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Published byAlison Lang Modified over 9 years ago
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Texas Nodal Development Process Committee Structure
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Ground Rules of this Meeting This is NOT a position advocacy meeting. It is a meeting to define committee structure for market redesign!!! Mutual respect is desired from all Everyone get out paper and pen and note questions on slides and hold them.
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Ground Rules of this Meeting Cont. The presentation will be given and questions taken in sections: Roles/Responsibilities Committee Structure Work flow/appeals process Refinements for presentation at TAC
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Purpose of the Meeting Develop cohesive process for the Texas Wholesale Market redesign Define roles for those involved Produce recommendation to be presented at TAC and ultimately the Board
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Roles and Responsibilities Six major players exist in the process ERCOT Staff Stakeholders PUC Staff/MOD TAC ERCOT Board/Board Oversight Committee PUC
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ERCOT Staff Role Process facilitator and advisor Duties Meeting Chairmanship? Meeting Organization (agenda, when, where) Provide insight and advice on systems and processes Protocol language development Seams management (more later) Strawman recommendations
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Stakeholders Role Develop the policies needed to operate the Texas Nodal market Duties Strawman Development Approval of designs Industry segment concerns
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PUC Staff/MOD Role Ensure that policies & rules established for the market comply with regulatory policies & rules Ensure policies & rules do not provide improper market incentives and are non-discriminatory Expedited conflict resolution Duties Strawman recommendations Reporting to the Commission
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Technical Advisory Committee Role Approve recommendations of the ShAG and provide decisions on issues of dispute Duties Voting on strawman documents Submitting approved stawman documents to the Board Reporting to the Board Oversight Committee of progress Deciding on appeals Directing PRS to convert Board approved strawmen into PRRs
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ERCOT Board of Directors Role Approve strawmen produced by TAC Decide on appeals of TAC decisions Duties Voting on strawman documents Direct TAC to have documents converted to Protocols Deciding on appeals Report to the LOC on progress?
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Board Oversight Committee Role Act as “subject matter experts” for the Board Oversee market development process Ensure conformity with ERCOT principles Ensure process is non-discriminatory Duties Assist in development of subcommittee structure Monitor committee process Review issues of conflict with the Board Communicate Board recommendations to TAC
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Public Utility Commission Role Provide final approval of completed Texas Nodal Design Final arbiter of any disputes in the process Duties Approval of Protocols including Texas Nodal Design Provide Orders or guidance on direction of decisions Rule on appeals
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Basic Committee Structure ERCOT Board Generation Adequacy Generation Adequacy Transmission Rights Transmission Rights Operating Guides Operating Guides Market Mitigation Market Mitigation Day Ahead Market Day Ahead Market Settlement Operations Design Implementation Design Implementation Congestion Management Congestion Management Note: Committees are shown as placeholders and only developed if needed Board Oversight Committee Technical Advisory Committee Stakeholder Advisory Group ShAG – Yeah Baby! Stakeholder Advisory Group ShAG – Yeah Baby! Protocol Revision Subcommittee Protocol Revision Subcommittee
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Stakeholders Advisory Group Governance Chair: Independent or ERCOT Vice Chair: ERCOT Voting Structure Similar to PRS Allowances for voting by non-ERCOT members and ERCOT? 7/8? Segments with one vote per company in each segment Simple majority to pass? ANY DECISIONS MADE CAN BE APPEALED TO TAC Issues Clearinghouse for all Texas Nodal Market Decisions Early issue: Standard Market Design vs. ZEN vs. Other? ERCOT Personnel Minimum of one representative from Operations Settlement Seams representative
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Congestion Management Subc. Governance Chair: ERCOT, Stakeholder, Independent? Vice Chair: ERCOT seams representative Voting Structure: Non-binding straw votes recorded for input to ShAG Issues Definition of nodal market Selection of basic features Additional ERCOT Representatives: ERCOT Operations Primary Protocol Section Responsibility Section 6: Ancillary Services
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Operations Subcommittee Governance Chair: ERCOT, Stakeholder, Independent? Vice Chair: ERCOT seams representative Voting Structure: Non-binding straw votes recorded for input to ShAG Issues Ancillary Services modification? Dispatch changes to unit specific Congestion management changes Unit specific scheduling changes? (here or DA group) Market data?
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Operations Subcommittee Con’t Additional ERCOT Representatives Operations Operations’ systems Settlement Primary Protocol Section Responsibility Section 4: Scheduling Section 5: Dispatch Section 6: Ancillary Services Section 7: Congestion Management Section 12: Market Information System Section 17: Market Data Collection and Use
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Settlement Subcommittee Governance Chair: ERCOT, Stakeholder, Independent? Vice Chair: ERCOT seams representative Voting Structure: Non-binding straw votes recorded for input to ShAG Issues Node specific resource settlement Process for Load Area creation (same zones for load or new?) Changes to imbalance calculations (settle all or imbalance?) Charge type changes Formula changes Additional ERCOT Representatives: Wholesale settlement Primary Protocol Section Responsibility Section 6: Ancillary Services Section 9: Settlements and Billing
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Day Ahead Market Subcommittee Governance Chair: ERCOT, Stakeholder, Independent? Vice Chair: ERCOT seams representative Voting Structure: Non-binding straw votes recorded for input to ShAG Issues DAM design Bidding structure Scheduling process Congestion management process Transmission rights treatment Credit management Market clearing Notification Trading Hub development
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Day Ahead Market Subcommittee Con’t Additional ERCOT Representatives: Market Operations’ systems Settlement Primary Protocol Section Responsibility Section 4: Scheduling Section 7: Congestion Management Section 12: Market Information System Section 16: Registration and Qualification of Market participants Section 17: Market Data Collection and Use
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Market Mitigation Subcommittee Governance Chair: ERCOT, Stakeholder, Independent? Vice Chair: ERCOT seams representative Voting Structure: Non-binding straw votes recorded for input to ShAG Issues Method to be used to mitigate potential market power abuse in a nodal market Additional ERCOT Representatives: Market Settlement Primary Protocol Section Responsibility Section 7: Congestion Management
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Operating Guides Subcommittee Governance Chair: ERCOT, Stakeholder, Independent? Vice Chair: ERCOT seams representative Voting Structure: Non-binding straw votes recorded for input to ShAG Issues Changes needed to the Operating Guides to implement unit specific resource management Additional ERCOT Representatives: Operations Primary Protocol Section Responsibility None
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Transmission Rights Subcommittee Governance Chair: ERCOT, Stakeholder, Independent? Vice Chair: ERCOT seams representative Voting Structure: Non-binding straw votes recorded for input to ShAG Issues Flowgate vs. point-to-point rights or combination Options vs. obligations Auction process Pre-Assigned rights Additional ERCOT Representatives: Market TCR Auction Settlement Primary Protocol Section Responsibility Section 7: Congestion Management
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Generation Adequacy Subcommittee Governance Chair: ERCOT, Stakeholder, Independent? Vice Chair: ERCOT seams representative Voting Structure: Non-binding straw votes recorded for input to ShAG Issues Method to be used to ensure capacity in ERCOT Additional ERCOT Representatives: Market Settlement Primary Protocol Section Responsibility Section 4: Scheduling Section 6: Ancillary Services
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Ground Rules Everyone agrees to play nice Robert’s Rules of Order will be applied in committees with voting structures In committees with no voting structures majority and minority opinions will be elevated with straw votes taken Others?
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Work Flow ShAG Subcommittees --------------------- Develop White Papers Straw Voting ShAG --------------------- Voting of White Papers TAC --------------------- Approvals/ Appeals PRS --------------------- Protocol/ Development TAC --------------------- Approval Board --------------------- Approval Board --------------------- Appeals PUCT --------------------- Appeals
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White Paper Framework Key concepts written clearly with sufficient detail for later formation of: Protocols Operating Guides ISO Procedures RFP scope for necessary modification to ERCOT central systems Crafted with the design of other papers in mind
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Myths to be Dispelled “We are taking our current system and throwing it away” Fact: Many of the current settlement and customer registration systems will be largely untouched. This is primarily a “Package 1” modification “If we don’t find a way to streamline the process we won’t make it in time” Fact: The original process required only 2 years and 4 months from the first ISONP meeting through the market being placed on line and included many changes not required in this process (single control area, customer registration, etc.) Using the rule timeline gives us 2 years and 7 months
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Also Important to Note Protocol changes for market redesign may not require large wording changes Small changes to Protocol language can have profound affects on required system changes Process used to implement the Protocol changes could be as important or more important than the Protocol revision process itself
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Areas of the Protocols that should require no or minimal change Section 1: Overview Section 3: Open Access to the ERCOT Transmission Grid Section 8: Outage Coordination Section 10: Metering Section 13: Transmission and Distribution Losses Section 14: State of Texas Renewable Energy Credit Trading Program Section 15: Registration Section 18: Load Profiling Section 19: Texas Standard Electronic Transaction Section 20: Alternative Dispute Resolution Section 21: Process for Protocol Revision Section 22: Attachments
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Role of Seams Representative Attend as many meetings as possible Inform groups of work going on in other groups that may affect them Inform internal groups in ERCOT who may be affected by changes being recommended
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Timeline A timeline should be developed in the initial meetings of the ShAG to establish milestones and aid in determining progress It should include: Protocol development RFP development and bid process Implementation Testing Production
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Other Considerations Training for the market should be provided on various nodal market designs and differences operating in the US and elsewhere The first ShAG assembly should be a two day meeting First day to ratify the ground rules and committee structures Second day to fill chair positions and establish marching orders
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Had Enough?
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