Meeting Summary - 02/27/2025 TAC Meeting

▶️1 - Antitrust Admonition

 Agenda_tac_022725_finalv2

▶️2 - Approval of TAC Meeting Minutes (Vote)

Draft-minutes-tac-20250122

▶️2.1 - January 22, 2025

• Motion to approve the January 22, 2025 meeting minutes added to the combo ballot.

▶️3 - Meeting Updates

• Reviewing PUC and ERCOT board meetings, since the January TAC meeting.

▶️3.1 - February Board Meeting

• Board approved all revision requests and confirmed TAC leadership.
• Discussion and staff memo at PUC regarding ADER Pilot Program.
• Proposal to move ADER Pilot Program Task Force from PUC to ERCOT.
• PUC filed a memo recommending the pilot program be moved to the stakeholder process.

▶️3.2 - February PUCT Open Meetings

• Dave Maggio discusses how the Commission supported a recommendation and transition during their open meeting on February 13.
• The goal is to set the stage for ongoing developments with the ADER Task Force and the pilot.
• Discussion is needed on where the initiative should reside within the stakeholder process.

▶️3.2.1 - ADER Pilot Program

ADER Pilot Program Transition - ERCOT - 022725 - Final

• Dave Maggio discusses the ADER Pilot Program which started in late 2022 and is currently in Phase 2, with discussions ongoing about moving to Phase 3.
• Three ADERs are actively participating and have been growing in size. 
• An additional 8 ADERs have been approved and are in various stages of registration.
• The total capacity includes over 25 MW for energy, 11 MW for non-spin, and 8.8 MW for ECRS.
• Phase 3 proposes moving ADERs to a participation model similar to non-controllable resources to facilitate smoother integration.
• There was a recommendation to allow third-party aggregators to participate when individual premises exceed 100 kW, creating a compromise between increased competition and consumer protection.
• The pilot participation limit is proposed to be doubled from 80 MW to 160 MW for energy and from 40 MW to 80 MW for ancillary services.
• Two non-consensus items were identified: direct participation of third-party aggregators and flexibility in pilot limits.
• Discussions around the governance document have highlighted consumer protection concerns and the implications for the load-serving entities.
• Stakeholders, including TAC, are considering where discussions and decisions regarding the ADER pilot should reside within the broader ERCOT stakeholder process.
• The proposed changes and discussions will be moved to WMS for further discussions and resolutions.
• The ADER governance document with proposed changes will be shared with stakeholders for review.

▶️4 - 2025 TAC Goals/Strategic Objectives (Vote)

TAC 2025 Strategic Objectives Draft Henson 2-13-25

2024-tac-goals-approved-021424 

Revision Request Alignment with 2024 TAC Goals 121724

• Motion to approve the 2025 TAC Strategic Objectives added to the combo ballot.
• Goals became unmanageable; lacked consistency and accountability.
• Previously had 20+ goals; now focusing on top three consistent goals and introducing two new ones.
• New objectives:Timeless and evergreen objectives, Enhanced action item tracking
• Suggestion made to include 'cost effective' in 'promote market solutions' and modify Item 4 to 'technical and policy perspectives'.
• Discussion about whether to include '2025' in the objectives - consensus is to include it but revisit annually.
• Vote proposed with changes integrated for approval.

▶️5 - Review of Revision Request Summary/ERCOT Market Impact Statement/Opinions

5-rr-summary

• NPRR1241: Falls under general system process improvement with no impact. ERCOT supports approval with a positive market impact statement. No credit impacts. IMM supports it.
• VCMRR042: Aligns with strategic plan objective two, with a 90k to 120k impact. ERCOT supports approval with a positive market impact statement. IMM supports it.
• NPRR1190: Tabled for TAC review; involves general system process improvements with no impact. ERCOT supports it, but is revisiting their opinion based on comments. A finalized position is expected in one to two weeks.
• IMM Feedback: Supports more granular, accurate pricing for emissions costs in verifiable cost calculation. Supports the move away from a knife-edge approach to clawback reflecting noncompliance extent.

▶️6 - PRS Report (Vote)

PRS Memo to TAC Meeting

PRS Presentation to TAC 022725

• Andy Nguyen introduced himself as the PRS Vice Chair.

▶️6.1 - NPRR1241, Firm Fuel Supply Service (FFSS) Availability and Hourly Standby Fee

• Motion to recommend approval of NPRR1241 as recommended by PRS in the 2/12/25 PRS Report added to the combo ballot.
• NPRR1241, regarding firm fuel supply service availability and hourly standby fee, was largely unopposed.
• No impact on the IA was reported.
• Several new items were discussed at PRS but were tabled for future meetings.
• Announcements about new real-time co-optimization items were made.
• IMM and ERCOT highlighted key revision requests from substantive discussions over the past year.
• Stakeholders are encouraged to engage with the items at the RTC task force as they will move forward at the next PRS.
• NPRR1241 was proposed to be included on a combo ballot, with one noted abstention on language at PRS.

▶️6.2 - Project Update

TAC_February_2025_Project_Update

• Troy Anderson provided project update which is usually done at PRS, but presented at TAC to increase awareness of project issues.
• Emphasized a backlog of revision requests post-Winter Storm Uri and during RTC, with approximately 50 items yet to be delivered.
• Outlined a planned review of these items for post-RTC plans by 2026.
• Discussed impact analysis on the accuracy of cost estimates for projects completed over the past three years.
• Reported that 15 out of 29 projects were within cost range estimates, but some had significant variance.
• Highlighted a specific project, NPRR1040, which was 500% over initial IA due to unexpected complexity.
• Some projects, like NPRR1108, were delivered under budget, showcasing variance in estimates.
• Duration estimates are becoming more accurate, with 11 out of 29 projects within estimated timelines and more coming under time.
• Acknowledged feedback that plus or minus 20% is a reasonable accuracy expectation for IA estimates.
• Discussed priority and rank within the project list to determine the order of project execution.
• Noted that elderly revision requests are being planned for review and implementation.

▶️7 - Revision Requests Tabled at TAC (Possible Vote)

▶️7.1 - NPRR1190, High Dispatch Limit Override Provision for Increased Load Serving Entity Costs

NPRR1190 comments from Reliant Energy

• Motion to recommend approval of NPRR1190 as recommended by TAC in the 6/24/24 TAC Report as amended by the 2/26/25 ERCOT comments passed with 26 ayes, 4 nays, and no abstentions.
• Reliant, ERCOT, and residential consumers filed comments regarding NPRR1190.
• Reliant proposed an annual settlement cost trigger of $10 million to prompt a review if exceeded.
• WMS discussions revealed mixed support for the proposal; however, some stakeholders are fundamentally opposed.
• ERCOT filed comments suggesting the $10 million threshold may be too high and proposed lowering it.
• Residential consumers expressed opposition based on underlying policy concerns, but acknowledged the stakeholder efforts.
• The TAC voted on compromise, with most votes favoring approval, despite some opposition from consumer representatives.
• The motion was passed and will be recommended to the April board, with a need for further discussion of the underlying principles.

▶️7.2 - NOGRR264, Related to NPRR1235, Dispatchable Reliability Reserve Service as a Stand-Alone Ancillary Service

• NOGRR264 is currently tabled, pending NPRR1235 developments.
• A workshop related to the items is scheduled for the following day.

▶️8 - RMS Report

8-rms-report

• No voting items for TAC.
• RMS approved 2025 retail leadership, a mix of REPs and TDSPs with 3 people holding multiple roles.
• Update on NPRR1266: ERCOT to investigate usage of customer billing information for better accuracy. Requires PUCT approval.
• Profiling working group busy with annual validation for residential and nonresidential customers.
• Retail market training task force updated MarkeTrak and training modules in response to Texas SET 5.0 and MarkeTrak SCR817 changes.
• Discussion raised concerns about the use of customer billing data, stressing caution due to sensitive information.
• Texas SET is updating the Texas market test plan to ensure accuracy and clarity with new market participants.
• Efforts to reduce inadvertent gains showing positive results—all-time low number of gains in ten years.
• Next meeting scheduled for April 1, and May meeting to be rescheduled due to ERCOT Innovation Summit.

▶️9 - ROS Report

9-ros-report

• No voting items were presented at the meeting.
• December actions went back to PRS, and IA review is ongoing for a couple of important PGRRs.
• NPRR1265 was referred to the NDSWG for review.
• Issue related to financial matters was concluded with no further role for ROS.
• There is one open seat for Vice Chair on PDCWG.
• Next meeting will be in person next Thursday, with key items to be discussed.

▶️10 - WMS Report (Vote)

10-wms-report

• Blake Holt provided highlights from the February 5 meeting.
• Focus on transitioning goals to align with the TAC approach of strategic objectives.
• Further discussions on strategic objectives planned for the next meeting.
• A solution was reached after numerous discussions.

▶️10.1 - VCMRR042, SO2 and NOx Emission Index Prices Used in Verifiable Cost Calculations

• Motion to recommend approval of VCMRR042 as recommended by WMS in the 2/5/25 WMS Report added to the combo ballot.
• VCMRR042 introduces seasonal pricing for NOx emissions during May through September and retains annual index prices for SO2 throughout the year.
• The item was forwarded to TAC for a vote.
• Clarification was made that SO2 applies every month while NOx only applies during the summer.
• WMS recommended approval of VCMRR042, integrating these costs into the marginal cost of burning fuel.
• Related items discussed include PGRR028, which extends guidelines for loss compensation to include limiting reactors, NPRR1256 introducing ESRs as must-run alternatives, and NPRR1200 was withdrawn.
• NPRR1238 is still being discussed by ROS, but market-related discussions have concluded.
• NPRR1202 introduces refundable deposits and fees for large load interconnections; ERCOT is considering incorporating these into NPRR1234.
• Next meeting is scheduled for March 5.

▶️11 - Credit Finance Sub Group Report

11-cfsg-report

• Meeting was held on February 19.
• Discussion of operational NPRRs that did not have credit impacts.
• ERCOT presented draft NPRR revisions related to EAL formulas.
• Regular credit exposure update was given.
• Total potential exposure increased slightly, attributed to higher prices and forward adjustment factors.
• Average discretionary collateral rose from $3.98 billion in December to $5.1 billion in January 2025.
• No unusual collateral call activity reported.
• Monthly report provided on bank standings with outstanding capacity.

▶️12 - RTC+B Task Force Report

12-rtcbtf_tac_update_02272025

• Preview of RTC+B was mentioned during PRS, highlighting a detailed discussion about the timeline towards the April board for implementation.
• Emphasis on the importance of upcoming meetings: RTC+B next week, PRS the following, and March TAC two weeks later, targeting April board approval for timely go-live implementation.
• Detailed presentation on NPRR1268 and NPRR1269, with additional discussion planned if needed.
• Introduction of a new sandbox testing area for vendors, IT shops, and market participants, with real-time trials planned for May.
• Discussion of integration and impact of various NPRRs, especially NPRR1268, NPRR1269, NPRR1270, on the ERCOT systems, emphasizing no interface perspective changes.
• Resolution of 3 key policy issues: proxy offers, scaling factors, AS ramping with energy sharing, and implementation of AS demand curves in RUC.
• Completed and pending handbooks for market trials discussed to ensure readiness with active task force management.
• Detailed discourse on NPRR1268, discussing modified AS demand curves and clarifying comments from IMM and ERCOT.
• Open discussion on NPRR1269 stating issues of AS proxy offers and the reduced risk due to elimination of automatic offers for some services.
• Comments from various stakeholders such as TCPA, IMM, and others, about NPRR1268, NPRR1269, and the methods of prorating demand for reliable operations.
• Reiteration of a coordinated approach between PRS and TASK leadership to strategize planning, with the possibility of additional meetings if necessary.

▶️13 - ERCOT Reports - 1:05 p.m.

▶️13.1 - Large Load Interconnection Status Update

LLI Queue Status Update - 2025-2

• 15 GW increase in load queue in the last month, totaling 99 gigawatts.
• Load categories: No study submitted, Under ERCOT review, Planning studies approved, Approved to energize but not operational, Observed energized
• 1,827 MWs of load approved to energize in the last twelve months.
• Total 6,306 MWs approved to energize; half in the West, others in different zones.
• Non-simultaneous monthly peak consumption for February 2025: 3,322 MWs.
• Simultaneous peak of 3,109 MWs in February 2025.
• Clarification on 'observed energized' peak numbers and discrepancies highlighted.
• Request for segmentation by industry of large loads in queue.
• Discussion on manual processes vs future easier classification with new processes (NPRR1234 and PGRR115).
• Significance of standalone vs collocated projects discussed.
• Questions on inclusion of observed colocated generation and load data in other reports.
• Discussion on breakout of load zones requested but concerns due to disclosure.
• 15 GWs all are new requests under review, not yet energized.
• Potential tracking of projects by entity and affiliates suggested for transparency.

▶️13.2 - Market Design Framework Update

• Plan to discuss it as a separate item at the end of the next month's meeting for focused discussion.
• Discussion will cover key points and additional attributes offered previously.
• Keith Collins aims to align the market design framework with TAC annual goals and strategic objectives.
• Intention is to integrate recommendations consistently with board and TAC objectives.

▶️13.3 - ERCOT Board/Stakeholder Engagement Update

Board Stakeholder Engagement Update (2.27 TAC)

• ERCOT and TAC leadership are working to improve board stakeholder engagement.
• Changes include moving the presentation of policy initiatives to the full board and adjusting timelines.
• The focus is on providing insight versus advocacy, with participants invited to present to the board.
• A proposal includes selecting three segments for each topic to present their perspective.
• For June, potential segments include IOU, industrial consumer, and inverter-based renewables.
• For September, topics might include RTC+B, with representation from big generators and power marketers.
• TAC members are encouraged to provide feedback and work with ERCOT on further planning.
• The process aims to be a learning experience, with evolving guidelines and timelines.

▶️13.4 - Segment Membership Workshop Update

• A workshop held on February 14 introduced ideas for bylaw changes.
• Four entities proposed changes, but only one provided written red lines.
• ERCOT issued a market notice for stakeholders to submit proposed red lines by March 14.
• Responses to the submitted red lines are due by April 18.
• A high-level overview will be presented to the board in April.
• Substantive discussions will occur during meetings in June and September.
• A notice will be issued when red lines are posted to the TAC page.
• The process is primarily for awareness and encouraged endorsements or responses.
• Periodic updates on the progress will be provided at subsequent TAC meetings.

▶️13.5 - Operational Experience from Nov 10, 2024 and Introduction to NPRR1273, Appropriate Accounting for ESRs in PRC Calculation

11_10_2024 ESR Analysis_TAC_Update_v3

• ERCOT conducted an analysis of operations on November 10, 2024, which led to the submission of NPRR1273.
• November 10 was marked by the use of various energy resources, including stored energy, to meet evening demand.
• Storage resource fleet's state of charge dropped to an all-time minimum value, approximately 11% of capacity, around sunset.
• Forecast challenges included low wind and solar generation and generation outages, necessitating reliance on storage resources.
• ERCOT proposes changing PRC calculation duration for storage headroom from fifteen to forty-five minutes to better reflect available resources.
• Observation included issues with storage resources following dispatch instructions at low state of charge levels.
• There were concerns about inaccuracies in telemetry data, impacting PRC reliability.
• Additional analyses focused on systemwide state of charge for energy storage and its efficiency in providing ancillary services.
• Real-Time Co-Optimization (RTC) is expected to help automatically manage ancillary service assignments more effectively in the future.
• ERCOT has begun outreach to understand the behavior of storage resources at low state of charge and will continue analysis to improve PRC calculation.

▶️13.6 - NOGRR245 Information Collection

• DocuSign envelopes were sent on February 19 to all resources in the network operations model or with a production load date.
• A market notice was also issued on February 19.
• Resources in the generation interconnection or modification queue should use the template on the resource integration website and submit via RIIO.
• The deadline to submit information is April 1.
• A frequently asked questions document is available on the resource integration website.
• A second workshop is scheduled for March 10.
• Questions about the process can be sent to NOGRR245@ERCOT.com, monitored by Andy and the implementation team.

▶️14 - Other Business

• Discussion of recommended changes.

▶️14.1 - Review of Action Items List

• ROS leadership indicated completion of action items related to KTC, except for KTC 15-5 on black start service.
• Proposed removal of action items 15-3 and 15-4, changing RTCBTF to ROS.
• Blackstar service is under Blackstar working group.
• Item from 08/22/23 concerning NPRR1171, DGRs and DESRs on load shed feeders discussed.
• Brian Sams decided not to develop a problem statement on mobile gen, suggesting removal of this action item.
• Two new action items from Andy Nguyen related to REC opt-out timeline provisions and fuel transportation, contractual costs were introduced.
• Andy Nguyen's action items are suggested to be referred to WMS.
• Blake agreed to work with Andy Nguyen on developing problem statements for these items, with one already sent to WMWG.

▶️15 - Combo Ballot (Vote)

• Motion to approve the combo ballot as presented carries unanimously with no abstentions.

▶️16 - Adjourn - 2:00 p.m.

• Meeting adjourned with no further business discussed.