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Objectives of NPRR

PRR756: Distributed Renewable Generation Modification Settlements Risk Assessment May 13, 2008 COPS Meeting Calvin Opheim Ino Gonzalez ERCOT. Objectives of NPRR. PURA § 39.916 provides that

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Objectives of NPRR

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  1. PRR756: Distributed Renewable Generation ModificationSettlements Risk AssessmentMay 13, 2008COPS MeetingCalvin OpheimIno GonzalezERCOT http://nodal.ercot.com 1

  2. Objectives of NPRR • PURA § 39.916 provides that For distributed renewable generation owners in areas in which customer choice has been introduced, the distributed renewable generation owner must sell the owner's surplus electricity produced to the retail electric provider that serves the distributed renewable generation owner's load ….. http://nodal.ercot.com 2

  3. Settlement Implications • Distributed renewable generation will be treated as “negative load”. • Distributed renewable generation will be treated like loads in the data aggregation process (i.e., will be adjusted for distribution losses, transmission losses, and UFE using the same formulas which are applicable for loads). • It is possible that a sub-QSE could register at ERCOT and represent REP(s) that only have distributed renewable generation ESI-ids. • If this were to occur, this could result in negative load cuts for some 15-minute intervals for the QSE which would result in negative Load Ratio Shares. http://nodal.ercot.com 3

  4. Risks with Settlements Proposal • Risks Associated with Negative Loads • Negative Load Ratio Share Values Affect a.Ancillary Services obligation b. RMR uplift charges • c. Black-Start uplift charges • d. RUC settlement • 1. RUC Make-Whole Uplift Charge • 2. RUC Claw-back Payments • 3. RUC De-Commitment Charge • e. Real Time settlement • f. Congestion Revenue Right settlement • Nodal Surcharge Not Allocated to DRG http://nodal.ercot.com 4

  5. Questions ? http://nodal.ercot.com 5

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