NPRR1052  Load Zone Pricing for Settlement Only Storage Prior to NPRR995 Implementation

This NPRR establishes the following Settlement and metering provisions for Energy Storage Systems (ESSs) that are registered as Settlement Only Generators (SOGs) pending the approval and implementation of NPRR995, RTF-6 Create Definition and Terms for Settlement Only Energy Storage: (1) For any site with one or more ESS SOGs where the ESSs’ rated capacity constitutes more than 50% of the site’s overall nameplate capacity, energy injections and withdrawals will be settled at the Load Zone price; and (2) For any site with one or more ESS SOGs where the ESSs’ rated capacity constitutes 50% or less of the site’s overall nameplate capacity, energy injections will be settled at the applicable nodal price and withdrawals will be settled at the Load Zone price. This is the only scenario in which zonal/nodal arbitrage is possible. ERCOT expects that such configurations will be minimal, and emphasizes that this arbitrage possibility will expire upon implementation of NPRR995.