11

WMS Report To TACWMS Report To TAC

September 2008September 2008

22

In BriefIn Brief

Four Working Group ReportsFour Working Group Reports One Task Force ReportOne Task Force Report Three Staff reportsThree Staff reports

33

Working Group ReportsWorking Group ReportsDSWGDSWG

Price Responsive load and RUCPrice Responsive load and RUC Energy Efficiency Project #27647Energy Efficiency Project #27647 NPRR with Zero Floor on RRSNPRR with Zero Floor on RRS

44

Working Group ReportsWorking Group ReportsQSEWGQSEWG

NERC audit of ERCOT scheduled NERC audit of ERCOT scheduled for September 8-11, 2008for September 8-11, 2008

NERC EOP and its Sub-NERC EOP and its Sub-requirementsrequirements

WGRPP Forecast issuesWGRPP Forecast issues WGR only QSE Performance WGR only QSE Performance

MetricsMetrics

55

Working Group ReportsWorking Group ReportsVCWGVCWG

VC Manual and white paperVC Manual and white paper Emissions creditsEmissions credits Implementation PlanImplementation Plan NPRRs 144 (5 RUC) and NPRRs 144 (5 RUC) and

145(PPAs)145(PPAs) FIP analysisFIP analysis

66

ERCOT Staff ReportsERCOT Staff Reports

Market Credit Risk Standard – Market Credit Risk Standard – UpdateUpdate

Procedures for Identifying Procedures for Identifying Resource NodesResource Nodes

OOMC/OOME Deployments and OOMC/OOME Deployments and CostsCosts

77

CCR Credit Policy TFCCR Credit Policy TF

NPRR140 Revision to CRR NPRR140 Revision to CRR Obligation Margin Adder Obligation Margin Adder

Other Market ConcernsOther Market Concerns

88

Working Group ReportsWorking Group ReportsCMWGCMWG

SP Cap recommendation statusSP Cap recommendation status Outage EvaluationOutage Evaluation Competitive Constraint TestCompetitive Constraint Test CSC discussion and actionCSC discussion and action

99

SP Cap Progress & SP Cap Progress & RecommendationRecommendation

CMWG Recommendation: Proceed to CMWG Recommendation: Proceed to Implement Existing System CapabilitiesImplement Existing System Capabilities

3/08 Directed by WMS to look at SP

issue

4/08 ERCOT proposal, SP

cap by kV level

5-6/08 Alternate proposal for penalties based on degree of constraint violation

5-6/08 Comments on

ERCOT Proposal &

Discussion of Alternate Proposal

7/08 CMWG: Implement

Existing Sys Capabilities

7/08 Clarification

on MMS Capabilities

8/27 CMWG: Discuss SP Cap Number

1010

Working Group ReportsWorking Group ReportsCMWGCMWG

SP Cap recommendation statusSP Cap recommendation status Outage EvaluationOutage Evaluation Competitive Constraint TestCompetitive Constraint Test CSC discussion and actionCSC discussion and action

1111

2009 CSCs2009 CSCs What’s not changing?What’s not changing?

General the geographic regions are General the geographic regions are stable: West, North, South, Houstonstable: West, North, South, Houston

What is changing?What is changing? CSC definitionsCSC definitions

For N_H, Singleton is not For N_H, Singleton is not scheduled to be in-service until scheduled to be in-service until May 2009May 2009

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2009 CSCs2009 CSCsCSCCSC Scenario 3bScenario 3b Scenario 3gScenario 3g Scenario 3hScenario 3h

N_H*N_H*Singleton-Obrien/ Singleton-Obrien/ Singleton-TH Wharton Singleton-TH Wharton 345-kV double circuit345-kV double circuit

Singleton-Obrien/ Singleton-Obrien/ Singleton-TH Wharton Singleton-TH Wharton 345-kV double circuit345-kV double circuit

Singleton-Obrien/ Singleton-Obrien/ Singleton-TH Wharton Singleton-TH Wharton 345-kV double circuit345-kV double circuit

N_S N_S & & S_NS_N

Lake Creek-Temple/ Lake Creek-Temple/ Tradinghouse-Temple Tradinghouse-Temple Pecan Creek 345-kV Pecan Creek 345-kV double circuitdouble circuit

Lake Creek-Temple/ Lake Creek-Temple/ Tradinghouse-Temple Tradinghouse-Temple Pecan Creek 345-kV Pecan Creek 345-kV double circuitdouble circuit

Lake Creek-Temple/ Lake Creek-Temple/ Tradinghouse-Temple Tradinghouse-Temple Pecan Creek 345-kV Pecan Creek 345-kV double circuitdouble circuit

W_N W_N & & N_WN_W

Graham-Benbrook/ Graham-Benbrook/ Graham-Parker 345-kV Graham-Parker 345-kV double circuitdouble circuit

Graham-Long Creek/ Graham-Long Creek/ Graham-Cook Field Graham-Cook Field Road 345-kV double Road 345-kV double circuitcircuit

Sweetwater-Long Sweetwater-Long Creek/ Abilene Mulberry Creek/ Abilene Mulberry Creek-Long Creek 345-Creek-Long Creek 345-kV double circuitkV double circuit

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Two kinds of constraintsTwo kinds of constraints

It is generally understood that the western It is generally understood that the western most CSC (3h) will probably result in easier most CSC (3h) will probably result in easier operations for thermal constraints.operations for thermal constraints.

It is generally understood that the eastern It is generally understood that the eastern most CSC (3b) will probably result in easier most CSC (3b) will probably result in easier operations for stability constraints.operations for stability constraints.

ERCOT can reliably manage either option, but ERCOT can reliably manage either option, but has indicated they are less comfortable with has indicated they are less comfortable with the amount of generation that option 3h the amount of generation that option 3h moves from West to North.moves from West to North.

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Benefits of Scenario 3bBenefits of Scenario 3b

Provides Market Stability:Provides Market Stability:1.1. CSC for W-N and N-W has been 345kV double CSC for W-N and N-W has been 345kV double

circuit Graham-Parker/Graham-Benbrook circuit Graham-Parker/Graham-Benbrook since inception of ERCOT Zonal Marketsince inception of ERCOT Zonal Market

2.2. Changing the CSC will re-cluster 785MW Changing the CSC will re-cluster 785MW (20% of total) West zone load into North (20% of total) West zone load into North zone, zone, BUTBUT this load will move back to the this load will move back to the West upon Nodal Market implementation per West upon Nodal Market implementation per nodal protocols 4.1-4.2.nodal protocols 4.1-4.2.

1515

Benefits of Scenario 3bBenefits of Scenario 3b

Ensures Robust Competitive Solution Ensures Robust Competitive Solution for Resolution of N-W Congestionfor Resolution of N-W Congestion

1.1. Scenario 3h moves 33% of scheduled (non-Scenario 3h moves 33% of scheduled (non-

wind) resources from the West to the North:wind) resources from the West to the North:A.A. Oklaunion Oklaunion 649 MW649 MWB.B. GrahamGraham 611 MW611 MWC.C. North DC TieNorth DC Tie 220 MW220 MWD.D. Wichita FallsWichita Falls 77 MW77 MWE.E. Morris SheppardMorris Sheppard 24 MW24 MW

2.2. Of the remaining scheduled West zone Of the remaining scheduled West zone resources, Luminant will own 54% of the resources, Luminant will own 54% of the capacity.capacity.

1616

Benefits of Scenario 3hBenefits of Scenario 3h

W-N transmission topology for 2009 W-N transmission topology for 2009 was reconfigured on June 3, 2008 with was reconfigured on June 3, 2008 with the completion of the Long Creek the completion of the Long Creek substation, significantly changing substation, significantly changing flows on both the east side & west flows on both the east side & west side of Long Creek.side of Long Creek.

As a result of this topology change, As a result of this topology change, thermal congestion since June 3 has thermal congestion since June 3 has been primarily on Abilene Mulberry been primarily on Abilene Mulberry Creek – Long Creek. Creek – Long Creek.

1717

On June 3 W-N transmission topology significantly On June 3 W-N transmission topology significantly changeschanges

Configuration before June 3

Configuration after June 3

Note increase after June 3

Note flows equalize after June 3

Long Creek Substation was looped into Long Creek Substation was looped into Sweetwater Cogen - Graham 345 kV line on Sweetwater Cogen - Graham 345 kV line on June 3, 2008. This change 1) equalized flows June 3, 2008. This change 1) equalized flows on Graham – Long Creek circuits #1 and #2, on Graham – Long Creek circuits #1 and #2, 2) increased the flow on the Mulberry Creek 2) increased the flow on the Mulberry Creek – Long Creek, and 3) exacerbated the – Long Creek, and 3) exacerbated the congestion on the Mulberry Creek – Long congestion on the Mulberry Creek – Long CreekCreek..

1818

Historical cost is highest along Mulberry Creek – Long Historical cost is highest along Mulberry Creek – Long CreekCreek

West To North Congestion ChargesJun 3 - Aug 10, 2008

Occurrences - Days

SCKT Fisher Road – Oklaunion & Bowman

345 kV

DCKT Graham – Benbrook & Parker 345

kV

DCKT Graham – Long Creek 1&2 345 kV

Dynamic Stability

Abilene Mulberry Creek – Long Creek 345 kV - 3h 3h - 13 days

Graham –Murray 138 kV line - 3g 3g - 1 day

Willow Creek - Parker 345 kV line - 3b 3b - 6 days

Dynamic Stability 3 days

Total Occurrences 23 days

Congestion Cost - $

SCKT Fisher Road – Oklaunion & Bowman

345 kV

DCKT Graham – Benbrook & Parker 345

kV

DCKT Graham – Long Creek 1&2 345 kV

Dynamic Stability

Abilene Mulberry Creek – Long Creek 345 kV - 3h $12,278,903

Graham –Murray 138 kV line - 3g $104,044

Willow Creek - Parker 345 kV line - 3b $2,290,343

Dynamic Stability $1,577,897

Total Charges $16,251,187

OV

ER

LO

AD

OV

ER

LO

AD

OUTAGE

OUTAGE

Source: Congestion charges from ERCOT website

Proposal 3h accounts for 75% of all congestion since June 3.

1919

WMS Report To TACWMS Report To TAC