ERCOT Files NPRR To Reflect Private Use Networks in Load Zone Price When Net Consumer
May 04,2017
ERCOT has submitted and had requested urgent status for, NPRR831, Inclusion of Private Use Networks in Load Zone Price Calculations.
ERCOT requested that this NPRR be granted urgent status, "in order that market prices more appropriately reflect system conditions and reduce the possibility of increased Real-Time Revenue Neutrality allocations."
NPRR831 would update market systems in order to calculate a net Load value for each Private Use Network that will be included in the Load Zone price for all markets, Congestion Revenue Rights (CRRs), Day-Ahead Market (DAM), and Real-Time Market (RTM), when the Load is a net consumer from the ERCOT Transmission Grid. The NPRR also clarifies that Private Use Network net Load will be redacted from the Electrical Bus Load distribution factors and other information necessary to forecast Electrical Bus Loads that is posted to the Market Information System (MIS) Public Area pursuant to Section 6.3.2.
ERCOT explained that, "During Nodal Market design and development, Private Use Networks were understood to operate where their generators mainly self-serve their onsite Load. Therefore, the decision at that time was that any residual Load was treated as auxiliary Load and not reflected in the Load Zone pricing outcomes. In recent months, that auxiliary Load has grown in some instances. This NPRR will more correctly reflect system conditions when a Private Use Network becomes a net consumer and should be treated as ERCOT Load."