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NPRR #18 · Revision Request

NPRR018  Separate LaaR and Generator MCPCs for RRS

Rejected posted 2006-08-11 ercot.com
ReasonOver the past several months the DSWG and WMS have been working on the problems associated with large negative offers being submitted by LaaRs for RRS service. Many LaaRs were submitting large negative RRS offers to ensure they would be selected to provide the service and receive the MCPC. The MCPC is typically a positive number set by offers from generators. However, if a negative offer ever actually sets the MCPC, then suppliers of RRS would be obligated to pay potentially large amounts of money to the market, causing credit concerns. A short-term solution has already been implemented in the current market. LaaRs are precluded from bidding below $0 per MW and this provision has a sunset date of January 1, 2007. In addition, the DSWG developed three alternatives for WMS to consider: Eliminate the sunset date currently in Protocols Eliminate the sunset date in the Zonal Protocols and implement Alternative C (described below) in the Nodal Market Design Implement Alternative C in the Zonal Protocols and in the Nodal Market Design WMS voted to approve option 2. PRR671 is currently pending and if passed will eliminate the sunset date in the current zonal market. Alternative C provides a separate MCPC for LaaRs and generators if the quantity of LaaRs offered exceeds the quantity of LaaRs cleared. LaaRs would be paid the LaaR MCPC and generators would receive the generator MCPC. Load-Serving Entities would pay an average of the two MCPCs for RRS procured by ERCOT on their behalf. This NPRR is being submitted now to allow ERCOT to include it in the nodal market business requirement documents being submitted to vendors.
Created2006-08-17
Rejected2007-01-04
Sections Affected
4.5.14.5.34.6.4.1.3
Summary
Modify the nodal protocols to provide separate RRS MCPCs for LaaRs and generators when the service is oversubscribed by LaaRs, as per the WMS vote taken on May 17, 2006.
Timeline