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ERCOT To Conduct Further Study Of Reliability Impact From Generating Unit Suspending Operations, May Invoke RMR/Alternatives Authority
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ERCOT has released a reliability analysis determination for Barney Davis LLC (B_Davis_B_DAVIG1)
On June 27, 2023, ERCOT received a Notification of Suspension of Operations (NSO) Barney Davis LLC (B_Davis_B_DAVIG1) which indicated that the Generation Resource will indefinitely suspend operations as of November 24, 2023. The NSO further stated that the Generation Resource has a summer Seasonal Net Max Sustainable Rating of 292 MW and a summer Seasonal Net Minimum Sustainable Rating of 55 MW.
Pursuant to ERCOT Protocols Section 3.14.1.2, ERCOT Evaluation Process, ERCOT has completed its reliability analysis and has determined that this Generation Resource is not required to support ERCOT transmission system reliability under the criteria described in paragraph (3)(c) of that Section.
"However, due to increasing system demand, the amount of available dispatchable Generation Resource capacity to keep up with growing demand, and an increasing reliance on variable output from a growing number of Intermittent Renewable Resources, ERCOT is conducting additional analysis regarding whether there is a need for additional capacity from dispatchable Generation Resources to serve Load in the current or next Season," ERCOT said in a market notice
"If such need is identified, ERCOT may seek to procure capacity from this Generation Resource and/or other sources under the process described in paragraph (4) of ERCOT Protocols Section 6.5.1.1," ERCOT said in the market notice
ERCOT Protocols Section 6.5.1.1 allows ERCOT, under certain conditions, to, "Direct the implementation of Reliability Must-Run (RMR) Service, Remedial Action Plans (RAPs), Automatic Mitigation Plans (AMPs), Remedial Action Schemes (RASs), and transmission switching to prevent the violation of ERCOT Transmission Grid security limits[.]"
The relevant Protocols further provide that ERCOT may seek a Load solution to the identified need, rather than an RMR agreement with a generator.
"Upon determination by ERCOT that additional capacity is needed to prevent an Emergency Condition and prior to any procurement activity associated with such additional capacity, ERCOT shall issue a Notice as soon as practicable with the following information ... (iii) Identification of potential Generation Resources or Load providing capacity considered by ERCOT to be acceptable for providing the additional capacity. Load capacity may be provided by Entities who, at ERCOT’s direction, would interrupt consumption of electric power and remain interrupted until released by ERCOT[.]," the Protocols provide
"If ERCOT does seek to procure existing capacity under ERCOT Protocols Section 6.5.1.1(4), it will provide the Market Notice required under paragraph (4)(a) of that Section. If ERCOT does not identify a need to commit the specific Generation Resource identified above, the Generation Resource will be permitted to suspend operations on the suspension date identified in the NSO (November 24, 2023). ERCOT anticipates providing this decision by early October," ERCOT said in a market notice
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August 24, 2023
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Reporting by Paul Ring • ring@energychoicematters.com
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