Texas PUC Staff Seek Comment On Day-Ahead Market Policy Questions (Financial Only) Under Real-Time Co-Optimization
July 12, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Staff of the Public Utility Commission of Texas have sought stakeholder comment on a series of questions related to the Day-Ahead Market (DAM) upon implementation of real-time co-optimization (RTC) of energy and ancillary services in the ERCOT Real-Time Market.
Staff issued the following questions for comment:
1. What design components for ancillary service transactions should be part of the DAM
upon implementation of RTC?
2. Should ERCOT continue to be the only buyer of ancillary services in the DAM for
load? In the alternative, should ERCOT restrict meeting ancillary services
procurement for load to the Real-Time Market, allowing market participants to
transact for ancillary services in the DAM?
3. Should ancillary services offers in the DAM be physically binding (i.e., backed by the
ability of the seller to physically deliver, either through its own resources or through
contractually bound capacity, the ancillary service sold), or should financial-only
transactions be permitted?
4. In its April 15, 2019 comments, the Independent Market Monitor (IMM)
recommended that the DAM be financial-only for both ancillary services and energy.
ERCOT noted in its June 20, 2019 letter to Commission Staff that implementing the
IMM's recommendation to change the DAM to permit financial-only transactions of
ancillary services would likely add cost and time to the RTC project. ERCOT
estimated additional costs of $3 to $4 million and a one year delay to accommodate
the IMM' s recommendation.
a. Should inclusion of a financial-only DAM be implemented the same time as
b. Should the inclusion of a financial-only DAM be delayed until after RTC
implementation is complete?
5. Changing the DAM to permit financial-only transactions of ancillary services
creates additional uncertainty when analyzing ERCOT's ability to meet reliability
needs leading up to real-time. If the DAM is changed to permit financial-only
transactions of ancillary services, what attributes or processes should be included in
the RTC design to mitigate any resulting grid reliability impacts?