RPRS

RPRS

Market Support ServicesMarch 30, 2005

March 23, 2006

Presented by ERCOT Art Deller Bill Kettlewell

2

RPRS

Overview of RPRS Operations

How and Why does ERCOT use it?How does a QSE bid it?How does a QSE deploy it?

SettlementsHow does a QSE get paid?How does the Market get charged?

3

RPRS

Overview of RPRS

4

Definition

Capacity procured from Resources otherwise unavailable to ERCOT in the hours ERCOT requests RPRS.

Includes: Generation Resources Off-line. Generation Resources expected to be Off-line in the requested

hours LaaRs that are On-line and available time of procurement *

* LaaRs will not be able to participate initially upon initiation of the RPRS functionality.

Section 6.5.6

5

Definition

Two Components

Market Solution

Based on RPRS bids

Also can use Generic Cost

Out of Merit Capacity – OOMC

Capacity selected due to place, or absence, from the bid stack

LaaRs not availble for OOMC

Section 6.1.6 and 6.1.10

6

Definition

Purpose:

Purchase Capacity in order to make Energy available to solve the following system issues:

Capacity Insufficiency

Zonal Congestion

Local Congestion


7

Operational Assumptions

Units expected to come on-line in selected hours, to LSL.

Capacity considered on-line for Local and Zonal Congestion requirements

Energy from procured units is placed in the Balancing Energy Service bid stackQuantity >= HSL (HOL) – LSL (LOL)

Definition


8

Why do we need RPRS?

Generation

Available

Online

Forecast

Load

9

Payment to Providers

Providers of RPRS are paid for three distinct types of service:


Zonal Congestion

Local Congestion

Section 6.8.1.10 and 6.8.1.11

10


Units selected for Capacity Insufficiency or Zonal Replacement are paid:

the higher of their bid or,

the highest MCPC for all RPRS procured during the procurement processes.

Section 6.8.1.10 and 6.8.1.11

11


Units selected for Local Replacement are paid:

Resource Category Generic Startup Cost for starting

Resource Category Minimum Energy Cost

minus MCPE for operating at the LSL.

Section 6.8.1.10 and 6.8.1.11

12

Payment from Market

Payment from the Market is collected through the following charges:

Under Scheduled Capacity Charge

RPRS Zonal Congestion Charge

RPRS Uplift Charge

Section 6.9.2.1.1

13

Payment from Market

Under Scheduled Capacity Charge

Costs for Capacity Insufficiency are directly assigned to the QSE whose schedules show insufficient capacity scheduled compared to Adjusted Metered Load. This can also result from Mismatches.

Section 6.9.2.1.1

14

Payment from Market


RPRS Zonal Congestion costs will be directly allocated to QSEs whose schedules have an impact on a congested Commercially Significant Constraint

Section 7.3.4.2

15

Payment from Market

RPRS Uplift Charge

The total payments for Zonal, Local and Capacity Insufficiency RPRS are netted with;

the direct assigned costs for Zonal RPRS plus direct assigned Congestion impact and TCR Payments

The difference is uplifted at Load Ratio Share to all QSEs.

Section 6.9.2.1.2

16

RPRS


How and Why does ERCOT use it?

17

Why

Correct total Capacity Insufficiency, Zonal Congestion and Local Congestion

Based on scheduled resources and load forecasts

Procure Capacity in appropriate locations to provide for system security

To ensure operational security

Section 6.4.2

18

Provide capacity from which energy would be available to solve the following system security violations:

System Capacity insufficiency Using any RPRS bid (or Generic for units with no bids)

Zonal Congestion Using RPRS bids by Zone in Merit Order (or Generic for units with

no bids)

Local Congestion Using Resource Category Generic Cost

Section 6.6.3.2.1

How

19

InputsResource Plans (at time of

procurement) HSL LSL

Load ForecastQSE Schedules (at time of

procurement)

RPRS Inputs

Section 6.6.3.2.1

20

OutputUnit specific deployment for RPRSOptimized for entire 24 Hr period

RPRS Outputs

Section 6.6.3.2.1

21

RPRS


How and Why does ERCOT use it?How does a QSE bid it?

22

Bidding Requirements Resource Parameters

Designation of specific Resource Amount of Capacity

Time Constraints Startup Time (Resource Plan) Minimum Run Time (Registration) Minimum Down Time (Registration) Hours the bid is effective (Bid) Expiration time of bid (Bid)

Costs Start-up - $/MW (< $1,000/MW) Operating - $/MW/Hr (<$1,000/MWh) Balancing Energy Bid Point in $/MWh

RPRS Bid

Section 4.4.16

23

Balancing Energy Bid Point in $/MWh

Max price that balancing energy bids will be entered for the capacity accepted in the RPRS market.

RPRS Bid

Section 4.4.16

24

<?xml version=”1.0”><!DOCTYPE Bids SYSTEM “bids.dtd”><Bids> <ReplacementBid> <DAY>20010101</DAY> <FIRSTHOUR>1300</FIRSTHOUR> <LASTHOUR>1800</LASTHOUR> <CAPACITY>100</CAPACITY> <RSRC_ID>GT-1</RSRC_ID> <RSRC_TY>GEN</RSRC_TY> <CMZONE>A</CMZONE> <STARTUP_PRICE>30.00</STARTUP_PRICE> <PERHOUR_PRICE>50.00</PERHOUR_PRICE> <EXPIRATION_DATE>20010101</EXPIRATION_DATE> <EXPIRATION_TIME>1100</EXPIRATION_TIME> <BES_BIDPOINT>9.99</BES_BIDPOINT> </ReplacementBid></Bids>

RPRS Bid Example

ERCOT Participant interface: XML v 4.o, Sec 3.4

25

Requirements

RPRS Requirements

Resources must provide telemetered output signal, including breaker status

Minimum amount is 1 MW

Resources must meet additional technical requirements (Protocol Section 6.10)

Section 6.5.6

26

Requirements

RPRS Requirements cont.

Only one RPRS bid from any Resource

Selected Resource must be able to respond in the hours selected

QSEs supplying RPRS must comply with Balanced Schedule

Bids in accordance with Section 4

Section 6.5.6

27

Requirements

RPRS Requirements cont.

QSEs may not self-arrange RPRS

Eligible Resources with no bids can still be selected

Bid price set by generic cost times an adjustment factor

If selected, deployed and paid as an OOMC deployment

Section 6.5.6

28

RPRS



29

RPRS procured at 1800, based on:ERCOT’s 1100 Load forecast1100 Day-ahead schedules (unless modified

by 1300 in accordance with 4.4.10)Bids submitted by 1600Resource PlansERCOT notify accepted RPRS bids by 1800

* Insufficient RPRS bids addressed with OOMC

Day-Ahead Procurement

Section 4.4.17

30

RPRS procured during Adjustment Period based on:RPRS Bids (can be modified after 1800)Resource PlansERCOT next day Load Forecast

Adjustment Period Procurement

Section 6.6.3.2.1 and 4.5.6

31

The goal of the RPRS Clearing Engine is 24 Hour Optimization to minimize total cost, based on:

Resource Category Generic Cost Capacity price Operation Price Resource Shift Factors

And also respect; Lead time Minimum Up time Minimum Down time

For the whole Operating Day while meeting security constraints for each hour.

Objective of RPRS Engine

Section 4.4.17 and 6.6.3.2.1

32

Three Step Clearing ProcessLocal Congestion firstZonal Congestion & System Balance

simultaneously Operator optional intervention

MCPC Calculation Marginal cost for insufficiency determines MCPC Marginal cost to solve CSC determines Shadow

Price for Capacity for CSC Congestion

RPRS

Section 6.6.3.2.1

33

<?xml version=”1.0”?><!DOCTYPE Notifications SYSTEM “notes.dtd”><Notifications> <RepBidSelected> <DAY>20010101</DAY> <STRIKEHOUR>1200</STRIKEHOUR> <FIRSTHOUR>1100</FIRSTHOUR> <LASTHOUR>1800</LASTHOUR> <RSRC_ID>GT-1</RSRC_ID> <RSRC_TY>GEN</RSRC_TY> <BIDMW>100</BIDMW> <STRIKEMW>100</STRIKEMW> <STARTUP_PRICE>25.00</STARTUP_PRICE> <PERHOUR_PRICE>10.00</PERHOUR_PRICE> <LEADTIME>30</LEADTIME> <STARTHOUR>1200</STARTHOUR> <STOPHOUR>1600</STOPHOUR> <CONGESTION>F</CONGESTION> </RepBidSelected></Notifications>

RPRS Notification Example

ERCOT Participant interface: XML v 4.o, Sec 5.12

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Which Resources are Eligible for RPRS?

Local Congestion – any generation resource offline and available will be eligible.

Zonal Congestion, Capacity – any offline and available generator or online, available, and active LaaR* resource with a RPRS bid.

RMR units may be used to offset RPRS, if economical.

* LaaRs will not be able to participate initially upon initiation of the RPRS functionality.

RPRS

Section 6.6.3.2.1

35

What does the QSE do when RPRS is Procured from the QSE?

Updates their Resource Plan accordingly Adds Capacity from RPRS resource into Balancing

Bids Brings specified resource online for specified hours

at LSL Incorporate LSL into Energy Schedules. Options

include: Reducing output of other Resources Selling additional BES Using Relaxed Balanced Schedules

RPRS is not an instructed deviation

RPRS

Section 6.4.2

36

RPRS



Settlements

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Inputs to Settlements:

RPRS Procured (Type and Quantity) MCPC and Shadow Prices Bids Schedules Resource Plans Generic Cost Adjusted Metered Load

RPRS Settlement

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Process:

Pay Providers: Capacity Insufficiency Zonal Congestion Local Congestion

RPRS Settlement

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

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RPRS



SettlementsHow does a QSE get paid?

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If a unit was selected for Local Congestion, how does the QSE get paid?

Payment

41

Decide if deployment was Local,Zonal or System Balance

Determine Awarded Amount

Determine Hours Of Award

Determine Startup and Operating Payment

Local Award

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Local Replacement Reserve (LCFLAG = 1)

Steps

1. LRPQ – Awarded amount

2. LRPHR – Number of hours awarded

3. LPS – Start up payment

4. LPO – Operation price

RPRS

43

LRPQ – Local Replacement Quantity

Hour 5 (Intervals 17 – 20):

LRPQ = ( 141 + 145 + 151 + 155 ) / 4 = 148

(Used to calculate RCGSC)

Hours Hr03 Hr04 Hr05 Hr06 Hr07 Hr08 Hr09 Hr10 Hr11 Hr12 Hr13 Hr14 Hr13

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

Interval Int17 Int18 Int19 Int20 Int21 Int22 Int23 Int24 Int25 Int26 Int27 Int28

Hour 4:15 4:30 4:45 5:00 5:15 5:30 5:45 6:00 6:15 6:30 6:45 7:00

HSL ........ 141 145 151 155 160 165 170 165 161 155 151 145 .......


LRPQ ........ 0 0 148 165 153 0 0 0 0 0 0 0 .......

RPRS

44

LRPHR – number of hours instructed

LRPHR = 3

Hours Hr03 Hr04 Hr05 Hr06 Hr07 Hr08 Hr09 Hr10 Hr11 Hr12 Hr13

LRPQ ........ 0 0 148 165 153 0 0 0 0 0 .......

LRPHR ........ 0 0 3 3 3 0 0 0 0 0 .......

RPRS

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LPS – Local RPRS start up payment

•Determine if “Hot” or “Cold” start (Combined Cycle only)•Hot = Less than 5 hours from shut down to start up•Cold = 5 hours or more from shut down to start up.

LRPHR

RCGSCLPS

RPRS

Section 6.8.1.11

46

LPO – Local RPRS Operating payment

•Unit will get paid for what it generated, up to it’s LSL.

4

1

4/min*

GSITETOT

LSLMCPERRCGMECLPO i

RPRS

Section 6.8.1.11

47

GSITETOT

0

100

120

Low Sustainable Limit

LSL < GSITETOT

30MWh 25MWh

RPRS

48

0

120 Low Sustainable Limit

GSITETOT100

LSL > GSITETOT

30MWh 25MWh

RPRS

49

)),0((*1 LPRPADJLPOLPSMAXLPCRPAMT

LPCRPAMT – Local Procured Capacity Replacement Amount

RPRS

Section 6.8.1.11

50Section 6.9.2.1.2

Local Replacement

Local Replacement Payment

51

If a unit was selected for Capacity Insufficiency or Zonal Replacement, how does the QSE get paid?

Payment

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Zonal or System Balance Award

Apply RPRS Bids

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Zonal Replacement Reserve (LCFLAG = 0)

Steps

1. ZRPQ – Awarded amount

2. ZRPHR – Number of hours awarded

3. Apply Bids

RPRS

54

ZRPQ – Zonal Replacement Quantity

Hour 8 (Intervals 29 – 32):

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

RPRSMW = 156 (Min of Procured MW and HSL at Procurement)


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

Interval Int29 Int30 Int31 Int32 Int33 Int34 Int35 Int36 Int37 Int38 Int39 Int40Hours 7:15 7:30 7:45 8:00 8:15 8:30 8:45 9:00 9:15 9:30 9:45 10:00

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


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

RPRS

55

ZRPHR – number of hours instructed

ZRPHR = 3

Hours Hr03 Hr04 Hr05 Hr06 Hr07 Hr08 Hr09 Hr10 Hr11 Hr12 Hr13

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

ZRPHR ........ 0 0 0 0 0 3 3 3 0 0 .......

RPRS

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ZPCRPAMT – Zonal Procured Capacity Replacement Amount

ZRPQ

MCPCRP

ZRPHRBPZRPHR

ZRPSUBP

ZPCRPAMT *

,

max*1

RPRS

Section 6.8.1.10

57




Determine Startup and Operating Payment

Local Award



Zonal or System Balance Award

Apply RPRS Bids

58Section 6.9.2.1.2


Zonal Replacement

Local Replacement

Zonal Replacement and Cap. Insufficiency Payment

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RPRS



SettlementsHow does a QSE get paid?How does the Market get charged?

60

A QSE can be directly assigned RPRS charges if they:

under-schedule their load

have mismatches where they are receiving more than the supplying party has scheduled

scheduled ERCOT as a resource

RPRS Under Scheduled Charge

Section 6.9.2.1

61

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 interval in which there was an RPRS Market

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


Section 6.9.2.1

62


Adjustment Period

Day-Ahead MCPCRP = $55

MCPCRP = $45

Example: Direct assigned RPRS costs, two RPRS Markets

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70

75

80

85

90

95

100

105

110

115

1 2 3 4

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75

80

85

90

95

100

105

110

115

1 2 3 4

Adjustment Period

Day-Ahead

20 MW

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Adjustment Period

Day-Ahead

Resource Obligation

QSE BResource Obligation

QSE A

Resource Obligation

QSE BResource Obligation

QSE A

100 B 100 A 110 B 110 A

100 B 100 A 100 B 100 A

No Mismatch

Mismatch quantity – 10MW

65

Maximum MCPC = $55

Maximum Under Scheduled amount = 20MW

Maximum Mismatch amount = 10MW


66

Under Scheduled Charge =

$55 * (20MW + 10MW) = $1,650


67


Section 6.9.2.1

0,

MaxM(AMLi1zq-CLi1zq)

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



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

68


Section 6.9.2.1

0,

MaxM(MMSMi1zqaqb)

MMQizq = Σ Max MaxM(MMSMi2zqaqb)

MaxM(MMSMi3zqaqb)

MaxM(MMSMi4zqaqb)

Variables

MMQ = Mismatched QuantityMMS = Mismatched Schedule Quantity

Subscripts

M = Marketi = Intervalz = Congestion Management Zoneqa = Buying QSEqb = Selling QSE

69


Section 6.9.2.1

0,

MMSMi1zqaqb = Max QSSATORPi1z - QOSBTORPi1z

Variables

MMS = Mismatched Schedule Quantity

QSSA = QSE Supply Schedule for Buying QSE

QOSB = QSE Obligation Schedule for Supplying QSE

Subscripts

M = MarketI = IntervalZ Congestion Management ZoneTORP = Time of Replacement

70Section 6.9.2.1.2


Zonal Replacement

Local Replacement


Under Scheduled

Charge

71


Criteria: If a QSE’s schedule has an impact on a CSC, and:ERCOT has procured Zonal RPRS, then:

The QSE can be charged for Congestion Impact.Multiply the CSC Shadow Price for Capacity by

the QSE CSC Impact per interval.

72South

West North

Res = 548MW

Load = 140MW

RPRS Zonal Congestion ChargeExample:

Net = 408MW

73

Shift Factors

CM Zone names

Average Weighted Shift Factor

West to North


South to North


South to West

West2003 0.489911548 -0.004425342 -0.016725781

North2003 -0.008056712 -0.120276952 -0.003225342

South2003 0.002302236 0.503257831 0.104328870

CSC Zonal Average Weighted Shift Factors


74

South Zone Schedule impacts the South to North constraint as follows:

Impact = (Resource – Obligation) * SFSN

= (548 MW – 140MW) * 0.503257831= 205.33 MW


Calculate the Impact for a Zone

Impact = Net Zonal Schedule * Shift Factor

75

Now the Congestion Charge for a particular CSC is simply a quantity times a price:

Congestion Charge = (Max of Impact) * Shadow Price for Capacity

= (205.33MW)($100/MW)

= $20533.00


76


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

Section 7.3.4.2

77Section 6.9.2.1.2


Zonal Replacement

Local Replacement

Zonal Congestion

Impact


Under Scheduled

Charge

78

TCR Holders are paid the Shadow Price for Capacity times the number of TCRs held on the active constraint:

TCRPAY = Number of TCRs Held * Shadow Price Capacity

TCR Payment

79

TCRPAYRP = -1 * [ Σ (TCRCSC) * SPCSC ]CSC

TCRPAY

Variables

TRCRPAY = TCR Payment per HourTCR = Total Number of TCRs ownedSP = RPRS Capacity Shadow Price

Subscripts

RP = Replacement ReserveCSC = Commercially Significant Constraint

Section 6.9.2.1.2

80Section 6.9.2.1.2

≠ 0


Zonal Replacement

Local Replacement

TCRPAY

Zonal Congestion

Impact

TCRPAY

Under Scheduled

Charge

81

RPRS Uplift Charge

Section 6.9.2.1.2

RPRS Uplift Charge =

Payments to Capacity and Zonal Replacement +Payments to Local Replacement +Payments to TCR Holders +Collection from Under Scheduled Capacity +Collection from RPRS Congestion Impact

Multiplied by each QSE’s Load Ratio Share

82

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

Section 6.9.2.1.2

83Section 6.9.2.1.2

RPRSUplift

Charge


Zonal Replacement

Local Replacement

TCRPAY

Zonal Congestion

Impact

RPRS Uplift Charge

Under Scheduled

Charge

84

Questions

85

LCFLAG Hourly cut 0 = awarded Zonal RPRS 1 = awarded Local RPRS 2 = No award

Local Replacement

LPO Hourly cut Determined in settlements with RCGMEC, MCPER, GSITETOT

and LSL

LPS Hourly cut Determined in Settlements with RCGSC, LRPHR

New Determinants

86

LRPADJ Hourly cut Adjustment to Local RPRS Payment (LPCRPAMT)

LRPHR Hourly cut Number of hours a unit is continuously procured for Local RPRS

LRPQ Hourly cut MW quantity of Local RPRS awarded. Determined in Settlement

using LCFLAG and HSL

New Determinants cont.

87

Zonal and Capacity Insufficiency

RPRSMW Hourly cut Minimum of average hourly HSL (at the time of procurement) or

MW awarded from RPRS bid

ZRPHRBP Hourly bid price for RPRS ($/MW) Only used in Zonal RPRS

ZRPADJ Hourly cut Adjustment to Zonal RPRS Payment (ZPCRPAMT)


88

ZRPHR Hourly cut Number of hours a unit is continuously procured for Zonal RPRS

ZRPSUBP Hourly start up bid price ($/MW) Only used in Zonal RPRS

ZRPQ Hourly cut MW quantity of Zonal RPRS awarded. Determined in Settlement

using LCFLAG and HSL


89

PRRs

•413 – Optimization for the Whole Operating Day in RPRS Procurement Process

•491 – Clarification to PRR413 RPRS Market

•594 – Replacement Reserve Service Payment Formulas

•604 – Replacement Reserve Service Bid Cap

•613 – Replacement Reserve Under Scheduled Capacity Delineation

•614 – Balancing Bids for replacement Capacity

•641 - Clarifying RPRS Scheduling Language

90

•4.4.11 - Ancillary Services Bid Submittal

•4.4.16 – ERCOT Receipt of Replacement Reserve Service Bids

•4.5.6 – ERCOT Notice of Need to Procure RPRS Resources

•6.1.6 – Replacement Reserve Service

•6.3.1 – ERCOT Responsibilities

•6.4.1 – Determination of ERCOT Control Area Requirements

•6.5.6 – Replacement Reserve Service

•6.5.9 – Reliability Must-Run Service

Protocol Sections

91

Protocol Sections

•6.5.9 – Reliability Must-Run Service

•6.6.3.2.1 – Specific Procurement Process Requirements for Replacement Reserve Service in the Adjustment Period

•6.7.5 – Deployment of Replacement Reserve Service

•6.7.8 – Deployment of RMR Service

•6.8.1.1 – Payments for Ancillary Service Capacity

•6.8.1.10 – Zonal or System Wide Replacement Reserve Service Capacity Payment to QSE

•6.8.1.11 – Local Congestion Replacement Reserve Payment to QSE When a Market Solution Exists

•6.8.2.2 – Capacity and Minimum Energy Payments

92

Protocol Sections…cont.

•6.9.2.1 – Settlement for RPRS

•6.9.2.1.1 – Replacement Reserve Under Scheduled Capacity

•6.9.2.1.2 – Replacement Reserve Uplift Charge

•6.10.8 – Replacement Reserve and OOMC Performance Criteria

•7.3.4.2 – Replacement Reserve Service Zonal Congestion Charge

•7.4.2 – Resolution of Local Congestion

•7.5.5 – TCR Settlement

RPRS

Documents

Transcript of RPRS