RCWG Update to WMS

July 8, 2015

1

VCMRR008 - Alignment with NPRR700, Utilizing Actual Fuel Cost

in Startup Offer Caps• NPRR700 approved at May 2015 WMS meeting• Clarifying the distinction between Verifiable Startup

Offer Caps used in the MMS to cap offers and Verifiable Startup Costs used in the Settlement System to establish costs, both for the DAM and RUC.

• ERCOT submitted comments• Vote?

2

VCMRR009 Calculation of Minimum Fuel Requirements Fee

Background:• ERCOT seeking clarification on allocating minimum gas transportation

costs in the fuel adder calculation• Resource can elect to submit an “actual” fuel adder instead of the default

$0.50/MMBtu• Resource must submit documentation to ERCOT for verification

Options to allocate minimum requirement costs1. Allocate to resource usage only, excluding third-party and storage2. Allocate to resource and third-party usage, excluding storage3. Allocate across all activity on transportation contract

• VCMRR reflects Option 1, as endorsed by WMS• IMM submitted comments• Vote?

3

RT Mitigation During Exceptional Fuel Events (Alternative to NPRR664)• Options Discussed– Option 1 – Reinstate the manual workaround for

the Real-Time Make-Whole Payment for Exceptional Fuel Costs in NPRR 664

– Option 2 - Pursue “Exceptional Fuel Cost flag” concept

– Option 3 - Increase MOC’s during Cold Weather Events

• Engie (GDF Suez) submitted NPRR714 for Option 1 4