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GENERATION PROTOCOL AND SETTLEMENT TODAY. COMET WG / RMS Workshop. Electric Reliability Council of Texas May 2, 2007. ERCOT GENERATION PROTOCOL AND SETTLEMENT. ERCOT’s Role Market Participant Roles Generation Registration Protocol and Operating Guide References
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GENERATION PROTOCOLANDSETTLEMENT TODAY COMET WG / RMS Workshop Electric Reliability Council of Texas May 2, 2007
ERCOT GENERATION PROTOCOL AND SETTLEMENT • ERCOT’s Role • Market Participant Roles • Generation Registration • Protocol and Operating Guide References • Market Functions and Process to Realize Settlement • Energy Settlement for Resources Topics 2
ERCOT GENERATION PROTOCOL AND SETTLEMENT ERCOT’s Role as defined in the protocols: • System Reliability • Facilitate Wholesale Market • Facilitate Retail Market 3
ERCOT GENERATION PROTOCOL AND SETTLEMENT (3) Core Process to fulfill its role: • Market Operations • Power Operations • Commercial Operations 4
ERCOT GENERATION PROTOCOL AND SETTLEMENT • Day-Ahead Ancillary Services Capacity Market • Selection & Dispatch based on competitive bids • “Balanced” schedules by QSEs Market Operations 5
ERCOT GENERATION PROTOCOL AND SETTLEMENT Managing Reliability – Keeping the lights on by ensuring: - Adequate transmission capacity - Adequate reserves (Ancillary Services), “just in case” - Adequate instructions are provided to participants Power Operations 6
ERCOT GENERATION PROTOCOL AND SETTLEMENT Power Operations The ERCOT power operations system monitors and analyzes all grid components every 2-4 seconds for status, loading and output. In conjunction with the transmission control centers of the TDSPs ERCOT directs the safe and reliable operation of the power system. 7
ERCOT GENERATION PROTOCOL AND SETTLEMENT Commercial Operations Operation of the retail transactions and financial settlement of the wholesale market • Registration • -Retail premises • -Market participants • Retail Transactions • Data Acquisition • Load Profiling • Data Aggregation • Settlement and billing 8
ERCOT GENERATION PROTOCOL AND SETTLEMENT Market Participants • Qualified Scheduling Entities (QSE) • Only QSEs can schedule, bid and financially settle with ERCOT for energy and capacity • Functions: • Schedule Load and Generation • Bid into the Ancillary Service market • Provide Ancillary Services • Power Marketing • Settle with ERCOT QSE 9
Market Participants ERCOT GENERATION PROTOCOL AND SETTLEMENT Resources (RES) • Generation Facilities capable of providing energy • Loads capable of decreasing demand (LaaR) • Can Provide reserve capacity All Resources must be represented by a QSE 10
Market Participants ERCOT GENERATION PROTOCOL AND SETTLEMENT Transmission & Distribution Service Providers (TDSPs) • Local distribution / electric delivery company • Own / maintain transmission lines • Work with ERCOT in retail switching process • Provide meter data to ERCOT for Settlement* • Rates for service remain regulated by PUCT TDSP * ERCOT polls certain meters; some entities use a MRE 11
ERCOT GENERATION PROTOCOL AND SETTLEMENT Resources (RES) Registration 12
ERCOT GENERATION PROTOCOL AND SETTLEMENT Resources (RES) Registration 13
ERCOT GENERATION PROTOCOL AND SETTLEMENT Resources (RES) Registration 14
ERCOT GENERATION PROTOCOL AND SETTLEMENT Resources (RES) Registration 15
ERCOT GENERATION PROTOCOL AND SETTLEMENT 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. 16
ERCOT GENERATION PROTOCOL AND SETTLEMENT Distributive Resources Protocol and Operating Guide Reference Section 10.2.2 – TDSP Metered Entities TDSPs are responsible for supplying ERCOT with meter data associated with: • All Loads using the ERCOT System; • 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 17
ERCOT GENERATION PROTOCOL AND SETTLEMENT Distributive Resources Protocol and Operating Guide Reference 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. 18
ERCOT GENERATION PROTOCOL AND SETTLEMENT Distributive Resources Protocol and Operating Guide Reference Operating Guide Section 3.1.4 – Power Generation Companies 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. 19
ERCOT GENERATION PROTOCOL AND SETTLEMENT Distributive Resources Protocol and Operating Guide Reference Operating Guide Section 3.1.4 – Power Generation Companies 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. 20
ERCOT GENERATION PROTOCOL AND SETTLEMENT Balanced Schedules & “Relaxed” Balanced Schedules • For each Interval of a QSE schedule: • Qty of Resources and Obligations must Balance • Bilateral Transactions must Match (Qty, QSE, Zone) • QSE may set obligations equal to supply, and/or schedule BES via ERCOT to meet Obligations* Resources: Generation or purchases Obligations: Load or sales * Limited by QSE’s collateral with ERCOT 21
ERCOT GENERATION PROTOCOL AND SETTLEMENT Let’s Check Under the Hood! Resource Plan • What is the Resource Plan? • Each QSE representing a Resource or Load Acting as a Resource must submit a Resource Plan!! • Plan of how Generation Resources will operate • Due to ERCOT by 4:00 pm of the day-ahead period • Used by ERCOT to determine resource adequacy • Validated against balanced schedules 22
ERCOT GENERATION PROTOCOL AND SETTLEMENT ERCOT Market Timeline Market Operations Power Operations Wholesale Market Timeline Commercial Operations True-up Settlement: 180 days after Operating Day And/or specific Protocol Criteria is met Day-Ahead Period:6:00am to 6:00pm prior to Operating Day. Adjustment Period: Precedes Operating Period Operating Period:Balancing Energy ClearingOccurs every 15 minutes Initial Settlement 10 days after Operating Day Final Settlement 59 days after Operating Day 23
ERCOT GENERATION PROTOCOL AND SETTLEMENT How does ERCOT acquire meter data? 24
TDSPs Send Meter Data to ERCOT “EDI 867 Transactions” Data Acquisition Data is submitted to ERCOT via “EDI 867 Transactions” and loaded into ERCOT’s LODESTAR system for settlement. EDI: Electronic Data Interchange 25
EPS Meter Data Collection ERCOT initiates remote communication Meter data downloaded by ERCOT (15-minute data) Data Acquisition MV90 • Polled directly by ERCOT • ERCOT converts the raw data to Settlement Quality • MV90 is Data Collection Software 26
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 Data Acquisition Generation NOIE Points of Delivery DC Ties 27
Settlement Calculations Settlement of What? ERCOT settles for services procured to manage the Texas power grid. Capacity Settlement Energy Settlement 28
Energy Settlement Calculations Balancing Energy Resource Imbalance Load Imbalance OOME Uninstructed Resource Charge Congestion Mismatched Schedules BENA 29
Energy Settlement Calculations Resource Imbalance • Scheduled Generation - Metered Generation • Paid/charged at MCPE • Why an imbalance? • Instructed Deviations • Uninstructed Deviations (may be subject to URC) Protocol 6.8.1.13 Do all Resource Imbalances result in payments to the QSE? 30
Energy Settlement Calculations Resource Imbalance RIizq = (QRSizq - MRizq) * MCPEiz Terms RI : Resource Imbalance Amount QRS: Scheduled Resource MR: Metered Resource MCPE: Market Clearing Price for Energy Subscripts i: Interval z: Zone q: QSE Protocol 6.8.1.13 Translation: Resource Imbalance is the difference between the Scheduled and Actual Resource output times the Clearing Price for Energy. 31
Energy Settlement Calculations Resource Imbalance Example 220MW Actual Generation 208MW Scheduled Generation 55MWh 52MWh 0 32
Energy Settlement Calculations Load Imbalance • Scheduled Load - Adjusted Metered Load • Paid/charged at MCPE • Why an Imbalance? • UFE • Forecast Inaccuracies • Relaxed Balanced Schedule (section 4.3.1) • LaaR’s Protocol 6.9.5.2 33
Energy Settlement Load Imbalance Example South Zone Actual Load 160 Scheduled Load 140 35MWh 40MWh 0 34
Questions 35