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Emergency Interruptible Load Service

This update provides procurement results, trends, availability review, EILS testing, and workshop announcement for the June-Sept. 2009 contract period.

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Emergency Interruptible Load Service

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  1. Emergency Interruptible Load Service DSWG Update Paul Wattles, ERCOT Staff June 5, 2009

  2. Contents • Procurement results for June-Sept. 2009 Contract Period • Procurement trends • Availability review of Oct.’08-Jan’09 Contract Period • EILS Testing • Workshop announcement EILS Update to DSWG

  3. Current Bid Cycle • June thru September 2009 Contract Period Procurement Results • Projected cost for this Contract Period: $ 6.36 million • Total projected cost year-to-date: $10.87 million EILS Update to DSWG

  4. EILS Procurement Trends (Business Hours 1) EILS Update to DSWG

  5. EILS Procurement Trends (Business Hours 2) EILS Update to DSWG

  6. EILS Procurement Trends (Business Hours 3) EILS Update to DSWG

  7. EILS Procurement Trends (Non-Business Hours) EILS Update to DSWG

  8. EILS Procurement Trends (Number of Resources) EILS Resources include individual Loads and aggregations EILS Update to DSWG

  9. EILS Resource Availability (Oct.’08-Jan.’09) • At the time bids were due for the Oct.-Jan. Contract Period (early Sept.), DJIA was well over 11,000 • U.S. economy took a severe downturn shortly thereafter • By Nov. 21, DJIA was at 7,552 • After review, a majority of EILS Resources did not meet their availability requirements in at least one Time Period • Payment reductions were applied per Protocol, reducing the uplift to QSEs representing Load by >$3.3 million • ERCOT, after consultation with PUC Staff, applied ‘mitigating factors’ clause to allow an exemption from the suspension provision for these availability failures • Protocols §6.10.13.4 • Communicated to participants that the exemption would not set a precedent EILS Update to DSWG

  10. EILS Testing • Basic EILS testing requirements are defined in Protocols §6.10.13.2 • EILS Resources are subject to an initial test and then an annual test thereafter • Resources that change more than 20% from one contract period to the next are subject to additional testing • ERCOT will advise QSEs early in Contract Period which EILS Resources are subject to testing • Resources will be assigned to a QSE Test Group and a test deployment instruction issued to interrupt the EILS Resources (actual deployment) • Tests are unannounced and will be conducted during committed hours • Each Resource in the Test Group must deploy and meet contract requirements within 10 minutes • If assigned to Default baseline, must drop 95% of committed load compared to their baseline estimate • If assigned to the Alternate baseline, must drop to Minimum Base Load • Test requires that a Resource will be deployed for at least one 15 minute interval • If a resource fails its first test it is subject to a retest • If it fails a second test or actual deployment in any 365 day period it is subject to suspension • EILS Resources with a successful test or deployment are not subject to testing again for 365 days EILS Update to DSWG

  11. EILS Workshop • ERCOT Staff has scheduled an EILS technical workshop: • Friday, July 17, 2009 • Met Center 168 • 9:30 am – 3:30 pm • Agenda: • General overview • Updates to procurement process • Resource ID and Baseline Assignments • Combined submission form • Baseline discussion • Minimum Base Load discussion EILS Update to DSWG

  12. Questions? ON OFF EILS Update to DSWG

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