COMS/Settlements/Credit

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COMS/Settlements/Credit

Weekly Update

July 30, 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

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

• Settlements 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 July 21

Statement and Invoice Overview• 170 Statements/Invoices posted to QSEs• 58 Statements/Invoices posted to CRRAHs• 0 QSEs received Statements/Invoices for $0 CRR Overview• CRRs were not derated• There were no CRR Shortfall ChargesGeneral Reminders/Updates• Submit any questions/issues about

statements, invoices, extracts or calculations to [email protected]

Day Ahead Energy Sales -$23,145,243.11Day Ahead Energy Purchases $24,441,997.30PTP Obligation Bought in the DAM $432,872.34Day Ahead Congestion Rent $1,678,674.17

Day Ahead Make Whole Payments -$23,009.36Day Ahead Make Whole Charge $23,008.89

Non-Spin Reserve Payment -$85,447.48Non-Spin Service Charge $85,447.52Regulation Down Payment -$106,325.67Regulation Down Charge $106,325.75Responsive Reserve Payment -$891,094.49Responsive Reserve Charge $891,094.63Regulation Up Payment -$419,872.05Regulation Up Charge $419,872.04

Day Ahead Obligation $46,421.72Day Ahead Obligation with Refunds $0.00Day Ahead Option -$988,903.52Day Ahead Option with Refunds -$4.71Short Fall Charges to CRR Owners $0.00Balancing Account Credit $736,187.66

Day Ahead Ancillary Services

Day Ahead CRR

Operating Date 07/21/2010 DAM Settlement Totals

Day Ahead Energy

Day Ahead Make Whole

mailto:[email protected]


DAM Settlement Overview for July 27

Statement and Invoice Overview• 153 Statements/Invoices posted to QSEs• 58 Statements/Invoices posted to CRRAHs• 1 QSEs received Statements/Invoices for $0 CRR Overview• CRRs were not derated• There were no CRR Shortfall ChargesGeneral Reminders/Updates• Submit any questions/issues about


Day Ahead Energy Sales -$74,826,023.00Day Ahead Energy Purchases $135,852,267.70PTP Obligation Bought in the DAM $24,774,667.38Day Ahead Congestion Rent $85,038,550.63

Day Ahead Make Whole Payments -$303,424.68Day Ahead Make Whole Charge $303,424.78

Non-Spin Reserve Payment -$688,426.36Non-Spin Service Charge $688,426.19Regulation Down Payment -$59,853.06Regulation Down Charge $59,853.15Responsive Reserve Payment -$946,259.43Responsive Reserve Charge $946,259.47Regulation Up Payment -$426,598.25Regulation Up Charge $426,598.22

Day Ahead Obligation -$12,795,606.74Day Ahead Obligation with Refunds $0.00Day Ahead Option -$20,618,187.10Day Ahead Option with Refunds $0.00Short Fall Charges to CRR Owners $0.00Balancing Account Credit $51,624,756.79

Day Ahead Ancillary Services

Day Ahead CRR

Operating Date 07/27/2010 DAM Settlement Totals

Day Ahead Energy

Day Ahead Make Whole


RTM Settlement Overview for July 14

Statement Overview• 203 Statements posted to QSEs• 4 Statements posted to CRRAHs• 4 QSEs received Statements for $0General Reminders• Submit any questions/issues about


Real-Time Energy Imbalance $8,688,305.51Block Load Transfer Resource $0.00

Real-Time DCTIE import -$1,005,151.18Real-Time DCTIE export $56,997.60Real-Time Congestion Payment or Charge $765,064.50Real-Time PTP Obligation -$5,985,540.82Real-Time Revenue Neutrality Allocation -$2,251,691.98

Base Point Deviation Charge $1,973,641.56Base-Point Deviation Payment -$1,973,641.18

Real-Time Option w ith Refund -$2,235.64Real-Time Option -$495,692.19Real-Time CRR Ow ners Shortfall Charges $0.00

Black Start Service Payment -$9,602.96Black Start Service Charge $9,602.30

RMR Standby Payment -$37,132.54RMR Energy Payment $0.00RMR Adjustment Charge $0.00RMR Unexcused Misconduct Charge $0.00RMR Service Charge -$7,218.51

SASM Reg Dow n Payment -$11.20Reg Dow n Failure to Provide Charge $0.00Real Time Reg Dow n Adjustment Charge $11.33

SASM Non-Spin Payment $0.00Non-Spin Failure to Provide Charge $0.00Real Time Non-Spin Adjustment Charge $0.00SASM Reg Up Payment -$408.50Reg Up Failure to Provide Charge $0.00Real Time Reg-Up Adjustment Charge $408.59SASM Responsive Reserve Payment -$1,092.28Responsive Reserve Failure to Provide Charge $0.00Real Time Responsive Reserve Adjustment Charge $1,092.32

RUC Claw back Charge $366,624.65

RUC Claw back Payment -$366,624.58RUC Decommitment Payment $0.00RUC Decommitment Charge $0.00RUC Make-Whole Payment -$3.28RUC Capacity-Short $3.12RUC Make-Whole Uplift Charge $0.08

ERCOT System Administration Charge $479,788.50QSE Nodal Surcharge Fee $431,533.96

RUC

Administrative Fees

Black Start

RMR

Real-Time Ancillary Services

Real-Time CRR

Operating Date 07/14/2010 RTM Settlement Totals

Real Time Energy

Base Point Deviation






Real-Time DCTIE import -$871,714.16Real-Time DCTIE export $105,914.55Real-Time Congestion Payment or Charge $36,767.97Real-Time PTP Obligation -$6,778,584.31Real-Time Revenue Neutrality Allocation -$8,345,934.88


Real-Time Option w ith Refund -$2,782.35Real-Time Option -$45,721.55Real-Time CRR Ow ners Shortfall Charges $0.00


RMR Standby Payment -$37,143.60RMR Energy Payment $0.00RMR Adjustment Charge $0.00RMR Unexcused Misconduct Charge $0.00RMR Service Charge $94,181.14

RUC Claw back Charge $1,958,448.63RUC Claw back Payment -$1,958,448.46RUC Decommitment Payment $0.00

RUC Decommitment Charge $0.00RUC Make-Whole Payment -$92.22RUC Capacity-Short $91.74RUC Make-Whole Uplif t Charge $0.22


RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy







Real-Time DCTIE import -$695,718.30Real-Time DCTIE export $82,632.47Real-Time Congestion Payment or Charge $15,106.80Real-Time PTP Obligation -$314,403.99Real-Time Revenue Neutrality Allocation -$741,424.21


Real-Time Option w ith Refund $0.00Real-Time Option -$1,628.56Real-Time CRR Ow ners Shortfall Charges $0.00



RUC Claw back Charge $499,054.94RUC Claw back Payment -$499,054.54RUC Decommitment Payment $0.00

RUC Decommitment Charge $0.00RUC Make-Whole Payment -$4,016.86RUC Capacity-Short $4,012.95RUC Make-Whole Uplif t Charge $2.31


RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy






Real-Time Energy Imbalance $960,054.47Block Load Transfer Resource $0.00

Real-Time DCTIE import -$713,444.47Real-Time DCTIE export $72,784.71Real-Time Congestion Payment or Charge $27,276.67Real-Time PTP Obligation -$179,500.09Real-Time Revenue Neutrality Allocation -$534,118.94


Real-Time Option w ith Refund -$161.04Real-Time Option -$2,622.22Real-Time CRR Ow ners Shortfall Charges $0.00



RUC Claw back Charge $325,518.56RUC Claw back Payment -$325,517.93RUC Decommitment Payment $0.00

RUC Decommitment Charge $0.00RUC Make-Whole Payment -$1,514.04RUC Capacity-Short $1,512.84RUC Make-Whole Uplif t Charge $0.53


RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy







Real-Time DCTIE import -$4,639,641.64Real-Time DCTIE export $1,414,040.79Real-Time Congestion Payment or Charge $0.00Real-Time PTP Obligation $0.00Real-Time Revenue Neutrality Allocation -$886,840.26


No DAM Real-Time Option w ith Refund -$7,700.93No DAM Real-Time Option -$2,652,873.34No DAM Real-Time Obligation -$378,437.59



SASM Reg Dow n Payment -$1.00Reg Dow n Failure to Provide Charge $0.00Real Time Reg Dow n Adjustment Charge $1.00

SASM Reg Up Payment -$0.39Reg Up Failure to Provide Charge $0.00Real Time Reg-Up Adjustment Charge $0.39

RUC Claw back Charge $9,370,861.32RUC Claw back Payment -$9,370,861.58RUC Decommitment Payment $0.00RUC Decommitment Charge $0.00RUC Make-Whole Payment -$11,657.51RUC Capacity-Short $11,657.10RUC Make-Whole Uplif t Charge $0.22



Real Time Energy


Real-Time CRR

RUC

Administrative Fees

Black Start

RMR

Real-Time Ancillary Services

Charge Type Tracker

• Below are the Day Ahead Market charge types that have been executed at least once during Market Trials (18 of 19 executed)


Day Ahead Charge Type Executed in Market TrialsDay Ahead Obligation with Refunds NoShort Fall Charges to CRR Owners YesBalancing 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


• All Real-Time Market charge types have been executed at least once during Market Trials (45 of 45 executed)

Real Time Charge Type Executed in Market Trials Real Time Charge Type Executed in Market TrialsBlock Load Transfer Resource Yes Black Start Service Charge YesCharge for Emergency Energy Yes Black Start Service Payment YesEmergency Energy Payment Yes ERCOT System Administration Charge YesReal-Time CRR Ow ners Shortfall Charges Yes Non-Spin Failure to Provide Charge YesReal-Time DCTIE export Yes QSE Nodal Surcharge Fee YesReal-Time Load Allocated Voltage Charge Yes Real Time Non-Spin Adjustment Charge YesRMR Unexcused Misconduct Charge Yes Real Time Reg Dow n Adjustment Charge YesRUC Decommitment Charge Yes Real Time Reg-Up Adjustment Charge YesRUC Decommitment Payment Yes Real Time Responsive Reserve Adjustment Charge YesVoltage Support Service Energy Payment Yes Reg Dow n Failure to Provide Charge YesVoltage Support Service Var Payment Yes Reg Up Failure to Provide Charge YesBase Point Deviation Charge Yes Responsive Reserve Failure to Provide Charge YesBase-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 Uplif t 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

Week in Review

• RTM Invoices (Posted 7-29)– No Unsupported Operating Dates– Initials Included 7/9, 7/10, 7/13, 7/14, 7/15– Finals Included 6/29, 6/30, 7/1, 7/2, 7/3– True-Ups Included 6/1, 6/2, 6/3, 6/4, 6/5

• RTM True-Up Statements for 6-10 Operating Day– Voltage Support Payments/Charges did not show up on Final Statement because

of a system defect– This means the True-Ups will not show the Billable Amount. They’ll show the

total amount• CARD Final Invoices Published for month of June• 7-28 SASM will not be settled

– There was an issue in MMS that caused the SASM data to be deleted. A defect has been created as well as a work around if this were to happen again

• RTSPP was not calculated for settlement point UCG_COGN_CC1. A DASPP was calculated. Will be resolved with 8-2 model load



Next Week’s Activities

• Operating Days for next week that will be settled– Only Operating Days of LFC test will have DAM Settlement – All other days will be No-DAM Settlement– 8-3 (No-DAM)– 8-4 (LFC Test – DAM will be executed)– 8-5 (LFC Test – DAM will be executed)– 8-6 (No-DAM)– 8-7 (No-DAM)

• Effective August 9, actual verifiable cost submissions will replace test data in the Market Trials Environment

• Starting August 9 through August 15, the DAM will be executed every day and HRUC will be executed every hour

• New Operational Scenarios in August – De-commitments, RUC VDIs, EILS, Miscellaneous Debit Credit, RUC Simulation, any others??

Environment Report-Known Issues

COMS New Known Issues• When a RTMGNM record has zero values for the entire day, it is driving the REIAMT

calculation even though no other drivers exist. This will create Zero dollar statements if a QSE has no other activity.

• On non contiguous commitments if a resource goes off line prior to the end of the first commitment and comes on for next commitment, the resource is not being defined as start-up eligible

• AABP is not calculating correctly for the first interval of an operating day in certain instances

• Late Extract Postings– 7/27 SID, posted today(7/30). Late– 7/28 SID, posted today(7/30). Late– 7/29 SID, will post today (7/30). Late– 7/30, will post today (7/30). On Time


Environment Report-Known Issues

COMS Closed Issues• Missing TWTG data for whole intervals (Due to missing SCADA, working on S&B

integration logic to catch these instances) - We’re still confirming the business process• The MINRESPR (Minimum Resource Price) or some combined cycle phyical resource

nodes is incorrectly defaulting to $-35. • EOCPRCAP (Energy Offer Curve Price Cap) does not calculate when HSL=MW quantity

and there are multiple quantities equal HSL. This only affects Real Time 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.

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


DAM Make Whole Example with Negative Offer

• Energy Offer Curve with two points, 50MW at $-50 and 400MW at -$30• AIEC = - 40

• Assume DASUO and DAMEO of 0• DAMGCOST q, p, r = DASUO q, p, r + ∑ (DAMWENEFLAG q, p, r, h * DAMEO q, p, r, h * DALSL q, p, r, h) + ∑ (DAMWENEFLAG q, p, r, h *

DAAIEC q, p, r, h * (DAESR q, p, r, h – DALSL q, p, r, h)) • DAMWAMT q, p, r, h = (-1) * Max (0, DAMGCOST q, p, r + ∑ DAEREV q, p, r, h + ∑ DAASREV q, r, h) * DAESR q, p, r, h / ∑ (DAESR q, p, r, h)

+ ADJDAMWq, p, r, h


AIEC with caps used for DAAIECMW PRICE DAESR AREA AIEC

50 -50 0

400 -30 -14000400 -14000 -40

Results

IntervalDAM

Commit DAMWENEFLAG DALSL DASPP DAESR DAAIEC DAEREV DAMGCOST DAMWAMT 1 1 1 50 -500 400 -40 200,000.00 (14,000.00) (31,230.77) 2 1 1 50 -400 400 -40 160,000.00 (14,000.00) (31,230.77) 3 1 1 50 -200 400 -40 80,000.00 (14,000.00) (31,230.77) 4 1 1 50 -100 400 -40 40,000.00 (14,000.00) (31,230.77) 5 1 1 50 -50 400 -40 20,000.00 (14,000.00) (31,230.77) 6 1 1 50 -45 400 -40 18,000.00 (14,000.00) (31,230.77) 7 1 1 50 -40 400 -40 16,000.00 (14,000.00) (31,230.77) 8 1 1 50 -35 400 -40 14,000.00 (14,000.00) (31,230.77) 9 1 1 50 -30 400 -40 12,000.00 (14,000.00) (31,230.77)

10 1 1 50 -25 400 -40 10,000.00 (14,000.00) (31,230.77) 11 1 1 50 -20 400 -40 8,000.00 (14,000.00) (31,230.77) 12 1 1 50 -15 400 -40 6,000.00 (14,000.00) (31,230.77) 13 1 1 50 -10 400 -40 4,000.00 (14,000.00) (31,230.77)

Total 588,000.00 (182,000.00) (406,000.01)

Values pulled from Input sheet Calculation Inputs

When DAMGCOST is “less negative” than revenue, you’ll receive a MW payment

Settlements FAQs


• Q: I don’t see the MEB or NMSAMTTOT bill determinants in my extracts. How can I shadow Real Time Energy Imbalance at a Resource Node without them?

• A: NMSAMTTOT is not in COMs extracts and most likely will not be before go live. You will not see the ‘MEB’ bill determinant in your extracts, but you do have ‘MEBMP’. To calculate NMSAMTTOT, multiply MEBMP by RTRMPR and sum up the results for each Gen Site.

• Q: What are the Resource Ids in the RTRMPR and MEBMP bill determinant headers and where can I find a complete list of RIDs?

• A: Resource Ids are ERCOT EPS meter IDs. The complete list can be found in the Resource ID extract. This extract is currently not being populated in the Market Trials environment, but is available from the TML in Zonal Production, and will be available after go-live.

Settlements FAQs (cont’d)

• Q: Is it true that the DAM can clear an offer at a DASPP that is less than my offer?

• A: Yes, fixed block offers cannot set the price and may clear at less than the offer price. This behavior is explained in detail in Appendix 7 of the DAM requirements posted here: (http://nodal.ercot.com/docs/pd/mms/pd/damsasmr/mms_dam_and_sasm_req_09q1_v4_0%20%28blackline%29.doc)

• Q: What Load Data is being used for in Market Trials• A: For non-EPS meters, ERCOT is using a snapshot of Zonal

Load from 10-16-2009. Non-EPS meters that are weather sensitive use proxy days, so the load in the Market Trials environment will not always be the 10-16-2009 load. For EPS meters, Nodal and Zonal load should be the same for any given operating day.


Open Forum

Any Questions???


Market Trials - Friday call

Credit and TreasuryWeekly Update

July 30, 2010

Week in Review

• Posted Credit Reports and sent ACLs each business day

• Credit exposures– Credit exposures reflect market participant activity in Market Trials

• There remain a few exceptions, which are listed on the Known Issues list

– To adjust for the impact of high RT activity and RT prices in Market Trials, ERCOT adjusted the ADTE component of the EAL Calculation for Counter-Parties in which the Zonal ADTE was lower than the Nodal ADTE• Adjustment was on the Credit Reports beginning Tuesday, July 27th

• Adjustment will be in place at least through the end of August• Adjusted to something like a recent ADTE in the zonal market, although used

“buckets” or ranges rather than a CP’s actual ADTE• CPs should be able to see the adjustment as a separate line in the Summary

section of the EAL Detail Report• A CP may request a different (or no) change to their ADTE


Week in Review

– Adjusting the ADTE• For most CPs, reduced their exposure calculation• Established a more moderate (but not necessarily predictive) idea of what

exposure may be– In some cases, the zonal ADTE may overstate liability from what a CP may

expect in Nodal (e.g. for instance, if they expect to use DAM more heavily and reduce reliance on RT market)

– In other cases, the zonal ADTE may understate what a CP may expect in Nodal

• Will not alleviate the impact of unusual RT activity on the AIL Component• Allowed ERCOT to exercise the adjustments function

– For a CP to get a solid idea of how credit will work in Nodal, they should try to operate (as much as possible) as they intend to in Nodal (including using Energy Trades along with DAM, etc)

• ERCOT will work with CPs to further adjust their ADTE to reflect projected activity as needed


Week in Review


Operating Date Primary Activity

Total Generation Total Load

Self Scheduled

Q2Q Purchases Q2Q Sales

DAM Purchases DAM Sales

Imbalance Volume

7/13/2010 No Load, No Gen 0 0 0 0 0 5,896 17,247 11,3517/13/2010 Primarily Gen 477,724 242,770 0 126,800 108,224 575,773 216,963 -612,3397/13/2010 Primarily Load 635,732 883,905 0 8,188 26,764 287,051 624,922 604,620

1,113,456 1,126,675 0 134,988 134,988 868,720 859,132 3,631

7/14/2010 No Load, No Gen 0 0 0 720 1,888 3,316 19,478 17,3307/14/2010 Primarily Gen 514,126 244,635 0 104,000 104,000 626,322 255,556 -640,2577/14/2010 Primarily Load 625,328 905,661 0 16,617 15,449 266,836 615,503 627,832

1,139,454 1,150,296 0 121,337 121,337 896,474 890,538 4,905

7/15/2010 No Load, No Gen 0 0 0 30,496 27,497 16,573 9,376 -10,1967/15/2010 Primarily Gen 832,784 557,366 0 292,949 284,347 383,445 293,792 -373,6737/15/2010 Primarily Load 309,570 595,626 0 166,807 178,408 157,219 252,563 393,001

1,142,354 1,152,992 0 490,252 490,252 557,237 555,731 9,132

7/16/2010 No Load, No Gen 0 0 0 27,970 39,746 10,999 15,366 16,1437/16/2010 Primarily Gen 528,266 297,749 0 151,009 108,000 648,271 262,501 -659,2967/16/2010 Primarily Load 598,127 842,132 0 74,001 105,234 204,552 583,212 653,899

1,126,392 1,139,881 0 252,980 252,980 863,822 861,079 10,746

7/17/2010 No Load, No Gen 0 0 0 3,960 11,288 3,254 15,956 20,0307/17/2010 Primarily Gen 524,508 297,447 0 114,615 110,087 706,238 269,208 -668,6197/17/2010 Primarily Load 551,323 793,697 0 18,170 15,370 182,709 599,365 656,230

1,075,831 1,091,144 0 136,745 136,745 892,201 884,529 7,640

Note: Data above does not include non-modeled generators in RTMG and RMR day ahead energy sales in DAES given the use of data in CMM. Volumes are used for reporting only and do not impact credit calculations.

Next Week


Next Week - Schedule of activity


Business day Activity to consider ACL deliveredDeadline for

"e-collateral"

Monday, August 2DAM for OD 8/3? CRR ACL Lockdown at 5:00 pm

Friday evening Monday evening (for CRR)

Friday noon Monday noon

Tuesday,August 3DAM for OD 8/4? LCF Test? CRR ACL Locked Monday evening Monday noon

Wednesday, August 4

DAM for OD 8/5? LFC Test? CRR ACL Locked "e" factors notice to CPs by 9:00 am Tuesday evening Tuesday noon

Thursday, August 5LCF Test? CRR ACL Locked Wednesday evening Wednesday noon

Friday, August 6 CRR ACL Locked "e" factors effective Thursday evening Thursday noon

Note: a LFC test is scheduled for the week of August 2; although a date has not been set. A notice identifying the test date will be sent 48 hours in advance of the test. Please keep an eye out for this notice and consider credit implications.

Other topics

• Tentative timeline for First Priority Security Interest document– July 1, 2010 – ERCOT circulated initial draft to CPs. – July 19, 2010 – Comments back from CPs.– Update > August 6, 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– Training on NPRR 206 and “e” factors – August

• August 10 @ Austin Met Center• 9am – 12 noon• Web-ex available


Other topics – “e” factors

• Bi-weekly “e” factor updates– For bi-weekly updates, ERCOT plans to review “e” factors on

Tuesdays, with notices to go out before 9:00 am on Wednesday mornings to be effective beginning with the Friday morning DAM

• Initial notice is planned for Tuesday evening/Wednesday morning, August 3 or 4th to be effective on Friday, August 6

• For Market Trials, notices will initially only go out by one method – e-mail

– Initial data will include DAM activity from the most recent 30 days of data available from July and August Market Trials

• DAM was not run every day in the 30 day window that will be considered.

• To ensure there are 30 days of data to evaluate, ERCOT will use prior day(s) data to “fill in” missing days data



– Alternative or Favorable treatment• CPs should notify ERCOT of their desire to receive the “alternative” or

“favorable” treatment in Market Trials – by sending an e-mail to [email protected] with “Nodal Credit -

e factor – favorable treatment requested” in the subject line

– Finally, if CPs do not believe their DAM activity in Market Trials in July and August is indicative of their projected activity after “Go Live”, they may request ERCOT to set their “e-factors” to reflect their anticipated activity

» By sending an e-mail to [email protected] with “Nodal Credit – e factor – specific e factors requested” in the subject line and the e factors requested in the body of the e-mail

» Any “override” will be effective until the next bi-weekly reset (e.g. must be requested again or factors will be reset based on data)



– Requests for favorable treatment or for specific e-factors may be submitted any time during Market Trials; however,• Time sensitive - if you want initial e-factors effective August 6 to reflect

favorable treatment, please send notification no later than Monday, August 2 at 5:00pm.

• NOTE: in conjunction with “e” factors being set on August 6, other variables will be set consistent with how variables will be set after the initial 60 days of the market. That is:

d = 0.85 z = 0.50a = 0.50 u = 0.95b = 0.45 t = 0.50y = 0.45


Preliminary Cutover Timeline

• Thursday, November 18th – Zonal invoice published – last Zonal EAL credit calculation from which a collateral call will be made (system will

be maintained through Go Live and will be available for a period beyond Go Live)

• Friday, November 19th – Nodal CRR auction invoice payments due

• Tuesday, November 23rd – Post first Nodal Credit Reports and send ACL to CRR and DAM

• No collateral calls sent based on these reports

• Wednesday, November 24nd

– Last Zonal NLRI credit calculation from which a collateral call will be made (system will be maintained through Go Live and will be available for a period beyond Go Live)

• Thursday / Friday, November 25th / 26th – Thanksgiving holiday


Preliminary Cutover Timeline

• Monday, November 29th – – Zonal invoice published– First Nodal credit calculation from which a collateral call will be made

• For example, collateral may be required based on AIL activity (e.g. Zonal NLRI data)• Will exclude Zonal invoice from November 29th from the calculation

– send ACL for initial DAM (afternoon)

• Tuesday, November 30th – initial DAM

• “e” factors set at 1/0/1– Second Nodal credit calculation

• Will include Zonal invoice from November 29th in the calculation

• Wednesday, December 1st – “Go Live”


Known Issues

• No new Known Issues

• Note: Known Issues can be reviewed at : http://nodal.ercot.com/readiness/markettrials/coms/index.html


Documents

COMS/Settlements/Credit