DRAFT
Wholesale Market Subcommittee (WMS) Meeting
ERCOT Austin – 7620 Metro Center Drive – Austin, Texas 78744
Wednesday, March 5, 2014 – 9:30 a.m.
Attendance
Members:
Barham, Paul / CPS EnergyBarnes, Bill / Reliant Energy Retail Services
Bertin, Suzanne / EnerNOC
Bevill, Jennifer / AEPSC
Bombick, Sarah / LCRA
Brewster, Chris / City of Eastland
Carpenter, Jeremy / Tenaska Power Services
Chakka, Babu / Austin Energy
Cochran, Seth / DC Energy
Franklin, Russell / Garland Power and Light
Greer, Clayton / Morgan Stanley
Grimes, Mike / EDP Renewables
Gurley, Larry / BTU
Hastings, David / SESCO / Via Teleconference
Helton, Bob / GDF Suez
Lange, Clif / STEC / Via Teleconference
Lyons, Chris / Exelon
Maduzia, Franklin / Dow Chemical
Muñoz, Manuel / CenterPoint Energy
Ogelman, Kenan / CPS Energy / Alt. Rep. for P. Barham (afternoon)
Ogin, Brett / Consolidated Edison Solutions
Sandidge, Clint / Noble Energy Solutions / Via Teleconference
Showalter, Dana / E.ON Climate and Renewables
Smith, Mark / Chaparral Steel Midlothian
Stephenson, Randa / Lone Star Transmission
Thurnher, Greg / Luminant
Vincent, Melie / Brazos Electric Cooperative
The following proxies were assigned:
· Robby Hamlin to Melie Vincent
· David Hastings to Seth Cochran
Guests:
Ainspan, Malcolm / ECS Grid / Via TeleconferenceAllen, Travis / Enbridge / Via Teleconference
Anklam, Robert / Cargill / Via Teleconference
Basaran, Harika / Austin Energy / Via Teleconference
Brandt, Andrianne / Austin Energy
Brown, Jeff / Shell / Via Teleconference
Burke, Tom / GSEC / Via Teleconference
Carlson, Trent / JP Morgan
Clemenhagen, Barbara / CES
Coleman, Diana / PUCT / Via Teleconference
Crouch, Cliff / PUCT / Via Teleconference
Davis, Brenda / EON / Via Teleconference
Eeg, Justin / Endure Energy / Via Teleconference
Elliot, Christopher / Bank of America/Merrill Lynch / Via Teleconference
English, Rock / Luminant / Via Teleconference
Firestone Joel / Topaz Power / Via Teleconference
Goff, Eric / CEI / Via Teleconference
Harvey, Julia / PUCT / Via Teleconference
Hellinghausen, Bill / EDF Trading
Hughes, Lindsey / Competitive Power / Via Teleconference
Ide, Jacob / Direct Energy / Via Teleconference
Jones, Liz / Oncor
Jones, Randy / Calpine / Via Teleconference
Kotsky, Vladimir / Via Teleconference
Kulkarni, Pramod / CES / Via Teleconference
Laughlin, Ken / Tres Amigas / Via Teleconference
Looney, Sherry / Luminant
Micek, Kassia / Platts / Via Teleconference
Morris, Sandy / Direct Energy
Moss, Steven / Brazos Electric Cooperative / Via Teleconference
Pemberton, Margaret / Norton Rose Fulbright
Pieniazek, Adrian / NRG Energy
Roth, Werner / PUCT / Via Teleconference
Siddiqi, Shams / Crescent Power / Via Teleconference
Stanfield, Leonard / CPS Energy / Via Teleconference
Stappers, Hugo / SoftSmiths / Via Teleconference
Starr, Lee / BTU / Via Teleconference
Thompson, David / Austin Energy
Twiggs, Thane / CCI / Via Teleconference
Velasquez, Ivan / Oncor / Via Teleconference
Vinson, Paul / CPS Energy
Wagner, Marguerite / Edison Mission
Wan, Josephine / Austin Energy / Via Teleconference
White, Lauri / AEP
Whittle, Brandon / Stratus
Wilkins, Pat / Tres Amigas
Wittmeyer, Bob / DME
Woodruff, Taylor / Oncor / Via Teleconference
ERCOT Staff:
Albracht, BrittneyBauld, Amanda
Bivens, Carrie / Via Teleconference
Bivens, Danny
Boswell, Bill / Via Teleconference
Chatlani, Varsha / Via Teleconference
Coon, Patrick
Deller, Art / Via Teleconference
Garcia, Freddy / Via Teleconference
Geer, Ed / Via Teleconference
Gilbertson, Jeff / Via Teleconference
Gonzalez, Ino
Guo, Jack / Via Teleconference
King, Charles / Via Teleconference
Krein, Steve / Via Teleconference
Landry, Kelly
Peters, Patrick / Via Teleconference
Ruane, Mark / Via Teleconference
Shaw, Pamela / Via Teleconference
Stecklein, Chris / Via Teleconference
Surendran, Resmi / Via Teleconference
Swanson, Eileen
Tindall, Sandra / Via Teleconference
Wise, Joan / Via Teleconference
Unless otherwise indicated, all Market Segments were present for a vote.
2014 WMS Chair Seth Cochran called the February 5, 2014 WMS meeting to order at 9:30 a.m.
Antitrust Admonition
Mr. Cochran directed attention to the Antitrust Admonition, which was displayed. A copy of the Antitrust Guidelines was available for review.
Approval of Meeting Minutes[1]
February 5, 2014
Bob Helton moved to approve the February 5, 2014 WMS meeting minutes as posted. Mark Smith seconded the motion. The motion carried unanimously.
Technical Advisory Committee (TAC) Update and Assignments
Review Testing Requirements for All Resources
Mr. Cochran referred this issue to the Qualified Scheduling Entity (QSE) Managers Working Group (QMWG).
Operating Reserve Demand Curve (ORDC) Oscillation Bandwidth
Mr. Cochran referred to QMWG the issue of potential price oscillation and inefficient Demand Resource commitment when setting offline reserves to zero during Energy Emergency Alerts (EEAs). Upon Market Participant request, Mr. Cochran also requested QMWG to review for a root cause of units potentially appearing available when they are not.
Clarify Treatment of High Sustained Limit (HSL) for Combined Cycle Generation Resources providing Responsive Reserve (RRS)
Mr. Cochran referred this issue to QMWG.
Referrals (see Key Documents)
Nodal Protocol Revision Request (NPRR) 593, Clarification of Generic Transmission Limit Posting Requirements
Mr. Cochran referred NPRR593 to the Congestion Management Working Group (CMWG).
NPRR595, RRS Load Resource Treatment in ORDC
Jeremy Carpenter provided a review of how online capacity is calculated in ORDC.
Mr. Cochran referred NPRR595 to QMWG.
NPRR596, External Load Serving Entities
Jennifer Bevill moved to endorse NPRR596 as submitted. Greg Thurnher seconded the motion. The motion carried with one abstention from the Investor Owned Utility (IOU) Market Segment.
CMWG (see Key Documents)
Marguerite Wagner reviewed recent CMWG activities. Market Participants discussed the impacts of NPRR480, Removal of Language for Relaxing Transmission Constraints; the need to understand how ERCOT manages constraints in EEA; system operating limits versus interconnection reliability operating limits; that the market needs notice when a constraint is being relaxed; and ERCOT’s Reliability Unit Commitment (RUC) procedure. Ms. Wagner offered that the topics overlap. Market Participants requested that ERCOT address WMS and Reliability and Operations Subcommittee (ROS) stakeholders jointly, either in a workshop, or in a special session of a working group meeting. Mr. Cochran requested CMWG to coordinate a meeting with ERCOT Operations staff and extend the invitation to ROS, and the Operations Working Group (OWG) specifically.
Review Protocol Language for Flow Gate Rights
Ms. Wagner noted that Protocol language regarding flow gate rights will be considered at the March 18, 2014 Protocol Revision Subcommittee (PRS) meeting via NPRR599, Removal of FGR-Specific Settlement Language.
Demand Side Working Group (DSWG) (see Key Documents)
Tim Carter reviewed recent DSWG activities.
Draft NPRR re ERS Settlement and Service Types
Carl Raish reviewed draft language regarding Emergency Reserve Service (ERS) and service types, noting that the language was not ripe for WMS consideration. WMS took no action on this item.
Emerging Technologies Working Group (ETWG) (see Key Documents)
Chad Blevins reviewed recent ETWG activities.
Market Credit Working Group (MCWG) (see Key Documents)
Josephine Wan presented the MCWG update. Mr. Cochran requested that ERCOT-developed draft Protocol language regarding a market-wide credit risk calculation be submitted as an NPRR to be considered by stakeholders.
QMWG (see Key Documents)
Sherry Looney reviewed recent QMWG activities.
NPRR585, Clarification of Administrative Pricing Requirements for Self-Committed Combined Cycle Combustion Turbines on a Resource Committed by RUC
Ms. Looney noted NPRR585 is likely to be withdrawn. WMS took no action on this item.
NPRR576, Changing Non-Spin Service to be Dispatched by ERCOT (formerly “Changing Non-Spin Service to an Off-Line Service”)
WMS took no action on this item.
Power Balance Penalty Curve
Market Participants reviewed the CPS Energy proposal, which Ms. Looney characterized as generally supported by QMWG.
Bill Barnes moved to endorse the Power Balance Penalty Curve as proposed by CPS Energy and as amended by WMS to change both CPSE 2014 and CPES 2015 at 40 < to 50 WM Violation to $2,250. Mr. Thurnher seconded the motion. The motion carried unanimously.
Ancillary Service RUC Process
Market Participants encouraged any concerned party to submit a Revision Request, and agreed to remove the topic from the list of QMWG action items.
Capacity During Cold Weather Events
Market Participants discussed that this item should be addressed jointly by ROS and WMS; and reiterated that Market Participants need clarification on ERCOT’s RUC procedures, as well as the opportunity to discuss impacts of those procedures on both the market and reliability. Mr. Cochran determined to keep the item as an Open Action on the QMWG list until further discussions joint discussions can be arranged.
Concerns with RUC instructions after the end of the Adjustment Period
Ms. Looney noted that there are few instances of the issue, and suggested that any interested party submit a Revision Request. Mr. Cochran directed that the item be removed from the QMWG list.
Resource Cost Working Group (RCWG) (see Key Documents)
Paul Vinson presented the RCWG update.
Fuel Recovery Discussion
Mr. Cochran directed RCWG to consider the issue of Real-Time fuel cost recovery.
Resource Adequacy Task Force (RATF) (see Key Documents)
Sandy Morris reviewed the RATF-developed options regarding ERS, Load RRS, and RUC (0-Low Sustained Limit (LSL)). Market Participants discussed how to timely address the request of the Public Utility Commission of Texas (PUCT). Mr. Cochran directed QMWG to consider the release of High Ancillary Service Limit (HASL) and requested ERCOT to bring their immediate proposals for discussion at QMWG.
Removal of Misaligned Congestion Revenue Right (CRR) Credit Requirement Equations from the Other Binding Document List (see Key Documents)
Dave Maggio reviewed draft revisions to the Other Binding Documents “Credit Formulas and Detail Whitepaper for the Day-Ahead Market and Congestion Revenue Rights Auction” and noted that the revisions would be presented for TAC consideration at the March 27, 2014 meeting.
Generation Adequacy Task Force (GATF)
Brandon Whittle announced efforts to schedule a GATF meeting to discuss topics related to the creation of the Capacity, Demand, Reserves (CDR) report, and the next Loss of Load Probability (LOLP) study.
No Updates
Metering Working Group (MWG)
Other Business
Review of Open Action Items
Mr. Cochran noted that he would send out an updated Open Action Items list.
Sharyland Load in LCRA Load Zone
Mr. Barnes raised to WMS’ awareness that a portion of Sharyland’s Load, which is moving to competition as of May 1, 2014, is subject to Protocol requirements for it to remain in the LCRA Load Zone for three years, and that a Nodal Protocol Revision Request (NPRR) requesting an exemption would be filed. Market Participants expressed both support and reservations regarding the exemption proposal.
Real Time Cooptimization
Kenan Ögelman noted the PUCT assignment to ERCOT to address Real-Time cooptimization and asked that ERCOT provide an update to either WMS or TAC as to plans to address the topic.
Adjourn
Mr. Cochran adjourned the March 5, 2014 WMS meeting at 2:50 p.m.
DRAFT Minutes of the March 5, 2014 WMS Meeting
Page 6 of 6
[1] Key Documents referenced in these minutes may be accessed on the ERCOT website at:
http://www.ercot.com/calendar/2014/03/20140305-WMS