1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (£ (RI iz + LI iz + URC iz + MISD iz +...

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Transcript of 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (£ (RI iz + LI iz + URC iz + MISD iz +...

  • ERCOT Wholesale SettlementModule 3

  • BENAiq= -1 * ( (RIiz + LIiz + URCiz+ MISDiz+ MISRiz)z + TCRPAYBei + CSCBei ) * LRSiq Can you tell these apart? Introduction

  • Definitions

    Settlement Overview

    Settlement Calculations

    Topics

  • Key Definitions

  • Operating Day - Date of power flow

    Settlements- Process used to resolve financial obligations; Assess administrative and miscellaneous fees; Provide transmission-billing determinants

    Settlement Statement- A statement issued by ERCOT reflecting a breakdown of market charges

    Settlement Invoice- A notice for payment or credit due rendered by ERCOTDefinitions

  • Initial Statement- Posted 10 days after Operating Day

    Final Statement- Posted 59 days after Operating Day

    True Up Statement- Posted 6 months after Operating Day

    Resettlement Statement- Ad Hoc; posted as neededDefinitions

  • Charge Type- Line item on settlement statement

    Settlement Interval- A period of time for which market services are settled

    Bill Determinants- Variables used to calculate a Charge TypeDefinitions

  • Recorder - A sequence of alpha-numeric values to identify dataExample: NMLEIOL_H04_99_MYRESOURCEID,1

    Channel - Indicates the iteration of the settlement run (Initial, Final, True-Up, Resettlement)

    Definitions

  • Overview

  • ERCOT SETTLEMENTS$$Overview

  • All cash flow defined from ERCOT perspective:

    NEGATIVE amountsERCOT pays Market ParticipantPOSITIVE amountsMarket Participant pays ERCOTVISA Bill RuleOverview

  • Market Participants RolesQSE:Daily review of Settlement StatementsDownload of Data ExtractsShadow Settlement and ValidationResearch DiscrepanciesRegister Disputes Weekly review of InvoicesSettle with ERCOTOverview

  • Market Participants RolesLSE / Resources:Download of Data ExtractsResearch DiscrepanciesSettle with QSEOverview

  • ERCOT's RolesERCOTs Daily Settlement Procedures:Validate Settlement Statements for publishingCreate and publish Invoices (Weekly)Facilitate Invoice Payment Processes (Weekly)Participate in UFE AnalysisDispute Research and ResolutionProvide Settlement information (ERCOT, PUCT, Market Participants)Overview

  • Questions

  • Settlement Calculations

  • ERCOT MUST REMAIN REVENUE NEUTRAL!Settlement Calculations

  • All payments for Market Services will have a corresponding cost allocation.Common forms of cost allocationObligationDirect AssignmentLoad AllocationBENACharge types are grouped into payments and cost recovery for market services.Settlement CalculationsRevenue Neutrality

  • ERCOT settles for services procured to manage the Texas power grid.Capacity SettlementSettlement CalculationsSettlement of What?Energy Settlement

  • Capacity Settlement

  • Learning Objectives:Ancillary ServicesReplacement ReserveOOMCCapacity Settlement

  • QSEs AS obligation quantity based on its Load Ratio Share (LRS)QSEs have opportunity to self-arrange their obligationERCOT will procure at Market Clearing Price all AS obligations not self-arranged.Ancillary ServicesCapacity Settlement

  • Ancillary Services CapacityERCOTObligation per Load Ratio Share$$Emergency Short Supply Capacity$Self Arrangement(reduces obligation)Ancillary ServicesCapacity Settlement

  • Ancillary Service Example CalculationCapacity Settlement

    Sheet1

    QSEObligation (MW)Self Arranged (MW)Amount Short (MW)Bid Amount (MW)Bid Price ($/MW)Procurement (MW)Payment ($)Allocation ($)

    150025025010015003000

    230030001001250-6000

    3200020040010400-48002400

    Total100055045060012450-54005400

    Sheet2

    QSEObiligation (MW)Self Arranged (MW)Amount Short (MW)Bid Amount (MW)Bid Price ($/MW)Procuement (MW)Emergency Procument (MW)

    150025025030153050

    230030007012700

    32000200300103000

    Total10005504504001540050

    QSEPayment AS (MW)Payment Emergency AS($)Allocation ($)

    1-450-600-3666.6666666667

    2-105000

    3-45000-2933.3333333333

    Total-6000-600-6600

    Sheet3

    Sheet1

    QSEObiligation (MW)Self Arranged (MW)Amount Short (MW)Bid Amount (MW)Bid Price ($/MW)Procuement (MW)Payment ($)Allocation ($)

    150025025010015003000

    230030001001250-6000

    3200020040010400-48002400

    Total100055045060012450-54005400

    QSEPayment ($)Allocation ($)

    103000

    2-6000

    3-48002400

    Total-54005400

    Sheet2

    QSEObiligation (MW)Self Arranged (MW)Amount Short (MW)Bid Amount (MW)Bid Price ($/MW)Procuement (MW)Emergency Procument (MW)

    150025025030153050

    230030007012700

    32000200300103000

    Total10005504504001540050

    QSEPayment AS (MW)Payment Emergency AS($)Allocation ($)

    1-450-600-3666.6666666667

    2-105000

    3-45000-2933.3333333333

    Total-6000-600-6600

    Sheet3

  • Procured Ancillary Service CapacityPCASqi = -1 * (CASqi * MCPCASi )TermsPC : Ancillary Service Capacity PaymentC: Capacity ProcuredMCPC: Market Clearing Price for Capacity

    Protocol 6.8.1.2Translation: The payment for Ancillary Service Capacity is equal to the Amount of Capacity procured times the Clearing price for that Service.Subscriptsi: Intervalq: QSECapacity Settlement

  • LAASqi = ASPi * NTOASqiProtocol 6.9.1TermsLA: Load Allocated Ancillary Service ChargeASP: Ancillary Service PriceNTO: Ancillary Service Net Obligation per QSETranslation: The Load Allocation Charge for an ancillary service is equal to the Ancillary Service Price times the Net Obligation for the QSE.Subscriptsi: Intervalq: QSEAncillary Service Cost AllocationCapacity Settlement

  • Learning Objectives:Ancillary ServicesReplacement ReserveOOMCCapacity Settlement

  • Providers of Replacement Reserve (RPRS) are paid for three distinct types of service:

    Capacity Insufficiency

    Zonal Congestion

    Local Congestion

    Section 6.8.1.10 and 6.8.1.11Capacity Settlement

  • Units selected for Capacity Insufficiency or Zonal Replacement are paid:

    the higher of their bid or,

    the highest MCPC for all Replacement Reserve procured during the procurement processes. Section 6.8.1.10 and 6.8.1.11Capacity Settlement

  • 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 LSL.Section 6.8.1.10 and 6.8.1.11Capacity Settlement

  • Payment from the Market is collected through the following charges:

    RPRS Zonal Congestion Charge

    RPRS Uplift ChargeSection 6.9.2.1.1Capacity Settlement

  • RPRS Zonal Congestion Charge

    RPRS Zonal Congestion costs will be directly allocated to QSEs whose schedules have an impact on a congested Commercially Significant Constraint

    Note that clearing RPRS for Zonal Congestion creates shadow prices for capacity and triggers corresponding TCR payments.Section 7.3.4.2Capacity Settlement

  • RPRS Uplift Charge

    ERCOT nets:

    The total payments for Zonal, Local and Capacity Insufficiency RPRS and

    The direct assigned Congestion impact and TCR Payments

    The difference is uplifted at Load Ratio Share to all QSEs.Section 6.9.2.1.2Capacity Settlement

  • Section 6.9.2.1.2RPRSUpliftChargeCapacity InsufficiencyZonal ReplacementLocal ReplacementTCR PaymentsZonal Congestion ImpactCapacity Settlement

  • UCRP = -1 * [ ( PCRP + LPCRP ) + TCRPAYRP + CSCRP ]* LRSRPRS Uplift ChargeVariables

    UC = RPRS Uplift ChargePC = Cost of Capacity for Zonal Congestion and Capacity InsufficiencyLPC = Cost of RPRS for Local CongestionUS = RPRS Under Scheduled ChargeTRCRPAY = TCR Payment per HourCSC = RPRS CSC Impact Capacity ChargeLRS = Load Ratio ShareSubscripts

    RP = Replacement ReserveSection 6.9.2.1.2Capacity Settlement

  • Learning Objectives:Ancillary ServicesReplacement ReserveOOMC

    Capacity Settlement

  • What is OOMC?Replacement Reserve procured out of merit orderLooks a lot like Local Replacement ReserveERCOT-wide cost is uplifted to QSEs (LRS)Capacity SettlementOOMC

  • 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 6.8.1.11Capacity Settlement

  • Energy Settlement

  • Learning Objectives:Balancing EnergyResource ImbalanceLoad ImbalanceOOMEUninstructed Resource ChargeCongestionMismatched SchedulesBENAEnergy Settlement

  • 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.Energy SettlementBalancing Energy

  • Zonal Instructed Deviation (up/down) from ERCOT to QSEUsed to solve power balance and/or congestionSettled at zonal MCPEHow is this paid?Balancing EnergyEnergy Settlement

  • Learning Objectives:Balancing EnergyResource ImbalanceLoad ImbalanceOOMEUninstructed Resource ChargeCongestionMismatched SchedulesBENAEnergy Settlement

  • Scheduled Generation - Metered GenerationPaid/charged at MCPEWhy an imbalance?Instructed DeviationsUninstructed Deviations (may be subject to URC)Do all Resource Imbalances result in payments to the QSE?Resource ImbalanceProtocol 6.8.1.13Energy Settlement

  • Situation: SQSE has scheduled to generate at 208 MW from