GENERATION PROTOCOL AND SETTLEMENT TODAY

GENERATION PROTOCOLAND

SETTLEMENT TODAY

COMET WG / RMS Workshop

Electric Reliability Council of TexasMay 2, 2007

2 2May 2, 2007

ERCOT GENERATION PROTOCOL AND SETTLEMENT

• ERCOT’s RoleERCOT’s Role• Market Participant RolesMarket Participant Roles• Generation RegistrationGeneration Registration• Protocol and Operating Guide References• Market Functions and Process to Realize

Settlement• Energy Settlement for Resources

TopicsTopics

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ERCOT’s Role as defined in the protocols:ERCOT’s Role as defined in the protocols:• System ReliabilitySystem Reliability• Facilitate Wholesale MarketFacilitate Wholesale Market• Facilitate Retail MarketFacilitate Retail Market


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(3) Core Process to fulfill its role:(3) Core Process to fulfill its role:• Market OperationsMarket Operations• Power OperationsPower Operations• Commercial OperationsCommercial Operations


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• Day-Ahead Ancillary Services Capacity MarketDay-Ahead Ancillary Services Capacity Market• Selection & Dispatch based on competitive bidsSelection & Dispatch based on competitive bids• ““BalancedBalanced” schedules by ” schedules by QSEsQSEs

Market OperationsMarket Operations


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Managing Reliability – Keeping the lights on by ensuring:Managing Reliability – Keeping the lights on by ensuring:

- Adequate transmission capacity- Adequate transmission capacity

- Adequate reserves (- Adequate reserves (Ancillary ServicesAncillary Services), “just in case”), “just in case”

- Adequate instructions are provided to participants- Adequate instructions are provided to participants

Power OperationsPower Operations


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The ERCOT The ERCOT power operations systempower operations system monitors and analyzes monitors and analyzes all grid components every 2-4 seconds for status, loading and all grid components every 2-4 seconds for status, loading and output. output.

In conjunction with the In conjunction with the transmission control centerstransmission control centers of the of the TDSPs ERCOT directs the safe and reliable operation of the TDSPs ERCOT directs the safe and reliable operation of the power system.power system.

Power OperationsPower Operations


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Commercial OperationsCommercial Operations

Operation of the retail transactions and financial Operation of the retail transactions and financial settlement of the wholesale marketsettlement of the wholesale market

• RegistrationRegistration

-Retail premises-Retail premises

-Market participants-Market participants• Retail TransactionsRetail Transactions• Data AcquisitionData Acquisition• Load ProfilingLoad Profiling• Data AggregationData Aggregation• Settlement and billingSettlement and billing


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Qualified Scheduling Entities (QSE)Qualified Scheduling Entities (QSE)

Only QSEs can schedule, bid and financially settle with Only QSEs can schedule, bid and financially settle with ERCOT for energy and capacityERCOT for energy and capacity

Functions:Functions:

• Schedule Load and GenerationSchedule Load and Generation

• Bid into the Ancillary Service marketBid into the Ancillary Service market

• Provide Ancillary ServicesProvide Ancillary Services

• Power MarketingPower Marketing

• Settle with ERCOTSettle with ERCOT

QSE

Market ParticipantsMarket Participants


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Resources (RES)Resources (RES)• Generation Facilities capable of providing energyGeneration Facilities capable of providing energy• Loads capable of decreasing demand (LaaR)Loads capable of decreasing demand (LaaR)• CanCan Provide reserve capacity Provide reserve capacity

All Resources must be represented by a QSEAll Resources must be represented by a QSE



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TDSPTDSP

Transmission & Distribution Service Providers Transmission & Distribution Service Providers (TDSPs)(TDSPs)

• Local distribution / electric delivery companyLocal distribution / electric delivery company• Own / maintain transmission linesOwn / maintain transmission lines• Work with ERCOT in retail switching processWork with ERCOT in retail switching process• Provide meter data to ERCOT for Settlement*Provide meter data to ERCOT for Settlement*• Rates for service remain regulated by PUCTRates for service remain regulated by PUCT

* ERCOT polls certain meters; some entities use a MRE* ERCOT polls certain meters; some entities use a MRE



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Resources (RES) Registration


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Distributive Resources

Protocol and Operating Guide Reference


Section 16.5 – Registration of Generation Resources…• Every Generation Resource connected to the ERCOT Transmission

System, distributed generator over one (1) megawatt (MW), Load acting as a Resource and EILS Resource must register with ERCOT.

• Distributed generation is an electrical generating facility located at a customer’s point of delivery (point of common coupling) of ten (10) megawatts (MW) or less and connected at a voltage less than or equal to sixty (60) kilovolts (kV) which may be connected in parallel operation to the utility system.

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Section 10.2.2 – TDSP Metered EntitiesTDSPs are responsible for supplying ERCOT with meter data associated

with:

1. All Loads using the ERCOT System;

2. Any Generation Resource that delivers less than ten (10) MW to the ERCOT System and that is connected directly to the distribution system; …. meter data is not required from:

(a) generation owned by a NOIE and used for NOIE’s self-use (not serving Customer Load); and

(b) renewable generation with a design capacity less than fifty (50) kW interconnected to a TDSP and not registered as a Generation Resource

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Operating Guide Section 3.1.4 – Power Generation Companies

This Section defines the minimum requirements for the integration of generation facilities greater than 10 MW into the ERCOT System.

• A generation facility shall be defined as any individual generating unit at a plant location that supplies energy to the ERCOT System.

• Each generation facility shall meet the following general requirements in order to integrate into the ERCOT System.

• Physically located in the ERCOT Control Area, • Represented by a QSE represented PGC, or directly by a QSE.

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The QSE reporting for a PGC or a generation facility shall provide the following telemeter quantities for generation facilities greater than 10 MW to ERCOT Control Area Authority:

• Generator megawatts, • Generator megavars,• Generator energy (megawatt-hours),• Substation equipment status, and • Voltage where the facility connects to the Transmission Grid • The directly connected TDSP may obtain any required data from

ERCOT.

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The PGCs reporting QSE shall, as a minimum, provide adequate modeling information, as follows:

• Machine impedance and characteristics,• Excitation system data, governor system constants,• Transformer impedance, and• Other relevant information.

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Balanced Schedules & “Relaxed”Balanced Schedules & “Relaxed” Balanced Schedules

For each Interval of a QSE schedule:For each Interval of a QSE schedule:

Qty of Resources and Obligations must Qty of Resources and Obligations must BalanceBalance

Bilateral Transactions must Bilateral Transactions must MatchMatch (Qty, QSE, Zone) (Qty, QSE, Zone)

QSE may QSE may setset obligations equal to supply, and/or schedule obligations equal to supply, and/or schedule BES via ERCOT to meet Obligations*BES via ERCOT to meet Obligations*

Resources: Generation or purchasesResources: Generation or purchasesObligations: Load or salesObligations: Load or sales

* Limited by QSE’s collateral with ERCOT


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What is the What is the Resource Plan?Resource Plan?

Each QSE representing a Resource or Load Acting as a Each QSE representing a Resource or Load Acting as a Resource must submit a Resource Plan!!Resource must submit a Resource Plan!!

Plan of how Generation Resources will operatePlan of how Generation Resources will operate

Due to ERCOT Due to ERCOT by 4:00 pmby 4:00 pm of the day-ahead period of the day-ahead period

Used by ERCOT to determine resource adequacyUsed by ERCOT to determine resource adequacy

Validated against balanced schedulesValidated against balanced schedules

Let’s Check

Under the Hood!

Resource PlanResource Plan


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Wholesale Market TimelineWholesale Market Timeline

ERCOT Market Timeline

Market Operations

AdjustmentPeriod:Precedes Operating Period

Operating Period: Balancing Energy Clearing Occurs every 15 minutes

PowerOperations

Day-AheadPeriod: 6:00am to 6:00pm prior to Operating Day.

Commercial Operations

Initial Settlement10 days afterOperating Day

FinalSettlement59 days afterOperating Day

True-upSettlement:180 days afterOperating DayAnd/or specificProtocolCriteria is met


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How does ERCOT acquire meter data? How does ERCOT acquire meter data?


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TDSPs Send Meter Data to ERCOT

Data is submitted to ERCOT via “EDI 867 Transactions” and loaded into Data is submitted to ERCOT via “EDI 867 Transactions” and loaded into ERCOT’s ERCOT’s LODESTARLODESTAR system for settlement. system for settlement.

““EDI 867 Transactions”EDI 867 Transactions”

EDI: Electronic Data InterchangeEDI: Electronic Data Interchange

Data AcquisitionData Acquisition

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EPS Meter Data Collection

• Polled directly by ERCOTPolled directly by ERCOT

• ERCOT converts the raw data to Settlement QualityERCOT converts the raw data to Settlement Quality

• MV90 is Data Collection SoftwareMV90 is Data Collection Software

MV90MV90

ERCOT initiates remote ERCOT initiates remote communicationcommunication

Meter data downloaded by Meter data downloaded by ERCOT (15-minute data)ERCOT (15-minute data)


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DC Ties DC Ties

NOIE Points of Delivery NOIE Points of Delivery

When is an EPS meter required?

• In general, generation:

– Directly connected to transmission system

– >10MW

– Ancillary Services

– Auxiliary Load

• Also:

– Bi-Directional NOIE Points of Delivery

– DC Ties

Generation Generation


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

Capacity Settlement

Settlement Calculations

Settlement of What?

Energy Settlement

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Balancing EnergyResource ImbalanceLoad ImbalanceOOMEUninstructed Resource ChargeCongestionMismatched SchedulesBENA

Energy Settlement Calculations

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o Scheduled Generation - Metered Generation

o Paid/charged at MCPE

o 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


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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


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Scheduled Generation

Actual Generation

0

220MW

Resource Imbalance Example

208MW

55MWh 52MWh


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o Scheduled Load - Adjusted Metered Load

o Paid/charged at MCPE

o Why an Imbalance?

• UFE

• Forecast Inaccuracies

• Relaxed Balanced Schedule (section 4.3.1)

• LaaR’s

Load Imbalance

Protocol 6.9.5.2


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Actual Load

Scheduled Load

0

140

160

South Zone

Load Imbalance Example

Energy Settlement

35MWh 40MWh

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Questions

Documents

GENERATION PROTOCOL AND SETTLEMENT TODAY