| (a) Application. This section applies to the Electric
Reliability Council of Texas, Inc. (ERCOT) and to generation entities
and transmission service providers (TSPs) in the ERCOT power region.
A generation resource with an ERCOT-approved notice of suspension
of operations for the 2021-2022 winter weather season is not required
to be in compliance under this section until it is returned to service.
(b) Definitions. In this section, the following definitions
apply unless the context indicates otherwise.
(1) Cold weather critical component--Any component
that is susceptible to freezing or icing, the occurrence of which
is likely to significantly hinder the ability of a resource or transmission
system to function as intended and, for a generation entity, to lead
to a trip, derate, or failure to start of a resource. For a TSP, cold
weather critical component is limited to any transmission-voltage
component within the fence surrounding a TSP's high-voltage switching
station or substation.
(2) Energy storage resource--An energy storage system
registered with ERCOT for the purpose of providing energy or ancillary
services to the ERCOT grid and associated facilities controlled by
the generation entity that are behind the system's point of interconnection,
necessary for the operation of the system, and not part of a manufacturing
process that is separate from the generation of electricity.
(3) Generation entity--An ERCOT-registered resource
entity acting on behalf of an ERCOT-registered generation resource
or energy storage resource.
(4) Generation resource--A generator capable of providing
energy or ancillary services to the ERCOT grid and that is registered
with ERCOT as a generation resource, as well as associated facilities
controlled by the generation entity that are behind the generator's
point of interconnection, necessary for the operation of the generator,
and not part of a manufacturing process that is separate from the
generation of electricity.
(5) Inspection--Activities that ERCOT engages in to
determine whether a generation entity is in compliance with all or
parts of subsection (c)(1) of this section or whether a TSP is in
compliance with all or parts of subsection (f)(1) of this section.
An inspection may include site visits; assessments of procedures;
interviews; and review of information provided by a generation entity
or TSP in response to a request by ERCOT, including review of evaluations
conducted by the generation entity or TSP or its contractor.
(6) Resource--A generation resource or energy storage
resource.
(7) Weather emergency--A situation resulting from weather
conditions that produces significant risk for a TSP that firm load
must be shed or a situation for which ERCOT provides advance notice
to market participants involving weather-related risks to the ERCOT
power region.
(8) Weather emergency preparation measures--Measures
that a generation entity or TSP takes to support the function of a
facility during a weather emergency.
(c) Weather emergency preparedness reliability standards
for a generation entity.
(1) By December 1, 2021, a generation entity must complete
the following winter weather emergency preparation measures for each
resource under its control.
(A) Use best efforts to implement weather emergency
preparation measures intended to ensure the sustained operation of
all cold weather critical components during winter weather conditions,
including weatherization, onsite fuel security, staffing plans, operational
readiness, and structural preparations; secure sufficient chemicals,
auxiliary fuels, and other materials; and personnel required to operate
the resource;
(B) Install adequate wind breaks for resources susceptible
to outages or derates caused by wind; enclose sensors for cold weather
critical components; inspect thermal insulation for damage or degradation
and repair damaged or degraded insulation; confirm the operability
of instrument air moisture prevention systems; conduct maintenance
of freeze protection components for all applicable equipment, including
fuel delivery systems controlled by the generation entity, the failure
of which could cause an outage or derate, and establish a schedule
for testing of such freeze protection components on a monthly basis
from November through March; and install monitoring systems for cold
weather critical components, including circuitry providing freeze
protection or preventing instrument air moisture;
(C) Use best efforts to address cold weather critical
component failures that occurred because of winter weather conditions
in the period between November 30, 2020, and March 1, 2021;
(D) Provide training on winter weather preparations
and operations to relevant operational personnel; and
(E) Determine minimum design temperature or minimum
experienced operating temperature, and other operating limitations
based on temperature, precipitation, humidity, wind speed, and wind
direction.
(2) By December 1, 2021, a generation entity must submit
to the commission and ERCOT, on a form prescribed by ERCOT and developed
in consultation with commission staff, a winter weather readiness
report that:
(A) Describes all activities engaged in by the generation
entity to complete the requirements of paragraph (1) of this subsection,
including any assertions of good cause for noncompliance submitted
under paragraph (6) of this subsection; and
(B) Includes a notarized attestation sworn to by the
generation entity's highest-ranking representative, official, or officer
with binding authority over the generation entity attesting to the
completion of all activities described in paragraph (1) of this subsection,
subject to any notice of or request for good cause exception submitted
under paragraph (6) of this subsection, and to the accuracy and veracity
of the information described in subparagraph (A) of this paragraph.
(3) No later than December 10, 2021, ERCOT must file
with the commission comprehensive checklist forms based on the requirements
of paragraph (1) of this subsection that include checking systems
and subsystems containing cold weather critical components. ERCOT
must use a generation entity's winter weather readiness report submitted
under paragraph (2) of this subsection to adapt the checklist to the
inspections of the generation entity's resources.
(4) No later than December 10, 2021, ERCOT must file
with the commission a compliance report that addresses whether each
generation entity has submitted the winter weather readiness report
required by paragraph (2) of this subsection for each resource under
the generation entity's control and whether the generation entity
submitted an assertion of good cause for noncompliance under paragraph
(6) of this subsection.
(5) A generation entity that timely submits to ERCOT
the winter weather readiness report required by paragraph (2) of this
subsection is exempt, for the 2021 calendar year, from the requirement
in Section 3.21(3) of the ERCOT Protocols that requires a generation
entity to submit the Declaration of Completion of Generation Resource
Winter Weatherization Preparations no earlier than November 1 and
no later than December 1 of each year.
(6) Good cause exception. A generation entity may submit
by December 1, 2021 a notice to the commission asserting good cause
for noncompliance with specific requirements listed in paragraph (1)
of this subsection. The notice must be submitted as part of the generation
entity's winter readiness report under paragraph (2) of this subsection.
(A) A generation entity's notice must include:
(i) A succinct explanation and supporting documentation
of the generation entity's inability to comply with a specific requirement
of paragraph (1) of this subsection;
(ii) A succinct description and supporting documentation
of the generation entity's efforts that have been made to comply with
the paragraph (1) of this subsection;
(iii) A plan, with supporting documentation, to comply
with each specific requirement of paragraph (1) of this subsection
for which good cause is being asserted, unless good cause exists not
to comply with the requirement on a permanent basis. A plan under
this subparagraph must include a proposed compliance deadline for
each requirement of paragraph (1) of this subsection for which the
good cause for noncompliance is being asserted and proposed filing
deadlines for the generation entity to provide the commission with
updates on its compliance status.
(B) Commission staff will work with ERCOT to expeditiously
review notices asserting good cause for noncompliance. Commission
staff may notify a generation entity that it disagrees with the generation
entity's assertion of good cause and will file the notification in
the project in which the winter weather readiness reports are filed.
In addition, ERCOT may evaluate the generation entity's assertion
of good cause as part of an inspection of the generation entity's
resources.
(C) To preserve a good cause exception, a generation
entity must submit to the commission a request for approval of a good
cause exception within seven days of receipt of commission staff's
notice of disagreement with the generation entity's assertion.
(D) The commission may order a generation entity to
submit a request for approval of good cause exception.
(E) A request for approval of good cause exception
must contain the following:
(i) A detailed explanation and supporting documentation
of the inability of the generation entity to comply with a specific
requirement of paragraph (1) of this subsection;
(ii) A detailed description and supporting documentation
of the efforts that have been made to comply with paragraph (1) of
this subsection;
(iii) A plan, with supporting documentation, to comply
with each specific requirement of paragraph (1) of this subsection
for which the good cause exception is being requested, unless the
generation entity is seeking a permanent exception to the requirement.
A plan under this subparagraph must include a proposed compliance
deadline for each requirement of paragraph (1) of this subsection
for which the good cause exception is being requested and proposed
filing deadlines for the generation entity to provide the commission
with updates on its compliance status.
(iv) Proof that notice of the request has been provided
to ERCOT; and
(v) A notarized attestation sworn to by the generation
entity's highest-ranking representative, official, or officer with
binding authority over the generation entity attesting to the accuracy
and veracity of the information in the request.
(F) ERCOT is a required party in a proceeding initiated
under subparagraph (E) of this paragraph. ERCOT must make a recommendation
to the commission on the request by the deadline set forth by the
presiding officer in the proceeding.
(d) ERCOT inspection of generation resources.
(1) ERCOT-conducted inspections. ERCOT must conduct
inspections of resources for the 2021-2022 winter weather season and
must prioritize its inspection schedule based on risk level. ERCOT
may prioritize inspections based on factors such as whether a generation
resource is critical for electric grid reliability; has experienced
a forced outage, forced derate, or failure to start related to weather
emergency conditions; or has other vulnerabilities related to weather
emergency conditions. ERCOT must determine, in consultation with commission
staff, the number, extent, and content of inspections and may conduct
inspections using both employees and contractors.
(A) ERCOT must provide each generation entity at least
48 hours' notice of an inspection unless otherwise agreed by the generation
entity and ERCOT. Upon provision of the required notice, a generation
entity must grant access to its facility to ERCOT and commission personnel,
including an employee of a contractor designated by ERCOT or the commission
to conduct, oversee, or observe the inspection.
(B) During the inspection, a generation entity must
provide ERCOT and commission personnel access to any part of the facility
upon request and must make the generation entity's staff available
to answer questions. A generation entity may escort ERCOT and commission
personnel at all times during an inspection. During the inspection,
ERCOT or commission personnel may take photographs and video recordings
of any part of the facility and may conduct interviews of facility
personnel designated by the generation entity.
(2) ERCOT inspection report.
(A) ERCOT must provide a report on its inspection of
a resource to the generation entity. The inspection report must address
whether the generation entity has complied with the requirements in
subsection (c)(1) of this section.
(B) If the generation entity has not complied with
a requirement in subsection (c)(1) of this section, ERCOT must provide
the generation entity a reasonable period to cure the identified deficiencies.
(i) The cure period determined by ERCOT must consider
what weather emergency preparation measures the generation entity
may be reasonably expected to have taken before ERCOT's inspection,
the reliability risk of the resource's noncompliance, and the complexity
of the measures needed to cure the deficiency.
(ii) The generation entity may request ERCOT determine
a different amount of time to remedy the deficiencies. The request
must be accompanied by documentation that supports the request for
a different amount of time.
Cont'd... |
