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Settlement of Mothballed RMR Resources for System Capacity November 15, 2011 RDTF Meeting

Settlement of Mothballed RMR Resources for System Capacity November 15, 2011 RDTF Meeting. Ino González ERCOT November 14, 2011. RMR for Summer 2011. RMR Contracts for Mothballed Units

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Settlement of Mothballed RMR Resources for System Capacity November 15, 2011 RDTF Meeting

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  1. Settlement of Mothballed RMR Resourcesfor System CapacityNovember 15, 2011RDTF Meeting Ino González ERCOT November 14, 2011

  2. RMR for Summer 2011 • RMR Contracts for Mothballed Units ERCOT signed RMR Agreements with three Resource Entities to return Mothballed Generation Resources to service to mitigate capacity shortages during the extreme heat and drought conditions impacting the ERCOT Region. Contracts Outcome RMR

  3. RMR for Summer 2011 • RMR Contracts for Mothballed Units • Garland Power & Light • Spencer 4 • Spencer 5 • NRG Texas Power, LLC • SR Bertron 1 • SR Bertron 2 • Contracts terminated October 31, 2011 122 MW Contracts Outcome 292 MW RMR

  4. RMR for Summer 2011 • Operation for these RMR Units was as follows: • No Three Part Supply Offers • Not offered into DAM • Committed only by Hourly RUC • Resources came on-line with no Energy Offer Curve Operations Outcome RMR

  5. RMR for Summer 2011 What happens when an on-line Resource has no Energy Offer Curve? • ERCOT creates proxy Offer Curve Proxy Energy Offer Curve Operations $3000 Outcome $2999.99LSL+1MW LSL MW 0 HSL RMR -$250 $/MWh

  6. RMR for Summer 2011 What happens when an on-line Resource has no Energy Offer Curve? • Resource is very expensive to dispatch above LSL Proxy Energy Offer Curve Operations $3000 Outcome $2999.99LSL+1MW LSL MW 0 HSL RMR -$250 $/MWh

  7. RMR for Summer 2011 Settlements • Payment process for RMR units Outcome The Settlement process for these RMR Resources followed standard RMR Settlement practices per Protocol section 6.6.6 & Reliability Must-Run Settlement

  8. RMR for Summer 2011 Settlements • Payment process for RMR units ERCOT ultimately provides two types of payments to the QSE for an RMR Resource • Standby Payment • Includes costs to return to operational status • Ongoing operation and maintenance costs • Energy Payment • Fuel costs • Incremental Heat Rate • Fuel Index Price and Fuel adder • Startup fuel Outcome

  9. RMR for Summer 2011 Settlements • Payment process can be complex Lots of other Moving Parts for RMR Settlement • Real-Time Energy Imbalance Payment • RUC Make-Whole Payment • RUC Clawback Charge Outcome ? ? ? QSE is exposed to the usual Payments and Charges for a Resource

  10. RMR for Summer 2011 Settlements • Payment process can be complex • Lots of other Moving Parts for RMR Settlement • Real-Time Energy Imbalance Payment • RUC Make-Whole Payment • RUC Clawback Charge Outcome ? ? ? ERCOT then Reverses these Charges and payments through the RMR Adjustment Charge

  11. RMR for Summer 2011 Settlements • Costs Uplifted to QSEs with Load Net of all RMR charges and payments • Standby payment • Energy Payment • RMR Adjustment Charge • RMR Non-Performance Charge • $10,000 per event of Unexcused Misconduct • Would reduce charge to QSEs with Load Outcome ? ? ?

  12. RMR for Summer 2011 Settlements • A few notes about Capacity Short Charges • QSEs who are capacity short pay a portion of the RUC Make Whole Costs • The RUC Capacity Short Charges are not affected by the RMR Adjustment Charge Outcome ? ? ? QSEs who are capacity short will still pay RUC Capacity Short Charge, even if RUC Make-Whole payments were calculated only for these RMR units

  13. RMR for Summer 2011 • Intervals of RUC deployment for SPNCE_4 RMR Unit 1 Where TWTG (MW) = TWTG (MWh) *4

  14. RMR for Summer 2011 • Intervals of RUC deployment for SPNCE_5 RMR Unit 1 Where TWTG (MW) = TWTG (MWh) *4

  15. RMR for Summer 2011 • Intervals of RUC deployment for SRG_G2 RMR Unit 1 Where TWTG (MW) = TWTG (MWh) *4

  16. RMR for Summer 2011 • Relevant Charge Types Impacted by Capacity RMR Units

  17. RMR for Summer 2011 • Relevant Charge Types Impacted by Capacity RMR Units • - Cont.

  18. RMR for Summer 2011 MIS Posting • RMR Reports Available through MIS* Outcome • * https://mis.ercot.com – Requires a Digital Certificate

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