Texas QSE To Pay $180,000 Under Settlement With Texas PUC Staff

July 23, 2019

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Reporting by Paul Ring • ring@energychoicematters.com

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Twin Eagle resource Management, LLC (Twin Eagle) would pay $180,000 under a settlement with Staff of the Public Utility Commission of Texas to resolve alleged violations of 16 Texas Administrative Code (TAC) § 25.503(f) and Electric Reliability Council of Texas Nodal Protocols §§ 6.4.6, 6.5.7.5, and 6.5.9.3.2.

The settlement states that, "Twin Eagle was the Qualified Scheduling Entity (QSE) for PANDA_T1_CC1, PANDA_S_CC1, and PANDA_ T2_CC1 when the alleged violations occurred."

The settlement states that, "On November 1, 2017, Twin Eagle relinquished its QSE responsibilities for PANDA_T1_CC1. On March 27, 2019, Twin Eagle relinquished its QSE responsibilities for PANDA_S_CC1 and PANDA_ T2_CC1."

Under 16 TAC § 25.503(f)(6), a market participant's bids of energy and ancillary services must be from resources that are available and capable of performing, and shall be feasible within the limits of the operating characteristics indicated in the resource plan, and consistent with the applicable ramp rate.

Under ERCOT Nodal Protocols § 6.5.7.5(2), each QSE is required to operate resources providing ancillary service capacity to meet its obligations.

The settlement states, "Twin Eagle allocated responsive reserve service (RRS) ancillary service obligations to PANDA_T1_CC1 on April 19, July 24, August 2, August 4, August 6, and August 10 of 2016. Commission Staff asserts that on these dates, Twin Eagle failed to reserve sufficient capacity to meet these obligations for 23 separate operating hours. Commission Staff further asserts that the average capacity shortfall across these operating hours was approximately seven megawatts. Twin Eagle asserts that the governor for PANDA_T1_CC1 responded out of accordance with the required dead band settings to low system frequency. Twin Eagle further asserts this resulted in Twin Eagle intermittently appearing to not reserve or maintain sufficient capacity to meet these obligations for 23 separate operating hours during these six days.."

The settlement states, "Twin Eagle allocated RRS ancillary service obligations to PANDA_T2_CC1 on July 14, July 21, August 3, August 4, August 10, and August 11 of 2016. Commission Staff asserts that on these dates, Twin Eagle failed to reserve sufficient capacity to meet these obligations for 23 separate operating hours. Commission Staff further asserts that the average capacity shortfall across these operating hours was approximately eight megawatts. Twin Eagle asserts that the governor for PANDA_T2_CC1 responded out of accordance with the required dead band settings to low system frequency. Twin Eagle further asserts this resulted in Twin Eagle intermittently appearing to not reserve or maintain sufficient capacity to meet these obligations for 23 separate operating hours during these six days."

Under ERCOT Nodal Protocols § 6.4.6, Twin Eagle is required to provide ERCOT with accurate telemetry of the current capability of each resource including the resource status, ramp rates, high sustained limit (HSL), and low sustained limit (LSL).

The settlement states, "Commission Staff asserts from March 11, 2016 through March 31, 2016, Twin Eagle telemetered inaccurate data to ERCOT relating to the output of PANDA_S_CC1. Commission Staff asserts the discrepancy between the actual data and the telemetered data was the result of plant net and plant gross values being transposed."

The settlement states, "Under ERCOT Nodal Protocols § 6.5.9.3.2(3), Twin Eagle is required to notify appropriate resource units of an ERCOT Advisory under ERCOT."

The settlement states, "On April 19, 2016, ERCOT issued an Advisory at 13:05 because Physical Responsive Capability had fallen below 3000 megawatts. ERCOT cancelled the Advisory at 18:36 on the same day."

The settlement states, "Twin Eagle provided email notifications to a number of resource units, as required by ERCOT Nodal Protocols § 6.5.9.3.2(3). However, Twin Eagle indicates that not all parties that should have received the notification were included on the email distribution of the Advisory."

The settlement states, "Twin Eagle neither admits nor denies that any violation occurred."

Docket 49784

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