1 / 33

General Overview Of Resource Costs By Ino González

General Overview Of Resource Costs By Ino González. Nov 8, 2010. Resource Costs. Resource Costs Proxy for marginal operating costs Fuel Costs Operation and Maintenance (“O&M”) costs. 2. How are Resource Costs Used. Resource Costs

rowdy
Download Presentation

General Overview Of Resource Costs By Ino González

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. General Overview Of Resource Costs By Ino González Nov 8, 2010

  2. Resource Costs Resource Costs Proxyfor marginal operating costs Fuel Costs Operation and Maintenance (“O&M”) costs. 2

  3. How are Resource Costs Used Resource Costs Used in the three stages of the power generation cycle: Startup to LSL Startup Fuel and Incremental O&M Operation at LSL Fuel at LSL and Incremental O&M Operation above LSL Mitigated Offer Curve for Incremental Cost Above LSL 3

  4. Use of Resource Costs in Three-Part Supply Offers Three Part Supply Offer • Startup Offer • Minimum-Energy Offer • Energy Offer Curve $ to Startup $/MWh to operate at sustained level $/MWh to operate at given MW quantities above sustained level

  5. Offer Caps – DAM and RUC Cap Supply Offers • Startup Offer • Minimum-Energy Offer $ to Startup $/MWh to operate at sustained level

  6. Real Time Mitigation Cap Supply Offer • Energy Offer Curve in SCED $/MWh to operate at given MW quantities above sustained level

  7. Startup Offer Cap ($/Start) Startup Offer Cap = Fuel Costs + O&M O&M = Operation & Maintenance Costs Calculated for each Startup Type Cold Start Hot Start Intermediate Start How are Startup Offer Caps Calculated 7

  8. Minimum Energy Offer Cap ($/MWh) Minimum Offer Cap = Fuel Costs + O&M Costs at LSL How are Min Energy Offer Caps Calculated 8

  9. Startup Offer and Min Offer Caps Using Generic Costs

  10. Startup Offer Cap ($/Start) – Using Generic Costs Startup Offer Cap = Fuel Costs + O&M O&M = Generic value in the Protocols by technology Same value for each start type Cold Start Hot Start Intermediate Start How are Startup Offer Caps Calculated 10

  11. Generic Startup Offer Cap ($/Start) for CCP > 90MW Startup Offer Cap = $6,800/Start Startup Offer Cap applies to all configurations Same value for each start type Cold Start Hot Start Intermediate Star Use as default value by ERCOT if no other costs are filedNote:CCP = Combined Cycle Plant How are Startup Offer Caps Calculated 11

  12. Min Energy Offer Cap ($/MWh) – Using Generic Costs Minimum Offer Cap = Fuel Costs + O&M Costs at LSL How are Min Energy Offer Caps Calculated 12

  13. Generic Min Energy Offer Cap ($/MWh) for CCP > 90MW Minimum Offer Cap = 10 MMBtu/MWh * FIP Costs at LSL Fuel costs based on generic heat rate Use as default value by ERCOT if no other costs are filed How are Min Energy Offer Caps Calculated 13

  14. Startup Offer and Min Offer Caps Using Verifiable Costs

  15. Verifiable Costs include: Fuel consumption rates (actual) Incremental Operation & Maintenance (O&M) costs Variable O&M Emission credit costs Nodal Surcharge Factor Permissible Verifiable Cost 15

  16. How Verifiable Costs are Used Startup Fuel and Incremental O&M • Verifiable Startup Offer costs • Replace generic caps on Startup Offers • Are calculated using • FIP/FOP • Verifiable fuel rates • Incremental O&M _ < QSE’s Startup Offer Startup Offer Cap calculated using verifiable costs 16

  17. How Verifiable Costs are Used Minimum-Energy Fuel and Incremental O&M • Minimum Operating Costs • Replace generic caps on Minimum Energy Offers • Are calculated using • FIP/FOP • Verifiable fuel rates at LSL • Incremental O&M QSE’s Minimum Energy Offer Minimum Energy Offer cap calculated using verifiable costs _ < 17

  18. Verifiable Startup Costs ($/Start) Startup Offer Cap = Fuel Costs + O&M O&M = Verifiable Operation & Maintenance Costs Calculated for each Startup Type Cold Start Hot Start Intermediate Start How are Verifiable Costs used 18

  19. How are Verifiable Costs used Verifiable Fuel Cost to Start ($) Fuel Quantity = MMBtu Fuel Quantity Price = $/MMBtu Fuel Cost = Fuel Quantity x Fuel Price x Fuel Percentage 19

  20. How are Verifiable Costs used Verifiable O&M to Start ($) O&M Cost = O&M costs + Emissions Costs + Nodal Surcharge 20

  21. Verifiable Minimum Energy Costs ($/MWh) Minimum Offer Cap = Fuel Costs + O&M Costs at LSL How are Verifiable Costs used 21

  22. How are Verifiable Costs used Verifiable Minimum Energy Fuel Cost at LSL ($/MWh) Fuel Quantity = MMBtu/MWh Fuel Cost = Fuel Quantity x Fuel Price x Fuel Percentage 22

  23. How are Verifiable Costs used Energy Offer Curves may be subject to mitigation in Real-Time operations using a Mitigated Offer Cap ERCOT will construct an incremental Mitigated Offer Cap Curve Generating Resources online after January 1, 2004 the Mitigated Offer Cap Curve will be the greater of (point by point): 14.5 MMBtu/MWh x minimum of FIP or FOP OR Resource’s IHR Curve x ((percentage of FIP x FIP) + (percentage of FOP x FOP))/100 + verifiable variable O&M costs times a multiplier For Resources online before January 1, 2004 the Mitigated Offer Curve will be the greater of (point by point)10.5 MMBTU/MWh or the IHR curve Mitigated Offer Curve 23

  24. Where Verifiable Costs are Used Protocol Requirements for Calculating Make-Whole Payments Price used for Make-Whole payments is as follows: $ 24

  25. Standard Costs

  26. Standard Costs Include: Fuel consumption rates (actual) Operation & Maintenance (O&M) costs As defined in the Protocols Permissible Standard Costs 26

  27. Differences Between Generic Costs Verifiable Costs Standard Costs

  28. Differences in Cost Categories * For Resources receiving 5 RUC deployments in a year ** May substitute Standard Costs (O&M) in lieu of actual verifiable O&M ** Only valid through 12/31/2011 unless Board approves changes/extension Note: Cannot mix costs, part generic, part verifiable or part Standard 28

  29. Differences in Cost Categories 29

  30. Differences in Cost Categories 30

  31. Differences in Cost Categories 31

  32. Any Questions? 32

  33. Module Summary Related Links Verifiable Costs template http://nodal.ercot.com/readiness/golive/kd/Verifiable_Costs_Submission_Template_v9.xls Verifiable Costs Manual http://nodal.ercot.com/readiness/golive/ 33

More Related