Proposed Texas Order Would Grant Appeal, Require ERCOT Resettlement

A proposed Texas order would grant an appeal regarding ERCOT's manual overrides of Odessa-Ector Power Partners, L.P.'s High Dispatch Limit (HDL) on November 15, 16, and 20, 2012.

On November 15, 16, and 20, 2012, ERCOT issued HDL overrides directing Odessa to reduce its MW output to make additional reactive capability available for voltage support.

Odessa had alleged in such instances, ERCOT applied manual overrides of Odessa's HDL, restricting the output of its plant in response to a combination of voltage conditions and other constraints associated with outages on area Oncor transmission facilities that had been occurring since at least November 13, 2012. Odessa's energy output was restricted down below its energy offer curve in order to protect the grid from conditions created by third parties, the company alleged. Odessa had originally been seeking a total payment of $320,000 with respect to the three operating days at issue.

The proposed order would conclude that Nodal Protocol 6.6.7.1(1)(b) precisely describes the voltage support service provided by Odessa on these dates, and that Nodal Protocol 6.5.7.7(2) required ERCOT to issue a verbal dispatch instructions (VDI) to secure this service.

"Therefore, the manual HDL overrides issued by ERCOT on these dates should have been and shall be treated as VDIs," the draft order states.

According to the protocols, any real power reduction directed by ERCOT through VDIs to provide for additional reactive capability for voltage support must be compensated as a lost opportunity payment.

Accordingly, the proposed order would require ERCOT to resettle operating days November 15, 16 and 20, 2012, as Odessa is entitled to lost opportunity payments for these dates. A determination of the proper resettlement amounts would be referred to the State Office of Administrative Hearings.

Docket 41790