Mitigation Planning – ERCOT Protocols and Operating Guides

A mitigation plan is an organization’s proposal to reduce or alleviate the potentially harmful impact of alleged or confirmed violation(s) of the Electric Reliability Council of Texas (ERCOT) Protocols or Operating Guides.

A violation of an ERCOT market rule(s) requires that a mitigation plan be submitted to Texas RE for evaluation and potential acceptance by Texas RE and the Public Utility Commission of Texas (PUCT).

Whether the violation is alleged (meaning that it is being evaluated by Texas RE) or confirmed, Texas RE strongly encourages that the entity develop and submit a mitigation plan as early as possible, in order to assure the reliability of the power grid.

Mitigation plan forms are in the forms section below. Please submit all forms to mitigation@texasre.org

Mitigation Plan Information

As seen in the mitigation plan forms provided, the mitigation plan includes the following:

• The entity’s point of contact, who is (1) responsible for filing the mitigation plan, (2) technically knowledgeable, and (3) authorized and competent to respond to Texas RE questions regarding the status.
• The violation(s) (alleged or confirmed) the mitigation plan will correct.
• The cause of the violation(s).
• The action plan to correct the violation(s).
• The action plan to prevent recurrence.
• The anticipated impact of the mitigation plan on bulk-power system (BPS) reliability and an action plan to mitigate any increased risk to BPS reliability while the mitigation plan is being implemented.
• A timetable for completion including the date by which time the mitigation plan will be fully implemented.
• Implementation milestones
  • no more than three months apart
  • with expected completion dates no more than three months from the mitigation plan’s date of submission.

A mitigation plan should include any additional information that the entity deems necessary or appropriate.

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Timetable for Completion

The mitigation plan must be submitted and completed in time to have a reasonable potential to correct all of the violation(s) before the next compliance reporting/assessment period. In all cases the mitigation plan should be completed without delay.

At the Texas RE’s discretion, the completion deadline may be extended for good cause such as (1) short assessment periods (i.e., event-driven or monthly assessments), and (2) construction requirements in the mitigation plan.

Any violations assessed during the period of time the accepted mitigation plan is being implemented are recorded by Texas RE with associated sanctions or penalties.

Texas RE reports any violations of the ERCOT Protocols and/or Operating Guide to the PUCT with the notation that the entity is working under an accepted mitigation plan with penalties and sanctions held in abeyance until its completion. Upon completion of the mitigation plan, Texas RE notifies the entity that violations found during the period that the mitigation plan was being implemented have been waived, and no penalties or sanctions apply.

A request for an extension of any milestone or the completion date must be received by Texas RE at least five business days before the original milestone or completion date. Texas RE may accept a request for an extension or modification of a mitigation plan if it is determined that the request is justified.

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Submission of Mitigation Plans

A mitigation plan may be submitted at any time. However, the entity must submit a mitigation plan within thirty days after being served a notice of alleged violation and penalty or sanction.

If the entity disputes the notice of alleged violation or penalty or sanction, the entity must submit its mitigation plan within ten business days after the hearing body has issued its written decision (unless the entity elects to appeal).

The entity may also choose to submit a mitigation plan while it is still in the hearing process; such submission is not deemed an admission of a violation or the appropriateness of the penalty or sanction.

Please note that if the entity chooses not to submit a mitigation plan, any subsequent violations before the hearing body renders its decision will not be held in abeyance. They will be considered to be repeat violations.

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Review and Acceptance or Rejection of Proposed Mitigation Plans

Texas RE completes its review of the mitigation plan within 30 days of receipt (unless the review period needs to be extended) and notifies the entity in writing whether the plan has been accepted or rejected.

Texas RE may reject the mitigation plan and provide the reasons why to the entity. The entity must then submit a revised plan by a new deadline. Within ten days, Texas RE will send an acceptance or rejection of the revised plan to the entity. If the revised mitigation plan is rejected, the entity may request a hearing.

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Completion/Confirmation of Implementation of Mitigation Plans

The entity provides updates on the progress of the mitigation plan to Texas RE on a quarterly basis, at a minimum. Texas RE tracks the mitigation plan to its completion and may conduct onsite visits and/or review the plan’s status during audits.

Upon completion of the mitigation plan, the entity provides a signed letter that all required actions have been completed. The entity must include sufficient data or information to verify completion. Texas RE may request data or information and conduct follow-up assessments, spot checks, or audits as verification.

In the event all required actions in the plan are not completed by the deadline, any violation(s) that occurred during the originally scheduled time period for completion are enforced immediately. A new mitigation plan must be submitted by the entity to Texas RE. In addition, Texas RE may audit the entity or issue a remedial action directive.