Report to TACReport to TAC

December 2009December 2009

In BriefIn Brief Working Group ReportsWorking Group Reports

DSWGDSWG CMWGCMWG MCWGMCWG QMWG QMWG VCWGVCWG

Task ForcesTask Forces QSTFQSTF GATFGATF MIGMIGTFTF WCATFWCATF

Other ActivitiesOther Activities Texas AdminTexas Admin

Working Group ReportsWorking Group ReportsDSWGDSWG

Presentation available at Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/05_dswg_update_to_wms_091118.ppt

Main topics Main topics Goals about ½ done for 2009 – some items to be Goals about ½ done for 2009 – some items to be

shifted to 2010 with nodal delayshifted to 2010 with nodal delay LaaRS – saw dip in participation in 2009 due mainly LaaRS – saw dip in participation in 2009 due mainly

to economic decline. Participation is increasing, to economic decline. Participation is increasing, perhaps due to economic recovery.perhaps due to economic recovery.

Suspension of Dynamic Scheduling requirement – Suspension of Dynamic Scheduling requirement – discussed DSWG to bring recommendation to WMSdiscussed DSWG to bring recommendation to WMS

Advanced metering – statusAdvanced metering – status

Working Group ReportsWorking Group ReportsDSWGDSWG

Main topics cont’Main topics cont’ FERC Order 719FERC Order 719

Key Elements include: Key Elements include: DR as a source of energy and AS, including retail DR as a source of energy and AS, including retail

demand response; demand response; Scarcity pricing during reserve shortages; Scarcity pricing during reserve shortages; Support for long-term power contracting; Support for long-term power contracting; Enhanced market-monitoring policies; and Enhanced market-monitoring policies; and Increased responsiveness of ISOs to their Increased responsiveness of ISOs to their

customers. customers.

Performance Protocol Revision to 6.10.5.4 Performance Protocol Revision to 6.10.5.4 for LaaRSfor LaaRS

Next Meeting December 4Next Meeting December 4thth

Working Group ReportsWorking Group ReportsCMWGCMWG

Presentation available at Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/04_cmwg_update_to_wms_0911http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/04_cmwg_update_to_wms_091118.ppt18.ppt

Main topics Main topics West Zone IssuesWest Zone Issues

September OOMing---mainly due to outages in San Angelo—September OOMing---mainly due to outages in San Angelo—affected W-N Stability Limitaffected W-N Stability Limit

ERCOT committed to send market notice about implementation ERCOT committed to send market notice about implementation of Yellow Jacket Phase Shifter of Yellow Jacket Phase Shifter

project is still scheduled to be completed in December 2009 project is still scheduled to be completed in December 2009 including the line that ties the substation to the rest of the including the line that ties the substation to the rest of the gridgrid

Pre Contingency Action PlansPre Contingency Action Plans PCAPs can be proposed by ERCOT or market participantsPCAPs can be proposed by ERCOT or market participants Has BES market implicationsHas BES market implications Current PCAPs include 3 CREs (Gr-LC, TPC-Temple and Lake Current PCAPs include 3 CREs (Gr-LC, TPC-Temple and Lake

Creek – Temple Pecan Creek)Creek – Temple Pecan Creek)

Working Group ReportsWorking Group ReportsCMWGCMWG

Main topics Main topics Nodal Competitive Constraint TestNodal Competitive Constraint Test

Nodal Protocols 3.19 Discusses CCTNodal Protocols 3.19 Discusses CCT Nodal SCED is 2 step (Nodal Protocols 6.5.7.3)Nodal SCED is 2 step (Nodal Protocols 6.5.7.3) Step 1 solves competitive constraints, producing Reference Step 1 solves competitive constraints, producing Reference

LMPsLMPs Step 2 solves all constraints and produces final LMPsStep 2 solves all constraints and produces final LMPs The CCT process is to identify the constraints that will be solved The CCT process is to identify the constraints that will be solved

as part of Step 1as part of Step 1 ERCOT has evaluated existing constraint list against current ERCOT has evaluated existing constraint list against current

CSCs/CREsCSCs/CREs 87% of current constraint list of 2138 constraints when tested 87% of current constraint list of 2138 constraints when tested

against current set of CSCs/CREs are competitiveagainst current set of CSCs/CREs are competitive Test takes hours to run—could make daily test of CCT difficult---Test takes hours to run—could make daily test of CCT difficult---

still exploringstill exploring

Met on November 30Met on November 30thth

Working Group ReportsWorking Group ReportsMCWGMCWG

Presentation available at Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/07_mcwg_update__to_wms_http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/07_mcwg_update__to_wms_111809.ppt111809.ppt

Main topics Main topics NPRR147, DAM Short Pay ChangesNPRR147, DAM Short Pay Changes

Recommended Option for Default Methodology (Vote)Recommended Option for Default Methodology (Vote) Option 4bOption 4b

Max MWh based Allocation of DefaultMax MWh based Allocation of Default Motion to endorse Option 4b and request MCWG to draft Motion to endorse Option 4b and request MCWG to draft

NPRRNPRR Motion carries – one abstention (Gen) and one opposed Motion carries – one abstention (Gen) and one opposed

(IOU)(IOU)

Working Group ReportsWorking Group ReportsMCWGMCWG

Main topics – cont’Main topics – cont’ Short Pay Fund OptionsShort Pay Fund Options

Working toward a compromiseWorking toward a compromise Discussions on different proposals for establishing a market Discussions on different proposals for establishing a market

fund to absorb short paymentsfund to absorb short payments One proposal is to continue to short-pay the market rather One proposal is to continue to short-pay the market rather

than establish a market fundthan establish a market fund Issues outstanding with establishing a market fundIssues outstanding with establishing a market fund

Size of the fundSize of the fund How to fund the FundHow to fund the Fund Ownership of funds in the FundOwnership of funds in the Fund Replenishment of Fund (i.e. default or participant leaving Replenishment of Fund (i.e. default or participant leaving

the market orderly, etc)the market orderly, etc)

Working Group ReportsWorking Group ReportsMCWGMCWG

Main topics – cont’Main topics – cont’ DAM Settlement AccelerationDAM Settlement Acceleration

Protocols provide for credit at the offer quantity Protocols provide for credit at the offer quantity X (95th percentile of the hourly difference X (95th percentile of the hourly difference between RT and DAM SPP over the previous 30 between RT and DAM SPP over the previous 30 days for that hour)days for that hour)

Only those positions that are at the same SPP are Only those positions that are at the same SPP are nettable for calculating the credit requirements nettable for calculating the credit requirements (at the same SPP, then use the max)(at the same SPP, then use the max)

DAM Collateral RequirementsDAM Collateral Requirements Next meeting December 7Next meeting December 7thth

Working Group ReportsWorking Group ReportsQMWGQMWG

Presentation available at Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/09_qmwg_update_to_wms_09111http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/09_qmwg_update_to_wms_091118.ppt8.ppt

Main topics Main topics WMS Remands to QMWGWMS Remands to QMWG

PRR811, Real-Time Production PotentialPRR811, Real-Time Production Potential OGRR223, Real-Time Production PotentialOGRR223, Real-Time Production Potential

Wind Plant Availability WebsiteWind Plant Availability Website Limited users participating and availability concernsLimited users participating and availability concerns

Wind Generation Forecast Accuracy AnalysisWind Generation Forecast Accuracy Analysis ERCOT is now receiving good MET data for all points from ERCOT is now receiving good MET data for all points from

over 50 WGRsover 50 WGRs Still concerns regarding forecast errorStill concerns regarding forecast error

Working Group ReportsWorking Group ReportsQMWGQMWG

Main topics – cont’Main topics – cont’ Load Forecasting AccuracyLoad Forecasting Accuracy

QMWG going to work with ERCOT to schedule Load QMWG going to work with ERCOT to schedule Load Forecasting Workshop Forecasting Workshop

Decommitment Process for RUCDecommitment Process for RUC ERCOT is drafting NPRR language ERCOT is drafting NPRR language

Met December 2Met December 2ndnd

Working Group ReportsWorking Group ReportsVCWGVCWG

Presentation available at Presentation available at http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/10__vcwg_update_for_wms_http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/10__vcwg_update_for_wms_091118.ppt091118.ppt

Main topics Main topics Options for Filing Verifiable CostsOptions for Filing Verifiable Costs File Verifiable Costs .File Verifiable Costs .

Once VC are accepted they may not elect for Generic.Once VC are accepted they may not elect for Generic.

File with election of Generic O & M Costs.File with election of Generic O & M Costs. Generic Startup - $ per StartGeneric Startup - $ per Start Generic O & M for Energy - $/MWHGeneric O & M for Energy - $/MWH Will have to provide Actual fuel flows, Heat Rate Curves , Will have to provide Actual fuel flows, Heat Rate Curves ,

emissions rates, ect.emissions rates, ect.

Proxy Heat Rate Proxy Heat Rate Will continue discussion at next meeting.Will continue discussion at next meeting.

Working Group ReportsWorking Group ReportsVCWGVCWG

Main topics – cont’ Main topics – cont’ Treatment of Auxiliary PowerTreatment of Auxiliary Power

Shutdown definition for the inclusion of Auxiliary Power costs Shutdown definition for the inclusion of Auxiliary Power costs will be limited to 3 hours after breaker open.will be limited to 3 hours after breaker open.

NPRR Language for allowing disputes for FOP NPRR Language for allowing disputes for FOP Limited to Replacement Costs for FOPLimited to Replacement Costs for FOP Replacement fuel made within 7 Business Days of fuel Replacement fuel made within 7 Business Days of fuel

burned during the RUC Committed Interval.burned during the RUC Committed Interval. Limited to the actual gallons/barrels burned during Limited to the actual gallons/barrels burned during

instructioninstruction.. Ongoing discussionsOngoing discussions

Treatment of O & M for new resourcesTreatment of O & M for new resources Treatment of New TechnologyTreatment of New Technology

Next Meeting December 9Next Meeting December 9thth

Active Task ForcesActive Task Forces Generation Adequacy Task ForceGeneration Adequacy Task Force

http://www.ercot.com/content/meetings/wms/keydocs/http://www.ercot.com/content/meetings/wms/keydocs/2009/1118/14_gatf_update_to_wms_091118.ppt2009/1118/14_gatf_update_to_wms_091118.ppt

CDR: Thorough review will occur on December 3rd.CDR: Thorough review will occur on December 3rd. Is 5 year horizon adequate?Is 5 year horizon adequate? Does it need high and low forecasts?Does it need high and low forecasts? Flow diagram of processesFlow diagram of processes Why is county data needed?Why is county data needed?

EILS methodology is still under developmentEILS methodology is still under development

LOLP Study (Target Reserve Margin) DiscussionLOLP Study (Target Reserve Margin) Discussion Inputs and assumptions were reviewed at Nov. 3rd meeting. Inputs and assumptions were reviewed at Nov. 3rd meeting.

Luminant provided an overview of wind historical data Luminant provided an overview of wind historical data – urge TAC members to review data– urge TAC members to review data

Met December 1Met December 1stst

Active Task ForcesActive Task Forces Quick Start Task ForceQuick Start Task Force http://www.ercot.com/content/meetings/wms/keydocs/http://www.ercot.com/content/meetings/wms/keydocs/

2009/1118/13_qstf_update_091118.ppt2009/1118/13_qstf_update_091118.ppt

REMOVAL OF RUC CLAWBACK REMOVAL OF RUC CLAWBACK OPTION A – REMOVES CLAWBACK FOR ALL HOUR START UNITSOPTION A – REMOVES CLAWBACK FOR ALL HOUR START UNITS OPTION B – 50 PERCENT CLAWBACK FOR RUC-COMMITED HOURS OPTION B – 50 PERCENT CLAWBACK FOR RUC-COMMITED HOURS

THAT QSE DID NOT PARTICIPATE IN DAM AND NO EEA IN EFFECTTHAT QSE DID NOT PARTICIPATE IN DAM AND NO EEA IN EFFECT HOUR START UNIT = RESOURCE CAPABLE OF PRODUCING ENERGY AT HOUR START UNIT = RESOURCE CAPABLE OF PRODUCING ENERGY AT

ITS HSL IN 60 MINUTES OR LESS FROM AN OFF-LINE STATEITS HSL IN 60 MINUTES OR LESS FROM AN OFF-LINE STATE

REAL TIME ECONOMIC UNIT COMMITMENTREAL TIME ECONOMIC UNIT COMMITMENT NEW 10 MINUTE NSRSNEW 10 MINUTE NSRS SHOULD QSTF ADDRESS CO-OPTIMIZATION? SHOULD QSTF ADDRESS CO-OPTIMIZATION? NONO

Next Meeting December 7Next Meeting December 7thth

Active Task ForcesActive Task Forces Joint ROS/WMS Multiple Interconnection Joint ROS/WMS Multiple Interconnection

of Generation Task Force (MIG TF)of Generation Task Force (MIG TF) WMS Approved Charter and Goals:WMS Approved Charter and Goals:

Charter: Charter: Examine and investigate the reliability, and market, Examine and investigate the reliability, and market, impacts as well as the interconnection processes/procedures for impacts as well as the interconnection processes/procedures for Generation Units with more than one interconnection in the ERCOT Generation Units with more than one interconnection in the ERCOT Market. MIG will issue a whitepaper to WMS/ROS at their Market. MIG will issue a whitepaper to WMS/ROS at their December meetingsDecember meetings

  Goal: Goal: MIG will issue a whitepaper to ROS/WMS containing a list of:MIG will issue a whitepaper to ROS/WMS containing a list of: Reliability concerns and mitigation actionsReliability concerns and mitigation actions Market pros and consMarket pros and cons Policy/Planning issues related to the interconnection process for Policy/Planning issues related to the interconnection process for

generation units with multiple interconnections in ERCOT.generation units with multiple interconnections in ERCOT.

Next Meeting?Next Meeting?

Active Task ForcesActive Task Forces Wind Cost Allocation Task Force (WCATF)Wind Cost Allocation Task Force (WCATF) WMS Approved Charter and Goals:WMS Approved Charter and Goals:

Charter: Charter: A WMS Task Force formed to address the allocation of the cost A WMS Task Force formed to address the allocation of the cost of Ancillary Services to Wind Generation Resources.of Ancillary Services to Wind Generation Resources.

  Goals: Goals: Primary goal is to develop one or more methodologies with supporting Primary goal is to develop one or more methodologies with supporting

rationales for allocating the cost of Ancillary Services to Intermittent rationales for allocating the cost of Ancillary Services to Intermittent Renewable Resources, specifically, Wind Generation Resources.Renewable Resources, specifically, Wind Generation Resources.

Secondary goal is to consider and potentially develop additional Secondary goal is to consider and potentially develop additional methodologies for the allocation of Ancillary Services to other Intermittent methodologies for the allocation of Ancillary Services to other Intermittent Renewable Resources (e.g. solar resources).Renewable Resources (e.g. solar resources).

Develop and present to WMS a whitepaper that summarizes the discussion Develop and present to WMS a whitepaper that summarizes the discussion and development of proposed methodologies.and development of proposed methodologies.

Goals will not include debating the appropriateness of utilizing one or more of Goals will not include debating the appropriateness of utilizing one or more of the methodologies being considered. Similarly, our goals will not include a the methodologies being considered. Similarly, our goals will not include a full analysis for assigning costs of Ancillary Services to all Market full analysis for assigning costs of Ancillary Services to all Market Participants.Participants.

NEXT MEETING December 4NEXT MEETING December 4thth

Other IssuesOther Issues Texas AdminTexas Admin

Issue before PUCT in DOCKET 37262 - Issue before PUCT in DOCKET 37262 - Internet Broadcasting of ERCOT Internet Broadcasting of ERCOT MeetingsMeetings

WMS has concerns regarding open WMS has concerns regarding open communications if archived meetings communications if archived meetings are available.are available.

WMS 2009 GoalsWMS 2009 GoalsItemItem

WMS WMS input/direction input/direction

needed byneeded by

Nodal Market TransitionNodal Market Transition On-goingOn-going

Nodal Verifiable Cost MethodologyNodal Verifiable Cost Methodology On-going (VCWG)On-going (VCWG)

Approved Zonal PRRs – Analysis and Approved Zonal PRRs – Analysis and PrioritizationPrioritization Q1-Q2Q1-Q2

Consideration of timely, economic Consideration of timely, economic improvements to Zonal Marketimprovements to Zonal Market Before Q4Before Q4

Determine CSCs for 2010Determine CSCs for 2010 Q3 (CMWG)Q3 (CMWG)

Market Issues Related to:Market Issues Related to:

Credit issuesCredit issues On-going (MCWG)On-going (MCWG)

EILS and AS MarketsEILS and AS Markets On-goingOn-going

Integrating advanced meters & other demand Integrating advanced meters & other demand response into Ancillary Service Marketsresponse into Ancillary Service Markets On-going (DSWG)On-going (DSWG)

Wind & related renewable technology integrationWind & related renewable technology integration On-going On-going (QMWG/RTWG)(QMWG/RTWG)