Http://nodal.ercot.com 1 COMS/Settlements/Credit Weekly Update August 27, 2010.

http://nodal.ercot.com 1

COMS/Settlements/Credit

Weekly Update

August 27, 2010


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.


Agenda

• Anti-trust Admonition

• Settlements Standing Reports and Updates– Operating Day Settlement Reports– Week in Review/General Reminders– Next Week’s Activities

• Settlements Environment Report– Known Issues

• Credit

• 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


DAM Settlement Overview for August 18

Statement and Invoice Overview

• 161 Statements/Invoices posted to QSEs

• 62 Statements/Invoices posted to CRRAHs

• 0 QSEs received Statements/Invoices for $0

CRR Overview

• CRRs were derated

• There were no CRR Shortfall Charges

General Reminders/Updates

• Submit any questions/issues about statements, invoices, extracts or calculations to [email protected]

Day Ahead Energy Sales -$62,159,852.01Day Ahead Energy Purchases $150,057,593.77PTP Obligation Bought in the DAM $18,428,577.68Day Ahead Congestion Rent $105,814,100.39

Day Ahead Make Whole Payments -$26,209.84Day Ahead Make Whole Charge $26,209.94

Non-Spin Reserve Payment -$603,422.99Non-Spin Service Charge $603,422.97

Regulation Down Payment -$54,879.98Regulation Down Charge $54,879.99Responsive Reserve Payment -$1,817,056.24Responsive Reserve Charge $1,817,056.16Regulation Up Payment -$1,839,108.50Regulation Up Charge $1,839,108.40

Day Ahead Obligation -$33,897,748.06Day Ahead Obligation with Refunds $0.00

Day Ahead Option -$13,604,353.13Day Ahead Option with Refunds -$52,615.38Short Fall Charges to CRR Owners $0.00Balancing Account Credit $58,259,383.82

Day Ahead Ancillary Services

Day Ahead CRR

Operating Date 08/18/2010 DAM Settlement Totals

Day Ahead Energy

Day Ahead Make Whole







CRR Overview






Day Ahead Make Whole Payments -$804.67Day Ahead Make Whole Charge $804.62


Regulation Down Payment -$48,320.36Regulation Down Charge $48,320.37Responsive Reserve Payment -$4,352,808.96Responsive Reserve Charge $4,352,809.22Regulation Up Payment -$2,516,997.07Regulation Up Charge $2,516,997.07




Day Ahead CRR


Day Ahead Energy








CRR Overview


• There were CRR Shortfall Charges



Day Ahead Energy Sales -$99,274,083.78

Day Ahead Energy Purchases $162,486,746.70

PTP Obligation Bought in the DAM $22,077,814.43

Day Ahead Congestion Rent $84,750,630.33

Day Ahead Make Whole Payments -$100,768.10

Day Ahead Make Whole Charge $100,768.10

Non-Spin Reserve Payment -$1,324,190.89Non-Spin Service Charge $1,324,191.00

Regulation Down Payment -$52,313.79

Regulation Down Charge $52,313.78

Responsive Reserve Payment -$2,624,588.47

Responsive Reserve Charge $2,624,588.48

Regulation Up Payment -$1,182,507.24Regulation Up Charge $1,182,507.31


Day Ahead Option -$18,301,264.16

Day Ahead Option with Refunds -$168,400.86

Short Fall Charges to CRR Owners $0.00Balancing Account Credit $47,068,851.64


Day Ahead CRR


Day Ahead Energy








CRR Overview





Day Ahead Energy Sales -$67,313,304.97

Day Ahead Energy Purchases $81,324,543.53

PTP Obligation Bought in the DAM

Day Ahead Congestion Rent $14,011,238.56

Day Ahead Make Whole Payments $0.00

Day Ahead Make Whole Charge $0.00

Non-Spin Reserve Payment -$1,148,878.61Non-Spin Service Charge $1,148,878.50

Regulation Down Payment -$376,191.22

Regulation Down Charge $376,191.08

Responsive Reserve Payment -$7,134,669.57

Responsive Reserve Charge $7,134,669.81

Regulation Up Payment -$1,401,092.77Regulation Up Charge $1,401,092.95

Day Ahead Obligation -$744,500.34Day Ahead Obligation with Refunds $0.00

Day Ahead Option -$5,446,044.96

Day Ahead Option with Refunds -$24,957.68

Short Fall Charges to CRR Owners $0.00Balancing Account Credit $7,795,735.58


Day Ahead CRR


Day Ahead Energy








CRR Overview






Day Ahead Make Whole Payments -$22,974.10Day Ahead Make Whole Charge $22,974.06


Regulation Down Payment -$59,598.37Regulation Down Charge $59,598.23Responsive Reserve Payment -$1,543,463.04Responsive Reserve Charge $1,543,462.98Regulation Up Payment -$688,130.10Regulation Up Charge $688,129.90




Day Ahead CRR


Day Ahead Energy



RTM Settlement Overview for August 11

Statement Overview

• 186 Statements posted to QSEs

• 1 Statements posted to CRRAHs

• 4 QSEs received Statements for $0

General Reminders


Real-Time Energy Imbalance $24,281,601.94

Block Load Transfer Resource $0.00

Real-Time DCTIE import -$34,228,876.38

Real-Time DCTIE export $0.00

Real-Time Congestion Payment or Charge $883,279.92

RMR Day-Ahead energy Sale Real-Time Value Market Total $21,601,728.07

Real-Time PTP Obligation -$6,657,859.25

Real-Time Revenue Neutrality Allocation -$5,179,417.84

Base Point Deviation Charge $109,504,429.57

Base-Point Deviation Payment -$109,504,429.61

Real-Time Option w ith Refund $0.00

Real-Time Option -$700,456.58

Real-Time CRR Ow ners Shortfall Charges $0.00

Black Start Service Payment -$14,109.66

Black Start Service Charge $14,110.11

RMR STANDBY -$37,428.93

RMR ENERGY -$343,498.36

RMR Adjustment Charge $12,352,199.16


Day-Ahead energy revenues total for RMR units -$677,180.41

RMR Unexcused Misconduct Charge $0.00

RMR Service Charge $8,953,276.07

SASM Reg Dow n Payment -$77.10

Reg Dow n Failure to Provide Charge $0.00

Real Time Reg Dow n Adjustment Charge $76.96

SASM Reg Up Payment -$93.00

Reg Up Failure to Provide Charge $0.00

Real Time Reg-Up Adjustment Charge $93.09

SASM Responsive Reserve Payment -$6,230.82

Responsive Reserve Failure to Provide Charge $0.00

Real Time Responsive Reserve Adjustment Charge $6,230.94

RUC Claw back Charge $61,510,496.08

RUC Claw back Payment -$61,510,495.86

RUC Decommitment Payment $0.00

RUC Decommitment Charge $0.00

RUC Make-Whole Payment $0.00

RUC Capacity-Short $0.00

RUC Make-Whole Uplift Charge $0.00

ERCOT System Administration Charge $508,595.81

QSE Nodal Surcharge Fee $456,855.05

RUC

Administrative Fees

Black Start

RMR

Real-Time Ancillary Services

Real-Time CRR

Operating Date 08/11/2010 RTM Settlement Totals

Real Time Energy

Base Point Deviation



Statement Overview




General Reminders





Real-Time DCTIE export $1,023,820.06

Real-Time Congestion Payment or Charge $1,455,168.94


Real-Time PTP Obligation -$23,442.29









RMR Standby -$37,439.98

RMR Energy -$327,014.61





RMR Service Charge $430,839.55










RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy




Statement Overview




General Reminders






Real-Time Congestion Payment or Charge -$11,060.59












RMR Energy -$245,363.24












RUC Make-Whole Uplif t Charge $0.00



RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy




Statement Overview




General Reminders












Real-Time Option w ith Refund -$5,343.64






RMR Energy -$137,518.37





RMR Service Charge -$1,807,126.62





RUC Make-Whole Payment -$311.88





RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy




Statement Overview




General Reminders





Real-Time DCTIE export $953,513.78




Real-Time Revenue Neutrality Allocation -$451,595.70









RMR Energy -$140,589.99










RUC Make-Whole Payment -$1,299.02

RUC Capacity-Short $1,296.39




RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy




Statement Overview




General Reminders








Real-Time PTP Obligation $10,571.82

Real-Time Revenue Neutrality Allocation -$445,290.38




Real-Time Option $0.00





RMR Energy -$133,585.05










RUC Make-Whole Payment -$4,300.34

RUC Capacity-Short $4,297.86




RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy


Charge Type Tracker

• Below are the Day Ahead Market charge types that have been executed at least once during Market Trials (18 of 19 executed)


Day Ahead Charge Type Executed in Market TrialsDay Ahead Obligation with Refunds NoShort Fall Charges to CRR Owners YesBalancing Account Credit YesDay Ahead Energy Purchases YesDay Ahead Energy Sales YesDay Ahead Make Whole Charge YesDay Ahead Make Whole Payments YesDay Ahead Obligation YesDay Ahead Option YesDay Ahead Option with Refunds YesNon-Spin Reserve Payment YesNon-Spin Service Charge YesPTP Obligation Bought in the DAM YesRegulation Down Charge YesRegulation Down Payment YesRegulation Up Charge YesRegulation Up Payment YesResponsive Reserve Charge YesResponsive Reserve Payment Yes

Charge Type Tracker


• All Real-Time Market charge types have been executed at least once during Market Trials (45 of 45 executed)

Real Time Charge Type Executed in Market Trials Real Time Charge Type Executed in Market TrialsBlock Load Transfer Resource Yes Black Start Service Charge YesCharge for Emergency Energy Yes Black Start Service Payment YesEmergency Energy Payment Yes ERCOT System Administration Charge YesReal-Time CRR Ow ners Shortfall Charges Yes Non-Spin Failure to Provide Charge YesReal-Time DCTIE export Yes QSE Nodal Surcharge Fee YesReal-Time Load Allocated Voltage Charge Yes Real Time Non-Spin Adjustment Charge YesRMR Unexcused Misconduct Charge Yes Real Time Reg Dow n Adjustment Charge YesRUC Decommitment Charge Yes Real Time Reg-Up Adjustment Charge YesRUC Decommitment Payment Yes Real Time Responsive Reserve Adjustment Charge YesVoltage Support Service Energy Payment Yes Reg Dow n Failure to Provide Charge YesVoltage Support Service Var Payment Yes Reg Up Failure to Provide Charge YesBase Point Deviation Charge Yes Responsive Reserve Failure to Provide Charge YesBase-Point Deviation Payment Yes RMR Service Charge YesReal-Time Congestion Payment or Charge Yes RUC Capacity-Short YesReal-Time DCTIE import Yes RUC Claw back Charge YesReal-Time Energy Imbalance Yes RUC Claw back Payment YesReal-Time Option Yes RUC Make-Whole Payment YesReal-Time Option w ith Refund Yes RUC Make-Whole Uplif t Charge YesReal-Time PTP Obligation Yes SASM Non-Spin Payment YesReal-Time Revenue Neutrality Allocation Yes SASM Reg Dow n Payment YesRMR Adjustment Charge Yes SASM Reg Up Payment YesRMR Energy Payment Yes SASM Responsive Reserve Payment YesRMR Standby Payment Yes

Week in Review

• RTM Invoices– RTM Initials: 8/6, 8/7, 8/10, 8/11, 8/12– RTM Finals: 7/27, 7/28, 7/29, 7/30, 7/31, 8/1– RTM Trueups: 6/29, 6/30, 7/1, 7/2, 7/3

• DAM Re-Settlement for 8-18, 8-19, 8-20• RTM Re-Settlement for 6-17



Next Week’s Activities

• Operating Days for next week that will be settled – 8-29 (DAM and RTM) – 8-30 (DAM and RTM) – 8-31 (DAM and RTM) – 9-1 (DAM and RTM) – 9-2 (RTM Only, there will be a DAM failure Operational Scenario)– 8-29 & 8-30 are DAM Stress Test Dates (No need to submit

transactions to the DAM)– HOWEVER 9-2 may not be supported because of the final Nodal

Production migration before 168 hour test• RUC Simulation

– If you want to receive a RUC Commitment or Decommitment to coincide with a Zonal self commitment or RPRS commitment, send the request to [email protected]

• Voltage Support Operational Scenarios

Next Week’s Activities (Cont’d)

• DA PTP Obligations with Refunds– Since no NOIEs have purchased this type of CRR during Market

Trials, we’re going to manually enter some of these bill determinants next week to prove that the settlements calculations work

• Disputes Update– We’re targeting September 13- 27 to open up the Dispute API for

testing– There will specific operating dates that will be “disputable” – Additional details will be released soon


Environment Report-Known Issues

COMS New Known Issues• No new known issues

COMS Closed Issues• No new closed issues

Reminder: ERCOT will post known issues every Friday to the readiness center at: http://nodal.ercot.com/readiness/markettrials/coms/index.html


Reminders/Updates

• Market Readiness Seminar #6 – This will take place on September 1, 2010 at 3:00 PM – 5:00 PM– This will be a WebEx only Session– Details are posted at:

http://www.ercot.com/calendar/2010/09/20100901-MT1 – The Agenda is as Follows:

• Remaining Market Trials Activities– 168-Hour Test– Post 168-Hour Test September activities– Testing to occur during the Cutover period in October

• Cutover Update– Monthly Breakdown of Pre Go-Live activities– Post Go-Live Activities in December, 2010


Open Forum

Any Questions???


Market Trials - Friday call

Credit and Treasury

Weekly Update

August 27, 2010

Week in Review

• Core credit – CMM

• Posted Credit Reports and sent ACLs each business day

– AIL Report • Data lags occurred on the following dates

– 8/23 for operating days 8/21 and 8/22 due to weekend failover (subsequently cleared)

– 8/24 for operating day 8/23 due to weekend failover (subsequently cleared)– 8/27 for operating 8/26 due to network issues


Week in Review

• Core credit – CMM - Credit exposures

– Credit exposures reflect market participant activity in Market Trials• There remain a few exceptions, which are listed on the Known Issues list • Several adjustments continue to be made for Market Trials as a result of

extreme data experienced– The ADTE component of the EAL continues to be adjusted to reflect

recent Zonal activity » While this establishes a more moderate level of exposure, it may not

be predictive and will not alleviate the impact of unusual RT activity on the AIL Component

» The adjustment will remain in effect through September 30 unless a CP requests a different ADTE

– AIL exposures continue to be adjusted as follows:» For completed and not settled days, exposure is reduced by 50% » For forward days, exposure was reduced by 80%» The adjustment will remain in effect through September 7th

unless a CP requests a different ADTE» ERCOT will reevaluate AIL adjustment approach for 168 hour test

and provide details next week


Week in Review

– For a CP to get a good idea of how credit will work in Nodal, they should try to operate (as much as possible) as they intend to in Nodal (including using Energy Trades along with DAM, etc)

– ERCOT will work with CPs to further adjust their ADTE to reflect projected activity as needed


DAM Credit Constraint – Non Business Day

• DAM was run over non-business days for the first time with credit constraints over the weekend of August 14-16

– A significant amount of credit was consumed, resulting in some CPs being constrained in the Monday DAM. Key drivers include:

1. Primary impact - Data – very high values used for the 95% price differences between RT and DA applied to Energy Only Offers and Three Part Offers

– Results from market trials – not expected to be the norm after go live

2. Secondary impact - Exposure elements – ACL is consumed for Three Part Offers over non-business days when it is not consumed in the DAM on business days

• This topic to be reviewed by the market– Any clarification must be finalized quickly to achieve implementation prior to go live


DAM Credit Constraint – Non Business DayData Impact – Market Trials Data


Date > $3,000 >2,000 > 1,000 >$500 > $100 <= $100 Total

Count August 14, 2010 674 13,763 2,731 386 1,087 6,127 24,768 August 15, 2010 795 13,670 2,703 386 1,089 6,125 24,768 August 16, 2010 805 13,655 2,708 386 1,103 6,111 24,768 Total 2,274 41,088 8,142 1,158 3,279 18,363 74,304

3.1% 55.3% 11.0% 1.6% 4.4% 24.7% 100.0%

Average price within rangeAugust 14, 2010 3,048$ 2,510$ 1,630$ 981$ 324$ 18$ August 15, 2010 3,091$ 2,517$ 1,628$ 980$ 323$ 18$ August 16, 2010 3,091$ 2,517$ 1,628$ 979$ 321$ 25$

95% of the RT and DA prices

DAM Credit Constraint – Non Business Day

• Proposed review schedule – Thursday, August 26 - Review with MCWG/CWG – Monday, August 30 – Review with MCWG/CWG– Tuesday, August 31 – Potential vote by NATF– Thursday, September 2 – Review by TAC


Week in Review


Operating Date Primary Activity

Total Generation Total Load Self Scheduled Q2Q Purchases Q2Q Sales DAM Purchases DAM Sales

Imbalance Volume

8/10/2010 No Load, No Gen 0 0 0 14,416 16,951 4,079 7,386 5,8428/10/2010 Primarily Gen 545,081 285,343 0 136,784 115,600 620,309 145,283 -755,9478/10/2010 Primarily Load 656,053 928,562 0 362,423 381,072 435,988 901,845 757,015

1,201,134 1,213,905 0 513,623 513,623 1,060,375 1,054,514 6,910

8/11/2010 No Load, No Gen 0 0 0 13,200 4,000 686 6,636 -3,2508/11/2010 Primarily Gen 545,925 290,084 0 189,704 153,867 685,686 174,602 -802,7618/11/2010 Primarily Load 655,498 929,276 0 211,350 256,387 355,882 852,265 815,198

1,201,423 1,219,361 0 414,254 414,254 1,042,254 1,033,503 9,187


1,195,001 1,213,830 0 546,173 546,173 1,169,926 1,164,260 13,163


1,190,277 1,205,503 0 418,359 418,359 1,190,393 1,185,105 9,938

8/14/2010 No Load, No Gen 0 0 0 0 0 3,788 4,582 7938/14/2010 Primarily Gen 603,270 271,666 0 132,073 128,753 410,708 351,938 -393,6948/14/2010 Primarily Load 561,071 903,394 0 128,111 131,431 622,483 678,666 401,826

1,164,341 1,175,060 0 260,184 260,184 1,036,980 1,035,186 8,926

8/15/2010 No Load, No Gen 0 0 0 50 50 751 2,432 1,6828/15/2010 Primarily Gen 451,339 271,494 0 131,890 124,720 715,748 231,305 -671,4598/15/2010 Primarily Load 708,504 901,940 0 176,846 184,016 468,094 946,815 679,326

1,159,844 1,173,434 0 308,786 308,786 1,184,593 1,180,552 9,549

Note: Data above does not include non-modeled generators in RTMG and RMR day ahead energy sales in DAES given the use of data in CMM. Volumes are used for reporting only and do not impact credit calculations.

Next Week

• ERCOT– Will send ACLs for DAM and CRR Auction– Will not override ACLs

• Will send collateral calls if exposure exceeds credit limit • If ERCOT sends a collateral call, the CP will likely not be able to

bid in DAM until additional e-collateral is received

• Counter-Parties– Since ERCOT no longer overrides ACLs, CPs should review Credit

Reports and consider a) their exposure and

b) upcoming DAM, CRR Auction and any LFC test

c) that the ACL report indicates the total ACL and does not reflect any credit limit held for the CRR auction

– ERCOT has not seen many bilateral trades for CRRs. CPs are requested to initiate a few trades to test this functionality.


Next Week - Schedule of activity


Business day Activity to consider ACL deliveredDeadline for

"e-collateral"

Monday, August 30

Deadline to request favorable or specific 'e'factors DAM for OD 8/31 Friday evening Friday noon

Tuesday,August 31 DAM for OD 9/1 Monday evening Monday noon

Wednesday,September 1 ERCOT send 'e'factor notice Tuesday evening Tuesday noon

Thursday, September 2 Wednesday evening Wednesday noon

Friday, September 3 e'factor reset Thursday evening Thursday noon

Other topics

• Tentative timeline for First Priority Security Interest document– July 1, 2010 – ERCOT circulated initial draft to CPs.

– July 19, 2010 – Comments back from CPs.

– August 6, 2010 – ERCOT circulated second draft to CPs.

– August 17, 2010 – ERCOT reviewed document with F&A.

– August 23, 2010 – Final comments due back from CPs.

– September 21, 2010 – Final review and possible approval by F&A and ERCOT Board.


Other topics – “e” factors

– Alternative or Favorable treatment

• CPs should notify ERCOT of their desire to receive the “alternative” or “favorable” treatment in Market Trials

– by sending an e-mail to [email protected] with “Credit – “e” factors – favorable treatment requested” in the subject line

– Finally, if CPs do not believe their DAM activity in Market Trials in July and August is indicative of their projected activity after “Go Live”, they may request ERCOT to set their “e” - factors to reflect their anticipated activity

» By sending an e-mail to [email protected] with “Credit – “e” factor – specific “e” factors requested” in the subject line and the e factors requested in the body of the e-mail

» Any “override” will be effective until the next bi-weekly reset (e.g. must be requested again or factors will be reset based on data)

Note: Request for favorable or specific treatment should be sent by Monday, August 30th for the Wednesday, September 1st reset.


“e” Factors – Bi-weekly Process - Market Trials

Notice from ERCOT by 9:00 amDAM runs from (Scheduled reset date) DAM runs to Operating Day from Operating Day to

Market Trials

Wednesday, August 4, 2010 Monday, August 9, 2010 Thursday, August 19, 2010 Tuesday, August 10, 2010 Friday, August 20, 2010

Wednesday, August 18, 2010 Friday, August 20, 2010 Thursday, September 2, 2010 Saturday, August 21, 2010 Friday, September 3, 2010

Wednesday, September 1, 2010 Friday, September 3, 2010 Thursday, September 16, 2010 Saturday, September 4, 2010 Friday, September 17, 2010

Wednesday, September 15, 2010 Friday, September 17, 2010 Thursday, September 30, 2010 Saturday, September 18, 2010 Friday, October 1, 2010

New Known Issues

• No New known issue

– Note: Known Issues can be reviewed at : http://nodal.ercot.com/readiness/markettrials/coms/index.html,


Future Market Calls

• Friday Market Calls– Starting next week on 9/3/2010, Friday Market Calls will run from

9am – 12pm– These calls will no longer have dedicated time slots for each

functional area• As each area completes their presentation, the next agenda item will start

immediately after• The 12pm end time will be extended as needed

– Additionally, a new agenda item will be added to the end of the call to cover Cutover activities. As Market Trials winds down, Cutover will become the focus.


Http://nodal.ercot.com 1 COMS/Settlements/Credit Weekly Update August 27, 2010.

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Transcript of Http://nodal.ercot.com 1 COMS/Settlements/Credit Weekly Update August 27, 2010.