ERCOT Files Timelines Concerning PCM Development Milestones -- EnergyChoiceMatters.com

ERCOT Files Timelines Concerning PCM Development Milestones

August 22, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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ERCOT filed with the Texas PUC overviews detailing the following market enhancement initiatives: establishment of the Dispatchable Reliability Reserve Service (DRRS), development of the Performance Credit Mechanism (PCM), implementation of a multi-step floor to the Operating Reserve Demand Curve (ORDC), and implementation of Real-Time Co-optimization (RTC).

The overviews include, among other information, timelines which present ERCOT’s current estimate of the anticipated timeframes to develop and implement each initiative, which may subsequently be revised as the initiatives unfold.

Notably, with respect to PCM, ERCOT reported that ERCOT is developing a framing document identifying the decision points where ERCOT action is needed and outlining the specific variables that must be defined at the onset of the project. Key decisions and definitions, such as the definition of scarcity hours, the number of hours, PCM performance periods, and non-performance ramifications, will be further segmented into issues best decided in a Commission rulemaking and those that should be worked through the Technical Advisory Committee (TAC) at ERCOT, ERCOT said

ERCOT said that in October 2023, ERCOT will provide an update on PCM at a PUC Open Meeting and, pending Commission feedback, will move forward with development of a strawman proposal. The strawman is anticipated to address the parameters of PCM design and how ERCOT expects the PCM to work. Development of a strawman proposal will include stakeholder workshops to receive input on initial design elements prior to filing the proposal with the Commission. Delivery of the strawman proposal will initiate multiple workstreams at the Commission and ERCOT, ERCOT said

As previously reported, legislation now requires a cost-benefit analysis before PCM can be implemented

ERCOT's timeline reports that, in Q3-Q4 2024, ERCOT and the IMM will analyze the cost and market effects of the PCM proposal in parallel to the Commission’s rulemaking process. Per HB 1500, the updated assessment will be provided to the Commission and Legislature. "ERCOT anticipates direction through a Commission rule adopted by the end of 2024," ERCOT said

After various milestones in the PUC review and development of Protocols, ERCOT identified that it expects, upon Commission approval, that in Q3 2025 ERCOT will begin the project implementation stage for PCM, and begin developing business requirements from the Protocols.

PCM implementation is anticipated to take two years, ERCOT said

Concerning Real-Time Co-optimization, which by law must begin implementation prior to PCM implementation, ERCOT reported that Real-Time Co-optimization + Batteries (RTC+B) system changes and final program delivery are targeted for a 2026 release.

Project 53298

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