ERCOT Large Flexible Load Market Analysis Update

Update on Market-Related Items David Maggio Market Analysis & Design ERCOT Large Flexible Load Task Force February 17, 2023 ERCOT Public

Items to be addressed or partially addressed in the Revision Requests being drafted that will define ways a Large Flexible Load (LFL) can participate in the market LFL-8: Evaluate telemetry, metering, COP, and other market submission requirements for LFLs Item will necessarily be captured in defining any new modes of participation in the upcoming draft Nodal Protocol Revision Request (NPRR) LFL-14: Evaluate the need for any mitigating measure needs to price oscillations or other related concerns due to fast LFL responses Upcoming draft NPRR should cover how and when LFLs are deployed (Note: this is already addressed for existing types of Load Resources) LFL-20: Consider the need for any changes to market rules to prevent price oscillations from LFL fast response and demand fluctuations Upcoming draft NPRR should cover how and when LFLs are deployed (Note: this is already addressed for existing types of Load Resources) Overlap with LFL-14 2 PUBLIC

Items to be addressed or partially addressed in the Revision Requests being drafted that will define ways an LFL can participate in the market LFL-23: Consider rules for Ancillary Service awards for large flexible loads (co-located or otherwise) Item will necessarily be captured in defining any new modes of participation Don t expect changes for existing Load types LFL-24: Establish telemetry, metering, and other market participant submission (e.g., COP) requirements for LFLs (co-located or otherwise) Item will necessarily be captured in defining any new modes of participation Overlap with LFL-8 3 PUBLIC

Items to be addressed or partially addressed in the Revision Requests being drafted that will define ways an LFL can participate in the market LFL-25: For LFL that are co-located, identify any changes required within Business Practice Manuals, specifically as it relates to COP submissions and telemetry This would be done after addressing LFL-8/24 LFL-29: Investigate the pros and cons of bit coin mining facilities becoming Controllable Load Resources versus remaining loads that only passively respond to SCED pricing Upcoming draft NPRR will address different modes of participation for LFLs 4 PUBLIC

Items to be addressed or partially addressed in the NPPR for Controllable Load Resource (CLR) nodal pricing LFL-18: Evaluate the need for changes in the treatment/modeling of LFLs in the DAM Concept for issue was previous presented to the task force NPRR will address topic for CLRs Not expecting changes for other Load types LFL-28: Consider whether LFL-CLR availability for SCED dispatch should be required in all hours Concept for issue was previous presented to the task force NPRR will address topic for CLRs Not expecting changes for other Load types 5 PUBLIC

On-going analytical requests that are related to other LFL issues list items and do not themselves require an NPRR LFL-16: Study the value of lost load and price diversity of response across different LFLs Concern is fast response from LFLs and potential price oscillations Specific concern covered by other items on the list LFL-22: Using historical data, determine the value of lost load for individual facilities reactions to SCED pricing without disclosing the name of the facilities. Determine the variability and price diversity among facilities Concern is fast response from LFLs and potential price oscillations Specific concern covered by other items on the list 6 PUBLIC

Other items LFL-26: Evaluate rules and process changes that may be necessary for considering LFLs, particularly those modeled as CLRs, in near-term reliability studies, including the Reliability Unit Commitment (RUC) process Concept for issue was previous presented to the task force Specific details are dependent on approach taken for capturing LFL, specifically CLRs, in ERCOT s load forecast systems 7 PUBLIC