NPRR485  Clarification for Fuel Adder Provisions

This Nodal Protocol Revision Request (NPRR) will provide for consistent application of the fuel adder that is meant to compensate Resources for the actual cost of transporting and purchasing fuel on the spot market across Mitigated Offer Caps and Reliability Unit Commitment (RUC) instructions, as well as, allow for Resource-specific verifiable costs to be submitted and verified by ERCOT. The Verifiable Cost Manual is currently undergoing updates to provide for consistent application of the value of X across Mitigated Offer Caps and RUC instructions, where the value of X is meant to compensate Resources for the actual cost of transporting and purchasing fuel purchased on the spot market. The fuel adder ($/MMBtu) cost may be submitted for each Resource and verified by ERCOT. The current default value of $0.50/MMBtu will continue to be used by ERCOT when no specific fuel adder has been provided for a Resource. Slight clean-up language is also needed to point to the Verifiable Cost Manual for methodology used to verify those costs, and to define the methodologies used to account for the fuel costs above the Houston Ship Channel price.