NPRR605

Ancillary Service Make-Whole Payments Under a Watch

Scenario• DA market fails to clear needed AS• ERCOT announces a Watch• SASM is announced• SASM fails to clear needed AS• ERCOT would need to RUC units for AS– This process is not new– Operational procedure indicates that uncommitted

units would be dispatched first• If there are no uncommitted units, ERCOT will

need to assign AS to self-committed units

QSE Expectation

Self-commit Resource to provide energy

100MW

Load

100MW

QSE expectation is that there is no exposure to significant volatility

Why NPRR is needed

• Under ORDC:– Ancillary service assignment to an on-line

resource would replace energy output with AS output • Compensation for energy is LMP plus adder• Compensation for AS is only the adder

2014 Summer

Load

LMP100MW $9000