ERCOT Announces Posting of Updated Backcast Tool For Interim Solution B+

ERCOT said in a market notice yesterday that it has posted an updated tool to backcast online and offline reserve prices as well as Peaker Net Margin (PNM) under the real-time scarcity pricing concept known as "Interim Solution B+", a form of an operating reserves demand curve.

"The updated tool provides an approximation of prices and PNM based on parameters recommended by the Public Utility Commission of Texas (PUCT) at its open meeting on September 12, 2013," ERCOT said.

The tool uses the following values:

• Value of Lost Load = $9,000/MWh

• Minimum Contingency Reserve = 2,000 MW

In addition, the tool also uses an exponential function for the Loss of Load Probability (LOLP) curve.

The updated tool can be found on the Resource Adequacy Task Force (RATF) page of the ERCOT website (click here).