Transcript ERCOT Wholesale Market Basics Settlement Module 3
ERCOT Wholesale Market Basics Module 3 Settlement
Introduction Module 3 Can you tell these apart?
BENA iq = 1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq
2 ERCOT Wholesale Market Basics
Topics
Settlement Overview Settlement Calculations General Fees
Module 3
3 ERCOT Wholesale Market Basics
Module 3
Overview
4 ERCOT Wholesale Market Basics
Overview Electricity sellers Resources
Bilateral transactions
Electricity buyers Load Serving Entities QSEs
Bilateral transactions
$ $
QSEs Module 3 ERCOT SETTLEMENTS
5 ERCOT Wholesale Market Basics
Overview
“VISA Bill” Rule
All cash flow defined from ERCOT perspective:
NEGATIVE amounts – ERCOT pays Market Participant POSITIVE amounts – Market Participant pays ERCOT
Module 3
6 ERCOT Wholesale Market Basics
Overview – Market Participant Roles QSE:
Daily review of Settlement Statements Download of Data Extracts Shadow Settlement and Validation Research Discrepancies Register Disputes Weekly review of Invoices Settle with ERCOT
Module 3
ERCOT Wholesale Market Basics 7
Overview – Market Participant Roles LSE / Resources:
Download of Data Extracts Research Discrepancies Settle with QSE
Module 3
8 ERCOT Wholesale Market Basics
Overview – Market Participant Roles Module 3
ERCOT’s Settlement and Billing Procedures:
Acquire and Validate Settlement Data Validate Market Settlement and Publish Settlement Statements Publish Weekly Invoices Process Weekly Payments Validate, Research and Resolve Disputes Provide Settlement information (ERCOT, PUCT, Market Participants) ERCOT Wholesale Market Basics 9
Questions
Module 3
10 ERCOT Wholesale Market Basics
Settlement Calculations Module 3
11 ERCOT Wholesale Market Basics
Settlement Calculations
ERCOT MUST REMAIN REVENUE NEUTRAL!
Module 3
12 ERCOT Wholesale Market Basics
Settlement Calculations Module 3
Revenue Neutrality
All payments for Market Services will have a corresponding cost allocation.
Common forms of cost allocation
– Obligation – Direct Assignment – Load Allocation – Balancing Energy Neutrality Adjustment 13 ERCOT Wholesale Market Basics
Settlement Calculations Module 3
Settlement Unit Rules
Quantity * Price MW or MWh 24 Hours or 96 Intervals Hourly MW conversion to 15-min is MW per ¼ Hour or MWh Some Charge Types are only charges Some Charge Types are only payments Some Charge Types can be either ERCOT Wholesale Market Basics 14
Settlement Calculations
Settlement of What?
ERCOT settles for services procured to manage the Texas power grid.
Module 3
Capacity Settlement Energy Settlement 15 ERCOT Wholesale Market Basics
Settlement Calculations
Capacity Settlement
Module 3
16 ERCOT Wholesale Market Basics
Settlement Calculations - Capacity Module 3
Learning Objectives:
Ancillary Services for Normal Operations Replacement Reserve Out-of-Merit Capacity Emergency Interruptible
17 ERCOT Wholesale Market Basics
Ancillary Services for Normal Operations
Settlement Calculations - Capacity Module 3
Ancillary Services
For Normal Operation for System Reliability
Regulation Up Regulation Down Responsive Reserve Non-spin
ERCOT Wholesale Market Basics 18
Ancillary Services for Normal Operations
Settlement Calculations - Capacity Module 3
Ancillary Services
For Normal Operation for System Reliability
There are two main components to the Ancillary Services (AS) Market .
1. Procurement of Ancillary Services.
2. Uplifting the Costs of Ancillary Services procured.
19 ERCOT Wholesale Market Basics
Ancillary Services for Normal Operations
Settlement Calculations - Capacity Module 3
Ancillary Services
1. Procurement of Ancillary Services.
Total AS requirement Based on Day-ahead forecast.
QSE obligation based on QSE Load Ratio Share of 14 days prior.
Quantity procured is calculated by netting total AS requirement less sum of QSEs self-arranged MW.
ERCOT will pay for AS awards at Market Clearing Price.
How do the QSE’s communicate their Self-arranged Quantity?
20 ERCOT Wholesale Market Basics
Ancillary Services for Normal Operations
Settlement Calculations - Capacity Module 3
Ancillary Services
2. Uplifting the Costs of Ancillary Services procured.
Cost allocated to each QSE by their net obligation.
Net Obligation = Load Ratio Share Obligation minus Self-Arranged quantity. Settled using actual metered load to calculate Net Obligation (NOT load 14 days prior). What happens to the Net Obligation at the Initial Settlement?
21 ERCOT Wholesale Market Basics
Ancillary Services for Normal Operations
Settlement Calculations - Capacity Ancillary Service Example Calculation Module 3
22 ERCOT Wholesale Market Basics
Ancillary Services for Normal Operations
Settlement Calculations - Capacity Module 3
Procured Ancillary Service Capacity
PC ASqi = -1 * (C ASqi * MCPC ASi ) Terms
PC : Ancillary Service Capacity Payment C: Capacity Procured MCPC: Market Clearing Price for Capacity
Subscripts
i: Interval q: QSE
Translation: The payment for Ancillary Service Capacity is equal to the Amount of Capacity procured times the Clearing price for that Service.
Protocol 6.8.1.2
23 ERCOT Wholesale Market Basics
Ancillary Services for Normal Operations
Settlement Calculations - Capacity
Ancillary Service Cost Allocation
Module 3 LA ASqi = ASP i * NTO ASqi Terms
LA: Load Allocated Ancillary Service Charge ASP: Ancillary Service Price NTO: Ancillary Service Net Obligation per QSE
Subscripts
i: Interval q: QSE
Translation: The Load Allocation Charge for an ancillary service is equal to the Ancillary Service Price times the Net Obligation for the QSE.
Protocol 6.9.1
24 ERCOT Wholesale Market Basics
Settlement Calculations - Capacity
Learning Objectives:
Ancillary Services for Normal Operations Replacement Reserve Out-of-Merit Capacity Emergency Interruptible
Module 3
25 ERCOT Wholesale Market Basics
Replacement Reserve Service
Settlement Calculations - Capacity Module 3
Providers of Replacement Reserve (RPRS) are paid for two types of service:
Capacity Insufficiency Local Congestion
Section 6.8.1.10 and 6.8.1.11
26 ERCOT Wholesale Market Basics
Replacement Reserve Service
Settlement Calculations - Capacity Module 3
Units selected for Capacity Insufficiency are paid:
The higher of their bid or, The highest MCPC for all Replacement Reserve procured during the procurement processes. Their bid contains Start-up and Operating values.
Section 6.8.1.10 and 6.8.1.11
ERCOT Wholesale Market Basics 27
Replacement Reserve Service
Settlement Calculations - Capacity
RPRS Capacity Payment
Module 3 PC = -1* MAX [(PABC , MCPC) * ZC] PABC = CBP / N + HOBP Terms
PC: RPPS payment to QSE MCPC: RPRS Capacity Price PABC: RPRS Capacity BID Price ZC: Amount of RPRS Capacity Awarded
Terms
CBP: Startup Bid Price HOBP: Hourly Operating Bid Price N: Number of hours procured
Translation: The RPRS Capacity payment is equal to the minimum of the bid price times the capacity awarded or the sum of startup and operating costs.
ERCOT Wholesale Market Basics 28
Replacement Reserve Service
Settlement Calculations - Capacity Module 3
Units selected for Local Replacement are paid:
Resource Category Generic Startup Cost for starting.
Resource Category Minimum Energy Cost minus MCPE for operating at the unit Low Sustainable Limit (LSL).
Section 6.8.1.10 and 6.8.1.11
ERCOT Wholesale Market Basics 29
Replacement Reserve Service
Settlement Calculations - Capacity
RPRS Local Congestion
Module 3 LPC = -1* (LPS + LPO) Terms
LPC: Price paid for RPRS C: Amount of RPRS Qty Awarded LPS: Startup Costs LPO: Operating Costs
Translation: The RPRS Local Congestion payment is equal to the sum of startup and operating costs.
ERCOT Wholesale Market Basics 30
Replacement Reserve Service
Settlement Calculations - Capacity Module 3
RPRS Local Congestion
How are RPRS Local Congestion startup and operating costs calculated?
LPS = RCGSC / N LPO = SUM
[
(RCGMEC – MCPE) * MIN (MINCAP/4, MR)
]
Terms:
RCGSC = Generic Startup Cost RCGMEC = Minimum Energy Cost MINCAP = Low Sustainable Limit MR = Metered Resource ERCOT Wholesale Market Basics 31
Replacement Reserve Service
Settlement Calculations - Capacity
Payment from the Market is collected through the following charge:
Module 3
RPRS Uplift Charge
ERCOT Sums: – The total payments for Local and Capacity Insufficiency RPRS and Total is uplifted at Load Ratio Share to all QSEs.
Section 6.9.2.1.2
ERCOT Wholesale Market Basics 32
Replacement Reserve Service
Settlement Calculations - Capacity
RPRS Uplift Charge
Module 3 UC RP = -1 * [ Σ ( PC RP + LPC RP ) + TCRPAY RP + Σ CSC RP ]* LRS Variables UC = RPRS Uplift Charge PC = Cost of Capacity for Capacity Insufficiency LPC = Cost of RPRS for Local Congestion US = RPRS Under Scheduled Charge TRCRPAY = TCR Payment per Hour CSC = RPRS CSC Impact Capacity Charge LRS = Load Ratio Share Not Applied Subscripts RP = Replacement Reserve Section 6.9.2.1.2
ERCOT Wholesale Market Basics 33
Settlement Calculations - Capacity Module 3
Learning Objectives:
Ancillary Services for Normal Operations Replacement Reserve Out-of-Merit Capacity Emergency Interruptible 34 ERCOT Wholesale Market Basics
Out-of-Merit Capacity
Settlement Calculations - Capacity Module 3
OOMC What is OOMC?
Replacement Reserve procured out of merit order.
– Support emergency operations – provide voltage support – manage localized transmission limitations
ERCOT-wide cost is uplifted to QSEs (LRS)
ERCOT Wholesale Market Basics 35
Out-of-Merit Capacity
Settlement Calculations - Capacity Module 3
Units selected for OOMC are paid:
Resource Category Generic Startup Cost minus energy revenue during ramp (back 12 intervals), plus Resource Category Minimum Energy Cost minus MCPE for operating at the LSL or Replacement Bid, if cheaper.
Section 6.8.1.10 and 6.8.1.11
ERCOT Wholesale Market Basics 36
Out-of-Merit Capacity
Settlement Calculations - Capacity
OOMC Payment
Module 3 PC = -1* MIN [(BP * C), (PS + PO)] Terms
PC: Amount paid for OOM Capacity C: Qty of OOM Capacity Awarded BP: Sum of Bid Startup and Operating prices PS: Startup Costs PO: Operating Costs
Translation: The OOM Capacity payment is equal to the minimum of the bid price times the capacity awarded or the sum of startup and operating costs.
Protocol 6.8.2.2
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Out-of-Merit Capacity
Settlement Calculations - Capacity Module 3
OOMC
How are OOMC startup and operating costs calculated?
PS =
[
RCGSC – (SUMs (MCPE * MR))
]
/ N PO = SUM
[
(RCGMEC – MCPE) * MIN (MINCAP/4, MR)
]
Terms:
RCGSC = Generic Startup Cost RCGMEC = Minimum Energy Cost (HR*FI) MINCAP = Low Sustainable Limit MR = Metered Resource N = Number of hours deployed s = 12 intervals prior to the OOMC period 38 ERCOT Wholesale Market Basics
Settlement Calculations - Capacity Module 3
Learning Objectives:
Ancillary Services for Normal Operations Replacement Reserve Out-of-Merit Capacity Emergency Interruptible 39 ERCOT Wholesale Market Basics
Emergency Interruptible Load Service (EILS)
Settlement Calculations - Capacity Module 3 Emergency Interruptible Load Service
Service provided by loads (customers) willing to interrupt during an electric grid emergency in exchange for capacity payment To provide ERCOT Operations with an additional emergency tool to lessen the likelihood of involuntary firm load shedding (a.k.a. rolling blackouts) 40 ERCOT Wholesale Market Basics
Emergency Interruptible Load Service (EILS)
Settlement Calculations - Capacity
EILS
EILS capacity payments are calculated as follows: Module 3
BIDPrice * BIDCapacity * AvailFactor * EILFactor * TPh EILS Awarded Bid Price ($/MW) for each EILS Resource for an EILS Time Period.
Capacity (MW) for an EILS Resource contracted for EILS specific to an EILS Time Period Availability factor for an EILS Time Period (Section 6.10.13.3) EILS event performance factor for an EILS Time Period (Section 6.10.13.3) Number of hours in an EILS Time Period ERCOT Wholesale Market Basics 41
Emergency Interruptible Load Service (EILS)
Settlement Calculations - Capacity Module 3
EILS – Uplift Costs
No Self-Provision:
EILS costs for an EILS Contract Period will be allocated based on the Load Ratio Share (LRS) for the EILs Contract Period.
Self-Provision:
EILS costs for an EILS Contract Period will be allocated based on the Load Ratio Share (LRS) less the self Provision amount for the EILs Contract Period or zero, which ever is greater. 42 ERCOT Wholesale Market Basics
Settlement Calculations - Energy
Energy Settlement
Module 3
43 ERCOT Wholesale Market Basics
Settlement Calculations - Energy
Learning Objectives:
Zonal Balancing Energy Resource Imbalance Load Imbalance OOME/LBES Uninstructed Resource Charge Congestion Mismatched Schedules BENA 44
Module 3
ERCOT Wholesale Market Basics
Zonal Balancing Energy
Settlement Calculations - Energy Module 3
Balancing Energy
Represents the increase or decrease in energy dispatched by Settlement Interval in Real Time to ensure the balancing needs of ERCOT. The energy is supplied by ERCOT through acquisition of resources (generating units and interruptible demands) to meet load variations not covered by Regulation Service .
ERCOT Wholesale Market Basics 45
Zonal Balancing Energy
Settlement Calculations - Energy
Balancing Energy
Zonal Instructed Deviation (up/down) from ERCOT to QSE Used to solve power balance and/or congestion Settled at zonal MCPE
Module 3
How is this paid?
46 ERCOT Wholesale Market Basics
Settlement Calculations - Energy
Learning Objectives:
Balancing Energy Resource Imbalance Load Imbalance OOME/LBES Uninstructed Resource Charge Congestion Mismatched Schedules BENA 47
Module 3
ERCOT Wholesale Market Basics
Resource Imbalance
Settlement Calculations - Energy Module 3
Resource Imbalance
Scheduled Generation - Metered Generation Paid/charged at MCPE Why an imbalance?
– Instructed Deviations – Uninstructed Deviations (may be subject to URC)
Protocol 6.8.1.13
Do all Resource Imbalances result in payments to the QSE?
48 ERCOT Wholesale Market Basics
Resource Imbalance
Settlement Calculations - Energy Module 3
Resource Imbalance Example
Situation: AlphaQSE has scheduled to generate at 208 MW from their resource in the South Zone for IE 1630.
Conditions:
The Resource actually generates at 220MW.
The Market Clearing Price for Energy, South CM Zone is $17.09/MWh 49 ERCOT Wholesale Market Basics
Resource Imbalance
Settlement Calculations - Energy
Resource Imbalance Example
Module 3 220MW 208MW Actual Generation Scheduled Generation
55MWh 52MWh
0
ERCOT Wholesale Market Basics 50
Resource Imbalance
Settlement Calculations - Energy
Resource Imbalance Example
Module 3
For a given interval and zone,
RI
= (Scheduled Generation – Actual Generation) * MCPE Therefore, for interval 1630, AlphaQSE’s Resource Imbalance in the South Zone is
RI
= (52MWh - 55MWh) * $17.09/MWh =
- $51.57
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Resource Imbalance
Settlement Calculations - Energy
Resource Imbalance
Module 3 RI izq
= (QRS izq - MR izq ) * MCPE iz
Terms
RI : Resource Imbalance Amount QRS: Scheduled Resource MR: Metered Resource MCPE: Market Clearing Price for Energy
Subscripts
i: Interval z: Zone q: QSE
Translation: Resource Imbalance is the difference between the Scheduled and Actual Resource output times the Clearing Price for Energy.
Protocol 6.8.1.13
52 ERCOT Wholesale Market Basics
Settlement Calculations - Energy
Learning Objectives:
Balancing Energy Resource Imbalance Load Imbalance OOME/LBES Uninstructed Resource Charge Scheduling Control Error Congestion Mismatched Schedules BENA 53
Module 3
ERCOT Wholesale Market Basics
Load Imbalance
Settlement Calculations - Energy Module 3
Load Imbalance
Scheduled Load - Adjusted Metered Load Paid/charged at MCPE Why an Imbalance?
– UFE – Forecast Inaccuracies – Relaxed Balanced Schedule (section 4.3.1) – LaaR’s
Protocol 6.9.5.2
ERCOT Wholesale Market Basics 54
Load Imbalance
Settlement Calculations - Energy Module 3
Load Imbalance Example
Situation: AlphaQSE schedules 140 MW (35 MWh / interval) of Load in the South Zone for IE 1630
Conditions:
Adjusted Metered Load = 160 MW (40 MWh / interval) in the South Zone.
Market Clearing Price for Energy = $17.09/MWh in the South 55 ERCOT Wholesale Market Basics
Load Imbalance
Settlement Calculations - Energy 160
Load Imbalance Example
South Zone
Actual Load 140 Module 3 Scheduled Load
35MWh 40MWh
0
ERCOT Wholesale Market Basics 56
Load Imbalance
Settlement Calculations - Energy
Load Imbalance Example
For a given interval and zone,
LI
= -1*(Scheduled Load – Actual Load) * MCPE
Module 3
Therefore, for interval 1630, AlphaQSE’s Load Imbalance in the South Zone is
LI
= -1*(35MWh - 40MWh) * $17.09/MWh =
$85.45
ERCOT Wholesale Market Basics 57
Load Imbalance
Settlement Calculations - Energy
Load Imbalance
LI izq
= -1 * (SL izq - AML izq ) * MCPE iz
Terms
LI : Load Imbalance Amount SL: Scheduled Load AML: Adjusted Metered Load MCPE: Market Clearing Price for Energy
Subscripts
i: Interval z: Zone q: QSE
Module 3 Translation: Load Imbalance is the difference between the Scheduled and Actual Load times the Clearing Price for Energy.
Protocol 6.9.5.2
58 ERCOT Wholesale Market Basics
Settlement Calculations - Energy
Learning Objectives:
Balancing Energy Resource Imbalance Load Imbalance OOME/LBES Uninstructed Resource Charge Congestion Mismatched Schedules BENA 59
Module 3
ERCOT Wholesale Market Basics
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy Module 3
OOME
What is OOME?
Out-of-merit order, unit-specific energy deployment to address intra-zonal congestion Procured by ERCOT when no market solution Paid according to a generic cost structure (Protocol Section 6.8.1.1) ERCOT-wide cost is uplifted to QSEs based on Load-Ratio-Share (LRS) ERCOT Wholesale Market Basics 60
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy Module 3
OOME
OOME Payment Methodology
The OOME Up and OOME Down payments are intended to cover only the amount above the billable quantity times MCPE. MCPE times billable quantity is paid in Resource Imbalance. If the calculated OOM Up payment is insufficient -- additional verifiable costs may be paid if submitted in a timely manner.
ERCOT Wholesale Market Basics 61
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy Module 3 What is LBES?
Unit-specific energy deployment of balancing energy when intra-zonal congestion occurs Procured by ERCOT SPD to solve Local congestion Paid the incremental bid premium specified (Protocol Section 7.4.3.1) ERCOT-wide cost is uplifted to QSEs based on Load-Ratio-Share (LRS ) ERCOT Wholesale Market Basics 62
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy Module 3
LBES
LBES Payment Methodology
LBES Up and Down payments are the difference between the MCPE of the Congestion Zone in which the specific Resource is located and the incremental bid premium specified. MCPE times billable quantity is paid in Resource Imbalance.
ERCOT Wholesale Market Basics 63
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy Module 3
OOME/LBES Example
Situation: AlphaQSE receives a UNIT-SPECIFIC instruction for IE 1600 to move the output of Unit 1 to 150 MW
Data for AQSE for IE 1600:
RP_Unit1 = 100 MW (25 MWh per 15 minute interval) Metered Generation by Unit1 = 36 MWh Instructed Output Level= 150MW (37.5 MWh per interval) OOME price = Unit 1 is a Gas-Steam Reheat Boiler unit Generic Cost (Per Protocol 6.8.2.1) = $61.41 per MWh LBES price = Bid premium submitted = $75.80
MCPE = $15.80 per MWh 64 ERCOT Wholesale Market Basics
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy
OOME/LBES Example
As with all settlement equations,
OOME/LBES Payment
=
-1 * Quantity * Price Module 3
Price is fairly easy:
Price
= (OOME/LBES Price – MCPE) or 0, whichever is greater.
Example, OOME
Price
= $61.41- 15.80 =
$45.61 per MWh
Example, LBES
Price
= $75.80- 15.80 =
$60.00 per MWh
Why do we subtract the MCPE from the Generic Cost/Bid Premium?
ERCOT Wholesale Market Basics 65
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy
OOME/LBES Example
Module 3
Quantity is a little more difficult:
Quantity
=
The change in energy output in response to the instruction with a maximum of the instruction itself.
66 ERCOT Wholesale Market Basics
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy
OOME/LBES Example
150 Instructed Output 144 Metered Output Module 3 100 Resource Plan and Generation Schedule
37.5MWh
36MWh 25MWh
0
ERCOT Wholesale Market Basics 67
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy Module 3
OOME/LBES Example
The unit’s response = Metered Output – Resource Plan = 36 MWh – 25 MWh = 11 MWh The unit’s instruction = Instructed Output – Resource Plan = 37.5 MWh – 25 MWh = 12.5 MWh Since the response does not exceed the instruction, ERCOT will pay AlphaQSE for the unit’s response of 11 MWh.
ERCOT Wholesale Market Basics 68
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy
OOME/LBES Example
Putting it all together,
Module 3 OOME/LBES Payment
=
-1 * Quantity * Price
= -1 * 11 MWh * $45.61/MWh OOME Payment LBES Payment =
-$501.71
= -1 * 11 MWh * $60.00/MWh =
-$660.00
ERCOT Wholesale Market Basics 69
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy Module 3
OOME
PE OOMUPiuq = -1 * E OOMUPiuq * [Max (RCGFC c – MCPE iz ),0]
where
E OOMUPiuq = Max (0, Min ((MR iuq – OL iuq ), I OOMUPiuq )) Terms:
MR = Metered Resource OL = Resource Plan Output Level I = OOME Instruction RCGFC = Resource Category price
Subscripts
i: Interval z: Zone q: QSE c: resource category u: generation unit
Translation: The OOM Energy premium payment is equal to the Energy provided times the difference between MCPE and the Generic cost for the OOME service.
Protocol 6.8.2.3
70 ERCOT Wholesale Market Basics
Out-of-Merit Energy / Local Balancing Energy Service
Settlement Calculations - Energy Module 3
LBES
LPC RSUiuq = -1 * E LBEiuq * [Max (PM c – MCPE iz ),0]
where
E LBEiuq = Max (0, Min ((MR iuq – OL iuq ), I LBEiuq )) Terms:
MR = Metered Resource OL = Resource Plan Output Level I = LBES Instruction PM = Bid premium submitted
Subscripts
i: Interval z: Zone q: QSE c: bid premium u: generation unit
Translation: The LBES Energy premium payment is equal to the Energy provided times the difference between MCPE and the Bid Premium price submitted for the LBES service.
Protocol 6.8.2.3
ERCOT Wholesale Market Basics 71
Settlement Calculations - Energy
Learning Objectives:
Balancing Energy Resource Imbalance Load Imbalance OOME/LBES Uninstructed Resource Charge Congestion Mismatched Schedules BENA 72
Module 3
ERCOT Wholesale Market Basics
Uninstructed Resource Charge
Settlement Calculations - Energy Module 3
Uninstructed Resource Charge (URC)
A QSE who schedules resources will be paid the full Market Clearing Price for Energy Up to the amount of instructed deviations An Uninstructed Deviation Charge Back will be calculated at a factor of the MCPE. The Uninstructed Deviation Charge Back will be applied to each Congestion Zone in which a QSE has a deviation from schedule plus instructions.
ERCOT Wholesale Market Basics 73
Uninstructed Resource Charge
Settlement Calculations - Energy
Price Chasing
Metered Resource is greater than larger of 101.5% of (or 5MWh over) total schedule plus Instruction Integrated Amount of ERCOT Regulation is less than -25 MWhrs Over Generation in a zone where MCPE is positive Module 3 Uncontrollable Renewable Resource is not subject to URC.
74
Uninstructed Resource Charge
ERCOT Wholesale Market Basics
Uninstructed Resource Charge
Settlement Calculations - Energy
Cost Optimization
Metered Resource is less than lesser of 98.5% of (or 5MWh under) total schedule plus Instruction Integrated Amount of ERCOT Regulation is greater than 25 MWhrs Module 3 Uncontrollable Renewable Resource is not subject to URC.
Under Generation in a zone where MCPE is negative Uninstructed Resource Charge
ERCOT Wholesale Market Basics 75
Settlement Calculations - Energy
Learning Objectives:
Balancing Energy Resource Imbalance Load Imbalance OOME/LBES Uninstructed Resource Charge Congestion Mismatched Schedules BENA 76
Module 3
ERCOT Wholesale Market Basics
Congestion
Settlement Calculations - Energy
Settlement of Zonal Congestion
Module 3
QSE impact is determined by the bilateral schedule The net Resource schedule (Resource – Obligation) for each zone is multiplied by the zonal shift factor for each Commercially Significant Constraint (CSC).
The CSC impacts are added together The QSE is charged the Impact on the CSC multiplied by the Shadow Price on the CSC.
ERCOT Wholesale Market Basics 77
Congestion
Settlement Calculations - Energy Congestion Management Example West to North CSC Module 3 West Zone North Zone South to West CSC South Zone
78
South to North CSC
ERCOT Wholesale Market Basics
Congestion
Settlement Calculations - Energy Module 3
Shift Factors
CSC Zonal Average Weighted Shift Factors CM Zone names
Average Weighted Shift Factor
West to North
Average Weighted Shift Factor
South to North
Average Weighted Shift Factor
South to West West2009 North2009 South2009 0.489911548
-0.008056712
0.002302236
-0.004425342
-0.120276952
0.503257831
-0.016725781
-0.003225342
0.104328870
ERCOT Wholesale Market Basics 79
Congestion
Settlement Calculations - Energy Where do you find the real shift factors?
Module 3
https:tcr.ercot.com
80 ERCOT Wholesale Market Basics
Congestion
Settlement Calculations - Energy Congestion Management Example Module 3
Situation: AlphaQSE schedules 548 MW of Resource from the South Zone and delivers 140 MW to the South Zone and 408 MW to the North Zone.
The South to North congestion Path is constrained.
MCPE_North = $28.84
MCPE_South = $17.09
MCPESPC_SN = $32.91
81 ERCOT Wholesale Market Basics
Congestion
Settlement Calculations - Energy Congestion Management Example West Res = 0MW Load = 408MW Module 3 North South Res = 548MW Load = 140MW
82 ERCOT Wholesale Market Basics
Congestion
Settlement Calculations - Energy Congestion Management Example Module 3
AlphaQSE’s South Zone Schedule impacts the South to North constraint as follows:
Impact
= (Resource – Obligation)(1/4 hr) * SF SN = (548 MW – 140MW)(1/4 hr) * 0.503257831
=
51.33 MWh
AlphaQSE’s North Zone Schedule impacts the South to North constraint as follows:
Impact
= (Resource – Obligation)(1/4 hr) * SF SN = (0 MW – 408MW)(1/4 hr) * -0.120276952
=
12.27 MWh
ERCOT Wholesale Market Basics 83
Congestion
Settlement Calculations - Energy Congestion Management Example Module 3
Now the Congestion Charge for a particular CSC is simply a quantity times a price:
Congestion Charge
= (Sum of Impacts) * Shadow Price = (51.33 MWh + 12.27 MWh)*($32.91/MWh) =
$2093.08
84 ERCOT Wholesale Market Basics
Congestion
Settlement Calculations - Energy
CSC Schedule Impact
I CSCiq = Σ((QSS iqz – SO iqz ) * SF ZCSC ) z Module 3 Terms
I: Scheduled MW Impact per CSC QSS: QSE Supply Schedule SO: Scheduled Obligation SF: Shift Factor
Subscripts
i: Interval q: QSE z: zone CSC: Commercially Significant Constraint
Translation: Your Zonal Impact on each CSC is your net position in each zone multiplied by the zonal CSC shift factor.
Protocol 7.3.4.1
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Congestion
Settlement Calculations - Energy
Congestion: CSCBE Charge
Module 3 CSC BECSCiq = SPC CSCi * MAX(0, I CSCiq ) Terms
I: Scheduled MW Impact per CSC CSC BE : Energy Related Congestion Charge SPC: Shadow Price
Subscripts
i: Interval q: QSE CSC: Commercially Significant Constraint
Translation: Your Congestion Charge per CSC is your SCS Impact multiplied by the Shadow Price.
What happens if my impact is negative?
Protocol 7.3.4.1
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Congestion
Settlement Calculations - Energy
Congestion: CSC Counterflow
Module 3 CSC BECSCiq = SPC CSCi * I CSCiq Terms
I: Scheduled MW Impact per CSC CSC BE : Energy Related Congestion Charge SPC: Shadow Price
Subscripts
i: Interval q: QSE CSC: Commercially Significant Constraint
Translation: If your impact opposes the congestion, or helps relieve the CSC, there is a payment for Counterflow.
Protocol 7.3.4.1
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Congestion
Settlement Calculations - Energy Module 3 Congestion Management – TCR Example
Situation: If AlphaQSE had bid for and purchased 100 TCRs for this month at $3 a piece, then the impact is as follows: Cost of TCRs = (100 MW * $4) / 4 = $100 for one interval Cost of congestion from IE 1630 = $2,093.08 Payment from TCR = TCR/4 * MCPESPC_SN = (100/4) * $32.91 = $822.75
AlphaQSE cost for Congestion = $2,093.08 – $822.75 = $1270.33
(minus the monthly amortized cost of the TCR of $100)
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Settlement Calculations - Energy
Learning Objectives:
Balancing Energy Resource Imbalance Load Imbalance OOME/LBES Uninstructed Resource Charge Congestion Mismatched Schedules BENA 89
Module 3
ERCOT Wholesale Market Basics
Mismatched Schedules
Settlement Calculations - Energy
Mismatched Schedules
Module 3 What happens if the following schedule is not resolved?
QSE A QSE B R QSE A 100MW (South) O R 100MW QSE B (South) QSE A 120MW Mismatch (South) O 120MW QSE B (South)
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Mismatched Schedules
Settlement Calculations - Energy
Mismatched Schedules
Module 3 QSE A QSE B R QSE A 100MW (South) O R 100MW QSE B (South) QSE A 120MW Mismatch (South) O 120MW QSE B (South) Resolved in Settlement
91
QSE A 100MW (South) ERCOT 20MW (South)
ERCOT Wholesale Market Basics
Mismatched Schedules
Settlement Calculations - Energy Module 3
Mismatched Schedules
MISD iqz = -1 * MISAMTD iqz * MCPE iz MISR iqz = MISAMTR iqz * MCPE iz Terms:
MISD: Payment for mismatched amount delivered to ERCOT MISR: Charge for mismatched amount received from ERCOT MISAMTD: Mismatched amount delivered to ERCOT MISAMTR: Mismatched amount received from ERCOT MCPE: Market Clearing Price for Energy
Subscripts
i: Interval z: Zone q: QSE
Translation: The mismatch payment or charge is equal to the mismatch amount delivered to or received from ERCOT times the MCPE.
ERCOT Wholesale Market Basics 92
Settlement Calculations - Energy
Learning Objectives:
Balancing Energy Resource Imbalance Load Imbalance OOME/LBES Uninstructed Resource Charge Congestion Mismatched Schedules BENA 93
Module 3
ERCOT Wholesale Market Basics
Balancing Energy Neutrality Adjustment
Settlement Calculations - Energy Balancing Energy Neutrality Adjustment Resource Imbalance
$ $
Mismatch Energy Delivered Load Imbalance
$
B E N A
$
Module 3 Mismatch Energy Received
$ $ $
TCR Payments Balancing Energy CSC Charges Uninstructe d Resource Charge
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Balancing Energy Neutrality Adjustment
Settlement Calculations - Energy Module 3 Balancing Energy Neutrality Adjustment
BENA iq = 1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq
Terms
BENA: Balancing Energy Neutrality Adjustment RI: Resource Imbalance LI: Load Imbalance URC: Uninstructed Resource Charge MISD: Mismatched Energy Delivered MISR: Mismatched Energy Received TCRPAY: Transmission Congestion Right Payments CSC: Direct Assigned Congestion Cost LRS: Load Ratio Share
Protocol 9.6.1
95 ERCOT Wholesale Market Basics
Balancing Energy Neutrality Adjustment
Settlement Calculations - Energy Balancing Energy Neutrality Adjustment Module 3
BENA iq = 1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq
Translation: The Balancing Energy Neutrality Adjustment is equal to the Sum of the Load Imbalances, Resource Imbalances, Uninstructed Resource Charges, Mismatch Charges, TCR Payments and Direct Assigned Congestion costs allocated at Load Ratio Share.
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Protocol 9.6.1
ERCOT Wholesale Market Basics
General Fees Module 3
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General Fees
General Fees:
ERCOT Admin Fee Registration Fee ERCOT Regional Entity Fee Nodal Surcharge
Module 3
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General Fees Module 3 ERCOT System Administration Fee
$0.4171 per MWh to fund ERCOT activities subject to Public Utility Commission of Texas (PUCT) oversight. This fee is charged to all Qualified Scheduling Entities (QSEs) based on Load represented.
(Protocol Section 9.7.1)
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General Fees Module 3
ERCOT Registration Fee
The ERCOT Registration Fee for a QSE is $500 to be paid by check submitted with the Application for Registration form.
(Protocol Section 9.7.4)
The ERCOT Registration Fee for a Competitive Retailer is $500 to be paid by check submitted with the Application for Registration form.
(Protocol Section 9.7.4)
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General Fees Module 3
Electric Reliability Organization (ERO) Fee
NERC Fee authorized by FERC.
ERCOT collects the fee based on each LSEs Adjusted Metered Load (AML) AML is posted by August 1 for previous Calendar Year.
LSEs must dispute AML by September 15.
2009 Invoice based on 2007 load data.
2007 AML 2008 Calculated and Posted AML Quarterly Invoices 2009
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General Fees Module 3
ERO
EROF q = (LOAD q / LOAD t ) * (NERCC + NERCC ADJ)
EROFq = The QSE’s quarterly share of the next fiscal year’s NERC charges. NERCC = The total NERC charges for the appropriate quarter of the next fiscal year. LOADq = The total Adjusted Metered Load (AML) of all LSEs represented by the QSE for the calendar year (or part thereof) prior to the year in which ERCOT performs the calculation. LOADt = The total Adjusted Metered Load (AML) in the ERCOT Region for the calendar year prior to the year in which ERCOT performs the calculation. q = A QSE representing an LSE in the year during which ERCOT assesses the EROFq. NERCCADJ = When necessary, unpaid EROF amounts from a previous period.
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General Fees Module 3
ERO
Invoice calculated for each QSE two months prior to start of quarter. AML will not change from original AML established in August, but LSE to QSE relationship might.
Invoice based on relationship of QSE to LSE / Rep based on the time the invoice is calculated.
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General Fees Module 3 ERCOT Nodal Implementation Surcharge
ERCOT shall calculate the nodal implementation surcharge (“NIS”) by multiplying total net metered generation by a nodal surcharge factor.
( Protocol Section 9.7.6)
QNSiq = NODSF * MRiq Where: QNSiq NODSF QSE NIS per interval ($) MRiq Real-Time net metered generation in MWh per interval for the given QSE Nodal surcharge factor ($/MWh) i 15 minute Settlement Interval being calculated q QSE ERCOT Wholesale Market Basics 104
General Fees
ERCOT Registration Fee
To see a complete list of ERCOT Fees, go to the Current PROTCOLS under the Market Rules of ercot.com.
Module 3
http://www.ercot.com/content/mktrules/protocols/current/ 53-ERCOT%20Fee%20Schedule%20-%20012009.doc
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Questions
Module 3
106 ERCOT Wholesale Market Basics