ATTACHMENT L
ERCOT PROTOCOLS PHASE II IMPLEMENTATION PROCEDURE
ERCOT PROTOCOLS PHASE II IMPLEMENTATION PROCEDURE
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Purpose
The ERCOT Protocols, as approved by the ERCOT Board of Directors (Board) and the Public
Utility Commission of Texas (PUCT), contain provisions that appear in shaded text boxes that
reflect certain functions intended for the “end state” functionality of the ERCOT operational and
market systems but were not functional on June 1, 2001. These provisions are the result of the
consensus reached in the stakeholder process that developed the Protocols, but the functions
were requested after the design phase of ERCOT systems had closed, and were therefore not
included in the design of the ERCOT systems. These provisions are often referred to as “Phase
II” provisions.1 They represent additional functions the stakeholders intended ERCOT to be able
to support and the Market Participants to be able to use in the new ERCOT Region operational
and market structure. Each of these additional functions is individually identified in the ERCOT
Protocols Implementation Plan (PIP) with a corresponding PIP item number.
The Phase II PIP items that were not functional through ERCOT systems on June 1, 2001 (the
beginning of ERCOT single control area operations and the ERCOT Region Customer Choice
Pilot Project) require Board approval to be designed into the ERCOT system.
Implementation of PIP items
ERCOT shall work toward implementation of all Phase II PIP items in accordance with the
target schedule in the PUCT Order dated April 11, 2001, Docket 23220, approving the ERCOT
Protocols (PUCT Order). Any Market Participant, the PUCT Market Oversight Division
(MOD), or affected end-use customer may also request that the implementation of a PIP item
vary from the PUCT target schedule.
For priority of implementation review, ERCOT shall be guided by the target schedule in the
PUCT Order and ERCOT’s assessment of the magnitude of impacts on the ERCOT systems of
each Phase II PIP item.
ERCOT System and Cost Analysis and Subcommittee Review
ERCOT shall provide a systems impact assessment and cost impact assessment regarding the
impact of Phase II PIP items on ERCOT (Impact Analysis). This analysis shall include an
evaluation of (1) the impacts on ERCOT staffing needs, operating systems, and settlement
systems; (2) cost and budgetary impacts on ERCOT; and (3) the most feasible implementation
date.
ERCOT shall refer each Phase II PIP item to the appropriate Technical Advisory Committee
(TAC) subcommittee(s) as appropriate for review.
The subcommittees shall make
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The PIP actually contains Phases 1, 2, and 3. Phase 1 items were complete by June 1, 2001. For the purposes of
this procedure, “Phase II” shall refer to Phases 2 and 3 of the PIP.
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ATTACHMENT L
ERCOT PROTOCOLS PHASE II IMPLEMENTATION PROCEDURE
recommendations to the TAC regarding the ability of the ERCOT systems and the affected
Market Participants’ systems to implement the PIP function.
TAC Recommendation
TAC shall review the subcommittee report and the Impact Analysis. TAC shall make one of the
following recommendations to the Board:
(1) approve implementation of the Phase II PIP, with or without modifications, and an
implementation date;
(2) disapprove implementation of the Phase II PIP and direct ERCOT to seek PUCT
reconsideration of the Phase II PIP item if the PUCT ordered the implementation of the
PIP item in the PUCT Order; or
(3) send the Phase II PIP back to ERCOT staff or the appropriate TAC subcommittee for
further review with instructions to report back with recommended action.
Appeal to the Board. In the event TAC does not recommend approval of the implementation
of a Phase II PIP, ERCOT staff, any Market Participant, the PUCT MOD, or any affected enduse customer may appeal to the Board for implementation of the Phase II PIP.
Board Approval
Upon a TAC recommendation to approve a Phase II PIP, or upon a proper appeal of a TAC
recommendation not to implement a Phase II PIP, the Board shall consider the PIP and take one
of the following actions:
(1) approve implementation of the Phase II PIP, with or without modifications, and an
implementation date;
(2) disapprove implementation of the Phase II PIP and direct ERCOT to seek PUCT
reconsideration of the Phase II PIP item if the PUCT ordered the implementation of the
PIP item in the PUCT Order; or
(3) send the Phase II PIP back to TAC or ERCOT staff for further review with instructions to
report back with recommended action.
Upon approval of a Phase II PIP item for implementation, ERCOT shall make a notice filing
with the PUCT regarding the implementation of the PIP and provide notice to all affected Market
Participants, including applicable effective dates and required fee increases, if any, required to
implement the new function. If a language change to the Phase II item is required by Board
action, ERCOT shall initiate the Protocols revision process to make the change, in accordance
with Section 21 of the Protocols.
Expedited Consideration
Notwithstanding any other provision in this procedure, TAC and the Board, in their discretion,
may take expedited action, as described above, without subcommittee or TAC recommendations
to implement Phase II PIP items.
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