|(a) General. The purpose of this section is to prescribe
reporting requirements for the Electric Reliability Council of Texas
(ERCOT) and market participants, and to establish a scarcity pricing
mechanism for the ERCOT market.
(b) Definitions. The following terms, when used in
this section, have the following meanings, unless the context indicates
(1) Generation entity -- an entity that owns or controls
a generation resource.
(2) Load entity -- an entity that owns or controls
a load resource. A load resource is a load capable of providing ancillary
service to the ERCOT system or energy in the form of demand response
and is registered with ERCOT as a load resource.
(3) Resource entity -- an entity that is a generation
entity or a load entity.
(c) Resource adequacy reports. ERCOT must publish a
resource adequacy report by December 31 of each year that projects,
for at least the next five years, the capability of existing and planned
electric generation resources and load resources to reliably meet
the projected system demand in the ERCOT power region. ERCOT may publish
other resource adequacy reports or forecasts as it deems appropriate.
ERCOT must prescribe requirements for generation entities and transmission
service providers (TSPs) to report their plans for adding new facilities,
upgrading existing facilities, and mothballing or retiring existing
facilities. ERCOT also must prescribe requirements for load entities
to report their plans for adding new load resources or retiring existing
(d) Daily assessment of system adequacy. Each day,
ERCOT must publish a report that includes the following information
for each hour for the seven days beginning with the day the report
(1) System-wide load forecast; and
(2) Aggregated information on the availability of resources,
by ERCOT load zone, including load resources.
(e) Filing of resource and transmission information
with ERCOT. ERCOT must prescribe reporting requirements for resource
entities and TSPs for the preparation of the assessment required by
subsection (d) of this section. At a minimum, the following information
must be reported to ERCOT:
(1) TSPs will provide ERCOT with information on planned
and existing transmission outages.
(2) Generation entities will provide ERCOT with information
on planned and existing generation outages.
(3) Load entities will provide ERCOT with information
on planned and existing availability of load resources, specified
by type of ancillary service.
(4) Generation entities will provide ERCOT with a complete
list of generation resource availability and performance capabilities,
including, but not limited to:
(A) the net dependable capability of generation resources;
(B) projected output of non-dispatchable resources
such as wind turbines, run-of-the-river hydro, and solar power; and
(C) output limitations on generation resources that
result from fuel or environmental restrictions.
(5) Load serving entities (LSEs) will provide ERCOT
with complete information on load response capabilities that are self-arranged
or pursuant to bilateral agreements between LSEs and their customers.
(f) Publication of resource and load information in
ERCOT markets. To increase the transparency of the ERCOT-administered
markets, ERCOT must post the information required in this subsection
at a publicly accessible location on its website. In no event will
ERCOT disclose competitively sensitive consumption data. The information
released must be made available to all market participants.
(1) ERCOT will post the following information in aggregated
form, for each settlement interval and for each area where available,
two calendar days after the day for which the information is accumulated:
(A) Quantities and prices of offers for energy and
each type of ancillary capacity service, in the form of supply curves;
(B) Self-arranged energy and ancillary capacity services,
for each type of service;
(C) Actual resource output;
(D) Load and resource output for all entities that
dynamically schedule their resources;
(E) Actual load; and
(F) Energy bid curves, cleared energy bids, and cleared
(2) ERCOT will post the following information in entity-specific
form, for each settlement interval, 60 calendar days after the day
for which the information is accumulated, except where inapplicable
or otherwise prescribed. Resource-specific offer information must
be linked to the name of the resource (or identified as a virtual
offer), the name of the entity submitting the information, and the
name of the entity controlling the resource. If there are multiple
offers for the resource, ERCOT must post the specified information
for each offer for the resource, including the name of the entity
submitting the offer and the name of the entity controlling the resource.
ERCOT will use §25.502(d) of this title (relating to Pricing
Safeguards in Markets Operated by the Electric Reliability Council
of Texas) to determine the control of a resource and must include
this information in its market operations data system.
(A) Offer curves (prices and quantities) for each type
of ancillary service and for energy in the real time market, except
that, for the highest-priced offer selected or dispatched for each
interval on an ERCOT-wide basis, ERCOT will post the offer price and
the name of the entity submitting the offer three calendar days after
the day for which the information is accumulated.
(B) If the clearing prices for energy or any ancillary
service exceeds a calculated value that is equal to 50 times a natural
gas price index selected by ERCOT for each operating day, expressed
in dollars per megawatt-hour (MWh) or dollars per megawatt per hour,
during any interval, the portion of every market participant's price-quantity
offer pairs for balancing energy service and each other ancillary
service that is at or above a calculated value that is equal to 50
times a natural gas price index selected by ERCOT for each operating
day, expressed in dollars per megawatt-hour (MWh) or dollars per megawatt
per hour, for that service and that interval must be posted seven
calendar days after the day for which the offer is submitted.
(C) Other resource-specific information, as well as
self-arranged energy and ancillary capacity services, and actual resource
output, for each type of service and for each resource at each settlement
(D) The load and generation resource output, for each
entity that dynamically schedules its resources; and
(E) For each hour, transmission flows, voltages, transformer
flows, voltages and tap positions (i.e., State Estimator data). Notwithstanding
the provisions of this subparagraph and the provisions of subparagraphs
(A) through (D) of this paragraph, ERCOT must release relevant State
Estimator data earlier than 60 days after the day for which the information
is accumulated if, in its sole discretion, it determines the release
is necessary to provide a complete and timely explanation and analysis
of unexpected market operations and results or system events, including
but not limited to pricing anomalies, recurring transmission congestion,
and system disturbances. ERCOT's release of data in this event must
be limited to intervals associated with the unexpected market or system
event as determined by ERCOT. The data released must be made available
simultaneously to all market participants
(g) Scarcity pricing mechanism (SPM). ERCOT will administer
the SPM. The SPM will operate as follows:
(1) The SPM will operate on a calendar year basis.
(2) For each day, the peaking operating cost (POC)
will be 10 times the natural gas price index value determined by ERCOT.
The POC is calculated in dollars per megawatt-hour (MWh).
(3) For the purpose of this section, the real-time
energy price (RTEP) will be measured as an average system-wide price
as determined by ERCOT.
(4) Beginning January 1 of each calendar year, the
peaker net margin will be calculated as: Ʃ((RTEP - POC) * (number
of minutes in a settlement interval / 60 minutes per hour)) for each
settlement interval when RTEP - POC >0.
(5) Each day, ERCOT will post at a publicly accessible
location on its website the updated value of the peaker net margin,
in dollars per megawatt (MW).
(6) System-Wide Offer Caps.
(A) The low system-wide offer cap (LCAP) will be set
at $2,000 per MWh and $2,000 per MW per hour.
(B) The high system-wide offer cap (HCAP) will be $9,000
per MWh and $9,000 per MW per hour.
(C) The system-wide offer cap will be set equal to
the HCAP at the beginning of each calendar year and maintained at
this level until the peaker net margin during a calendar year exceeds
a threshold of three times the cost of new entry of new generation
(D) If the peaker net margin exceeds the threshold
established in subparagraph (C) of this paragraph during a calendar
year, the system-wide offer cap will be set to the LCAP for the remainder
of that calendar year. In this event, ERCOT will continue to apply
the operating reserve demand curve and the reliability deployment
price adder for the remainder of that calendar year. Energy prices,
exclusive of congestion prices, will not exceed the LCAP plus $1 for
the remainder of that calendar year.
(E) The value of the lost load will be equal to the
value of the system-wide offer cap in effect.
(7) Reimbursement for Operating Losses when the LCAP
is in Effect. When the system-wide offer cap is set to the LCAP, ERCOT
must reimburse resource entities for any actual marginal costs in
excess of the larger of the LCAP or the real-time energy price for
the resource. ERCOT must utilize existing settlement processes to
the extent possible to verify the resource entity's costs for reimbursement.
(h) Development and implementation. ERCOT must use
a stakeholder process to develop and implement rules that comply with
this section. Nothing in this section prevents the commission from
taking actions necessary to protect the public interest, including
actions that are otherwise inconsistent with the other provisions
in this section.
|Source Note: The provisions of this §25.505 adopted to be effective September 13, 2006, 31 TexReg 7317; amended to be effective September 6, 2007, 32 TexReg 5687; amended to be effective August 12, 2010, 35 TexReg 6823; amended to be effective December 1, 2010, 35 TexReg 10213; amended to be effective November 15, 2012, 37 TexReg 8959; amended to be effective May 30, 2019, 44 TexReg 2605; amended to be effective July 14, 2021, 46 TexReg 4136