CMWG Update to WMS

9-12-12Report of CMWG Meeting of 9-11-12

M WagnerEdison 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?– 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.

• 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 WN 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

Discussion of Competitive Constraint Test

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

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