ERCOT discussed a price correction update relating to a software defect and the intent to seek board approval for this correction.
Concerns were raised about transparency in ERCOT's interpretation of price corrections. Specifically, the approach now only applies corrections to resources with base point changes, contrasting with previous practices that applied to all resources.
Clarification that while prices in settlements change, the eligibility for additional make-whole payments now depends on whether the base point was altered.
Discussion on keeping generators whole if the price moves against them and results in lower dispatch opportunities.
Prior methods involved running all resources through emergency settlements based on price deltas. The new method is more sophisticated, considering whether resources actually experienced harm due to corrections.
Suggestions were made to refer the current policy to the WMWG for detailed review to ensure adequate price correction processes.
Gordon Drake from ERCOT reassured members that transparency and correct documentation are being prioritized.
Recommendation for the WMWG to review recent trends in price corrections, potentially resulting in new action items or changes to protocols.
James Langdon from Vistra Corp expressed concerns about uncoordinated actions by third-party aggregators causing economic harm to LSEs by disrupting hedge positions.
Vistra proposed red lines to Phase 3 governing document focusing on contested issues and ensuring coordination with third-party aggregators.
James Langdon presented a potential alternative solution requiring ERCOT to verify the relationship between QSEs and allowing coordination to prevent hedge disruptions.
Seth Cochran with Vitol queried the impact on retail hedges due to third-party aggregation and was informed that lack of prior notice results in unidentified customer enrollment.
Kimaya Abreu from Voltus expressed concerns over deviation from previously agreed compromise solutions and potential anticompetitive implications by blocking non-rep participation.
Bill Barnes emphasized historical regulatory constraints and consumer protection concerns regarding third-party participation.
Further concerns were raised about the financial risks for customers not hedged on the energy side, especially highlighted during events like Winter Storm Uri.
Dave Maggio from ERCOT clarified the historical and procedural context of allowing third-party participation and differences from previous LMP-Proxy G discussions.
Agreement on needing continued discussions on coordination and alternative solutions, with an emphasis on fair and transparent stakeholder involvement.
Vistra to draft and submit red lines for ERCOT's review and stakeholder discussion at the next meeting.
Participants are encouraged to provide feedback and possibly propose alternative red lines or solutions.
ERCOT to assess and verify the procedural implementation of proposed solutions in the governing document.
ERCOT has been analyzing increases in RUC (Reliability Unit Commitment) instructions, particularly related to congestion. These findings are shared in regular updates to the board.
The discussion will be further elaborated at the upcoming WMWG meeting on May 5, focusing on the complexities of assigning single reasons for commitments due to simultaneous power balance and congestion solutions.
Ryan King and his team have been closely studying the situation and are preparing more detailed analysis for future discussions.
There is acknowledgment of the challenges faced by ERCOT operators who make decisions rapidly, highlighting the seasonality factor in RUC activity during outage seasons and high congestion periods.
The discussion touched on the potential for technical changes in the RUC process to consider battery storage (ESRs) capacity in the same manner as thermal generation.
The conversation included exploration of potential future changes to how behind-the-meter resources and ancillary services are managed, though no changes are currently proposed.
Questions were raised regarding the visibility of state of charge in the RUC engine and the ability to commit available ESR capacity, with plans suggested to address these in future protocols.
Detailed scenarios were discussed, like apparent peculiarities in unit dispatch for constraint relief, highlighting areas for ERCOT to investigate further.
There's an ongoing effort to improve accuracy in logging and coding of RUC instructions to better inform and simplify analysis of ERCOT decisions.
NPRR1190 assignment from TAC has been voted through, confirmed for removal from the open action items list upon TAC confirmation next month.
WMS action item to CMWG regarding the review of requirements for approving the CRR activity calendar needs to be added to the next agenda for discussion.
The MDRPOC process assignment for WMWG was captured with Bill Barnes as champion.
Review price correction methodology assigned to Eric Goff from WMSWG.
Discussion needed on whether WMS should continue approving the CRR activity calendar annually, with feedback from ERCOT requested for the next CMWG discussion.
