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Weekly Market Call

Weekly Market Call. Weekly Update. November 05, 2010. Antitrust Admonition. ANTITRUST ADMONITION

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Weekly Market Call

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  1. Weekly Market Call Weekly Update November 05, 2010 http://nodal.ercot.com 1

  2. Antitrust Admonition ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. DISCLAIMER All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure. http://nodal.ercot.com 2

  3. Full Market Trials Agenda • General Updates and Reminders • Market Facing Test Update • Nodal Cutover Update • Question and Answers / General Discussion ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call offline http://nodal.ercot.com 3

  4. General Updates / Reminders http://nodal.ercot.com 4

  5. General Updates and Reminders • Network Model Loads • 11/01/2010 – Completed as scheduled • 11/10/2010 • 11/17/2010 • 11/24/2010 – Last update prior to Go-Live • Monday Market Call will be canceled for 11/08/2010 • Note that the Monday Market Call for 11/15/2010 will occur as scheduled • Market Readiness Seminar (MRS) #9 • Final MRS prior to Go-Live • Will be held on Wednesday 11/10/2010 • Market Notice sent 10/27/2010 • Details are posted at: http://www.ercot.com/calendar/2010/11/20101110-MT • Topics to be covered are: • Cutover, Go-Live and 30 Days of Stabilization • Communication and Market Call Schedule • Issue Management Process http://nodal.ercot.com 5

  6. General Updates and Reminders • NPRR219 • NPRR219 passed, which allows ERCOT to enter Resource Owned Transmission outages • A Market Notice was sent out on 10/22 that included the process, the required forms and the URL where the most current version of the forms will be located • Forms are located at: http://www.ercot.com/gridinfo/transmission/ • A  Workshop has been setup for Nov. 17, 2010 from 9:00 AM to 3:00 PM to further review the process with Market Participants • GREDP Results • The GREDP results from the recent 24-Hour Test (Oct 27-28) will be distributed beginning Nov 5 http://nodal.ercot.com 6

  7. Credit Update http://nodal.ercot.com 7

  8. Soft start CRR Auction • With CMM in cutover, credit for the CRR Auction has been handled “off line” – similar to how it was done in the TCR Auctions • Deadline for posting collateral is Monday, November 8 by noon • CPs are encouraged to get collateral in by EOD Friday, November 5th DAM • “e” factors will be reset to 1/0/1 in time for Soft Start on November 15th • Will be effective through Soft Start and through December 14th • Notices will go out by two methods • E-mail to CP authorized rep and back up and CP Credit contact and back up is the primary communication tool • Written notices may go out by regular mail or fax • CPs desiring “favorable treatment” should complete and return the attached Request for Change in “e” Factor Treatment Form to ercotcredit@ercot.com • See calendar of anticipated reset dates through January Friday Market Call

  9. “e” Factors – Request for Change in “e” Factor Treatment Form NPRR 206 and "e" Factors

  10. “e” Factors – Bi-weekly Process – Preliminary Cutover Schedule NPRR 206 and "e" Factors

  11. Soft Start • CMM soft start – Key Dates • November 15th - Initial CMM reports generated and published • November 16th – First DAM run with credit constraints • November 18th – Zonal credit requirement from CMM system • CMM soft start - General • Total Potential Exposure (TPE) will use a) Zonal data and b) binding Nodal data. • No non-binding Nodal data (e.g. practice DAM runs) will be included in the soft start TPE calculations. Collateral included will be actual collateral held. • CPs participating in the DAM during the soft start will operate within a “real” ACL • At this point in the process, CPs should be working within real credit constraints preparatory to Go Live • Since the data used in the soft start TPE calculations is binding, ERCOT will use CMM exposures published beginning November 18th as the bases for binding Zonal collateral requirements as well as Nodal “soft start” • CMM will produce reports and ACLs on non-business days during soft start Note: It will be key for Counter-Parties to verify accuracy of Credit Reports during the week of November 15th Friday Market Call

  12. Market Facing Tests UpdatesDay Ahead Market / Reliability Unit Commitment http://nodal.ercot.com 12

  13. DAM Update Past week- • November 2, ERCOT exercised the DAM failure scenario • Confirmed that QSEs were able to submit their AS Offers after the Emergency Condition notice was published (with no offer caps in place other than SWCAP) • Details of SASM on next slide (less self-arrangement, and some hours deficient on services) • SASM awards were published; no issues were found Next week- • We will run DAM Wednesday and Thursday of next week (for OD 11/11 and 11/12) around the LFC test • Market transactions should be reasonable • Non-supported DAMs may run on other days outside this window http://nodal.ercot.com 13

  14. No DAM – SASM Scenario results Yellow highlights where hours were deficient (ERCOT option to use HRUC or additional SASM) http://nodal.ercot.com 14

  15. DAM Update (continued) • Concluded DAM Deep Dive Calls this week • After 3 months of weekly calls and 100+ issues addressed, agreement on Thursday that remaining 4 issues will be forwarded to NATF • Market calls leading up to go-live will include DAM engineers for questions on calls • Policy issues still in consideration: • Support of Network Model PSSe files (NPRR290) • Will continue interim support with weekly files on Planning site for stabilization • Login to http://planning.ercot.com (Access Reports, Access PSSe Data) • Availability of additional pre-DAM data • DAM Operator will use MIS Notification for sending changes for DAM such as de-selected contingencies • for alignment with next day expectations of TOAP, PCAP, MP • Will not provide daily Tap settings of PSTs or other details of TOAP, PCAP, MP • DAM results used to consider change in RAPs/PCAPs • ERCOT only plans to use operational data, not Day-Ahead Market • Posting of DAM Energy to include Obligation and Option awards • Luminant NPRR in flight with Market Rules “Requirement to Post CRR Options and Obligation Quantities Cleared in DAM or Taken to Real Time” • DeepDive materials posted right now at: http://www.ercot.com/calendar/2010/11/20101104-MT http://nodal.ercot.com 15

  16. DAM data for upcoming soft start For the upcoming nodal soft start (OD 11/15 – OD 11/30), some data will need to be stubbed since certain systems integrating with the market system are production already or performing cutover activities • CRR ownership data will be copied forward from October. Please use your October auction data for CRR Offer submission • Verifiable cost data • UPDATE: • Verifiable costs on Nov 15 for soft-start will use all approved Verifiable Costs as of Nov 5 • Represents approximately 40 resources • Load ratio shares and capacity factors will be copied up from our testing environment. Starting effective OD 12/1, all this data will cease to be stubbed and will contain actual production data from the integrated systems http://nodal.ercot.com 16

  17. Market Facing Tests UpdatesReal Time Market / LFC http://nodal.ercot.com 17

  18. October 24 Hr LFC Test (Highlights) – Observations

  19. October 24 Hr LFC Test (Highlights) – Observations (cont)

  20. 24-Hour Test: Timeline • 24-Hour Full-System Test: • ERCOT will conduct the 24-Hour Test Nov 11 (12 pm) to Nov 12 (12 pm) • Market Notice was sent Nov 3 to confirm this test window • Two follow-up notices will be sent week of Nov 8 to confirm the test window • First confirmation notice will be sent Nov 9 (two days prior to test day) • Second confirmation notice will be sent Nov 11 (two hours prior to start of test) http://nodal.ercot.com 20

  21. 24-Hour Test: Timeline (continued) http://nodal.ercot.com 21

  22. 24-Hour Test: Tuning Windows • Market Participant Tuning Windows: • Market Participant system-tuning windows: • Notify ERCOT of proposed tuning window by sending an email to markettrials@ercot.comby 12pm Wed., Nov 10, 2010 • ERCOT will confirm whether other QSEs are conducting tuning activities during the proposed time and will suggest a different time if needed • Proposing that MPs do not perform tuning during the following test activities: • ZonalNodal /Nodal Zonal switchover activities • Operational Scenarios • Other QSE tuning windows • If you plan to use RST= ONTEST for testing purposes during 24-Hour LFC Test: • Confirm this intention with ERCOT by 4:00 pm Wed., Nov 10, 2010 to identify the Resources as well as the approximate timeframes that will be ONTEST http://nodal.ercot.com 22

  23. 24-Hour Test: Operational Scenario • There is one planned operational scenarios for the upcoming 24-Hour Full-System Test • Issue Emergency Base Points (EMBPs) • A portion of this scenario was executed during the 8-Hour Full-System Test on June 17 • On June 17, ERCOT Operators activated EMBPs and entered incremental MW value • During the Nov 11 – 12 test, an additional piece will be added to this EMBP scenario in that the RLC application will be stopped, which will alarm Operators that EMBPs should be deployed • This test will be conducted for approximately 15-30 minutes • The targeted timeframe to execute this scenario is 15:00-15:30 on Nov 11, but it may be moved depending on system congestion • More details for this scenario are provided in the next slide 23

  24. 24-Hour Test: Operational Scenario (continued) • Operational Scenario – Issue EMBPs: • The Operator will announce through a hotline call the planned scenario is about to start. • A few minutes later, the EMMS team will stop the RLC application in the EMS • After stopping RLC, EMBPs will become active, and the Operator will determine an appropriate incremental value • To determine the incremental MWs to be entered, the Operator will consider the current Regulation deployments as well as the projected change in generation needs that should occur over the next 5 minutes • The Operator will monitor the system and enter new incremental values as frequently as needed and at least every 5 minutes • EMBPs will stay in effect for 15-30 minutes • To end the scenario, the EMMS team will restart the RLC application in the EMS and the Operator will deactivate EMBPs • Once SCED Base Points have resumed, the Operator will announce through a hotline call that the planned scenario has ended 24

  25. 24-Hour Test: Operational Scenario – Hotline Script Samples • Anticipated hotline scripts for this scenario • Start of scenario • “This call requires everyone to remain on the line until it is complete. [QSE] I will be asking you for the repeat back. This is ERCOT operator [first and last name]. At this time, ERCOT will test and implement Emergency Base Points though the Nodal system. ERCOT will make an additional hotline when returning to normal Nodal control. [QSE] please repeat this back to me. That is correct, thank you.” • End of scenario • “This call requires everyone to remain on the line until it is complete. [QSE] I will be asking you for the repeat back. This is ERCOT operator [first and last name]. At this time, ERCOT has ended testing of the Emergency Base Points. [QSE] please repeat this back to me. That is correct, thank you.” http://nodal.ercot.com 25

  26. Cutover Update http://nodal.ercot.com 26

  27. Cut-Over Monthly Outlook – October May June July Aug Sept Oct Nov Dec • Functional Area • Network Model • Outage Scheduler • Congestion Revenue Rights • Credit • MIS Key Cut-Over Activities for October 2010 • (10/14-10/19) CRR: ERCOT begins accepting PCRR Nominations for December Monthly Auction (extended until 10/21) • (10/15-11/15) Model: Network Operations Model posted to TSP Citrix location and TSPs begin validation process • (10/26) CRR: ERCOT shall allocate PCRRs to NOIEs for the 2010 December Monthly Auction and publish to MIS • (10/26) CRR: ERCOT shall post CRR Network Model for the 2010 December Monthly Auction to MIS • (10/28-11/08) Credit: ERCOT posts ACLs daily for CRR December monthly auction to CRR • (10/29) CRR: ERCOT to post December 2010 Monthly Auction Notice to MIS • MP Activities / Impacts • CRRAH able to retrieve ACLs from CRR system each business day. • MPs can post additional collateral until 11/08/2010 for Dec 2010 CRR Auction • Dec 2010 CRR Model available on MIS • Dec 2010 Monthly Auction Notice available on MIS http://nodal.ercot.com 27

  28. Cut-Over Monthly Outlook – November May June July Aug Sept Oct Nov Dec Key Cut-Over Activities for November 2010 • (11/8/2010 12:00pm) Credit: Collateral Posting Deadline (Dec Auction) • (11/8/2010 5:00pm) CRR: Credit Lock for Dec CRR Auction • (11/9/2010 – 11/11/2010) CRR: December CRR Auction Bid Open/Close • (11/12/2010) CRR: December CRR Auction Executes • (11/15/2010) CRR: December CRR Auction Results published • (11/16/2010) Settlements: December CRR Auction Invoice published • (11/16/2010) Disputes: Dispute submitted to ERCOT for CRR Invoice • (11/19/2010) Credit: Payment Due for December CRR Auction Invoices • (11/22/2010) Settlements: Payments to CRRAH (Dec Auction) • (11/23/2010) Market Submission Opens (Remaining Protocol Go-Live) • (11/24/2010) Model: Network Model Load • (11/29/2010) Credit: ERCOT to Publish ACL for the initial Day-Ahead Market execution by ERCOT • Functional Area • Settlements • Credit • Congestion Revenue Rights • Disputes • Market Management • MP Activities / Impacts • Available Credit Limit is locked for CRRAHs • CRRAHs can submit disputes against CRR Auction Invoice via the API or MIS • CRRAHs can receive postings on MIS • QSEs can begin DAM Bid submission (15 submission items) • Market checkpoint calls begin to facilitate issues and readiness • Daily Market Conference Bridge starts 11/23 http://nodal.ercot.com 28

  29. CRR Activity Calendar http://nodal.ercot.com 29

  30. CRR Activity Calendar http://nodal.ercot.com 30

  31. CRR Notes • Credit Window is open for the December Auction, and closes on Monday, 11/8, at 5:00pm CPT • Counterparty must first allocate a credit limit for the market (Account Holder will only see a credit limit after the Counterparty has allocated collateral for the market) • Bid Window for the December Auction opens at 00:00:01 CPT on Tuesday, 11/9 and closes at 5:00pm on Thursday, 11/11 at 5:00pm CPT • Nomination Window is now open for the January Allocation • An updated network model for the December auction has been loaded into the CRR application and is available from the downloads page in the application

  32. Appendix http://nodal.ercot.com 32

  33. Approach for establishing the initial exposure in CMM Friday Market Call

  34. Approach for establishing the initial exposure in CMM Friday Market Call

  35. Approach for establishing the initial exposure in CMM Friday Market Call

  36. Cut-Over Update – Go-Live Sequence of Events http://nodal.ercot.com 36

  37. Cut-Over Update – Go-Live Sequence of Events (11/30/2010) http://nodal.ercot.com 37

  38. Cut-Over Monthly Outlook – Go-Live Sequence of Events • Key Zonal Notes for 11/30/2010 and 12/01/2010 • QSEs will maintain: • Balancing Energy Offers through Operating Day 12/01/2010 • Submitted on 11/30 for OD 12/1 • Resource Plans through Operating Day 12/01/2010 • Maintained continuously through 12/01 to reflect actual Resource Plan • Zonal Outages effective on Operating Day 12/01/2010 • Examples: Actual Start / End, Forced Outages, etc • On 11/30/2010 ERCOT will run: • Zonal Ancillary Service Market • Zonal awards will be published • Zonal RPRS • Run as a study only • Zonal commitments will not be published • Zonal prices will not be generated for 12/01/2010 • No Zonal Submissions or Markets for Operating Day 12/02/2010 or later • Note that all Zonal systems (ERCOT and MP) must remain in place until 1/1/2011 http://nodal.ercot.com 38

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