

WMS reactivated the Generation WMS reactivated the Generation Adequacy Task ForceAdequacy Task Force

Working Group ReportsWorking Group ReportsCMWGCMWG

CRE Configuration ChangeCRE Configuration Change Report on StatusReport on Status

ERCOT reported that there were still some ERCOT reported that there were still some resource outages leading to reliability concerns;resource outages leading to reliability concerns;

The outage scheduler showed September 1, as The outage scheduler showed September 1, as the date when the configuration would return to the date when the configuration would return to previous settings.previous settings.

We had a great deal of discussion about We had a great deal of discussion about whether or not the configuration should return whether or not the configuration should return to original setting if the proper resources to original setting if the proper resources returned before September 1. The alternative returned before September 1. The alternative was to stick with the date in the outage was to stick with the date in the outage scheduler.scheduler.

Working Group ReportsWorking Group ReportsCMWGCMWG

CRE Configuration Change Continued.CRE Configuration Change Continued. WMS requested CMWG examine this WMS requested CMWG examine this

issue further emphasizing giving ERCOT issue further emphasizing giving ERCOT the flexibility it needs while giving the the flexibility it needs while giving the market the needed transparency.market the needed transparency.

2010 CSC/CRE Update2010 CSC/CRE Update The timeline is for WMS to vote on CSCs on The timeline is for WMS to vote on CSCs on

August 19, bringing it to TAC September 3, August 19, bringing it to TAC September 3, and the Board in September or October. and the Board in September or October. CREs would be close behind.CREs would be close behind.

Working Group ReportsWorking Group ReportsMCWGMCWG

NPRR 147NPRR 147 WMS instructed MCWG to develop a NPRR that:WMS instructed MCWG to develop a NPRR that:

Employs a combination of an ERCOT financing vehicle Employs a combination of an ERCOT financing vehicle and a stakeholder funded pool to cover short-pay and a stakeholder funded pool to cover short-pay situations in the Day Ahead Market.situations in the Day Ahead Market.

WMS also endorsed MCWG doing further work WMS also endorsed MCWG doing further work on mutualization:on mutualization:

developing a methodology of assigning the cost of developing a methodology of assigning the cost of defaults across all market participants (mutualization) defaults across all market participants (mutualization) provided we also reduce the exposure by accelerating provided we also reduce the exposure by accelerating payments.payments.

Working Group ReportsWorking Group ReportsQMWGQMWG

PRR 811 and OGRR 223PRR 811 and OGRR 223 – Real Time – Real Time Production PotentialProduction Potential Data mining in process from multiple wind resourcesData mining in process from multiple wind resources QMWG recommended that real time data be QMWG recommended that real time data be

telemetered, after which ERCOT can average or telemetered, after which ERCOT can average or smooth the data.smooth the data.

On PRR 811 WMS moved for QMWG to submit On PRR 811 WMS moved for QMWG to submit comments on behalf of WMS.comments on behalf of WMS.

WMS endorsed OGRR 223WMS endorsed OGRR 223 Draft NOGRR for ICCP Handbook Change Draft NOGRR for ICCP Handbook Change

ControlControl WMS moved to table NOGRR until ROS has WMS moved to table NOGRR until ROS has

resolved issues with handbook through resolved issues with handbook through NDSWG.NDSWG.

Working Group ReportsWorking Group ReportsVCWGVCWG

NPRR168NPRR168 – Verifiable Costs – Verifiable Costs WMS endorsed a methodology for calculating a WMS endorsed a methodology for calculating a

Proxy Heat Rate for a unit’s operations from Proxy Heat Rate for a unit’s operations from breaker close to LSL whereby the proxy is breaker close to LSL whereby the proxy is calculated twice a month.calculated twice a month.

WMS endorsed VCWG drafting an NPRR WMS endorsed VCWG drafting an NPRR including the Nodal Surcharge in including the Nodal Surcharge in Verifiable Costs.Verifiable Costs.

Draft Nodal Verifiable Cost AffidavitDraft Nodal Verifiable Cost Affidavit WMS tabled and instructed VCWG to develop a WMS tabled and instructed VCWG to develop a

document that could be signed by both a QSE and document that could be signed by both a QSE and a RE.a RE.

Working Group ReportsWorking Group ReportsRTWGRTWG

RTWG is making efforts to be proactive RTWG is making efforts to be proactive on incorporating solar technologies in on incorporating solar technologies in ERCOT.ERCOT.

Developing a white paper on wind Developing a white paper on wind ramping events.ramping events.

Reviewed a recent NERC study on Reviewed a recent NERC study on accommodating high levels of variable accommodating high levels of variable generation.generation.

Found that on a historical basis the Found that on a historical basis the capacity value of wind was about 10% on capacity value of wind was about 10% on average over the top 10 load hours.average over the top 10 load hours.

Other WMS activityOther WMS activity RPRS ProcurementRPRS Procurement

ERCOT is procuring significant amounts (up ERCOT is procuring significant amounts (up to 3000 MW) of RPRS in the late June mid to 3000 MW) of RPRS in the late June mid July time period. These procurements tend July time period. These procurements tend to depress the Balancing Energy price. to depress the Balancing Energy price. There is a concern that this encourages There is a concern that this encourages leaning on the balancing energy market.leaning on the balancing energy market.

The issue of over forecasting load came up The issue of over forecasting load came up again.again.

The net result is that in many intervals it The net result is that in many intervals it appears that pricing does not reflect appears that pricing does not reflect shortage conditions.shortage conditions.

Other WMS ActivityOther WMS Activity Multiple Interconnection for GenerationMultiple Interconnection for Generation

The issue arose in the context of CREZ The issue arose in the context of CREZ where a resource may wish to connect to a where a resource may wish to connect to a location other than where they are location other than where they are presently.presently.

WMS created a small group that will meet WMS created a small group that will meet with a small group from ROS to go through with a small group from ROS to go through the protocols guides to see where there the protocols guides to see where there may be some problems. Additionally the may be some problems. Additionally the group will start framing the policy issues group will start framing the policy issues around multiple interconnections.around multiple interconnections.