RPRS Settlement Examples

RPRS Settlement Examples

Market Support ServicesMarch 30, 2005

March 14, 2006

Presented by ERCOT Art Deller Bill Kettlewell

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A Load-Scheduling QSEA Load-Scheduling QSE

Scheduler for Scheduler for EZWATTSEZWATTS Retail Electric Provider. Retail Electric Provider.

Wholesale Power TraderWholesale Power Trader

INTRODUCING

The Players

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AND ALSO STARRING

A Generation and Power Marketing QSEA Generation and Power Marketing QSE

Markets and Schedules Markets and Schedules WATTSupWATTSup power generation company. power generation company.

Qualified to provide Ancillary Services.Qualified to provide Ancillary Services.

Provide Power Marketing Services. Provide Power Marketing Services.

The Players

4South

West North

The SettingThree Congestion Zone model:

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Shift Factors

CM Zone names

Average Weighted Shift Factor

West to North


South to North


South to West

West2003 0.489911548 -0.004425342 -0.016725781North2003 -0.008056712 -0.120276952 -0.003225342South2003 0.002302236 0.503257831 0.104328870

CSC Zonal Average Weighted Shift Factors

The Setting

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Act 1Capacity Insufficiency

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The Story

Electrons R Us submits the following schedule in the Day Ahead Period to cover their load in the South Zone:

Electrons R Us has a Load Ratio Share of 1%.

BILATERAL AGREEMENTS BALANCED SCHEDULEMarket Service

Date: 27-Jun-06 Hour: 1500 Type: ENE QSE: Electrons R UsMarket Interval

Resource MW

Provider Type Provider CM Zone

Obligation MW

Receipient Type Recipient CM Zone

1415 90 QSE PowerHouse SOUTH2006 90 QSE Electrons R Us SOUTH2006




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The Story

PowerHouse has a generator, Gator Gulch, in the North Zone that is scheduled to be off-line but available on June 27, 2006 with the following Replacement Bid Prices: Startup Price = $120 / MW

Hourly Run Price = $25 / MW

ERCOT procures Gator Gulch as Replacement Reserve during the Day-Ahead Period for Capacity Insufficiency.

There is no Zonal or Local Congestion.

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RPRS Settlement Process:

Pay Providers: Capacity Insufficiency Zonal Congestion Local Congestion

The Story

Collect from Users: Under Scheduled QSEs Zonal Congestion Uplift to Market

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Pay Providers:Capacity InsufficiencyZonal CongestionLocal Congestion

The Story

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Zonal Replacement Reserve (LCFLAG = 0)

Steps:

1. ZRPQ – Awarded amount2. ZRPHR – Number of hours awarded3. Apply Bids to calculate ZPCRPAMT

Pay Providers of Capacity

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ZRPQ – Zonal Replacement Quantity

Hour 15 (Intervals 57 – 60):

ZRPQ = MIN[156,( 143 + 144 + 146 + 147 )/ 4] = 145

RPRSMW = 156

Hours Hr10 Hr11 Hr12 Hr13 Hr14 Hr15 Hr16 Hr17 Hr18 Hr19 Hr20 Hr21

LCFLAG ........ 2 2 1 1 1 0 0 0 0 2 2 2 .......

Interval Int57 Int58 Int59 Int60 Int61 Int62 Int63 Int64 Int65 Int66 Int67 Int68

HSL ........ 143 144 146 147 157 161 156 154 158 155 157 154 .......

Hours

ZRPQ ........ 0 0 0 0 0 145 156 156 156 0 0 0 .......

Hr10 Hr11 Hr12 Hr13 Hr14 Hr15 Hr16 Hr17 Hr18 Hr19 Hr20 Hr21


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ZRPHR – number of hours instructed

ZRPHR = 4

Hours Hr10 Hr11 Hr12 Hr13 Hr14 Hr15 Hr16 Hr17 Hr18 Hr19 Hr20

ZRPQ ........ 0 0 0 0 0 145 156 156 156 0 .......

ZRPHR ........ 0 0 0 0 0 4 4 4 4 0 .......


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ZPCRPAMT – Zonal Procured Capacity Replacement Amount

ZRPQ*MCPCRP

ZRPHRBP,ZRPHR

ZRPSUBP

max1*ZPCRPAMT


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146MW*$55/MW

$25/MW,4

$120/MW

max1*ZPCRPAMT


ZPCRPAMT = -$8030

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The Story

Collect from Users:Under Scheduled QSEsZonal CongestionUplift to Market

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Steps:

Use maximum MCPC for any RPRS Market for the Operating day

Find the Maximum difference between the QSEs Adjusted Metered Load and Scheduled Load for any period in which there was an RPRS Market

Add the amount of the Maximum Mis-Matched quantity for any Interval with an RPRS Market

RPRS Under Scheduled Charge

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0,MaxM(AMLi1zq-CLi1zq)

USRPizq= MaxM(MCPCRPizq) * Max MaxM(AMLi2zq-CLi2zq) +MMQizq

MaxM(AMLi3zq-CLi3zq)

MaxM(AMLi4zq-CLi4zq)

Variables

US = RPRS Under Scheduled ChargeAML = Adjusted Meter LoadCL = Current Scheduled LoadMCPC = Market Clearing Price for CapacityMMQ = Mismatched Amount

Subscripts

M = Marketi = Intervalz = Congestion Management Zoneq = QSERP = Replacement Reserve

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Adjusted Metered Load vs. Scheduled Load at time of

RPRS Procurement 70

75

80

85

90

95

100

105

110

115

1 2 3 4

Sche

dule

d

Met

ered

Sche

dule

d

Met

ered

Sche

dule

d

Met

ered

Sche

dule

d

Met

ered

Hour Ending 1500

Max Difference = 10MW


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For Hour Ending 1500:

Maximum MCPC = $55

Maximum Under Scheduled amount = 10MW

Maximum Mismatch amount = 0MW


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For Hour Ending 1500, Electrons R Us pays

USRPAMT = $55 * (10MW) = $550

Other QSE’s besides Electrons R US also pay USRPAMT, such that the total collected is

USRPBILLAMTTOT = $55 * (100MW) = $5500


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The Story


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Steps: Calculate total costs of Procured RPRS Capacity.

Calculate total RPRS Underscheduled Charge.

Calculate total Replacement Capacity payments to TCR holders.

Calculate total CSC impact Replacement Capacity charge.

Sum all of the above and multiply by Load Ratio Share.

RPRS Uplift Charge

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UCRP = -1 * [ Σ ( PCRP + LPCRP ) + Σ USRP + TCRPAYRP + Σ CSCRP ]* LRS

RPRS Uplift Charge

Variables

UC = RPRS Uplift ChargePC = Cost of Capacity for Zonal

Congestion and Capacity Insufficiency

LPC = Cost of RPRS for Local Congestion

US = RPRS Under Scheduled ChargeTRCRPAY = TCR Payment per HourCSC = RPRS CSC Impact Capacity

ChargeLRS = Load Ratio Share

Subscripts

RP = Replacement Reserve

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UCRP = -1 * [ Σ PCRP + Σ USRP]* LRS

UCRPAMT = -1*(ZPCRPBILLAMTTOT + USRPBILLAMTTOT) * LRS= -1*(-$8030 + $5500) * 0.01= $25.30

RPRS Uplift Charge

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Act 2Zonal Congestion

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The Story

Electrons R Us submits the following schedule in the Day Ahead Period to cover their load in the North Zone:

Electrons R Us has a Load Ratio Share of 1%.

BILATERAL AGREEMENTS BALANCED SCHEDULEMarket Service

Date: 27-Jun-06 Hour: 1500 Type: ENE QSE: Electrons R UsMarket Interval

Resource MW

Provider Type Provider CM Zone

Obligation MW

Receipient Type Recipient CM Zone

1415 90 QSE PowerHouse SOUTH2006 90 QSE Electrons R Us NORTH2006




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The Story

PowerHouse has a generator, Gator Gulch, in the North Zone that is scheduled to be off-line but available on June 27, 2006 with the following Replacement Bid Prices: Startup Price = $120 / MW


ERCOT procures Gator Gulch as Replacement Reserve during the Day-Ahead Period for Zonal Congestion.

The South to North CSC is constrained.

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The Story


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The Story

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Zonal Replacement Reserve (LCFLAG = 0)

Steps: (Same as with Capacity Insufficiency)

1. ZRPQ – Awarded amount2. ZRPHR – Number of hours awarded3. Apply Bids to calculate ZPCRPAMT


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146MW*$55/MW

$25/MW,4

$120/MW

max1*ZPCRPAMT


ZPCRPAMT = -$8030

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The Story


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Just as before, in Hour Ending 1500, Electrons R Us pays

USRPAMT = $55 * (10MW) = $550

Other QSE’s besides Electrons R US also pay USRPAMT, such that the total collected is

USRPBILLAMTTOT = $55 * (100MW) = $5500


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The Story


36South

West North

Res1 = 90MWRes2 = 95MWRes3 = 100MWRes4 = 105MW

RPRS Zonal Congestion ChargeExample:

Load1 = 90MWLoad2 = 95MWLoad3 = 100MWLoad4 = 105MW

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RPRS Zonal Congestion Charge

CSCRPhq = SPCCSCh* MAX (0, ICSChq))

ICSChq = MAX [0,MAX [Σ ((QSSTOPiqz – QOSTOPiqz) * SFzcsc)z ]n]

Variables

CSC = Commercially Significant ConstraintI =Scheduled MW ImpactQSS = QSE Supply ScheduleQOS = QSE Obligation ScheduleSF = Shift FactorSPC = Shadow Price for Capacity

Subscripts

i = Intervalh = Hour being calculatedn = Number of time RPRS is procuredTOP = Time of Replacementq = QSEz = Congestion Management Zone

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For each interval in Hour Ending 1500, Calculate the impact on the the South to North constraint as follows:

ImpactSouth = (Resource – Obligation) * SFSN

ImpactNorth = (Resource – Obligation) * SFSN

ImpactSN = ImpactSouth + ImpactNorth

The hourly impact is the maximum interval impact during the hour.


Calculate the Schedule Impact

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Calculate the Schedule Impact

The hourly impact is the maximum interval impact during the hour;

ICSC = 65.47 MW

Market Interval CM Zone

Resource MW

Obligation MW

Shift Factor SN CM Zone

Resource MW

Obligation MW

Shift Factor SN Impact

1415 SOUTH 90 0 0.5032578 NORTH 0 90 -0.120277 56.11813

1430 SOUTH 95 0 0.5032578 NORTH 0 95 -0.120277 59.2358

1445 SOUTH 100 0 0.5032578 NORTH 0 100 -0.120277 62.353481500 SOUTH 105 0 0.5032578 NORTH 0 105 -0.120277 65.47115

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CSCRPAMT = (Impact) * Shadow Price for Capacity= ICSC * MCPCSPC= (65.47MW)($100/MW)= $6547.00


Calculate the Congestion Charge

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The Story


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RPRS Uplift Charge

Variables






Subscripts


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UCRP = -1 * [ Σ PCRP + Σ USRP + TCRPAYRP + Σ CSCRP ]* LRS

UCRPAMT = -1*[ ZPCRPBILLAMTTOT + USRPBILLAMTTOT+ (TCROWNEDERCOT * MCPCSPC) + CSCRPQSEBILLAMTTOT] * LRS= -1*[-$8030 + $5500 - (500MW * $100/MW)+ $51,000 ] * 0.01= $15.30

RPRS Uplift Charge

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Act 3Local Congestion

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The Story

PowerHouse has a generator, Swamp Thing Unit 1, in the South Zone that is scheduled to be off-line but available on June 27, 2006 with the following Replacement Bid Prices: Startup Price = $120 / MW


ERCOT procures Swamp Thing Unit 1 as Replacement Reserve during the Adjustment Period for Local Congestion.

There is no Zonal Congestion.

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The Story

Data for Swamp Thing Unit 1

Gas-Steam Reheat Boiler

RCGSC = $3000 + (FIP * 16.5 MMBtu/MW * RMC)

RCGMEC = 17.0 MMBtu/MW * FIP

Power House brings the unit on and operates at 100 MW during the instructed hours

Note: RMC (Resource Maximum Capacity) is the average HSL during the first hour of the instructed period.

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The Story


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The Story

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Local Replacement Reserve (LCFLAG = 1)

Steps

1. LRPQ – Awarded amount2. LRPHR – Number of hours awarded3. LPS – Start up payment4. LPO – Operation payment

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LRPQ – Local Replacement Quantity

Hour 15 (Intervals 57 – 60):

LRPQ =( 124 + 125 + 127 + 128 )/ 4] = 126

Hours Hr10 Hr11 Hr12 Hr13 Hr14 Hr15 Hr16 Hr17 Hr18 Hr19 Hr20 Hr21

LCFLAG ........ 2 2 2 2 2 1 1 1 1 2 2 2 .......

Interval Int57 Int58 Int59 Int60 Int61 Int62 Int63 Int64 Int65 Int66 Int67 Int68

LSL ........ 75 76 78 79 79 79 79 79 79 78 78 77 .......

Hours

LRPQ ........ 0 0 0 0 0 126 128 127 127 0 0 0 .......

Hr10 Hr11 Hr12 Hr13 Hr14 Hr15 Hr16 Hr17 Hr18 Hr19 Hr20 Hr21


HSL ........ 124 125 127 128 128 128 128 128 128 127 127 126 .......

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LRPHR – number of hours instructed

LRPHR = 4

Hours Hr10 Hr11 Hr12 Hr13 Hr14 Hr15 Hr16 Hr17 Hr18 Hr19 Hr20

LRPQ ........ 0 0 0 0 0 126 128 128 127 0 .......

LRPHR ........ 0 0 0 0 0 4 4 4 4 0 .......


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Calculate LPS – Local RPRS start up payment

LPS = RCGSC / LRPHR

= [$3000 + (FIP * 16.5 MMBtu/MW * RMC)] / LRPHR

= [$3000 + (FIP * 16.5 MMBtu/MW * LRPQ(1st HR)] / LRPHR

= [$3000 + ($8.00/MMBtu * 16.5 MMBtu/MW * 126 MW)] / 4 HR

= $4908 / HR

Section 6.8.1.11

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RCGMEC = 17.0 MMBtu/MWh * $8.00/MMBtu = $136 / MWh

LPO = [ ($136 - $60 / MWh) * 75 MW * ¼ hr) + ($136 - $61 / MWh) * 76 MW * ¼ hr) + ($136 - $62 / MWh) * 78 MW * ¼ hr) + ($136 - $63 / MWh) * 79 MW * ¼ hr) ]

= $5734.75 for Hour Ending 1500

4

1i GSITETOT

LSL/4min*MCPERRCGMECLPO

Section 6.8.1.11

Calculate LPO – Local RPRS Operating payment

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LPCRPAMT – Local Procured Capacity Replacement Amount

For Hour Ending 1500,

LPCRPAMT = -1* [Max(0, LPS + LPO) + LPRPADJ]

= -1* [($ 4908.00 + $5734.75)] + 0

= -$10,642.75

Section 6.8.1.11

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The Story


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RPRS Uplift Charge

Variables






Subscripts


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UCRP = -1 * [ LPCRP ]* LRS

UCRPAMT = -1* [ LPCRPBILLAMTTOT ] * LRS

= -1* [ -$ 10,642.75 ] * 0.01

= $106.43

RPRS Uplift Charge

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Questions

RPRS Settlement Examples

Documents

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