| (g) Performance standards. An electric generating facility's
performance is based on the PRF and ARF of each generation resource
in the facility during the test period. The generation resource's
PRF will be compared against the PRF of a reference group of non-grant
recipient generation resources in the ERCOT region. ERCOT, in consultation
with commission staff, must select a reference group comprising at
least 30 resources randomly sampled from all dispatchable, interconnected,
thermal generation resources with a nameplate capacity of at least
50 MW that were first interconnected to the ERCOT region on or after
January 1, 2004. A grant payment may be discounted based on the formula
prescribed in subsection (h) of this section. The performance standards
for any test period are as follows:
(1) Optimal performance standard is determined by the
90th percentile of PRF scores achieved by resources in the reference
group during the assessed hours.
(2) Median performance standard is determined by the
50th percentile of PRF scores achieved by resources in the reference
group during the assessed hours.
(h) Grant payment discount formula. A grant payment
equals one-tenth of an applicant's completion bonus grant award as
stated in the applicant's notice of eligibility, subject to discount
or withholding. Grant payments are calculated per generation resource.
Each generation resource's performance is computed separately, and
a grant payment for that generation resource calculated accordingly.
The total grant payment is summed from the individual generation resources'
grant payments, if applicable. The formula for any discount of an
annual grant payment is as follows:
Attached Graphic
(1) Discount or withholding of payment.
(A) The TEF administrator will not apply any discount
to a grant payment if the generation resource meets or exceeds the
optimal PRF performance standard established under subsection (g)(1)
of this section and achieves an ARF of between 0.9 and one.
(B) The TEF administrator will disburse a discounted
grant payment if the PRF of the generation resource for which the
grant was provided is above the median performance standard established
under subsection (g)(2) of this section but less than an optimal performance
standard established under subsection (g)(1) of this section, or if
the ARF of the generation resource is less than 0.9.
(C) The TEF administrator will withhold a grant payment
if the PRF of the generation resource is equal to or below the median
performance standard established under subsection (g)(2) of this section,
or if the generation resource's calculation according to the formula
in this subsection returns a value less than or equal to zero.
(2) Example. An applicant would receive the following
grant payments for hypothetical test periods 1, 2, and 3 based on
a $12,000,000 completion bonus grant award described in a notice of
eligibility for a 100 MW generation resource interconnected on March
1, 2026. The table below represents an example of hypothetical test
period PRF distributions.
Attached Graphic
(i) No Contested Case or Appeal. An application for
completion bonus grant eligibility is not a contested case. A commission
decision on completion bonus grant program eligibility is not subject
to a motion for rehearing or appeal under the commission's procedural
rules.
(j) Expiration. This section expires December 1, 2040.
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