The following report focuses only on the discussion of resource adequacy, project number 40000.
- Commissioner Brandy Marty noted that in light of the recent Brattle Group report it would be appropriate to start focusing on whether a 1 event in 10 year strategy is appropriate; the energy market is currently healthy; Marty would like to spend some time ensuring that implementation of RDC is done the best possible way
- Commissioner Ken Anderson reiterated the focus should be on the reliability standard and whether the existing 1 in 10 or some other standard would be appropriate
- Chairman Donna Nelson agreed and noted the commission should also focus on what role they play in the CDR process; wants to make sure expectations are set correctly moving forward
- Anderson noted that changes moving through ERCOT will be in place before June 1; they are planning a second batch of improvements for early December
- Brad Johnson of ERCOT noted there is no specific date set for round 2 but there are a number of suggested changes that will be worked on through the summer
- Anderson noted that during the recent winter period on January 6 the actual reserve margin was 30% based on installed capacity; because many units were down for planned maintenance and winter forced outages, the actual real-time reserve margin during the critical period was almost 27% before forced outages; the forced outage rate during that time, due to incentives of scarcity pricing, was considerably lower than other systems with plants built to operate in cold weather
- Nelson believes there are still price depression issues that need to be resolved; not sure what needs to be done; this plays a part in the ORDC but it is a bigger issue than that
- Anderson agrees; the two issues that remain unresolved are the energy that comes from RUC units below LSL and the ERS issue; if the stakeholders cannot come up with something reasonable the commission should develop a solution
- Nelson noted stakeholders will have until the end of March to come up with a solution