Protocol Revision Subcommittee

May 21, 2004 Minutes

Attendees:

Kristy McKendrick / ERCOT / Troy Anderson / ERCOT
Manny Munoz / CenterPoint / Matt Mereness / ERCOT
Walter Reid / LCRA / Lacy Seybold / ERCOT
Hal Hughes / DME / Jennifer Garcia / ERCOT
Clayton Greer / Constellation / Kent Grammer / ERCOT
Brad Belk / LCRA / Paul Wattles / ERCOT
Robert Kelly / Brazos electric / Barbara Clenenhagen / Sempra Energy
Richard Ross / AEP / Jeff Brown / Coral Power
Fred Sherman / Garland Power & Light / Brandon Whittle / ERCOT
Larry Gurley / TXU / Mark Patterson / ERCOT
Mark Walker / ERCOT / Kenan Ogelman / OPC
Diana Zake / ERCOT / James Jackson / CPS
Cheryl Moseley / ERCOT / Jerry Jackson / First Choice
Kevin Gresham / Reliant Energy / Gesai Seymour / Tractabel
Steve Madden / Oxy / Kristy Ashley / Exelon
Rafael Lozano / PSEG Texgen I / Niel Avendano / Teco
Beth Garza / FPL Energy / Ino Gonzales / ERCOT
Mark Dreyfus / Austin Energy / Kay Trostle / TXI
Smith Day / Direct Energy / Marcie Zlotnik / Gexa
Terri Eaton / Green Mountain
Randy Jones (via telephone) / Calpine
Eric Schubert (via telephone) / PUCT

Next Meeting: Thursday, June 24, 2004 9:30 AM to 3:30 PM at ERCOT Austin

Anti-Trust Admonition

The Anti-Trust Admonition was displayed for the members. Kevin Gresham reminded the members of the importance of the complying with the Admonition.

Discussion on Agenda Order

The Chair described the manner in which he expected to proceed through the agenda.

Minutes

After minimal discussion on the second for a motion in the April minutes, Steve Madden made a motion to approve the 4/23/04 draft of the PRS meeting minutes. James Jackson seconded the motion and PRS approved the draft by a unanimous voice vote.

Update on Urgency Votes

Mr. Gresham provided a brief update on the email urgency votes that took place between the March and April PRS meetings, and noted that urgency of various PRRs noted on the agenda would be taken up as each topic came up on the agenda.


PRR Withdrawals

PRR503 - Section 8 Coordination of Resource Outage Due to TSP

The submitter made a motion to withdraw PRR503. Mr. Greer noted that the need for the PRR still exists. There was discussion about the proper forum for interconnection disputes, whether it is the PUC rather than ERCOT or the stakeholder process.

PRR516 – Curtailment Prioritization for Wind Generators

The submitter provided an overview of PRR516 and moved for approval of the PRR as submitted. There was no second, and the motion failed. The submitter then suggested that the PRR be withdrawn. Mr. Dreyfus motioned to affirm the withdrawal, Mr. Gurley seconded the motion. PRS voted to approve the withdrawal. There was one (1) abstention.

Review of OGRRs

OGRR148 – Remove Reference to PARWG

Mr. Greer moved to add a note to the minutes stating “The PRS notes for the record that no PRS member noted a discrepancy between the Protocols and OGRR148”. Mr. Ross seconded the motion which was approved on a unanimous voice vote after minimal discussion.

System Prioritization

PRR397 – TGR Trading Piece

PRS discussed the need to prioritize this PRR and when it would be implemented. Mr. Greer moved to prioritize PRR397 as 3.1. Mr. Ross seconded the motion. PRS approved the motion with one (1) negative vote and one (1) abstention.

ERCOT Project Update

Cheryl Moseley provided a section-by-section overview of the nodal protocols and updated PRS on the process for drafting the nodal protocols. Ms. Moseley announced a 6/4/04 target date for ERCOT to distribute the nodal protocols to the market. Ms. Moseley explained that all the white papers had been mapped and included in the document. Mr. Dreyfus asked whether use of the terms “bids” to buy and “offers” to sell had been standardized in the document. Brad Belk suggested that ERCOT review NERC terms used in the functional model because NERC may impose them on all ISOs and they are currently in use in other ISOs.

Gerry Abad discussed ERCOT Market Operations Team projects with expected completion in June, August and September. Beth Garza commented that any situations with changing expectations, such as PRR404, should be communicated to the market through PRS. Mr. Abad provided additional detail on the testing and implementation of PRR404 and EMMS Release 3. Brandon Whittle explained that the implementation of PRR359 will be spread across three releases and that Release 4 has already been locked down. Mr. Whittle added that ERCOT’s target date for Release 4 implementation is 11/4/04.

Protocol Revision Requests

PRR476 – Ramp Rate Adherence During Local Congestion - URGENT

Kristy Ashley explained the purpose of PRR476, stating that the need exists despite ERCOT’s system issues. Ms. Ashley stated that she expects a manual workaround at ERCOT to implement PRR476. There was considerable discussion about the use of manual workarounds. Mr. Whittle explained that ERCOT does not have a method for doing what is requested in PRR476. Kent Grammer emphasized that ERCOT will need procedures software and training before accepting any more manual workarounds. Mr. Adams noted that there will be some improvement coming with EMMS Release 3. There was some general discussion about boxed language and when the boxes would be removed from Protocols. Mr. Greer motioned to approve the PRR as submitted. Mr. Gurley seconded the motion and PRS approved it with a unanimous voice vote.

PRRR502 – Aggregation of Combined Cycle Units Providing RRS – URGENT

Mr. Greer explained the impact of EMMS Release 3 on this PRR, stating that the July 2004 implementation would enable the implementation of this PRR. Mr. Greer motioned for URGENT status for PRR502 so that it would go to the ERCOT Board in June. Rafael Lozano seconded the motion and it PRS approved it on a unanimous voice vote. PRS discussed the technical merits of the 20% rule. Mr. Greer motioned that the PRR be approved as modified by ERCOT and PRS. Ms. Garza seconded the motion and it was approved with a unanimous voice vote. Mr. Greer then motioned that PRS place a 1.1 priority on PRR502. Ms. Garza seconded the motion and PRS approved the priority with one member abstaining.

PRR505 – Elimination of OOME Down Payments

James Jackson motioned to approve PRR505 as modified by CPS comments. Mr. Dreyfus seconded the motion. Messr.’s Greer and Belk noted that WMS had recommended rejection of PRR505. Mr. Ross stated that WMS recommended rejection because OOME Down payments were not large enough. The motion failed through a roll call vote – 53.6% against and 46.4% in favor. Mr. Greer then motioned for PRS to reject PRR505. Jeff Brown seconded the motion. Through a roll call vote, PRS approved the motion – 56% in favor and 44% against.

PRR511 – Clarification of PCR Eligibility

Brad Belk motioned to postpone discussion of PRR511 for another month. Robert Kelly seconded the motion. Mr. Greer questioned the definition of “materially alter”. PRS voted to approve the motion with one member abstaining.

PRR512 – OOMC and OOME of LaaRs - URGENT

Mr. Greer opened the discussion by questioning the need for the verifiable cost language suggested by ERCOT. John Adams and Mr. Greer also discussed when ERCOT would call on LaaRs to be OOMEd. PRS also generally discussed the necessity to change ERCOT operating procedures to reflect when ERCOT would OOME LaaRs. Larry Gurley moved to approve PRR512 as modified by ERCOT with a request to ROS to change ERCOT procedures to detail how LaaRs would be OOMEd. PRS approved the motion unanimously on a voice vote.

PRR513 – Verification of Operational Model after Recurring Local Congestion Event - URGENT

Mr. Kelly briefed PRS on discussions with ERCOT staff. Mr. Kelly stated that a tracking method of local congestion events is not in place at ERCOT. He explained that there is an email process for corrections with authorized contacts. Mr. Kelly modified the PRR with language suggested by ERCOT. Mr. Kelly motioned to approve PRR513 as modified by ERCOT comments and PRS. Ms. Garza seconded the motion and PRS approved it unanimously through a voice vote.

PRR514 – Twelve Month Window for Non-IDR Scaling

With minimal discussion, Mr. Greer moved to approve PRR514 as modified by PRS. The motion was seconded and PRS voted to approve it through a unanimous voice vote.

PRR515 – Disclosure of Local Congestion

Mr. Greer motioned to approve PRR515 as amended by ERCOT and PRS. Mr. Gurley seconded the motion. Mr. Gurley expressed an interest in a workaround to report data prior to the November release [of EMMS] to identify active constraints at the time OOME and OOMC units are deployed. Mr. Adams described the limits of ERCOT’s system stating that it is a linear problem. There was considerable discussion about binding constraints and their relationships to deployed units. Ino Gonzalez clarified timing of when ERCOT will deliver information to the market after EMMS Release 4 is implemented. Mr. Adams described reports that are currently available and discussed the impact of Release 3 on PRR515. PRS unanimously voted to approve the motion through a voice vote.

PRR519 – ERCOT and TDSP Acceptance of Customer Cancellation of Switch Request – URGENT

After minimal discussion and one modification to PRR519, Mr. Greer moved to approve the PRR as modified. Jerry Jackson seconded the motion. PRS approved the motion with one (1) abstention.

Updates on Open PRRs/Other Items

PRR409 – Voltage Support Service

Randy Jones provided an updated and indicated that PRR409 should be placed on PRS’ June agenda.

SCR733 – Zonal Instructed Deviation

Mr. Gonzalez updated PRS on the status of SCR733. Mr. Gonzalez announced that ERCOT has begun using ZID Up and Down adjustments on 4/19/04. He stated that ERCOT will distribute procedures on settling fleets on 5/26/04.

Mr. Gresham adjourned the meeting at 2:37 PM.

Minutes 052104 PRS Meeting Page 1 of 4