ERCOT TAC Recommends Level for Power Balance Penalty Curve

ERCOT's Technical Advisory Committee has made a preliminary recommendation to the Public Utility Commission of Texas for changes to the Power Balance Penalty Curve (PBPC).

The recommendation was made to provide a timely response that the Commission may consider at its June 28 open meeting, where the Commission is to consider a change in the system-wide offer cap. TAC will then finalize its Power Balance Penalty Curve recommendation after considering input from the Commission at the Commission's June 28 open meeting.

The final recommendation will be incorporated into the binding ERCOT business practice document that includes the Power Balance Penalty Curve. ERCOT expects that TAC's recommendation will be before the ERCOT Board of Directors for a vote at its July 17, 2012 meeting.

TAC has initially recommended that the Power Balance Penalty Curve be modified to accommodate the proposed increase in the system-wide offer cap to $4,500 as set forth below:

MW Violation         PBPC Level
<5                      $250
5 to <10                $300
10 to <20               $400
20 to <30               $500
30 to <40              $1,000
40 to <50              $2,250
50 to <100             $3,000
100 to <150            $3,500
150 to <200            $4,000
200 or more            $4,501