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PCRR release mechanism examples

PCRR release mechanism examples. December 3, 2007. Business process clarification NPRR – “release mechanism”. ERCOT proposes to remove the “release mechanism” language in the protocols as existing design provides a more elegant solution

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PCRR release mechanism examples

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  1. PCRR release mechanism examples December 3, 2007

  2. Business process clarification NPRR – “release mechanism” • ERCOT proposes to remove the “release mechanism” language in the protocols as existing design provides a more elegant solution • The following slides aim to explain the “release mechanism” compared to proposed implementation • Assumptions made in this example (which may not exist in reality): • The network capacity for 2010-2011 is the same for all months • The nominated MW is the same for all months • The nominated MW amount is fully allocated; no monthly true-up allocation required TPTF – CRR Issues

  3. Available network capacity for 2010 and 2011 100 MW (capacity) 100 MW (capacity) Year 2010 Year 2011 annual allocation before the annual auc. annual auction before the monthly auc. Jan monthly auction after the monthly auc. TPTF – CRR Issues

  4. Nominations for 2010 and 2011 submitted by NOIEs 100 MW (capacity) 100 MW (capacity) 60 MW (nominated) 60 MW (nominated) Year 2010 Year 2011 annual allocation before the annual auc. annual auction before the monthly auc. Jan monthly auction after the monthly auc. TPTF – CRR Issues

  5. All nominations for 2010 and 2011 allocated – but only some released 100 MW (capacity) 100 MW (capacity) 60 MW (allocated) 60 MW (allocated) 60*55% = 33 MW (released) 60*15% = 9 MW (released) Year 2010 Year 2011 annual allocation before the annual auc. annual auction before the monthly auc. Jan monthly auction after the monthly auc. TPTF – CRR Issues

  6. Remainder network capacity (up to 55% and 15%) auctioned 100 MW (capacity) 100 MW (capacity) 60 MW (allocated) 60 MW (allocated) 100*55% - 33 MW = 22 MW (auctioned) 55% 60*55% = 33 MW (released) 100*15% - 9 MW = 6 MW (auctioned) 15% 60*15% = 9 MW (released) Year 2010 Year 2011 annual allocation before the annual auc. annual auction before the monthly auc. Jan monthly auction after the monthly auc. TPTF – CRR Issues

  7. Balance of PCRRs (up to 90% or additional 35%) released to NOIEs 100 MW (capacity) 100 MW (capacity) 100*55% - 33 MW = 22 MW (auctioned) 60 MW (allocated) 60*90% - 33 = 21 MW (released) 60*55% = 33 MW (released) 100*15% - 9 MW = 6 MW (auctioned) 60*15% = 9 MW (released) Year 2010 Year 2011 annual allocation before the annual auc. annual auction before the monthly auc. Jan monthly auction after the monthly auc. TPTF – CRR Issues

  8. Remainder network capacity (up to 90%) auctioned 100*90% - 33 - 21 - 22= 14 MW(auctioned) 100 MW (capacity) 100 MW (capacity) 100*55% - 33 MW = 22 MW (auctioned) 60 MW (allocated) 90% 60*90% - 33 = 21 MW (released) 60*55% = 33 MW (released) 100*15% - 9 MW = 6 MW (auctioned) 60*15% = 9 MW (released) JAN Year 2010 Year 2011 annual allocation before the annual auc. annual auction before the monthly auc. Jan monthly auction after the monthly auc. TPTF – CRR Issues

  9. Balance of PCRRs (additional 10%) for Jan 2010 released to NOIEs 100*90% - 33 - 21 - 22= 14 MW(auctioned) 100 MW (capacity) 100 MW (capacity) 60*100% - 33 - 21= 6 MW(released) 100*55% - 33 MW = 22 MW (auctioned) 60 MW (allocated) 90% 60*90% - 33 = 21 MW (released) 60*55% = 33 MW (released) 100*15% - 9 MW = 6 MW (auctioned) 60*15% = 9 MW (released) JAN Year 2010 Year 2011 annual allocation before the annual auc. annual auction before the monthly auc. Jan monthly auction after the monthly auc. TPTF – CRR Issues

  10. Summary of CRRs Distributed Current PCRR release mechanism does not provide 10% cushion Proposed implementation simplifies the process TPTF – CRR Issues

  11. Available network capacity for 2010 and 2011 100 MW (capacity) 100 MW (capacity) Year 2010 Year 2011 annual allocation annual auction Jan monthly auction TPTF – CRR Issues

  12. All nominations for 2010 and 2011 allocated 100 MW (capacity) 100 MW (capacity) 60 MW (nominated & allocated) 60 MW (nominated & allocated) Year 2010 Year 2011 annual allocation annual auction Jan monthly auction TPTF – CRR Issues

  13. Network capacity (up to 55% and 15%) auctioned 100 MW (capacity) 100 MW (capacity) 60 MW (allocated) 60 MW (allocated) 100*55% - 33 MW = 22 MW (auctioned) 55% 60*55% = 33 MW (base loaded in Auction) 100*15% - 9 MW = 6 MW (auctioned) 15% 60*15% = 9 MW (base loaded in Auction) Year 2010 Year 2011 annual allocation annual auction Jan monthly auction TPTF – CRR Issues

  14. Network capacity (up to 90%) auctioned 100*90% - 60 - 22 = 8 MW(available for auction) 100 MW (capacity) 100 MW (capacity) 22*100% = 22 MW (based loaded in auction) 60 MW (allocated) 90% 60*100% = 60 MW (base loaded in auction) 100*15% - 9 MW = 6 MW (auctioned) 60*15% = 9 MW (base loaded in Auction) JAN Year 2010 Year 2011 annual allocation annual auction Jan monthly auction TPTF – CRR Issues

  15. Summary of CRRs Distributed TPTF – CRR Issues

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