Http://nodal.ercot.com 1 Market Trials DAM/RUC/SASM Weekly Update June 18, 2010

http://nodal.ercot.com 1

Market TrialsDAM/RUC/SASM

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

• DAM/ RUC/SASM summary

• QSE Activities for Next Week

• General Reminders/Updates

• Environment Report

– Outages– Known Issues

• Question and Answers / General Discussion

• Appendix

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.

Market Trials 2010 Roadmap



Follow up on Operating Day 6/10

Follow up from last week - High LZ_South prices

• SPP at LZ_SOUTH was due to a 69 KV constraint which only can be resolved by clearing less LZ_SOUTH bids, which are cleared at a higher price.

– binding constraint VICTORIA to N_VICT 69 KV under contingency SVICMAG9

– no settlement point behind N_VICT and only the load behind the line can solve this constraint. DAM does not control the individual physical load so that constraint can only be resolved by bids in LZ_SOUTH.


Submission Overview for Monday June 14

DAM submission overview

• 216 QSEs participated for Op Day 6/15

• Energy Bids in the range of 46,626 to 89,338 MW per hour

• Cleared 32,720 to 48,832 MW energy per hr

• Cleared 1,007 to 3,835 PTP bids per hr

• Four major Load Zone prices ranged from $30.33 to $139.18


Submission Overview for Tuesday June 15

DAM submission overview• 190 QSEs participated for Op Day 6/16




• Four major Load Zone prices ranged from $25.98 to $138.32


Scenario Overview for Tuesday June 15

• Operational Scenario: DAM AS insufficiency. The insufficiencies were passed to DRUC to procure the insufficient AS.

• DAM publish was delayed due to the work required to simulate the AS insufficiency – data and configurations had to be manipulated for the scenario

• In DRUC, operators selected units to procure the insufficient AS.– Neglected to include the AS MW quantity in the reason field– Also, two displays must be updated by the operator to ensure that

the award reports go out properly and this was not done in all cases. Only one QSE received their DRUC awards for AS procurement

• This scenario will be repeated in August


Submission Overview for Wednesday June 16

Submission overview• 216 QSEs participated for Op Day 6/17




• Four major Load Zone prices ranged from $34.09 to $250.


Submission Overview for Thursday June 17

Submission overview

• 200 QSEs participated for Op Day 6/18




• Four major Load Zone prices ranged from $35.32 to $500.


RUC Execution Overview for this week

RUC overview for the week:


Next Week’s Activities

Next week – Op Days are 6/22-6/26

DAM executing on 6/21-6/25

• No guardrails - Bids/offers should be reasonable

• COPs should reflect zonal throughout the week. We are requesting no

COP updates as a result of nodal market processes.

• Operational Scenarios:

– On June 22, ERCOT will:

• Cancel a previous RUC commitment in HRUC (DRUC

instructions from Monday will be canceled)

• Manually commit and decommit Resources

– If your QSE would like to receive a RUC instruction during

this test, please email [email protected] by COB

Monday. We have previously tested sending a RUC

instruction to all QSEs but some QSEs may need a retest.

Week 8

Note: Dates are DAM execution days

6/21/2010 - 6/25/2010

Objective

Executing Op Scenarios 1x a

weekNetwork Constraints Included

DAM 5 x week

DAM submissions No guardrails

COP Updates Reflect zonal

DRUC W/ each DAMHRUC LimitedSASM As needed

Op Scenarios

Cancellation of previous RUC commitment;

Manual DRUC Commitment and Decommitment


Next Week’s Activities

DRUC executing on 6/21-6/25 after DAM

HRUC and SASM executing on 6/22-6/25

• HRUC and SASM

– HRUC will be executed on Tuesday, Wednesday, Thursday and Friday

at 1 pm (target Operating Hours will be the balance of the Op Day)

– SASM will be opened if needed based on system conditions (with the

exception of operational scenarios)

Next week• Reminder that we transfer zonal outages to nodal every week on Monday

– This transfer represents approximately 85% of the actual zonal

outages

• Again, next week ERCOT may do workarounds outside the normal business

process to sidestep any issues that arise. Furthermore, we may approve the

results of the RUC software even if the result is operationally unreasonable.

The purpose of this is to exercise settlement and billing determinants related

to RUC.

Week 8

Note: Dates are DAM execution days

6/21/2010 - 6/25/2010

Objective

Executing Op Scenarios 2x a

weekNetwork Constraints Included

DAM 5 x week

DAM submissions No guardrails

COP Updates Reflect zonal

DRUC W/ each DAMHRUC LimitedSASM As needed

Op Scenarios

Cancellation of previous RUC commitment;

Manual DRUC Commitment and Decommitment


General Reminders/Updates

• Network Model Update

– Last data load was 6/15

– An updated settlement points and MP short name list was posted for the 6/15 load at http://nodal.ercot.com/readiness/markettrials/index.html

– Next scheduled load is 7/1

• On Wednesday, we will overwrite COPs using zonal resource plan data prior to running DRUC for Operating Day 6/24.

• Reminder regarding External Interfaces Specification v1.19M

– Posted at http://nodal.ercot.com/readiness/sandbox/index.html

– Targeted for delivery on 7/9


Support Metrics

* This week, 20 out of 225 questions were responded to outside of the 24 hour time frame.

Market Participant Inbound Questions

Last Week This Week


Day-to-day operations summary: Planned / Unplanned Outages

Outages

• Planned Outages– 06/18/2010 6:00 P.M. – 7:30 P.M.

• Hardware site failover is planned for this period and will affect availability of the following application services:

– EWS ( Web Services)– OS UI– Market Manager (MMS UI)

• Unplanned Outages– 06/15/2010 12:55 P.M – 01:20 P.M.

• Application link to Market Manager system was unavailable on the MIS portal due a LDAP synchronization issue.

– 06/15/2010 01:00 P.M. - Ongoing• Users are currently unable to view TPO awards via the Market Manager An application

defect has been identified as the root cause and necessary fix is being addressed (the report is available as a downloadable file on Market Manager and can also be obtained via EWS).

Environment Report-Known Issues

Full DAM/RUC/SASM known issues list will post every Friday night at http://nodal.ercot.com/readiness/markettrials/dam/index.html

New DAM/RUC/SASM known issues

• TPO awards are not displaying on the Market Manager. The xml download file is available and correct, however.

• DAM software not properly handling when a settlement point with DAM Energy Only Offers/Bids is disconnected due to a contingency. Fix is to treat it similar to a generation outage.


Summary of DAM/RUC/SASM market trials

Next week:

- Focus on quality will continue to supersede timelines (i.e., may re-run DAM/RUC late to get better solution)

- ERCOT continuing to address data issues

- In short-term continue to need COPs to reflect actual plans (to compare with zonal)

- On Wednesday, we will overwrite COPs using zonal resource plan data prior to running DRUC for Operating Day 6/24.

- More communication between ERCOT and MPs to address submission/data issues

- We will continue to contact QSE periodically to address zonal/nodal COP inconsistencies to assist QSEs in identifying mismatches.



Q&A

Q&A / Open Forum

Appendix

Appendix– AS Info for the week– Pre- and post-DAM reports– Special Topics



Submission Overview for June 14







Other

Note:• All transactions will be supported.

• Trade submission and confirmation (Energy, Capacity and AS Trades) may be exercised at this time.

• DAM notifications will be active.

• Phase 2 Validation process will be active and supported.

• QSE transactions that do not follow the guidelines are subject to cancellation at ERCOT’s discretion.

• ERCOT may run DAM on non-supported days. No QSE participation is requested, and ERCOT staff will not be available to answer questions regarding the outputs of these non-supported processes.

• CRR information from the market trials auction will be integrated into the market system. CRR Offers (by NOIEs) must contain CRR IDs from this auction in order to be valid.


Supplemental Materials

Slide 26

Reference and Description Location Version

External Interfaces Specification

http://nodal.ercot.com/readiness/sandbox/index.html 1.19

Explanation of Market Submission Items

http://nodal.ercot.com/readiness/markettrials/connectivity/index.html

0.26

Market Manager User Guide http://nodal.ercot.com/readiness/markettrials/connectivity/index.html

0.06

MMS Requirements http://nodal.ercot.com/docs/pd/mms/index.html#req Various

Market Connectivity Handbook http://nodal.ercot.com/readiness/markettrials/connectivity/index.html

0.97

DAM/RUC Known Issues List http://nodal.ercot.com/readiness/markettrials/dam/index.html

N/A

Web Services XSDs http://nodal.ercot.com/readiness/sandbox/index.html 1.3.19

Sample Reports, Extracts, and DDLs

http://nodal.ercot.com/readiness/reports/index.html Various

DAM ERCOT Operating Procedures

http://nodal.ercot.com/readiness/markettrials/dam/index.html

2.0

DRUC/WRUC ERCOT Operating Procedures

http://nodal.ercot.com/readiness/markettrials/dam/index.html

0.2



Report Postings

Posted by 6 am:

• Ancillary Services (AS) Plan

• Load Ratio Shares (these will be static based on Zonal production data as of October 16, 2009) *

• AS Obligations *

• Wind Generation Resource Power Potential (WGRPP) forecast * and Aggregated WGRPP forecast

• List of all Settlement Points and the mapping to Electrical Buses

• Load forecasts for ERCOT system, Weather Zones and Load Zones

• Load forecast distribution factors

• Distribution Loss Factors and forecasted Transmission Loss Factors

• Weather assumptions

* Denotes MIS Certified reports


Report Postings

Posted after each DAM:

• Awards (AS Offers, Energy Offers, DAM Energy-Only Offers, DAM Energy Bids, CRR Offers, and PTP Obligation Bids) *

• DAM Clearing Price for Ancillary Services (MCPC)

• Day-Ahead hourly Settlement Point Prices (SPPs)

• Day-Ahead hourly Locational Marginal Prices (LMPs)

• Shadow Prices

• Quantity of AS Offers

• Aggregated AS Offer Curve

• Total quantity of energy (in MWh) bought and sold in DAM

See DAM Handbook for a list of all DAM/RUC/SASM reports available starting in Phase 4.0 - http://nodal.ercot.com/readiness/markettrials/dam/index.html. See MIS Handbook for a comprehensive list of reports available - http://nodal.ercot.com/readiness/markettrials/mis/index.html.

* Denotes MIS Certified reports

Special Topics

Phase 2 Validation reports and process• Phase 2 validation re-evaluates all submitted transactions at 7 am in

the day-ahead with updated information, such as AS Obligation, CRR ownership, credit limits, etc.

• If there is a validation error, ERCOT will cancel the transaction• We send a notification that a Phase 2 report is available for a particular

transactions type, and notification containing the cancellation for the transaction.

• You can query for the Phase 2 report via web service or on the Reports page of the Market Manager in order to view the reason for the cancellation.

• Correct and resubmit prior to 10 am.• Note that submissions are locked out during the Phase 2 process,

which is currently taking about 10 minutes to complete.


Special Topics

Day-Ahead Self Commitment

DAM clearing engine treats your TPO differently if you submit Startup and Minimum Energy (SU/ME) costs as $0 vs. NULL

• If you submit with SU/ME as $0, DAM engine treats this as a normal offer where the QSE is not requesting SU/ME to be covered. HSL/LSL constraints will be respected. Also, if you are selected for an online Ancillary Service, you will also be awarded at least LSL on your offer curve.

• If you submit with SU/ME as NULL, DAM engine is signaled to ignore the HSL/LSL constraints for the resource. In this scenario, the offer curve submitted will start at 0 MW and go to the max MW quantity desired – again, DAM will ignore LSL/HSL constraints. If the offer curve submitted doesn’t start at 0 MW, it will be extended to 0 MW by DAM. If the resource is selected for Ancillary Services, no requirement to also award TPO at LSL (since no LSL constraint honored in this case).


Special Topics

Day-Ahead Self Commitment

The purpose of the NULL: It allows a QSE to use part of a Resource to serve its own load, and then offer in the rest to the DAM and enable the offer to be co-optimized with its AS Offer.

Example:

A Resource has 100 MW LSL and 400 MW HSL, and the QSE has already committed 300 MW of the Resource through some other mechanism. The QSE wishes to offer the remaining 100 MW, which would otherwise be ignored due to the 100 MW LSL.

Then going into real-time, so QSEs will need to update their TPO to cover the full capacity of the resource, from LSL to HSL, rather than from 0 MW. TPOs for real-time should always cover the entire capacity of the resource to avoid the proxy curve creation. To do the TPO update if the resource is awarded in the DAM, the QSE must provide a reason code, which is DSCM.

This functionality came about due to TPTF subgroup on the issue. It has not yet been added to the protocols but will during our protocol traceability/cleanup effort.


Special Topics

Bid/Offer efficiencies

• ERCOT has identified efficiencies in Bid/Offers submission with regard to the format of submission

• This applies to all transaction that use a Bid ID or an Offer ID (Energy Only Offers, Energy Only Bids, PTP Obligation Bids, and CRR Offers)

• Preference is for QSEs to submit the same Bid/Offer ID for each hour in the submission, versus submitting a different Bid/Offer ID for every hour. The market system treats the submission the exact same way, regardless of which format is used

• Using the preferred format will optimize DAM system performance

• For xml examples detailing this issue, please view a document that will be posted along with this presentation on the calendar page at http://www.ercot.com/calendar/2010/04/20100409-MT

• This was discussed at NATF 4/6, we send an email to the nodal technical contacts that we have on file for all QSEs, and we will add it to the External Interfaces Specification


Special Topics

JOUs and COP consistencies

• In DAM, if the different owners of the jointly-owned unit have submitted conflicting COP statuses for the current day, online statuses will overwrite offline statuses when DAM is determining the initial condition of the unit (i.e., is the unit online or offline at the start of the next operating day).

• In RUC, if the different owners have conflicting COP statuses for the next operating day:

– If any owner has OUT status for any hour then the unit is considered OUT.

– If all owners have submitted a COP, and at least one of them has an online status in a particular hour then the resource status for the unit is online (unless any owner has OUT)


Special Topic – Jointly Owned Units

JOUs are modeled as a single physical unit – DAM uses the separate logical resources when evaluating energy and ancillary services, but Network

Security Monitoring (NSM), which is a sub-process of DAM, must consider the physical unit. – http://nodal.ercot.com/docs/pd/ida/wp/sgrm/

IDA041_White_Paper_for_Split_Generation_Resource_Modeling_v1.doc

JOUs offering into DAM– Owners offer their share into the DAM separately, but the physical unit must be committed together– All owners have to offer in the unit (energy or AS) to the DAM or else it cannot be committed to any

owner (one exception for a self-commitment scenario described below). DAM must make a commitment decision about the physical unit, which it cannot do without offers from all the owners.

– Self-commitment examples (assume three owners) – remember that self-committing by submitting Startup and Minimum Energy Costs as ‘NULL’ (leaving them out of the submission altogether rather than submitting zeroes) signals the DAM software that it doesn’t need to make a commitment decision and to ignore resource constraints. • If two owners self-commit (startup/minimum energy costs are NULL) and the other submits

nothing, the unit can be awarded without making a commitment decision.• If one owner self-commits, another submits a TPO with startup/minimum energy costs, and the

third submits nothing, the unit cannot be awarded• If one owner self-commits, and the other two submit TPOs with startup/minimum energy costs,

the unit can be awarded after making a commitment decision based on the resource constraints and the submitted startup/minimum energy costs.

– Note that if self-committed, do not submit an OFFNS offer. That offer negates the self-commitment and the DAM software will not consider it as a self-committed resource (since the QSE is requesting ERCOT to evaluate the unit offline)


Documents

Http://nodal.ercot.com 1 Market Trials DAM/RUC/SASM Weekly Update June 18, 2010