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The ERCOT Board of Directors met on August 13, 2019, to take up a number of items. This report covers only the CEO update, IMM report, and TAC report. Find the agenda here.

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Item 4 – CEO Update

  • First week of August has seen highest loads in the history of ERCOT. Sustained high temperatures and high loads throughout August so far.
  • So far there has been good performance from the generation fleet and from the system.
  • Little change financially since last meeting in June.
    • Expect to see a reduction in positive balance. Still projecting a positive balance, but it will be less than predicted. This is due to higher throughput on major projects.
  • Identity and access management project has been a success.

 

Item 5 – Independent Market Monitor (IMM) report

  • Load for 2019 continues to be behind 2018 numbers through June and July.
  • Implied heat rate of real time prices remain unchanged between 2018 and 2019.
  • Significantly lower congestion costs in 2019 than in 2018.

 

Item 7 – TAC Report

  • 1 – Non-unanimous Revision Request Recommended by TAC for Approval
  • 1.1 – NPRR917, Nodal Pricing for Settlement Only Distribution Generators (SODGs) and Settlement Only Transmission Generators (SOTGs)
    • Motion to approve protocol revision.
      • Motion passes.
    • 2 – Real-Time Co-Optimization Task Force Update
      • Bob Helton, TAC Chair – Have the 5 key principals for Real-Time Co-Optimization went through TAC in the last meeting.
        • On a tight schedule, if there is a need for a decision from this group there will be a meeting specifically to approve that decision.
      • Kamel – Will the system be designed and hardened to stop people from “hanging new ornaments on the Christmas tree” going forward? We do not want a repeat of what happened with nodal system, with constant change orders, etc.
        • Helton – Have made it clear at TAC that this is for real-time co-optimization and nothing else. Do not want this to be like the nodal.
        • Kamel – Will ask this same question in February when you are back.
      • Helton – Have been having issues with outages related to CREZ lines. Issue is being worked on in Congestion Management Working Group (CMWG). This issue could have a pretty high impact on the market.
      • Matt Mereness, Chair of Real-Time Co-Optimization Task Force – This is a difficult process and a stakeholder-involved process. Hope to take lessons from Nodal and use the stakeholder process in order to sharpen and refine scope/focus of the program.
        • Real-Time Co-Optimization is a redesign of Real-Time Security Constrained Economic Dispatch with a folding in of ancillary services.
        • Will complete economic curves for ancillary services.
        • Have around 80 foundational issues to move through, need to move through those quickly. Everything that has gone to TAC so far has been voted out, which is what is needed to remain on schedule.
      • Kamel – When you say that a stakeholder must document concerns or alternative approach for the RTFCTF review process, should the be “and” instead on “or”? With the “or” people might throw in concerns without solutions.
        • Mereness – It does become an alternative ultimately. The only things that are voted on are alternatives, not concerns. Want concerns to be voiced so there are no surprises.
      • Member – For ancillary service proxy offers, what is done with a self-scheduled unit?
        • ERCOT staff – That will be some thing we have to discuss. If a proxy offer is created, will have to discuss what is put in as that offer.