COMS/Settlements/Credit

http://nodal.ercot.com 1

COMS/Settlements/Credit

Weekly Update

June 18, 2010


Antitrust Admonition

ANTITRUST ADMONITION

ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws.

DISCLAIMER

All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure.


Agenda

• Anti-trust Admonition

• Standing Reports and Updates– Operating Day Settlement Reports– Week in Review/General Reminders– Next Week’s Activities

• Environment Report– Known Issues

• Credit

• Question and Answers / General Discussion

ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call offline


DAM Settlement Overview for June 8

Statement and Invoice Overview

• 166 Statements/Invoices posted to QSEs

• 53 Statements/Invoices posted to CRRAHs

• 0 QSEs received Statements/Invoices for $0

CRR Overview

• CRRs were derated

• CRR Owners were fully funded (i.e. there were no Short Fall Charges)

General Reminders/Updates

• Submit any questions/issues about statements, invoices, extracts or calculations to [email protected]

Day Ahead Energy Sales -$30,442,361.14Day Ahead Energy Purchases $32,927,812.18PTP Obligation Bought in the DAM $54,654.08Day Ahead Congestion Rent $2,490,590.68

Day Ahead Make Whole Payments -$24,991.00Day Ahead Make Whole Charge $24,990.90

Non-Spin Reserve Payment -$206,544.70Non-Spin Service Charge $206,544.76

Regulation Down Payment -$160,851.36Regulation Down Charge $160,851.48Responsive Reserve Payment -$979,900.51Responsive Reserve Charge $979,900.44Regulation Up Payment -$436,953.17Regulation Up Charge $436,953.24

Day Ahead Obligation -$291,148.71Day Ahead Obligation with Refunds $0.00

Day Ahead Option -$874,018.02Day Ahead Option with Refunds -$3,228.20Short Fall Charges to CRR Owners $0.00Balancing Account Credit $1,322,195.75

Day Ahead Ancillary Services

Day Ahead CRR

Operating Date 06/08/2010 DAM Settlement Totals

Day Ahead Energy

Day Ahead Make Whole







CRR Overview

• CRRs were not derated




Day Ahead Energy Sales -$26,541,767.51Day Ahead Energy Purchases $33,014,568.18PTP Obligation Bought in the DAM -$191,455.56Day Ahead Congestion Rent $6,281,345.11




Day Ahead Obligation -$710,422.37Day Ahead Obligation with Refunds $0.00

Day Ahead Option -$1,713,402.33Day Ahead Option with Refunds -$34,189.93Short Fall Charges to CRR Owners $0.00Balancing Account Credit $3,823,330.48


Day Ahead CRR


Day Ahead Energy








CRR Overview

• CRRs were derated





Day Ahead Make Whole Payments -$797.14Day Ahead Make Whole Charge $797.19



Day Ahead Obligation -$2,263,325.91Day Ahead Obligation with Refunds $0.00



Day Ahead CRR


Day Ahead Energy








CRR Overview

• CRRs were not derated








Day Ahead Obligation -$2,095,673.24Day Ahead Obligation with Refunds $0.00



Day Ahead CRR


Day Ahead Energy



RTM Settlement Overview for June 1

Statement Overview

• 143 Statements posted to QSEs

• 49 Statements posted to CRRAHs

• 2 QSEs received Statements for $0 (This is not due to the closed issue. There were drivers for calculations, but the outputs were zero)

General Reminders


Real-Time Energy Imbalance -$178,864,118.19

Block Load Transfer Resource $0.00

Real-Time DCTIE import $0.00

Real-Time DCTIE export $0.00

Real-Time Congestion Payment or Charge -$2,195,622.50

Real-Time PTP Obligation $0.00

Real-Time Revenue Neutrality Allocation $161,123,895.92

Base Point Deviation Charge $32,735,983.50

Base-Point Deviation Payment -$32,735,983.83

No DAM Real-Time Option -$219,228.14

No DAM Real-Time Obligation $20,155,075.89

Black Start Service Payment -$17,793.36

Black Start Service Charge $17,793.52

RMR Standby Payment -$38,844.72

RMR Energy Payment -$87,978.57

RMR Adjustment Charge $1,084,852.61

RMR Unexcused Misconduct Charge $0.00

RMR Service Charge -$958,029.30

RUC Claw back Charge $20,673,572.25

RUC Claw back Payment -$20,673,572.37

RUC Decommitment Payment $0.00

RUC Decommitment Charge $0.00

RUC Make-Whole Payment -$428,142.15

RUC Capacity-Short $428,141.88

RUC Make-Whole Uplif t Charge $0.12

ERCOT System Administration Charge $447,266.90

QSE Nodal Surcharge Fee $385,956.49

Real-Time CRR

Operating Date 06/01/2010 RTM Settlement Totals

Real Time Energy

Base Point Deviation

RUC

Administrative Fees

Black Start

RMR



Statement Overview



• 4 QSEs received Statements for $0

General Reminders


Real-Time Energy Imbalance -$651,988.10




Real-Time Congestion Payment or Charge -$85,347.79

Real-Time PTP Obligation $137,877.13

Real-Time Revenue Neutrality Allocation $708,315.29



Real-Time Option w ith Refund $0.00

Real-Time Option -$108,857.00

Real-Time CRR Ow ners Shortfall Charges $0.00





RMR Adjustment Charge -$29,267.00


RMR Service Charge $84,990.74

Real Time Reg Dow n Adjustment Charge $0.13

Real Time Non-Spin Adjustment Charge -$0.15

Real Time Reg-Up Adjustment Charge $0.09

Real Time Responsive Reserve Adjustment Charge -$0.07

RUC Claw back Charge $10,914,723.65

RUC Claw back Payment -$10,914,723.80





RUC Make-Whole Uplift Charge $0.21



Real-Time CRR


Real Time Energy


RUC

Administrative Fees

Black Start

RMR

Real-Time Ancillary Services



Statement Overview




General Reminders


Real-Time Energy Imbalance $3,770,047.33




Real-Time Congestion Payment or Charge $771,509.04

Real-Time PTP Obligation -$791,432.15

Real-Time Revenue Neutrality Allocation -$2,848,479.59









RMR Energy Payment $0.00

RMR Adjustment Charge $0.00



Real Time Reg Dow n Adjustment Charge -$0.18

Real Time Non-Spin Adjustment Charge $0.08

Real Time Reg-Up Adjustment Charge -$0.03

Real Time Responsive Reserve Adjustment Charge $0.08

RUC Claw back Charge $26,513.00

RUC Claw back Payment -$26,511.47





RUC Make-Whole Uplift Charge $0.48



Real-Time CRR


Real Time Energy


RUC

Administrative Fees

Black Start

RMR




Statement Overview




General Reminders












Real-Time Option -$713.06





RMR Energy Payment $0.00

RMR Adjustment Charge $0.00





Real Time Reg-Up Adjustment Charge -$0.13

Real Time Responsive Reserve Adjustment Charge -$0.21





RUC Make-Whole Payment -$80.33

RUC Capacity-Short $79.40

RUC Make-Whole Uplif t Charge $0.42



Real-Time CRR


Real Time Energy


RUC

Administrative Fees

Black Start

RMR




Statement Overview




General Reminders


















RMR Adjustment Charge -$2,777.54





Real Time Reg-Up Adjustment Charge $0.18

Real Time Responsive Reserve Adjustment Charge $0.15







RUC Make-Whole Uplift Charge -$0.02



Real-Time CRR


Real Time Energy


RUC

Administrative Fees

Black Start

RMR


Charge Type Tracker

• Below are the Day Ahead Market charge types that have been executed at least once during Market Trials (17 of 19 executed)


Day Ahead Charge Type Executed in Market TrialsDay Ahead Obligation with Refunds NoShort Fall Charges to CRR Owners NoBalancing Account Credit YesDay Ahead Energy Purchases YesDay Ahead Energy Sales YesDay Ahead Make Whole Charge YesDay Ahead Make Whole Payments YesDay Ahead Obligation YesDay Ahead Option YesDay Ahead Option with Refunds YesNon-Spin Reserve Payment YesNon-Spin Service Charge YesPTP Obligation Bought in the DAM YesRegulation Down Charge YesRegulation Down Payment YesRegulation Up Charge YesRegulation Up Payment YesResponsive Reserve Charge YesResponsive Reserve Payment Yes

Charge Type Tracker


• Below are the Real-Time Market charge types that have been executed at least once during Market Trials (30 of 45 executed)

Real Time Charge Type Executed in Market Trials Real Time Charge Type Executed in Market TrialsBlock Load Transfer Resource No Black Start Service Charge YesCharge for Emergency Energy No Black Start Service Payment YesEmergency Energy Payment No ERCOT System Administration Charge YesReal-Time CRR Ow ners Shortfall Charges No Non-Spin Failure to Provide Charge NoReal-Time DCTIE export No QSE Nodal Surcharge Fee YesReal-Time Load Allocated Voltage Charge No Real Time Non-Spin Adjustment Charge YesRMR Unexcused Misconduct Charge No Real Time Reg Dow n Adjustment Charge YesRUC Decommitment Charge No Real Time Reg-Up Adjustment Charge YesRUC Decommitment Payment No Real Time Responsive Reserve Adjustment Charge YesVoltage Support Service Energy Payment No Reg Dow n Failure to Provide Charge NoVoltage Support Service Var Payment No Reg Up Failure to Provide Charge NoBase Point Deviation Charge Yes Responsive Reserve Failure to Provide Charge NoBase-Point Deviation Payment Yes RMR Service Charge YesReal-Time Congestion Payment or Charge Yes RUC Capacity-Short YesReal-Time DCTIE import Yes RUC Claw back Charge YesReal-Time Energy Imbalance Yes RUC Claw back Payment YesReal-Time Option Yes RUC Make-Whole Payment YesReal-Time Option w ith Refund Yes RUC Make-Whole Uplift Charge YesReal-Time PTP Obligation Yes SASM Non-Spin Payment YesReal-Time Revenue Neutrality Allocation Yes SASM Reg Dow n Payment YesRMR Adjustment Charge Yes SASM Reg Up Payment YesRMR Energy Payment Yes SASM Responsive Reserve Payment YesRMR Standby Payment Yes

** We are currently planning to have all charge types executed by the end of July**

Week in Review

• 6/17 – RTM Invoice posted:– No unsupported operating dates included, so QSEs and CRRAHs

should be able to validate all line items– RTM Initial 5/28, 5/29, 6/1, 6/2, 6/3 included– RTM Final 5/19, 5/20, 5/21 included

• Balancing Account Invoices– All of the invoice payments went to QSEs with load since all CRRs for

the month of May were fully funded– Total payments were $21,557,141.62

• CARD Invoices (Distributed Revenue for May CRR Auction)– Total payments were $9,652,403.82

• 8 Hour LFC Test– Emergency Base Points were issued, so Emergency Energy settlements

will be executed for the 6-17 RTM Initial settlements– EEA flag was calculated



Next Week’s Activities

• Operating Days for next week that will be settled– 6-22 Op Scenario: Cancel previous RUC commitment (both before

and after breaker close). Execute at 1 pm– 6-23 Op Scenario: Manually commit/decommit Resources (one

RUC instruction per QSE)– 6-24 SASM only if needed– 6-25 SASM only if needed– 6-26 SASM only if needed

• DAM Re-Settlement and First True-Up Statement will be published on 6-22– We will be adding $10 to all Load Zone, Hub and AS prices so that

deltas will be created for the DAM Re-settlement– These changes are not actual price corrections, they are only there

to facilitate the re-settlement

Environment Report-Known Issues

COMS New Known Issues• DAEOCPRCAP (Day Ahead Energy Offer Curve Price Cap) does not calculate when

HSL=MW quantity and there are multiple quantities equal HSL. This only affects Day Ahead AIEC calculation under this very distinct data scenario

• When there is a RUC Decommitment with split decommitted periods from the same RUC Process, we are currently not evaluating the second RUCD period. The second RUCD period should be independently evaluated from the first.

• Incorrect ERCOT Admin Fee was used


Environment Report-Known Issues

COMS Closed Issues• EOCPRCAP (Energy Offer Curve Price Cap) is not calculating when RTMG is zero for a 15

minute settlement interval• SUO (Start Up Offer) Bill determinant used in RUC Make-Whole is not being calculated

correctly when the offer submitted to the DAM is updated before the adjustment period.• CSI Patch caused new issue where no CRRSFTVIOL bill determinants will be created. This

means there will be no CRR derations for Operating Day 5-5. A manual work around will be implemented to fix this for the DAM settlement of Operating Day 5-7

• CSI Logic needs to be updated for the CRRSFTVIOL Bill Determinant. The logic needs to be updated to include TO_STATION, FROM_STATION, TO_STA_KV and FROM_STA_KV. It also should only create the BD when the same constraint is binding for the same hour in both SFT and DAM. This is currently only an issue if the same constraint and contingency is binding in both SFT and DAM, but To-From direction is different in both processes

• Lodestar metadata for the Market Constraint table needs to be updated to include the new columns TO_STATION, FROM_STATION, TO_STA_KV and FROM_STA_KV

Reminder: ERCOT will post known issues every Friday to the readiness center at: http://nodal.ercot.com/readiness/markettrials/coms/index.html


Settlements FAQs

Q: Where can I see a detailed extract from Nodal tracking registered ESIDs to transmission station name (& associated load zone)

A: You can find ESIID to station name in the public TDSP ESIID Extract. The MP can find MP specific data on the ESIIDs in the ESIID Service History & Usage Extract or by using the web services requests to get an answer to a specific attribute question.


Settlements FAQs

Q: Which types of make whole payments will be charged to virtuals? (RUC only?) How will they be charged to virtuals (Are cleared bids and offers netted for this purpose)?

A: QSEs with cleared DAM energy only offers and bids could be held liable for RUC Capacity Short charges which are covered in Nodal Protocols section 5.7.4.1. A QSE with cleared energy only bids and Point to Point Obligation Bids in the DAM could also be held liable for DA Make Whole payments though the DA Make Whole Charge which is covered in section 4.6.2.3.2.



Credit and Treasury

Weekly Update

June 18, 2010

Week in Review

• Resolved generation volume issue identified last week

– All high historical estimates will roll off as settlement data is available (by next Friday)

– Prior reports will not be rerun

• Continue to post Credit Reports

– ACL and TPE Summary Reports early (by 9:30)

– Remainder by 11am (after review)

• Continue to send ACLs each business day

– ERCOT continues to adjust ACLs or credit limits as needed to ensure adequate credit limits while the market gets familiar with the Credit Reports

– No issues with CRR auction or with LFC test

• Encountered a delay with the CMM calculation engine which caused CMM reports not to be posted on Tuesday PM


Week in Review

• Large credit exposures

– Load volume estimation and the generation volume estimation issue is fixed, all load estimates are now correct; generation estimates with erroneous data will fully roll off in by next Friday.

• Expect “completed not settled” estimates used in AIL component of TPE calculation to improve daily and reflect all corrections next week

– The issue related to Credit and Debit invoices appearing in the OIA (Outstanding Invoice Amount) of the EAL (Estimated Aggregated Liability) calculation after payment due date has been identified, a fix is in process and a manual work around is in place in the meanwhile)

– Extrapolation of high historical activity forward continue to impact exposure calculations for CPs with ongoing activity in Real Time

• Clean up: All data older than June 3 has been removed to “reset” the ADTE using more current market activity

• CPs may work with ERCOT staff to adjust the ADTE component of the Total Potential Exposure (TPE) further if needed


Week in Review

• Large credit exposures

– While some CPs are beginning to operate more normally, we continue to see other CPs utilize the Real Time market significantly, resulting in high exposures

• To obtain more realistic exposure calculations, CPs should begin functioning in MT5 as you might after Go-Live

– For QSEs representing Load, use Energy Trades or DAM rather than RT to meet your load requirements.

– For all, use more realistic estimates in your market activity (bids / offers in DAM, etc)


Volume by Counter-Party by Day


Operating Date Primary Activity

Total Generation

Total Load

Self Scheduled

Q2Q Purchases

Q2Q Sales

DAM Purchases

DAM Sales

Imbalance Volume

Load Imbalance

Generation Imbalance

05/26/10 No Load/No Gen 0 0 0 2,600 4,800 12,183 6,196 -3,78605/26/10 Primarily Load 358,514 583,508 0 26,194 38,994 183,387 329,302 383,709 65.76%05/26/10 Primarily Gen 600,636 379,492 0 137,216 122,216 505,315 364,907 -376,553 62.69%

959,150 963,000 0 166,010 166,010 700,884 700,404 3,371

05/27/10 No Load/No Gen 0 0 0 7,240 9,600 12,682 9,839 -48305/27/10 Primarily Load 226,079 473,632 0 4,800 2,440 115,690 205,849 335,352 70.80%05/27/10 Primarily Gen 750,374 506,489 0 101,111 101,111 549,803 461,036 -332,651 44.33%

976,452 980,121 0 113,151 113,151 678,175 676,724 2,218

05/28/10 No Load/No Gen 0 0 0 16 16 16,861 10,373 -6,48805/28/10 Primarily Load 228,268 489,852 0 4,320 4,320 68,496 186,467 379,555 77.48%05/28/10 Primarily Gen 767,414 508,695 0 100,148 100,148 539,111 426,521 -371,308 48.38%

995,682 998,548 0 104,484 104,484 624,467 623,360 1,759

06/01/10 No Load/No Gen 0 0 0 0 0 0 0 006/01/10 Primarily Load 320,813 693,768 0 650 650 0 0 372,955 53.76%06/01/10 Primarily Gen 708,404 336,801 0 7,625 7,625 0 0 -371,603 52.46%

1,029,217 1,030,569 0 8,275 8,275 0 0 1,352

Note 1: Volume aggregation is by Counter-Party Note 2: No DAM run on Memorial Day

Next Week


Next Week - Schedule of activity

Meeting Title (optional)Date

Business day Activity to consider ACL deliveredDeadline for

"e-collateral"

Monday, June 21DAM for OD 6/22; CRR ACL lockdown in place Friday evening Friday noon

Tuesday, June 22DAM for OD 6/23; CRR ACL lockdown ends after the CRR Invoice is posted (see note) Monday evening Monday noon

Wednesday, June 23 DAM for OD 6/24 Tuesday evening Tuesday noon

Thursday, June 24 DAM for OD 6/25 Wednesday evening Wednesday noon

Friday, June 25 DAM for OD 6/26 Thursday evening Thursday noon

Note: If CRR invoice is posted before 3:00 pm on Tuesday, the CRR ACL will be released on Tuesday and will be available for the DAM run on Wednesday. If the invoice is posted after 3:00 pm on Tuesday, the CRR ACL will be released on Wednesday for the DAM run on Thursday.

Other topics

• Tentative timeline for First Priority Security Interest document– July 1, 2010 – ERCOT circulates initial draft to CPs.– July 19, 2010 – Comments back from CPs.– August 2, 2010 – ERCOT circulates second draft to CPs.– August 17, 2010 – ERCOT reviews document with F&A.– September 21, 2010 – Final review and possible approval by F&A

and ERCOT Board.

• NPRR 206 and “e” factors– NPRR 206 with 1/0/1 – in by mid-July– “e” factors – planned - August 1– Training on NPRR 206 and “e” factors in August


New Known Issues

• Unbilled Day Ahead Amount (UDAA) of the EAL Details Report reflects days that have already been invoiced (May 15 – June 14) – Root cause is being investigated

• Daily Average Liability Extrapolation (DALE) Supporting Details of the EAL Details Report is missing several invoices (June 4, 5, 10)– Root cause is being investigated

• Real time estimates for Aggregate Incremental Liability (AIL) are delayed by up to two days– Due to a CSI framework restart, jobs are delayed. Expect to self correct as

jobs catch up.

– Note: Know Issues can be reviewed at : http://nodal.ercot.com/readiness/markettrials/coms/index.html,


Closed Known Issues


– Load Volume used in AIL Calculation – Fixed• Historical data has been corrected

– Generation Volume used in AIL Calculation – Fixed• Approximately five days of historical data needs to be corrected

– OIA (Outstanding Invoice Amount) of the EAL (Estimated Aggregated Liability) calculation - Fixed

• Credit and Debit invoices appear in OIA calculation after payment due date

– ADTE field of the EAL Details Report has a display issue; calculation is correct - Fixed


Documents

COMS/Settlements/Credit