OBDRR037  Power Balance Penalty and Shadow Price Cap Updates to Align with PUCT Approved High System-Wide Offer Cap

At the December 2, 2021 Public Utility Commission of Texas (PUCT) Open Meeting, the PUCT Commissioners approved an amendment to P.U.C. SUBST. R. 25.505, Reporting Requirements and the Scarcity Pricing Mechanism in the Electric Reliability Council of Texas Power Region, to change the High System-Wide Offer Cap (HCAP) to a value of $5,000/MWh with an effective date of January 1, 2022. As a result of that rule change, this Other Binding Document Revision Request (OBDRR) changes the Power Balance Penalty Curve to cap the curve at $5,001/MWh, i.e., HCAP plus $1/MWh. This effectively means that the price on the curve will be at its maximum value at MW violations above 100 MW. This is similar to how the Power Balance Penalty Curve is adjusted when the Low System-Wide Offer Cap (LCAP) is in effect. This OBDRR also reduces the Generic Transmission Constraint Shadow Price cap for Base Case/Voltage Violations from $9,251/MW to $5,251/MW. Related changes are also proposed to grey-box language that describes how the Power Balance Penalty Price will work with the new HCAP upon implementation of Real-Time Co-optimization. Finally, a numerical example in Section 3.5.1 is updated to reflect the new HCAP value.