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CMWG Update to WMS

CMWG Update to WMS. 9-12-12 Report of CMWG Meeting of 9-11-12 M Wagner Edison Mission Marketing & Trading. Discussion of Competitive Constraint Test. Two primary issues with respect to test Duration of designation (annual, etc.) Test itself Do we need annual test?

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CMWG Update to WMS

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  1. CMWG Update to WMS 9-12-12 Report of CMWG Meeting of 9-11-12 M Wagner Edison Mission Marketing & Trading

  2. Discussion of Competitive Constraint Test • Two primary issues with respect to test • Duration of designation (annual, etc.) • Test itself • Do we need annual test? • Discussion that test potentially could be collapsed to monthly/weekly/and or daily—but existing PUCT rule: • §25.502. Pricing Safeguards in Markets Operated by the Electric Reliability Council of Texas (f)(2) • Competitive constraints and noncompetitive constraints shall be designated annually prior to the corresponding auction of annual congestion revenue rights. A constraint may be redesignated on an interim basis. • And corresponding Protocol Language: 3.19 Constraint Competitiveness Tests (6) • TAC shall approve the Competitive Constraints one month prior to the annual Congestion Revenue Right (CRR) Auction.

  3. Discussion of Competitive Constraint Test • A more flexible process may produce results more consistent with the direction of CRR auctions and the energy only market design • Regarding Test itself—for existing language—the issue of WN showing up as not competitive…could be fixed by modifying test with: • Treatment of nuclear units in Element Competitiveness Index (ECI)—currently they are included, proposal not to include them in the portfolio evaluation of generation under control (would be exempt) • Modification of ECI thresholds—last done in 2003 • Incorporate wind at Effective Load Carrying Capability • Change how Shift Factors are included for Stability limit • ….support for W—N being designated as competitive for 2013

  4. RAPs & 2% Shift Factor/Dispatchable Issue • Remedial Action Plans (RAPs) defined for specific constraint/contingency pair(s) • Can have ancillary effect of controlling for subsidiary constraints • ERCOT suggested developing additional RAPs for secondary constraints—CMWG supported • 2% Dispatchable Issue • ERCOT activates constraints when units w/ >2% SF are online and dispatchable, so when such units are offline, constraint may not be active • Goal is proposal from Oct CMWG for Nov WMS

  5. CRR Auction Updates • Credit Work Group meeting 9-27 • To discuss CRR auction credit…interested parties encouraged to attend • Bid limits for 2013 annual auction • Growth of CRR AH to 194. Existing Bid limit is 5000—CMWG & ERCOT comfortable reducing to 2500 per CRR AH for 2013 and 2014 auction • If see add’l bandwidth for 2014 will have time to increase limits prior to 2014 auction • See ERCOT presentation to 9-11 CMWG for add’l info

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