Nodal Protocol Revision Request NPRR Number DRAFT Date Posted NPRR EOC Requirements for Generation Resources Assigned Title Regulation Up and Responsive Reserve Services Draft – For Discussion Purposes Only Requested Resolution (Normal or Urgent, and justification for Urgent status) Nodal Protocol Section(s) Requiring Revision 6.4.3 Energy Offer Curve (Include Section No. and Title) This NPRR requires that the Energy Offer Curves submitted by the QSE for its Generation Resources that are assigned RRS and/or Reg Up AS Responsibility in the QSE’s COP for the purpose of meeting the QSE’s Ancillary Service Supply Responsibility for these Ancillary Services must meet the following requirements: (i) All energy output from the Generation Resource’s capacity reserved to provide Reg Up AS must be priced at the SWCAP in $/MWh; and (ii) All energy output for the Generation Resource’s capacity reserved to provide RRS AS must be priced at the SWCAP in $/MWh. Revision Description To accomplish these requirements, this NPRR adds the requirement that each QSE must, prior to the start of an Operating Period that includes an Operating Hour during which a Generation Resource is assigned RRS and/or Reg Up Ancillary Service Responsibility, assure that a valid Output Schedule or Energy Offer Curve for the Operating Hour has been submitted and accepted by ERCOT and that meets the price requirements in (i) and (ii) above. In other words, the last (price, quantity) pairs submitted by the QSE on the Generation Resource’s Energy Offer Curve shall be (SWCAP, HSL −Reg Up Capacity−RRS Capacity) and (SWCAP, HSL) where Reg Up or RRS Capacity may equal 0 MW if that AS Responsibility is not assigned to the Generation Resource. The HSL value shall be the COP HSL value for each Operating Hour. The provisions of 6.4.2.4, Output Schedule Validation apply. QSE updates to an EOC entered at the end of the Adjustment Period become affective in ERCOT Systems at the next Operating Period. Therefore, if Reg Up or RRS are moved from one Generation Resource to another Generation Resource in the QSE's portfolio NPRR Submission Form 082311 PUBLIC Page 1 of 3 Nodal Protocol Revision Request during an Operating Hour, any change to the EOC will be effective in the next Operating Period. Reason for Revision RDTF Action Item 1 Credit Implications (Yes or No, and summary of impact) Business Case Business Case instructions: To allow for comprehensive NPRR consideration, please fill out the Business Case section below and provide as much detailed information as possible. Wherever possible, please include reasons, explanations, and cost benefit calculation pertaining to the NPRR. Insert additional rows as needed. Describe qualitative benefits 1 Examples: regulatory requirement, data transparency enhancement, etc.) Explain in detail possible benefit calculations to support quantifiable benefits 2 Example: change is expected to save 50 market participants 25 hours/week at $65/hour) Business Comment on impacts to market segments 3 Case Example: potential positive impact to consumer segment in the form of lower energy prices 4 5 Sponsor Name E-mail Address Company Phone Number Cell Number Market Segment Market Rules Staff Contact Name E-Mail Address Phone Number NPRR Submission Form 082311 PUBLIC Page 2 of 3 Nodal Protocol Revision Request Proposed Protocol Language Revision 6.4.3 Energy Offer Curve (1) A detailed description of Energy Offer Curve and validations performed by ERCOT is in Section 4.4.9, Energy Offers and Bids. (2) For an On-Line RMR Unit, ERCOT, in its sole discretion, shall submit either an Output Schedule or an Energy Offer Curve considering contractual constraints on the Resource and any other adverse effects on, or implications arising from, the RMR Agreement, that may occur as the result of the Dispatch of the RMR Unit. If ERCOT chooses to submit an Energy Offer Curve instead of an Output Schedule, the Energy Offer Curve must be based on the RMR Agreement input/output curve and the fuel budget for the RMR Unit. (3) For Generation Resources with a Resource Status other than ONTEST, if a valid Energy Offer Curve or an Output Schedule does not exist for a Resource that has a status of OnLine at the end of the Adjustment Period, then ERCOT shall notify the QSE. Except for IRRs, QF Resources, and DSRs, ERCOT shall create an Output Schedule equal to the then-current telemetered output of the Resource until an Output Schedule or Energy Offer Curve is submitted in a subsequent Adjustment Period. 6.4.3.1 Energy Offer Curve for RRS and Regulation Up AS Capacity The following applies to Generation Resources that a QSE assigns RRS and/or Reg Up AS Responsibility in its COP to meet the QSE’s Ancillary Service Supply Responsibility for RRS and/or Regulation Up AS and includes RRS and Reg Up AS Responsibility assignments arising as the result of DAM or SASM AS awards or QSE AS self-arrangement. (1) (2) Prior to the end of the Adjustment Period for an Operating Hour during which a Generation Resource is assigned RRS and/or Reg Up Ancillary Service Responsibility, the QSE shall assure that a valid Output Schedule or Energy Offer Curve for the Operating Hour has been submitted and accepted by ERCOT. The Energy Offer Curves submitted by the QSE for these Generation Resources must meet the following requirements: (iii) All energy output from the Generation Resource’s capacity reserved to provide Reg Up AS must be priced at the SWCAP in $/MWh; and (iv) All energy output for the Generation Resource’s capacity reserved to provide RRS AS must be priced at the SWCAP in $/MWh. Item (1) above shall not restrict the ability of the QSE to update the Energy Offer Curves for its Generation Resources in accordance with these Protocols provided that in those Operating Hours in which a Generation Resource is assigned RRS and/or Reg Up AS Responsibility the portion of the Energy Offer Curve reserved for these Ancillary Services meets the requirements in this section. NPRR Submission Form 082311 PUBLIC Page 3 of 3