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ERCOT Draft NPRR Phase 2 ORDC RATF July 8, 2014

ERCOT Draft NPRR Phase 2 ORDC RATF July 8, 2014. ERCOT draft NPRR Phase 2 ORDC. Draft NPRR will include the following clarifications or additions: Updates to the RARF for OFF10 and OFF30 Registration OFF10 and OFF30 Qualification OFF10 and OFF30 Unannounced Testing

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ERCOT Draft NPRR Phase 2 ORDC RATF July 8, 2014

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  1. ERCOT Draft NPRR Phase 2 ORDC RATF July 8, 2014

  2. ERCOT draft NPRR Phase 2 ORDC • Draft NPRR will include the following clarifications or additions: • Updates to the RARF for OFF10 and OFF30 Registration • OFF10 and OFF30 Qualification • OFF10 and OFF30 Unannounced Testing • OFF10 and OFF30 Operational Data Requirements • Continue to include OFFNSHSL in Off-Line Capacity • Draft NPRR concepts that require Stakeholder input: • Settlement On-Line Capacity when Resource HSL < RTMG • Settlement for 15 minute Settlement interval when Resource output < 95% of LSL, or Resource status is Startup, Shutdown, or ONTEST for partial interval • Base Point Deviation for Under Generation – Pricing adjustment

  3. ERCOT draft NPRR Phase 2 ORDC • Concepts still under consideration: • Load Resources included in OFF10 and OFF30 Capacity • Oscillation issue when PRC falls at or below 2300 (QMWG) • Removing RDF from input calculation (RTMG, HSL, etc.)

  4. RARF changes via draft RRGRR The Resource Registration Glossary Revision Request (RRGRR) proposes modifications to the Resource Registration Glossary to include OFF10 and OFF30 capacity for Generators and Combined cycle configuration below: Generation Resources: • Add the row for “OFF10 Capacity from On-Line state” under Parameters • Add the row for “OFF30 Capacity from On-Line state” under Parameters • Add the row for “OFF10 Capacity from Off-Line state” under Parameters • Add the row for “OFF30 Capacity from Off-Line state” under Parameters Combined Cycle Resources: • Add the row for “OFF10 Capacity” under CC Configurations • Add the row for “OFF30 Capacity” under CC Configurations • Add the row for “OFF10 Capacity from Off-Line state” under Unit Info - TRAIN • Add the row for “OFF30 Capacity from Off-Line state” under Unit Info - TRAIN

  5. OFF10 Qualification • Capacity designated as OFF10 shall not be used for SCED or any Ancillary Service and cannot be included in the telemetered HSL of the On-Line Resource. • The Resource will be qualified to provide the requested OFF10 MW if the Resource satisfies the below conditions. • If the Resource is On-Line, the output of the Resource should increase from HSL to HSL plus the OFF10 qualification request amount within ten minutes. The OFF10 telemetered value should change according to the increase in output. • If the Resource is Off-Line, the Resource should be online and the output of the Resource should increase from zero to the OFF10 qualification request amount within ten minutes. The OFF10 telemetered value should change according to the increase in output. • The Resource asset registration information for any unit that has passed a certified OFF10 test shall be updated to show the corresponding capacity certified in the test.

  6. OFF30 Qualification • Capacity designated as OFF30 shall not be used for SCED or any Ancillary Service and cannot be included in the telemetered HSL of the On-Line Resource or the HSL of the Off-Line Resource providing Non-Spin or OFF10. • The Resource will be qualified to provide the requested OFF30 MW if the Resource satisfies the below conditions. • If the Resource is On-Line, the output of the Resource should increase from HSL to HSL + OFF10 + OFF30 qualification request amount within thirty minutes. The OFF30 telemetered value should change according to the increase in output. • If the Resource is Off-Line, the Resource should be online and the output of the Resource should increase from zero to the OFF10 + OFF30 qualification request amount within thirty minutes. The OFF30 telemetered value should change according to the increase in output. • The Resource asset registration information for any unit that has passed a certified OFF30 test shall be updated to show the corresponding capacity certified in the test.

  7. OFF10 and OFF30 Unannounced Testing For On-Line Resources, once the designated Generation Resource reaches its HSL, the QSE shall reach its HSL+ OFF10 capacity within an additional ten minutes or HSL+ OFF10 +OFF30 capacity within an additional 30 minutes. For Off-Line Resources, once the QSE receives the VDI , the Resource shall reach its OFF10 capacity within ten minutes or OFF10 + OFF30 capacity within 30 minutes. The OFF10 or OFF30 value for the designated Generation Resource shall be determined based on the maximum Real-Time MW telemetered by the Resource at the end of 10 minutes for OFF10 and at the end of 30 minutes for OFF30. After each test, the QSE representing the Generation Resource will complete and submit the test form using the NDCRC application located on the MIS within two Business Days. The tested value of OFF10 or OFF30 shall be the basis for telemetered OFF10 or OFF30 capacity for the remainder of the Season unless the QSE seeks requalification.

  8. OFF10 and OFF30 Operational Data Requirements • OFF10: • On-Line Resources and Quick Start Generation Resource (QSGR) that is available for deployment by SCED, • Only include capacity that has been tested by ERCOT to be available in the appropriate time frame; and, • Not already captured in the telemetered HSL or telemetered OFF30 capacity of the Resource. • Off-Line Resources • Only include capacity that has been tested by ERCOT to be available in the appropriate time frame; and, • Not already captured in the telemetered OFF30 capacity of the Resource. • OFF30: • On-Line Resources and Quick Start Generation Resource (QSGR) that is available for deployment by SCED • Only include capacity that has been tested by ERCOT to be available in the appropriate time frame; and, • Not already captured in the telemetered HSL or telemetered OFF10 capacity of the Resource • Off-Line Resources • Only include capacity that has been tested by ERCOT to be available in the appropriate time frame; and, • Not already captured in the telemetered OFF10 capacity of the Resource.

  9. Adjustment to RTOFFCAP • Current implementation of Phase 1 RTOFFCAP: • Included Resources with Cold Start Time less than or equal to 30 minutes (RTCST30HSL) and HSL of Off-Line Resources with Non-Spin Responsibility (RTOFFNSHSL) as a proxy until Phase 2 OFF30 telemetry • Adjustment needed for Phase 2: • Replace RTCST30HSL with RTOFF30 however do not remove RTOFFNSHSL as this capacity will not be included in RTOFF30

  10. Settlement of AS Imbalance Issues • Settlement for On-Line Capacity when Resource HSL < RTMG • ERCOT noticed some resources (mostly WGR) where the RTMG has been greater than the integrated HSL this could result in negative RTOLCAP • Proposed solution is to cap the HSL at RTMG • Settlement for 15 minute Settlement interval when Resource output < 95% of LSL, or Resource status is Startup, Shutdown, or ONTEST for partial interval • Current implementation: if Resource has a one of the above telemetered status at ANY time during the 15 minute interval, they are excluded from RTOLCAP • Does market want to make this exclusion more of an inclusion? • If at any time during the 15 minute interval you are one of the “ON” statuses, HSL and RTMG are included • If any “ON” statuses for at least ½ of 15 minutes, HSL and RTMG are included • Base Point Deviation for Under Generation – Pricing adjustment or Disallow AS Imbalance payment? • Current Base Point Deviation for UGEN prices deviations as follows: • -1*(min(-20,RTSPP)* UGEN • There is incentive to adjust the HSL above what is operationally viable because the maximum price that Resource would be charged for the deviation would be $20 while at the same time collecting the price adder for the difference in HSL – RTMG. • Suggested solutions: MAX[20, ABS(RTSPP)]*UGEN OR for any 15 minute interval when UGEN > 0 then AS Imbalance payment for QSE doesn’t include the capacity from the Resource that is getting UGEN BP deviation

  11. Base Point Deviation for Under Generation • Example: • Online Reserve Price Adder = 40 $/MW • Original System lambda = 50 $/MW • Final System lambda = 90 $/MW (50+40) • Gen Resource A = No AS Responsibility true HSL = 100 MW • a. Gen Resource telemeters HSL = 120 MW (20% more than capability) • b. ERCOT issues base point of 120 MW • c. Gen Resource A can deliver only 100 MW • d. For a give 15 minute interval, Gen Resource A assessed base point deviation charge for under gen • = -1 * Min(PR2,RTSPP)*Min(1,KP)*UGEN • UGEN=max(0,(min((1-k2)*AABP*0.25, 0.25*(aabp-q2)-TWTG)) • TWTG = 100*0.25, AABP=120 • UGEN=max(0,min(28.5,3.75))=3.75 • Base point deviation charge for under gen = -1*(min(-20,90)*3.75=75 $ • The resource gets a ORDC payment of 0.25*(HSL-RTMG)*online reserve price adder = 0.25*(120-100)*40 = 200 $ • Possible extra profit = 200 – 75 = 125 $ • K2=5% • KP=1.0 • q2=5, • PR2=-20 when RTSPP>-20

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