NPRR1315  Changes to Process of Evaluating the Potential Needs for Additional Capacity and Mitigated Offer Cap

This Nodal Protocol Revision Request (NPRR) adds notification requirements for ERCOT to follow when ERCOT has determined that additional capacity is needed to prevent an imminent Emergency Condition or to restore the ERCOT Transmission Grid to a secure state in the event of an ERCOT Transmission Grid Emergency Condition. Under the revisions, ERCOT would notify PUCT when it has made such a determination and would also notify the PUCT prior to entering into any contract for additional capacity. To address additional capacity that is needed to address local constraint issues, this NPRR also extends the study horizon for evaluating and potentially contracting for capacity to prevent anticipated Load shed events. ERCOT proposes this study horizon extend up to two years instead of just the current or next Season. This NPRR specifies that ERCOT shall present its study assumptions (including Load forecast assumptions) to the ERCOT Board of Directors before any awards are made through the “Request for Proposal” (RFP) process. This NPRR also expands the set of eligible Resources that can respond to the RFPs to include new Resources and not be limited to existing Resources. Additionally, these revisions explain that an eligible Resource could be a Resource that is already planned to be interconnected and that, in such a case, if ERCOT is paying for an acceleration of such a Resource to interconnect, ERCOT must be provided with a detailed explanation that demonstrates that any payments to accelerate planned capacity is justifiable and reasonable, and that the acceleration would not have occurred otherwise. Additionally, this NPRR provides language that specifies contract length limit considerations for contracts to address local constraint issues. This NPRR also proposes edits to provide more information on the expected Settlement for Resources that were not previously mothballed, retired, or decommissioned. Finally, this NPRR modifies Section 4.4.9.4.1 and revises the Mitigated Offer Cap (MOC) calculation for those same Resources procured through Section 6.5.1.1. This approach sets the MOC curve so Security-Constrained Economic Dispatch (SCED) can dispatch contracted Resources if needed, with offers priced to ensure these Resources are dispatched after Resources in the market. The calculation factors in Shadow Price caps for relevant transmission constraints and system topology variations, targeting contracted Resource dispatch only after Resources in the market.