Electric Grid Congestion Management Updates
Congestion
Management Working
Group
MARCH 25, 2024
SETH COCHRAN, CHAIR
NPRR 1214 Reliability Deployment Price
Adder Fix to Provide Locational Price Signals,
Reduce Uplift and Risk
o
Revises the RDPA to locational price adder
o
Design is to lower uplifted cost by limiting resource payments to those resources impacted by the re-
pricing at a locational level (i.e., no longer settled in the AS imbalance)
o
The sponsor showed hypothetical examples demonstrating the impact of the proposal on
scenarios including low wind, high wind, and overall system scarcity.
o
Additional details were requested from ERCOT for the raw data provided to add hub and zone
prices
o
Sponsor will provide more detailed examples using the raw data
o
Settlement formulas and language need to be clarified
Mitigation for ESRs
o
Two design frameworks were discussed for the mitigated offer cap design
o
Scalar on DAM bids similar to CAISO design
o
Just-in-time based on NPRR826
o
Data from 2023 was used to illustrate the impact of the frameworks on dispatch and mitigation
o
Stakeholders preferred the Just-in-time approach due to more appropriate levels of mitigation
o
Discussion included questions about competitive and non-competitive constraints and impacts
on energy and ancillary services.
o
Additional feedback is welcome and further refinements of the framework will be considered.
NPRR1198 & NOGRR 258, Congestion
Mitigation Using Topology Reconfigurations
o
Comments filed by LCRA since prior discussion resolving operational details and clarifying
reliability and economic distinctions
o
CMWG confirmed that there were no additional transparency concerns introduced by latest
comments
o
ERCOT staff expressed support for these latest versions which address prior concerns
o
Consensus to return this to WMS with transparency issues resolved and recommendation of
endorsement
Working Group updates on congestion management strategies including proposed fixes for reliability deployment pricing, mitigations for ESRs, and congestion mitigation using topology reconfigurations. Discussions covered locational price signals, resource payments, offer cap designs, and operational details. Stakeholder feedback and support were highlighted.
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Presentation Transcript
Congestion Management Working Group MARCH 25, 2024 SETH COCHRAN, CHAIR
NPRR 1214 Reliability Deployment Price Adder Fix to Provide Locational Price Signals, Reduce Uplift and Risk oRevises the RDPA to locational price adder oDesign is to lower uplifted cost by limiting resource payments to those resources impacted by the re- pricing at a locational level (i.e., no longer settled in the AS imbalance) o The sponsor showed hypothetical examples demonstrating the impact of the proposal on scenarios including low wind, high wind, and overall system scarcity. oAdditional details were requested from ERCOT for the raw data provided to add hub and zone prices oSponsor will provide more detailed examples using the raw data oSettlement formulas and language need to be clarified
Mitigation for ESRs o Two design frameworks were discussed for the mitigated offer cap design oScalar on DAM bids similar to CAISO design oJust-in-time based on NPRR826 oData from 2023 was used to illustrate the impact of the frameworks on dispatch and mitigation oStakeholders preferred the Just-in-time approach due to more appropriate levels of mitigation oDiscussion included questions about competitive and non-competitive constraints and impacts on energy and ancillary services. oAdditional feedback is welcome and further refinements of the framework will be considered.
NPRR1198 & NOGRR 258, Congestion Mitigation Using Topology Reconfigurations oComments filed by LCRA since prior discussion resolving operational details and clarifying reliability and economic distinctions oCMWG confirmed that there were no additional transparency concerns introduced by latest comments oERCOT staff expressed support for these latest versions which address prior concerns oConsensus to return this to WMS with transparency issues resolved and recommendation of endorsement
