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NPRR #416 · Revision Request

NPRR416  Creation of the RUC Resource Buyback Provision (formerly "Removal of the RUC Clawback Charge for Resources Other than RMR Units")

Approved sponsor Exelon, Calpine posted 2011-09-20 ercot.com
ReasonThe existence of the RUC clawback is leading to inefficient scheduling of units, inefficient RUC selection in the Day-Ahead Market (DAM) and hourly market. The clawback negatively affects valid hedging strategies. The lack of necessity for the clawback mechanism tied to Resource DAM participation, in light of the other incentives for DAM participation, was recognized in early review of the Nodal Protocols in Public Utility Commission of Texas (PUCT) Docket No. 31540, Proceeding to Consider Protocols to Implement a Nodal Market in the Electric Reliability Council of Texas (ERCOT) Pursuant To P.U.C. Subst .R. 25.501: "What is your recommendation regarding the clawback provisions? I recommend the elimination of the clawback provisions. I have confidence in the incentives created by the day-ahead and real-time prices to promote full participation by both loads and suppliers in the day-ahead market. Some have argued that the lack of a mandatory offer requirement in the day-ahead market may make these provisions necessary. However, the Midwest IS0 does not have a mandatory offer requirement, but nevertheless enjoys relatively full participation in the day-ahead market by both supply and demand." Direct Testimory of David B. Patton, President, Potomac Economics Ltd., on behalf of the PUCT Staff, November 20, 2005.
Created2011-10-20
Approved2012-07-17
Sections Affected
2.13.9.15.5.25.6.25.7.25.7.66.4.6
Summary
This Nodal Protocol Revision Request (NPRR) adds a buyback provision for Resources committed by ERCOT’s Reliability Unit Commitment (RUC) process that allows all RUC Clawback Charges associated with the RUC commitment to be waived and RUC Make-Whole Payments to be forfeited.
Timeline