Luminant Proposes NPRR to Mitigate Price Reversal Under the ORDC in ERCOT

Luminant Energy, LLC has submitted to ERCOT Nodal Protocol Revision Request 626, Operating Reserves Demand Curve (ORDC) Price Reversal Mitigation Enhancements

"This Nodal Protocol Revision Request (NPRR) is intended to mitigate the price reversal/suppression associated with the deployment of Load Resources and/or other out-of-market reliability deployments that may inappropriately reduce the total Real-Time price in times of scarcity," Luminant said.

Specifically, the NPRR will address the price-reversal impacts of deployment of the following resources, which do not currently set price:·

• Emergency Response Service (ERS)·

• Reliability Must-Run (RMR) committed units (zero – Low Sustained Limit (LSL)·

• Reliability Unit Commitment (RUC) Committed Units (zero – LSL)·

• Firm Load Shed·

• Deployed MW from Load Resources.

"As proposed in this NPRR, the Operating Reserve Demand Curve (ORDC) quantity of available reserves will be adjusted to reflect the deployment of any of these Resources, which are either committed by an out of market action or deployed in response to an emergency. This NPRR is responsive to the Public Utility Commission of Texas's (PUCT's) request to address price formation for Load Resources, ERS and RUC," Luminant said.

Click here for NPRR documents