1

ERCOT Wholesale ERCOT Wholesale SettlementSettlement

Module 3Module 3

2

 BENAiq= -1 * (Σ (RIiz + LIiz + URCiz+ MISDiz+ MISRiz)z +

TCRPAYBei + Σ CSCBei ) * LRSiq

 Can you tell these apart?

Introduction

3

Definitions

Settlement Overview

Settlement Calculations

Topics

4

Key Definitions

5

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 ERCOT

Definitions

6

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 needed

Definitions

7

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 Type

Definitions

8

Recorder - A sequence of alpha-numeric values to identify data

Example: NMLEIOL_H04_99_MYRESOURCEID,1

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

Definitions

9

Overview

10

Bilateral transactions

QSEs

Load Serving Entities

Resources

Electricity sellersElectricity sellers Electricity buyersElectricity buyers

QSEsBilateral

transactions

ERCOT SETTLEMENTSERCOT SETTLEMENTS

$ $

Overview

11

All cash flow defined from ERCOT perspective:

NEGATIVE amountsERCOT pays Market Participant

POSITIVE amountsMarket Participant pays ERCOT

“VISA Bill” Rule

Overview

12

Market Participants’ 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

Overview

13

Market Participants’ Roles

LSE / Resources: Download of Data Extracts Research Discrepancies Settle with QSE

Overview

14

ERCOT’s 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)

ERCOT's Roles

Overview

15

Questions

16

Settlement Calculations

17

ERCOT MUST REMAIN REVENUE NEUTRAL!

Settlement Calculations

18

All payments for Market Services will have a corresponding cost allocation.

Common forms of cost allocation Obligation Direct Assignment Load Allocation BENA

Charge types are grouped into payments and cost recovery for market services.

Settlement Calculations

Revenue Neutrality

19

ERCOT settles for services procured to manage the Texas power grid.

Capacity Settlement

Settlement Calculations

Settlement of What?

Energy Settlement

20

Capacity Settlement

21

Learning Objectives:Learning Objectives:

Ancillary ServicesAncillary Services

Replacement ReserveReplacement Reserve

OOMCOOMC

Capacity Settlement

22

QSE’s AS obligation quantity based on its Load Ratio Share (LRS)

QSE’s have opportunity to self-arrange their obligation

ERCOT will procure at Market Clearing Price all AS obligations not self-arranged.

Ancillary Services

Capacity Settlement

23

Ancillary Services Capacity

ERCOT

Obligation per Load Ratio Share

$

$

Emergency Short Supply

Capacity

$

Self Arrangement(reduces obligation)

Ancillary Services

Capacity Settlement

24

QSEObligation

(MW)

Self Arranged

(MW)

Amount Short (MW)

Bid Amount

(MW)Bid Price

($/MW)Procurement

(MW)1 500 250 250 100 15 02 300 300 0 100 12 503 200 0 200 400 10 400

Total 1000 550 450 600 12 450

QSEPayment

($)Allocation

($)1 0 30002 -600 03 -4800 2400

Total -5400 5400

Ancillary Service Example Calculation

Capacity Settlement

25

Procured Ancillary Service Capacity

PCASqi = -1 * (CASqi * MCPCASi )

Terms

PC : Ancillary Service Capacity Payment

C: Capacity Procured

MCPC: Market Clearing Price for CapacityProtocol 6.8.1.2

Translation: The payment for Ancillary Service Capacity is equal to the Amount of Capacity procured times the Clearing price for that Service.

Subscripts

i: Interval

q: QSE

Capacity Settlement

26

LAASqi = ASPi * NTOASqi

Protocol 6.9.1

Terms

LA: Load Allocated Ancillary Service Charge

ASP: Ancillary Service Price

NTO: Ancillary Service Net Obligation per QSE

Translation: The Load Allocation Charge for an ancillary service is equal to the Ancillary Service Price times the Net Obligation for the QSE.

Subscripts

i: Interval

q: QSE

Ancillary Service Cost Allocation

Capacity Settlement

27

Learning Objectives:Learning Objectives:

Ancillary ServicesAncillary Services

Replacement ReserveReplacement Reserve

OOMCOOMC

Capacity Settlement

28

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 6.8.1.11

Capacity Settlement

29

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 6.8.1.11

Capacity Settlement

30

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 6.8.1.11

Capacity Settlement

31

Payment from the Market is collected through the following charges:

RPRS Zonal Congestion Charge

RPRS Uplift Charge

Section 6.9.2.1.1

Capacity Settlement

32

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 7.3.4.2

Capacity Settlement

33

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 6.9.2.1.2

Capacity Settlement

34Section 6.9.2.1.2

RPRSUplift

Charge

Capacity Insufficiency

Zonal Replacement

Local Replacement

TCR Payments

Zonal Congestion

Impact

Capacity Settlement

35

UCRP = -1 * [ Σ ( PCRP + LPCRP ) + TCRPAYRP + Σ CSCRP ]* LRS

RPRS Uplift Charge

Variables

UC = RPRS Uplift ChargePC = Cost of Capacity for Zonal

Congestion and Capacity Insufficiency

LPC = Cost of RPRS for Local Congestion

US = RPRS Under Scheduled ChargeTRCRPAY = TCR Payment per HourCSC = RPRS CSC Impact Capacity

ChargeLRS = Load Ratio Share

Subscripts

RP = Replacement Reserve

Section 6.9.2.1.2

Capacity Settlement

36

Learning Objectives:Learning Objectives:

Ancillary ServicesAncillary Services

Replacement ReserveReplacement Reserve

OOMCOOMC

Capacity Settlement

37

What is OOMC?

Replacement Reserve procured out of merit order

Looks a lot like Local Replacement Reserve

ERCOT-wide cost is uplifted to QSEs (LRS)

Capacity Settlement

OOMC

38

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

Capacity Settlement

39

Energy Settlement

40

Learning Objectives:Learning Objectives:

Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA

Energy Settlement

41

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 Settlement

Balancing Energy

42

Zonal Instructed Deviation (up/down) from ERCOT to

QSE Used to solve power balance and/or congestion Settled at zonal MCPE

How is this paid?

Balancing Energy

Energy Settlement

43

Learning Objectives:Learning Objectives:

Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA

Energy Settlement

44

Scheduled Generation - Metered Generation

Paid/charged at MCPE

Why an imbalance?

Instructed Deviations

Uninstructed Deviations (may be subject to URC)

Do all Resource Imbalances result in payments to the QSE?

Resource Imbalance

Protocol 6.8.1.13

Energy Settlement

45

Situation:Situation: SQSE has scheduled to generate at 208 MW from their SQSE has scheduled to generate at 208 MW from their resource in the South Zone for IE 1630.resource in the South Zone for IE 1630.

The Resource actually generates at 220MW.The Market Clearing Price for Energy, South CM Zone is $17.09/MWh

Conditions:Conditions:

SQSESQSE

Resource Imbalance Example

Energy Settlement

46

Scheduled Generation

Actual Generation

0

220MW

Resource Imbalance Example

Energy Settlement

208MW

55MWh 52MWh

SQSESQSE

47

For a given interval and zone,

RI = (Scheduled Generation – Actual Generation) * MCPE

Therefore, for interval 1630, SQSE’s Resource Imbalance in the South Zone is

RI = (52MWh - 55MWh) * $17.09/MWh = - $51.57

Resource Imbalance Example

Energy Settlement

SQSESQSE

48

RIizq = (QRSizq - MRizq) * MCPEiz

Resource Imbalance

Protocol 6.8.1.13

Terms

RI : Resource Imbalance Amount

QRS: Scheduled Resource

MR: Metered Resource

MCPE: Market Clearing Price for Energy

Translation: Resource Imbalance is the difference between the Scheduled and Actual Resource output times the Clearing Price for Energy.

Subscripts

i: Interval

z: Zone

q: QSE

Energy Settlement

49

Learning Objectives:Learning Objectives:

Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA

Energy Settlement

50

Scheduled Load - Adjusted Metered Load

Paid/charged at MCPE

Why an Imbalance?UFEForecast InaccuraciesRelaxed Balanced Schedule (section 4.3.1)LaaR’s

Load Imbalance

Protocol 6.9.5.2

Energy Settlement

51

Situation:Situation: SQSE schedules 140 MW (35 MWh / interval) of Load in SQSE schedules 140 MW (35 MWh / interval) of Load in the South Zone for IE 1630the South Zone for IE 1630

Adjusted Metered Load = 160 MW (40 MWh / interval) in the South Zone.Market Clearing Price for Energy = $17.09/MWh in the South

Conditions:Conditions:

SQSESQSE

Load Imbalance Example

Energy Settlement

52

Actual Load

Scheduled Load

0

140

160

South Zone

Load Imbalance Example

Energy Settlement

35MWh 40MWh

SQSESQSE

53

For a given interval and zone,

LI = -1*(Scheduled Load – Actual Load) * MCPE

Therefore, for interval 1630, SQSE’s Load Imbalance in the South Zone is

LI = -1*(35MWh - 40MWh) * $17.09/MWh = $85.45

SQSESQSE

Load Imbalance Example

Energy Settlement

54

Actual Load

Scheduled Load

0

200

208

SQSESQSE

North Zone

Load Imbalance Example

Energy Settlement

52MWh 50MWh

55

For a given interval and zone,

LI = -1*(Scheduled Load – Actual Load) * MCPE

Therefore, for interval 1630, SQSE’s Load Imbalance in the North Zone is

LI = -1*(52MWh - 50MWh) * $17.09/MWh = -$34.18

SQSESQSE

Load Imbalance Example

Energy Settlement

56

LIizq = -1 * (SLizq - AMLizq) * MCPEiz

Load Imbalance

Protocol 6.9.5.2

Translation: Load Imbalance is the difference between the Scheduled and Actual Load times the Clearing Price for Energy.

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

Energy Settlement

57

Learning Objectives:Learning Objectives:

Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA

Energy Settlement

58

What is OOME?

Out of merit order, unit-specific energy deployment

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)

Energy Settlement

OOME

59

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.

OOME Payment Methodology

Energy Settlement

OOME

60

Situation:Situation: SQSE receives an OOME instruction for IE SQSE receives an OOME instruction for IE 1600 to move the output of Unit 1 to 150 MW1600 to move the output of Unit 1 to 150 MW

SQSESQSE

Data for SQSE 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)

Unit 1 is a Gas-Steam Reheat Boiler unitGeneric Cost (Per Protocol 6.8.2.1) = $61.41 per MWh

MCPE = $15.80 per MWh

Energy Settlement

OOME Example

61SQSESQSE

Instructed Output

0

144

150

Metered Output

Resource Plan andGeneration Schedule100

OOME Example

Energy Settlement

37.5MWh 36MWh 25MWh

62

OOME Example

Energy Settlement

As with all settlement equations,

OOME Payment = -1 * Quantity * Price

Price is fairly easy:

Price = (Generic Cost – MCPE) or 0, whichever is greater.

In this example, Price = $61.41- 15.80 = $45.61 per MWh

Why do we subtract the MCPE from the Generic Cost?

SQSESQSE

63

OOME Example

Energy Settlement

Quantity is a little more difficult:

Quantity = The change in energy output in response to the instruction with a maximum of the instruction itself.

SQSESQSE

64

OOME Example

Energy Settlement

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 SQSE for the unit’s response of 11 MWh.

SQSESQSE

65

OOME Example

Energy Settlement

Putting it all together,

OOME Payment = -1 * Quantity * Price

= -1 * 11 MWh * $45.61/MWh

= -$501.71

SQSESQSE

66

PEOOMUPiuq = -1 * EOOMUPiuq * Max [(RCGFCc – MCPEiz),0]

Terms

PE: Price paid for OOM Energy

E: Amount of OOME Energy Provided

RCGFC: Resource Category Generic Fuel Cost

MCPE: Market Clearing Price for Energy

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

Subscripts

i: Interval

z: Zone

q: QSE

c: resource category

u: generation unit

Energy Settlement

OOME

67

where EOOMUPiuq = Max (0, Min ((MRiuq – OLiuq), IOOMUPiuq))

Terms:

MR = Metered Resource

OL = Resource Plan Output Level

I = OOME Instruction

PEOOMUPiuq = -1 * EOOMUPiuq * [Max (RCGFCc – MCPEiz),0]

Subscripts

i: Interval

z: Zone

q: QSE

c: resource category

u: generation unit

Energy Settlement

OOME

Protocol 6.8.2.3

68

Learning Objectives:Learning Objectives:

Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA

Energy Settlement

69

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.

Uninstructed Resource Charge

70

Integrated Amount of

ERCOT Regulation is less than -25

MWhrs

Uninstructed Resource

Charge

Over Generation in a zone where

MCPE is positive

Metered Resource is greater than larger of 101.5% of (or 5MWh over) total schedule

plus Instruction

Uncontrollable Renewable Resource has generated

more than 150% of its Schedule

Price Chasing

Uninstructed Resource Charge

71

Integrated Amount of

ERCOT Regulation is

greater than 25 MWhrs

Uninstructed Resource

Charge

Under Generation in a zone where

MCPE is negative

Metered Resource is less than lesser of 98.5% of (or

5MWh under) total schedule plus Instruction

Uncontrollable Renewable Resource generates less than 50% of Schedule.

Cost Optimization

Uninstructed Resource Charge

72

Learning Objectives:Learning Objectives:

Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA

Energy Settlement

73

Settlement of Zonal Congestion

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.

Congestion Management - Zonal

74

Congestion Management - Example

Congestion Management - Zonal

SouthZone

NorthZone

South to North CSC

West to North CSC

South to West CSC

WestZone

75

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

West2004 0.489911548 -0.004425342 -0.016725781

North2004 -0.008056712 -0.120276952 -0.003225342

South2004 0.002302236 0.503257831 0.104328870

CSC Zonal Average Weighted Shift Factors

Congestion Management - Zonal

76

https:tcr.ercot.com

Congestion Management - Zonal

Where do you find the real shift factors?

77

Situation:Situation: SQSE schedules 548 MW of Resource from the South SQSE schedules 548 MW of Resource from the South Zone and delivers 140 MW to the South Zone and 408 MW to the Zone and delivers 140 MW to the South Zone and 408 MW to the North Zone.North Zone.

The South to North congestion Path is constrained.

MCPE_North = $28.84MCPE_South = $17.09MCPESPC_SN = $32.91

Congestion Management - Zonal

SQSESQSE

Congestion Management - Example

78

Congestion Management - Example

Congestion Management - Zonal

South

West North

Res = 548MW

Load = 140MW

Res = 0MW

Load = 408MW

SQSESQSE

79

SQSE’s South Zone Schedule impacts the South to North constraint as follows:

Impact = (Resource – Obligation)(1/4 hr) * SFSN

= (548 MW – 140MW)(1/4 hr) * 0.503257831= 51.33 MWh

SQSESQSE

Congestion Management - Example

SQSE’s North Zone Schedule impacts the South to North constraint as follows:

Impact = (Resource – Obligation)(1/4 hr) * SFSN

= (0 MW – 408MW)(1/4 hr) * -0.120276952= 12.27 MWh

Congestion Management - Zonal

80

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

SQSESQSE

Congestion Management - Example

Congestion Management - Zonal

81

ICSCiq = Σ((QSSiqz – SOiqz) * SFZCSC)z

Protocol 7.3.4.1

CSC Schedule Impact

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

Congestion Management - Zonal

82

CSCBECSCiq = SPCCSCi * MAX(0, ICSCiq)

Congestion: CSC Impact

What happens if my impact is negative?

Terms

I: Scheduled MW Impact per CSC

CSCBE: Energy Related Congestion Charge

SPC: Shadow Price

Subscripts

i: Interval

q: QSE

CSC: Commercially Significant Constraint

Congestion Management - Zonal

Protocol 7.3.4.1

83

CSCBECSCiq = SPCCSCi * ICSCiq

Congestion: CSC Counterflow

Terms

I: Scheduled MW Impact per CSC

CSCBE: Energy Related Congestion Charge

SPC: Shadow Price

Subscripts

i: Interval

q: QSE

CSC: Commercially Significant Constraint

Congestion Management - Zonal

Protocol 7.3.4.1

84

Situation:Situation: If SQSE had bid for and purchased 100 TCRs for If SQSE had bid for and purchased 100 TCRs for this month at $3 a piece, then the impact is as follows:this month at $3 a piece, then the impact is as follows:

SQSESQSE

Cost of TCRs = 100 * $3 = $300 (covers entire month)

Cost of congestion from IE 1630 = $2,093.08

Payment from TCR = TCR/4 * MCPESPC_SN

= (100/4) * $32.91 = $822.75

SQSE cost for Congestion = $2,093.08 – $822.75 = $1270.33(minus the monthly amortized cost of the TCR)

Congestion Management – TCR Example

Congestion Management - Zonal

85

Limit = 500 MW

200 MW

300 MW

100 MW OVERLOAD

“Generate at 200”

200 MW

Question: How does ERCOT select the unit?

Congestion Management - Local

86

In real time, ERCOT manages Local Congestion using unit specific deployments.

Units selected are paid by their Bid Premiums if a Market Solution is used.

Units selected are paid as OOM if no Market Solution exists.

Charge uplifted to QSEs on a Load Ratio Share Basis.

Congestion Management - Local

Congestion Management – Unit Selection

87

Learning Objectives:Learning Objectives:

Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA

Energy Settlement

88

QSE A

R O

QSE A 100MW (South)

100MW QSE B (South)

QSE B

R O

QSE A 120MW (South)

120MW QSE B (South)

Mismatch

Mismatched Schedules

Energy Settlement

What happens if the following schedule is not resolved?

89

QSE A

R O

QSE A 100MW (South)

100MW QSE B (South)

QSE B

R O

QSE A 120MW (South)

120MW QSE B (South)

Mismatch

Energy Settlement

QSE A 100MW (South)

ERCOT 20MW (South)

Resolved in Settlement

Mismatched Schedules

90

Translation: The mismatch payment or charge is equal to the mismatch amount delivered to or received from ERCOT times the MCPE.

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

Energy Settlement

 MISDiqz = -1 * MISAMTDiqz * MCPEiz

 

MISRiqz = MISAMTRiqz * MCPEiz

Subscripts

i: Interval

z: Zone

q: QSE

Mismatched Schedules

91

Learning Objectives:Learning Objectives:

Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA

Energy Settlement

92

BENA

ResourceImbalance

Load Imbalance

Mismatch Energy

Delivered

TCR Payments

$ $

$

$Uninstructed

Resource Charge

$

Mismatch Energy

Received$

Balancing Energy CSC

Charges

$

Balancing Energy Neutrality Adjustment

Energy Settlement

93

 BENAiq= -1 * (Σ (RIiz + LIiz + URCiz+ MISDiz+ MISRiz)z +

TCRPAYBei + Σ CSCBei ) * LRSiq

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

Energy Settlement

Balancing Energy Neutrality Adjustment

94

 BENAiq= -1 * (Σ (RIiz + LIiz + URCiz+ MISDiz+ MISRiz)z +

TCRPAYBei + Σ CSCBei ) * LRSiq

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.

Energy Settlement

Balancing Energy Neutrality Adjustment

Protocol 9.6.1

95

Questions