ERC Resolution No. 13, Series of 2026 – Guidelines for Ancillary Services Procurement Agreements
ERC issued implementing guidelines for the procurement, execution, and evaluation of Ancillary Services Procurement Agreements, establishing stricter rules for competitive selection, direct negotiation, and regulatory approval to ensure transparent, least-cost, and reliable grid support services.
4/21/20262 min read
SUMMARY
WHAT IT IS
This Resolution adopts guidelines for the transparent, competitive, and efficient procurement, execution, and evaluation of Ancillary Services Procurement Agreements (ASPAs) by the System Operator, in line with DOE policies and the EPIRA law.
System Operator (NGCP)
Market Operator
Ancillary Service Providers
TransCo
WESM participants
WHO IS AFFECTED
KEY DEADLINES
Guidelines take effect 15 calendar days after publication in a newspaper of general circulation or the Official Gazette.
SO must complete AS CSP within 90 days from posting of Invitation to Bid.
ASPA applications must be filed within 15 working days from contract execution; 60-day non-extendible period for pre-filing compliance.
ERC to resolve ASPA applications within 270 days from filing; deemed approved after this period (except fossil fuel-based ASPAs).
SO to adopt internal blacklisting rules within 30 days from effectivity.
TAKEAWAY
SO and ASPs must strictly follow CSP or direct negotiation rules, submit complete documentation, and ensure timely ERC filings to avoid penalties and ensure cost recovery.
Stakeholders should monitor SO’s website for AS CSP opportunities and updates on ASPA status and charges.
KEY POINTS
Applies to the System Operator (NGCP), Market Operator, Ancillary Service Providers (ASPs), and National Transmission Corporation (TransCo).
Mandates a Competitive Selection Process (CSP) for ASPAs, to be completed within 90 calendar days from posting of the Invitation to Bid to contract signing.
Direct negotiation is allowed only after two failed CSPs or under specific DOE-approved conditions (e.g., persistent AS insufficiency or sustained cost increases), subject to documentation and ERC review.
Sets a maximum ASPA term of five years, subject to ERC approval before implementation (except for certain direct negotiations, which still require final ERC approval).
Establishes detailed pre-filing, filing, and review procedures, including checklists of technical and legal requirements.
Prohibits anti-competitive practices, bid manipulation, and other acts undermining transparency and fairness; sets penalties and blacklisting protocols for violations.
Requires SO to continuously supply least-cost, sufficient AS and to report on ASPA implementation and AS charges.
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ERC Resolution No. 13, Series of 2026
Detailed policy analysis
Operational and compliance implications
Stakeholder impact assessment
Risk flags and ambiguities
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PREMIUM REGULATORY ANALYSIS
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Tags: WESM, Market Suspension, BCQ Redeclaration, Coal-Fired Generators, NGCP Curtailment, Pumped Storage Settlement