Proposal to reduce the total transaction limit to 315k, per-TOU limit to 110k, and per account holder limit from 2,700 to 2,500 due to long runtime of the recent auction.
First LTAS to use the new transaction limit table will be the 2025 2nd6 Seq1 auction.
The proposed reductions are based on data gathered from monthly LTAS evaluations and are not permanent.
Root causes of long run times are being examined with the vendor, and improvements will allow for adjusted numbers.
Discussion on the independent operation of each Time of Use (TOU) and linkage only between months, not between time of uses.
Quantity of option submissions are believed to contribute to long run times.
Hardware optimizations and potential cloud solutions are being explored to address performance issues, although there are internal cybersecurity constraints.
ERCOT is considering the removal of multi-month bidding functionality and the introduction of an option pricing report.
Changes such as linking time of uses and de-linking months were discussed but would require significant code changes.
The possibility of hardware upgrades, such as from DDR3 to DDR4 RAM, is being pursued.
Stakeholders requested further information regarding the high LMPs observed on February 19, during a winter storm.
An electrical bus associated with the Settlement Point RHESS2_ES1 with a very large helping shift factor on multiple constraints that were violated (at max shadow price), resulted in a very high LMP of over $28,000.
The LMP calculation (System Lambda – sum(SF*Shadow Price)) was explained, past discussion has focused on system conditions and operational questions.
Freddy Garcia explained in detail the control room's conditions during the winter storm and the multiple constraints faced, including planned outages in certain areas.
Freddy mentioned that on February 19, ERCOT's operators dealt with a significant number of constraints, with many exceeding emergency ratings that required additional studies to avoid cascading failures.
Blake Holt from LCRA inquired about possible solutions to minimize LMP impacts, suggesting the need for shared constraints to prevent excessive pricing.
Multiple stakeholders discussed optimization and pricing issues, noting similar challenges faced by other ISOs and RTOs.
Freddy Garcia and others highlighted the need for improved tools and procedures to better manage constraints without overloading operators.
Some stakeholders suggested reevaluating price and shadow price caps to prevent excessive LMPs or considering additional operational tools.
For future discussions, further analysis on theoretical pricing, constraints handling, and potential procedural updates was suggested.
ERCOT presented a study on implementing more granular CRR TOU blocks to better align with market dynamics influenced by increased renewable energy, particularly solar.
The main reasons for this proposal include adapting to market changes and reducing auction processing time and computational costs.
Proposal to split current blocks into solar and non-solar hours based on seasonality, providing a more targeted product.
Observed increased variability in solar and non-solar hours impacts generation outputs and prices, presenting challenges in hedging positions.
The introduction of a metric called the Obligation Capture Rate (OCR) to assess the congestion variability.
Encouragement for market participants to consider obligation instead of option during auctions to improve efficiency.
Discussion on the feasibility of maintaining current 5x16 blocks while introducing new granular segments.
Feedback suggests ERCOT ISO products need to reflect the newer generation profiles without hindering traditional generators.
Clarification that changing from 5x16 to two separate products would not require system changes for years not yet auctioned but would remove existing TOUs.
Exploration of seasonal variation in TOU hours to accommodate different daylight patterns without complicating the system.
Questions Raised:
Clarification on whether the current 5x16 would be kept or replaced.
Consideration of solar hour variability across different seasons and its impact on TOU.
Potential for keeping 5x16 blocks and adding more granular options.
Questions around the practicality of tracking variable TOU hours by season or daylight changes.
Next Steps:
Considering a study on different TOU hours across seasons with possible NPRR submission.
ERCOT to evaluate impacts and run an internal IA for changes after NPRR submission to PRS.
Collaboration between ERCOT and stakeholders on NPRR development.
▶️8 - CMWG Approval of Changes to the CRR schedule
Discussion on whether changes to the CRR schedule need WMS approval or if ERCOT could adjust and update with a market notice.
Consideration of whether the current process delays the schedule or if adjustment is needed.
Conversation on the stability of the CRR activity calendar and whether WMS's approval is necessary.
Clarification that updates to the calendar might still be handled through market notices.
Proposal to potentially shift to a biannual approval process extending the calendar further out to reduce administrative burden.
Consensus that the current process mostly works without issues, serving as a formality.
Agreement that the current CRR calendar approval process is not overly complicated.
Consideration of extending the calendar approval to a biannual process for efficiency.
Recognition that current practices don't result in significant feedback or changes requiring alterations.
