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Settlement Options for Switchable Generation Resources RCWG 8/31/2016. Agenda Emergency Settlement options Project next steps. Emergency Settlement Options. Option 1 – Optional Switch Non-ERCOT Control Area releases the SWGR.
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Settlement Options for Switchable Generation Resources RCWG 8/31/2016
Agenda • Emergency Settlement options • Project next steps
Emergency Settlement Options Option 1 – Optional Switch • Non-ERCOT Control Area releases the SWGR. • SWGR QSE will have the decision if SWGR will move from non-ERCOT Control Area into ERCOT. • ERCOT will ask for SWGR to switch for an Emergency Condition. • Resource may be RUC committed • Settlement based on current Protocols • Option 2 – Required Switch • ERCOT will ask for SWGR to switch for an Emergency Condition. • Non-ERCOT Control Area releases the SWGR. SWGR will be required to switch to ERCOT if physically capable. • Potential for additional settlement treatment
Alternatives for Emergency Settlement Option 2 There are multiple alternatives on how to financially settle the SWGR during suspended switching operation intervals. • A = Make whole to the resource cost + penalty from contractual obligations + penalty from market obligations • B = A + lost opportunity cost • C = B - RUC Clawback Objective: Compile list of potential items in each of the following categories and bring to WMS for discussion: • Make whole to resource cost • Using Generic or verifiable cost • No claw-back charge • Penalties from contractual obligations • Capacity availability penalties etc. • Penalties from market obligations • Capacity availability penalties etc. • Lost opportunity cost • Market based revenue potential from non-ERCOT Control Area minus ERCOT market revenue
Project next steps Project timeline: • Working groups under ROS (PLWG, OWG) have discussed and not had any comments, consider no additional assignments to ROS at this time • Working groups under WMS (QMWG, CMWG, RCWG) assigned various topics, groups will report back to WMS on progress • September 7th – WMS meeting • Workshop will be scheduled if requested • Submit comments to David Thompson • David.Thompson@ERCOT.com