Texas Nodal Team TAC Update

1
Texas Nodal Team TAC Update

• Trip Doggett
• September 4, 2003

2
August 27 Meeting

• First Meeting was a Success
• Approximately 100 attended in person
• Approximately 25 participated via webcast

3
August 27 Agenda

• Introduction of Facilitation Team
• Approach
• Deliverables
• Overview of Market Design Rule
• Discussion of Concept Groups
• Other Issues/Wrap-up

4
Facilitation Team
Facilitation Team

• Trip Doggett
• Benchmark Power Consulting, Inc.
• tdoggett_at_ercot.com
• [phone]
• Vikki Gates Cuddy
• The Structure Group
• vikki.cuddy_at_scgo.com
• [phone]
• Jim Galvin
• ERCOT
• jgalvin_at_ercot.com
• [phone]

• Develop Maintain Work Plan
• Maintain Meeting Schedule
• Provide TAC Board Progress Reports
• Respond to stakeholder and PUCT information
  requests
• Record votes and attendance
• Post agendas and meeting minutes
• Involve Economists, Technical Experts

5
Approach Communication Status Email
tnt_at_lists.ercot.com
6
Approach Communication Status Website
7
Approach Communication Status In-person
meetings
8
Approach Communication Status Web-based
meetings
9
Future TNT Meetings

• September 10
• September 24
• October 1
• October 22
• November 3
• November 17
• December 2
• December 17
• December 31?

10
Approach Informed Decision Making

• Education Key to Success
• Educational needs
• Nodal Pricing
• Congestion Hedging
• Comparative Market Analysis

11
Deliverables

• Day-Ahead and CRR Strawman
• Should ERCOT run a day-ahead energy market with
  security-constrained, economic dispatch (i.e.,
  that reflects congestion)?
• Types of CRRs, Distribution of CRRs, CRR
  Deratability
• Target date October 1, 2003
• Design Document
• Conceptual market attributes, description of
  timing of implementation, and comparison to
  current state.
• Summary of white paper concepts, relationship
  modeling
• Detailed specificity to adequately describe
  design elements
• Example number of set points, terminology
  inc/dec vs. bid/offer)
• Target date 1st Quarter 2004
• Draft Protocols
• End to end rules for Texas Nodal market
  operations
• Firm date October 31, 2004

12
PUCT RulemakingsTimelines and Tradeoff

• Timeline
• DA Market and CRRs 2004 Q1 (?)
• September 5th workshop
• October 1st filing of strawman
• Pricing Safeguards 2004 Q2
• Planning Reserve 2004 Q4
• Rule Language vs. Protocols Language

13
Concept Groups

• A Concept Group will
• Champion education, resolution and definition of
  its respective issue, action or strawman
• Accept assignments to draft whitepapers,
  conceptual diagrams or other materials as
  requested by the Facilitation Team
• Will report developments in each TNT Facilitation
  meeting
• Facilitation Team will rotate attendance within
  Concept Group meetings

14
Concept Groups

• Propose to address various nodal configurations
  in Concept Groups
• Provide an open forum for participation of all
  stakeholders in Concept Groups
• Support collaborative development between
  stakeholders and ERCOT staff

15
Concept Groups Next Steps

• Confirm the Groups
• Choose Leaders
• Develop Meeting Schedules
• Scope of each group
• Timelines / priorities

16
Other Near Term Tasks

• Timeline / Work plan
• ERCOT develop process for hiring economist,
  technical experts, cost benefit analysis
• Educational courses
• Address Commission request for rule-like
  language from stakeholders on CRR and Day Ahead
  Market by October 1

17
TACs Role

• Refer to August 19 Board Presentation
• Co-Sponsor (with ERCOT) Facilitation and
  Coordination
• Review unresolved positions
• Present briefing materials for ERCOT Board on
  unresolved positions
• Advise ERCOT staff during implementation phases

18
Open Issue

• Maximum number of proxies a representative may
  hold during voting?