1 ercot wholesale settlement module 3. 2 bena iq = -1 * (Σ (ri iz + li iz + urc iz + misd iz + misr...
TRANSCRIPT
![Page 1: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/1.jpg)
1
ERCOT Wholesale ERCOT Wholesale SettlementSettlement
Module 3Module 3
![Page 2: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/2.jpg)
2
BENAiq= -1 * (Σ (RIiz + LIiz + URCiz+ MISDiz+ MISRiz)z +
TCRPAYBei + Σ CSCBei ) * LRSiq
Can you tell these apart?
Introduction
![Page 3: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/3.jpg)
3
Definitions
Settlement Overview
Settlement Calculations
Topics
![Page 4: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/4.jpg)
4
Key Definitions
![Page 5: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/5.jpg)
5
Operating Day - Date of power flow
Settlements- Process used to resolve financial obligations;
Assess administrative and miscellaneous fees; Provide
transmission-billing determinants
Settlement Statement- A statement issued by ERCOT reflecting
a breakdown of market charges
Settlement Invoice- A notice for payment or credit due rendered
by ERCOT
Definitions
![Page 6: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/6.jpg)
6
Initial Statement- Posted 10 days after Operating Day
Final Statement- Posted 59 days after Operating Day
True Up Statement- Posted 6 months after Operating Day
Resettlement Statement- Ad Hoc; posted as needed
Definitions
![Page 7: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/7.jpg)
7
Charge Type- Line item on settlement statement
Settlement Interval- A period of time for which market services
are settled
Bill Determinants- Variables used to calculate a Charge Type
Definitions
![Page 8: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/8.jpg)
8
Recorder - A sequence of alpha-numeric values to identify data
Example: NMLEIOL_H04_99_MYRESOURCEID,1
Channel - Indicates the iteration of the settlement run (Initial, Final, True-Up, Resettlement)
Definitions
![Page 9: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/9.jpg)
9
Overview
![Page 10: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/10.jpg)
10
Bilateral transactions
QSEs
Load Serving Entities
Resources
Electricity sellersElectricity sellers Electricity buyersElectricity buyers
QSEsBilateral
transactions
ERCOT SETTLEMENTSERCOT SETTLEMENTS
$ $
Overview
![Page 11: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/11.jpg)
11
All cash flow defined from ERCOT perspective:
NEGATIVE amountsERCOT pays Market Participant
POSITIVE amountsMarket Participant pays ERCOT
“VISA Bill” Rule
Overview
![Page 12: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/12.jpg)
12
Market Participants’ Roles
QSE: Daily review of Settlement Statements Download of Data Extracts Shadow Settlement and Validation Research Discrepancies Register Disputes Weekly review of Invoices Settle with ERCOT
Overview
![Page 13: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/13.jpg)
13
Market Participants’ Roles
LSE / Resources: Download of Data Extracts Research Discrepancies Settle with QSE
Overview
![Page 14: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/14.jpg)
14
ERCOT’s Daily Settlement Procedures:Validate Settlement Statements for publishingCreate and publish Invoices (Weekly)Facilitate Invoice Payment Processes (Weekly)Participate in UFE AnalysisDispute Research and ResolutionProvide Settlement information (ERCOT, PUCT, Market
Participants)
ERCOT's Roles
Overview
![Page 15: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/15.jpg)
15
Questions
![Page 16: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/16.jpg)
16
Settlement Calculations
![Page 17: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/17.jpg)
17
ERCOT MUST REMAIN REVENUE NEUTRAL!
Settlement Calculations
![Page 18: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/18.jpg)
18
All payments for Market Services will have a corresponding cost allocation.
Common forms of cost allocation Obligation Direct Assignment Load Allocation BENA
Charge types are grouped into payments and cost recovery for market services.
Settlement Calculations
Revenue Neutrality
![Page 19: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/19.jpg)
19
ERCOT settles for services procured to manage the Texas power grid.
Capacity Settlement
Settlement Calculations
Settlement of What?
Energy Settlement
![Page 20: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/20.jpg)
20
Capacity Settlement
![Page 21: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/21.jpg)
21
Learning Objectives:Learning Objectives:
Ancillary ServicesAncillary Services
Replacement ReserveReplacement Reserve
OOMCOOMC
Capacity Settlement
![Page 22: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/22.jpg)
22
QSE’s AS obligation quantity based on its Load Ratio Share (LRS)
QSE’s have opportunity to self-arrange their obligation
ERCOT will procure at Market Clearing Price all AS obligations not self-arranged.
Ancillary Services
Capacity Settlement
![Page 23: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/23.jpg)
23
Ancillary Services Capacity
ERCOT
Obligation per Load Ratio Share
$
$
Emergency Short Supply
Capacity
$
Self Arrangement(reduces obligation)
Ancillary Services
Capacity Settlement
![Page 24: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/24.jpg)
24
QSEObligation
(MW)
Self Arranged
(MW)
Amount Short (MW)
Bid Amount
(MW)Bid Price
($/MW)Procurement
(MW)1 500 250 250 100 15 02 300 300 0 100 12 503 200 0 200 400 10 400
Total 1000 550 450 600 12 450
QSEPayment
($)Allocation
($)1 0 30002 -600 03 -4800 2400
Total -5400 5400
Ancillary Service Example Calculation
Capacity Settlement
![Page 25: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/25.jpg)
25
Procured Ancillary Service Capacity
PCASqi = -1 * (CASqi * MCPCASi )
Terms
PC : Ancillary Service Capacity Payment
C: Capacity Procured
MCPC: Market Clearing Price for CapacityProtocol 6.8.1.2
Translation: The payment for Ancillary Service Capacity is equal to the Amount of Capacity procured times the Clearing price for that Service.
Subscripts
i: Interval
q: QSE
Capacity Settlement
![Page 26: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/26.jpg)
26
LAASqi = ASPi * NTOASqi
Protocol 6.9.1
Terms
LA: Load Allocated Ancillary Service Charge
ASP: Ancillary Service Price
NTO: Ancillary Service Net Obligation per QSE
Translation: The Load Allocation Charge for an ancillary service is equal to the Ancillary Service Price times the Net Obligation for the QSE.
Subscripts
i: Interval
q: QSE
Ancillary Service Cost Allocation
Capacity Settlement
![Page 27: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/27.jpg)
27
Learning Objectives:Learning Objectives:
Ancillary ServicesAncillary Services
Replacement ReserveReplacement Reserve
OOMCOOMC
Capacity Settlement
![Page 28: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/28.jpg)
28
Providers of Replacement Reserve (RPRS) are paid for three distinct types of service:
Capacity Insufficiency
Zonal Congestion
Local Congestion
Section 6.8.1.10 and 6.8.1.11
Capacity Settlement
![Page 29: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/29.jpg)
29
Units selected for Capacity Insufficiency or Zonal Replacement are paid:
the higher of their bid or,
the highest MCPC for all Replacement Reserve procured during the procurement processes.
Section 6.8.1.10 and 6.8.1.11
Capacity Settlement
![Page 30: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/30.jpg)
30
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
Capacity Settlement
![Page 31: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/31.jpg)
31
Payment from the Market is collected through the following charges:
RPRS Zonal Congestion Charge
RPRS Uplift Charge
Section 6.9.2.1.1
Capacity Settlement
![Page 32: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/32.jpg)
32
RPRS Zonal Congestion Charge
RPRS Zonal Congestion costs will be directly allocated to QSEs whose schedules have an impact on a congested Commercially Significant Constraint
Note that clearing RPRS for Zonal Congestion creates shadow prices for capacity and triggers corresponding TCR payments.
Section 7.3.4.2
Capacity Settlement
![Page 33: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/33.jpg)
33
RPRS Uplift Charge
ERCOT nets:
The total payments for Zonal, Local and Capacity Insufficiency RPRS and
The direct assigned Congestion impact and TCR Payments
The difference is uplifted at Load Ratio Share to all QSEs.
Section 6.9.2.1.2
Capacity Settlement
![Page 34: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/34.jpg)
34Section 6.9.2.1.2
RPRSUplift
Charge
Capacity Insufficiency
Zonal Replacement
Local Replacement
TCR Payments
Zonal Congestion
Impact
Capacity Settlement
![Page 35: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/35.jpg)
35
UCRP = -1 * [ Σ ( PCRP + LPCRP ) + 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
Capacity Settlement
![Page 36: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/36.jpg)
36
Learning Objectives:Learning Objectives:
Ancillary ServicesAncillary Services
Replacement ReserveReplacement Reserve
OOMCOOMC
Capacity Settlement
![Page 37: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/37.jpg)
37
What is OOMC?
Replacement Reserve procured out of merit order
Looks a lot like Local Replacement Reserve
ERCOT-wide cost is uplifted to QSEs (LRS)
Capacity Settlement
OOMC
![Page 38: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/38.jpg)
38
Units selected for OOMC are paid:
Resource Category Generic Startup Cost minus energy revenue during ramp (back 12 intervals), plus
Resource Category Minimum Energy Cost minus MCPE for operating at the LSL
or
Replacement Bid, if cheaper.
Section 6.8.1.10 and 6.8.1.11
Capacity Settlement
![Page 39: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/39.jpg)
39
Energy Settlement
![Page 40: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/40.jpg)
40
Learning Objectives:Learning Objectives:
Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA
Energy Settlement
![Page 41: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/41.jpg)
41
Represents the increase or decrease in energy
dispatched by Settlement Interval in Real Time to
ensure the balancing needs of ERCOT.
The energy is supplied by ERCOT through
acquisition of resources (generating units and
interruptible demands) to meet load variations not
covered by Regulation Service.
Energy Settlement
Balancing Energy
![Page 42: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/42.jpg)
42
Zonal Instructed Deviation (up/down) from ERCOT to
QSE Used to solve power balance and/or congestion Settled at zonal MCPE
How is this paid?
Balancing Energy
Energy Settlement
![Page 43: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/43.jpg)
43
Learning Objectives:Learning Objectives:
Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA
Energy Settlement
![Page 44: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/44.jpg)
44
Scheduled Generation - Metered Generation
Paid/charged at MCPE
Why an imbalance?
Instructed Deviations
Uninstructed Deviations (may be subject to URC)
Do all Resource Imbalances result in payments to the QSE?
Resource Imbalance
Protocol 6.8.1.13
Energy Settlement
![Page 45: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/45.jpg)
45
Situation:Situation: SQSE has scheduled to generate at 208 MW from their SQSE has scheduled to generate at 208 MW from their resource in the South Zone for IE 1630.resource in the South Zone for IE 1630.
The Resource actually generates at 220MW.The Market Clearing Price for Energy, South CM Zone is $17.09/MWh
Conditions:Conditions:
SQSESQSE
Resource Imbalance Example
Energy Settlement
![Page 46: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/46.jpg)
46
Scheduled Generation
Actual Generation
0
220MW
Resource Imbalance Example
Energy Settlement
208MW
55MWh 52MWh
SQSESQSE
![Page 47: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/47.jpg)
47
For a given interval and zone,
RI = (Scheduled Generation – Actual Generation) * MCPE
Therefore, for interval 1630, SQSE’s Resource Imbalance in the South Zone is
RI = (52MWh - 55MWh) * $17.09/MWh = - $51.57
Resource Imbalance Example
Energy Settlement
SQSESQSE
![Page 48: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/48.jpg)
48
RIizq = (QRSizq - MRizq) * MCPEiz
Resource Imbalance
Protocol 6.8.1.13
Terms
RI : Resource Imbalance Amount
QRS: Scheduled Resource
MR: Metered Resource
MCPE: Market Clearing Price for Energy
Translation: Resource Imbalance is the difference between the Scheduled and Actual Resource output times the Clearing Price for Energy.
Subscripts
i: Interval
z: Zone
q: QSE
Energy Settlement
![Page 49: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/49.jpg)
49
Learning Objectives:Learning Objectives:
Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA
Energy Settlement
![Page 50: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/50.jpg)
50
Scheduled Load - Adjusted Metered Load
Paid/charged at MCPE
Why an Imbalance?UFEForecast InaccuraciesRelaxed Balanced Schedule (section 4.3.1)LaaR’s
Load Imbalance
Protocol 6.9.5.2
Energy Settlement
![Page 51: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/51.jpg)
51
Situation:Situation: SQSE schedules 140 MW (35 MWh / interval) of Load in SQSE schedules 140 MW (35 MWh / interval) of Load in the South Zone for IE 1630the South Zone for IE 1630
Adjusted Metered Load = 160 MW (40 MWh / interval) in the South Zone.Market Clearing Price for Energy = $17.09/MWh in the South
Conditions:Conditions:
SQSESQSE
Load Imbalance Example
Energy Settlement
![Page 52: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/52.jpg)
52
Actual Load
Scheduled Load
0
140
160
South Zone
Load Imbalance Example
Energy Settlement
35MWh 40MWh
SQSESQSE
![Page 53: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/53.jpg)
53
For a given interval and zone,
LI = -1*(Scheduled Load – Actual Load) * MCPE
Therefore, for interval 1630, SQSE’s Load Imbalance in the South Zone is
LI = -1*(35MWh - 40MWh) * $17.09/MWh = $85.45
SQSESQSE
Load Imbalance Example
Energy Settlement
![Page 54: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/54.jpg)
54
Actual Load
Scheduled Load
0
200
208
SQSESQSE
North Zone
Load Imbalance Example
Energy Settlement
52MWh 50MWh
![Page 55: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/55.jpg)
55
For a given interval and zone,
LI = -1*(Scheduled Load – Actual Load) * MCPE
Therefore, for interval 1630, SQSE’s Load Imbalance in the North Zone is
LI = -1*(52MWh - 50MWh) * $17.09/MWh = -$34.18
SQSESQSE
Load Imbalance Example
Energy Settlement
![Page 56: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/56.jpg)
56
LIizq = -1 * (SLizq - AMLizq) * MCPEiz
Load Imbalance
Protocol 6.9.5.2
Translation: Load Imbalance is the difference between the Scheduled and Actual Load times the Clearing Price for Energy.
Terms
LI : Load Imbalance Amount
SL: Scheduled Load
AML: Adjusted Metered Load
MCPE: Market Clearing Price for Energy
Subscripts
i: Interval
z: Zone
q: QSE
Energy Settlement
![Page 57: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/57.jpg)
57
Learning Objectives:Learning Objectives:
Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA
Energy Settlement
![Page 58: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/58.jpg)
58
What is OOME?
Out of merit order, unit-specific energy deployment
Procured by ERCOT when no market solution
Paid according to a generic cost structure (Protocol Section 6.8.1.1)
ERCOT-wide cost is uplifted to QSEs based on Load-Ratio-Share (LRS)
Energy Settlement
OOME
![Page 59: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/59.jpg)
59
The OOME Up and OOME Down payments are intended to cover only the amount above the billable quantity times MCPE. MCPE times billable quantity is paid in Resource Imbalance.
If the calculated OOM Up payment is insufficient --- additional verifiable costs may be paid if submitted in a timely manner.
OOME Payment Methodology
Energy Settlement
OOME
![Page 60: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/60.jpg)
60
Situation:Situation: SQSE receives an OOME instruction for IE SQSE receives an OOME instruction for IE 1600 to move the output of Unit 1 to 150 MW1600 to move the output of Unit 1 to 150 MW
SQSESQSE
Data for SQSE for IE 1600:
RP_Unit1 = 100 MW (25 MWh per 15 minute interval)
Metered Generation by Unit1 = 36 MWh
Instructed Output Level= 150MW (37.5 MWh per interval)
Unit 1 is a Gas-Steam Reheat Boiler unitGeneric Cost (Per Protocol 6.8.2.1) = $61.41 per MWh
MCPE = $15.80 per MWh
Energy Settlement
OOME Example
![Page 61: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/61.jpg)
61SQSESQSE
Instructed Output
0
144
150
Metered Output
Resource Plan andGeneration Schedule100
OOME Example
Energy Settlement
37.5MWh 36MWh 25MWh
![Page 62: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/62.jpg)
62
OOME Example
Energy Settlement
As with all settlement equations,
OOME Payment = -1 * Quantity * Price
Price is fairly easy:
Price = (Generic Cost – MCPE) or 0, whichever is greater.
In this example, Price = $61.41- 15.80 = $45.61 per MWh
Why do we subtract the MCPE from the Generic Cost?
SQSESQSE
![Page 63: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/63.jpg)
63
OOME Example
Energy Settlement
Quantity is a little more difficult:
Quantity = The change in energy output in response to the instruction with a maximum of the instruction itself.
SQSESQSE
![Page 64: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/64.jpg)
64
OOME Example
Energy Settlement
The unit’s response = Metered Output – Resource Plan= 36 MWh – 25 MWh= 11 MWh
The unit’s instruction = Instructed Output – Resource Plan= 37.5 MWh – 25 MWh= 12.5 MWh
Since the response does not exceed the instruction, ERCOT will pay SQSE for the unit’s response of 11 MWh.
SQSESQSE
![Page 65: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/65.jpg)
65
OOME Example
Energy Settlement
Putting it all together,
OOME Payment = -1 * Quantity * Price
= -1 * 11 MWh * $45.61/MWh
= -$501.71
SQSESQSE
![Page 66: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/66.jpg)
66
PEOOMUPiuq = -1 * EOOMUPiuq * Max [(RCGFCc – MCPEiz),0]
Terms
PE: Price paid for OOM Energy
E: Amount of OOME Energy Provided
RCGFC: Resource Category Generic Fuel Cost
MCPE: Market Clearing Price for Energy
Translation: The OOM Energy premium payment is equal to the Energy provided times the difference between MCPE and the Generic cost for the OOME service.
Protocol 6.8.2.3
Subscripts
i: Interval
z: Zone
q: QSE
c: resource category
u: generation unit
Energy Settlement
OOME
![Page 67: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/67.jpg)
67
where EOOMUPiuq = Max (0, Min ((MRiuq – OLiuq), IOOMUPiuq))
Terms:
MR = Metered Resource
OL = Resource Plan Output Level
I = OOME Instruction
PEOOMUPiuq = -1 * EOOMUPiuq * [Max (RCGFCc – MCPEiz),0]
Subscripts
i: Interval
z: Zone
q: QSE
c: resource category
u: generation unit
Energy Settlement
OOME
Protocol 6.8.2.3
![Page 68: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/68.jpg)
68
Learning Objectives:Learning Objectives:
Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA
Energy Settlement
![Page 69: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/69.jpg)
69
Uninstructed Resource Charge (URC)
A QSE who schedules resources will be paid the full
Market Clearing Price for Energy Up to the amount of
instructed deviations
An Uninstructed Deviation Charge Back will be
calculated at a factor of the MCPE. The Uninstructed
Deviation Charge Back will be applied to each
Congestion Zone in which a QSE has a deviation from
schedule plus instructions.
Uninstructed Resource Charge
![Page 70: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/70.jpg)
70
Integrated Amount of
ERCOT Regulation is less than -25
MWhrs
Uninstructed Resource
Charge
Over Generation in a zone where
MCPE is positive
Metered Resource is greater than larger of 101.5% of (or 5MWh over) total schedule
plus Instruction
Uncontrollable Renewable Resource has generated
more than 150% of its Schedule
Price Chasing
Uninstructed Resource Charge
![Page 71: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/71.jpg)
71
Integrated Amount of
ERCOT Regulation is
greater than 25 MWhrs
Uninstructed Resource
Charge
Under Generation in a zone where
MCPE is negative
Metered Resource is less than lesser of 98.5% of (or
5MWh under) total schedule plus Instruction
Uncontrollable Renewable Resource generates less than 50% of Schedule.
Cost Optimization
Uninstructed Resource Charge
![Page 72: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/72.jpg)
72
Learning Objectives:Learning Objectives:
Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA
Energy Settlement
![Page 73: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/73.jpg)
73
Settlement of Zonal Congestion
QSE impact is determined by the bilateral schedule
The net Resource schedule (Resource – Obligation) for each zone is multiplied by the zonal shift factor for each Commercially Significant Constraint (CSC).
The CSC impacts are added together
The QSE is charged the Impact on the CSC multiplied by the Shadow Price on the CSC.
Congestion Management - Zonal
![Page 74: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/74.jpg)
74
Congestion Management - Example
Congestion Management - Zonal
SouthZone
NorthZone
South to North CSC
West to North CSC
South to West CSC
WestZone
![Page 75: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/75.jpg)
75
Shift Factors
CM Zone names
Average Weighted Shift Factor
West to North
Average Weighted Shift Factor
South to North
Average Weighted Shift Factor
South to West
West2004 0.489911548 -0.004425342 -0.016725781
North2004 -0.008056712 -0.120276952 -0.003225342
South2004 0.002302236 0.503257831 0.104328870
CSC Zonal Average Weighted Shift Factors
Congestion Management - Zonal
![Page 76: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/76.jpg)
76
https:tcr.ercot.com
Congestion Management - Zonal
Where do you find the real shift factors?
![Page 77: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/77.jpg)
77
Situation:Situation: SQSE schedules 548 MW of Resource from the South SQSE schedules 548 MW of Resource from the South Zone and delivers 140 MW to the South Zone and 408 MW to the Zone and delivers 140 MW to the South Zone and 408 MW to the North Zone.North Zone.
The South to North congestion Path is constrained.
MCPE_North = $28.84MCPE_South = $17.09MCPESPC_SN = $32.91
Congestion Management - Zonal
SQSESQSE
Congestion Management - Example
![Page 78: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/78.jpg)
78
Congestion Management - Example
Congestion Management - Zonal
South
West North
Res = 548MW
Load = 140MW
Res = 0MW
Load = 408MW
SQSESQSE
![Page 79: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/79.jpg)
79
SQSE’s South Zone Schedule impacts the South to North constraint as follows:
Impact = (Resource – Obligation)(1/4 hr) * SFSN
= (548 MW – 140MW)(1/4 hr) * 0.503257831= 51.33 MWh
SQSESQSE
Congestion Management - Example
SQSE’s North Zone Schedule impacts the South to North constraint as follows:
Impact = (Resource – Obligation)(1/4 hr) * SFSN
= (0 MW – 408MW)(1/4 hr) * -0.120276952= 12.27 MWh
Congestion Management - Zonal
![Page 80: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/80.jpg)
80
Now the Congestion Charge for a particular CSC is simply a quantity times a price:
Congestion Charge = (Sum of Impacts) * Shadow Price= (51.33 MWh + 12.27 MWh)($32.91/MWh)= $2093.08
SQSESQSE
Congestion Management - Example
Congestion Management - Zonal
![Page 81: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/81.jpg)
81
ICSCiq = Σ((QSSiqz – SOiqz) * SFZCSC)z
Protocol 7.3.4.1
CSC Schedule Impact
Terms
I: Scheduled MW Impact per CSC
QSS: QSE Supply Schedule
SO: Scheduled Obligation
SF: Shift Factor
Subscripts
i: Interval
q: QSE
z: zone
CSC: Commercially Significant Constraint
Congestion Management - Zonal
![Page 82: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/82.jpg)
82
CSCBECSCiq = SPCCSCi * MAX(0, ICSCiq)
Congestion: CSC Impact
What happens if my impact is negative?
Terms
I: Scheduled MW Impact per CSC
CSCBE: Energy Related Congestion Charge
SPC: Shadow Price
Subscripts
i: Interval
q: QSE
CSC: Commercially Significant Constraint
Congestion Management - Zonal
Protocol 7.3.4.1
![Page 83: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/83.jpg)
83
CSCBECSCiq = SPCCSCi * ICSCiq
Congestion: CSC Counterflow
Terms
I: Scheduled MW Impact per CSC
CSCBE: Energy Related Congestion Charge
SPC: Shadow Price
Subscripts
i: Interval
q: QSE
CSC: Commercially Significant Constraint
Congestion Management - Zonal
Protocol 7.3.4.1
![Page 84: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/84.jpg)
84
Situation:Situation: If SQSE had bid for and purchased 100 TCRs for If SQSE had bid for and purchased 100 TCRs for this month at $3 a piece, then the impact is as follows:this month at $3 a piece, then the impact is as follows:
SQSESQSE
Cost of TCRs = 100 * $3 = $300 (covers entire month)
Cost of congestion from IE 1630 = $2,093.08
Payment from TCR = TCR/4 * MCPESPC_SN
= (100/4) * $32.91 = $822.75
SQSE cost for Congestion = $2,093.08 – $822.75 = $1270.33(minus the monthly amortized cost of the TCR)
Congestion Management – TCR Example
Congestion Management - Zonal
![Page 85: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/85.jpg)
85
Limit = 500 MW
200 MW
300 MW
100 MW OVERLOAD
“Generate at 200”
200 MW
Question: How does ERCOT select the unit?
Congestion Management - Local
![Page 86: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/86.jpg)
86
In real time, ERCOT manages Local Congestion using unit specific deployments.
Units selected are paid by their Bid Premiums if a Market Solution is used.
Units selected are paid as OOM if no Market Solution exists.
Charge uplifted to QSEs on a Load Ratio Share Basis.
Congestion Management - Local
Congestion Management – Unit Selection
![Page 87: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/87.jpg)
87
Learning Objectives:Learning Objectives:
Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA
Energy Settlement
![Page 88: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/88.jpg)
88
QSE A
R O
QSE A 100MW (South)
100MW QSE B (South)
QSE B
R O
QSE A 120MW (South)
120MW QSE B (South)
Mismatch
Mismatched Schedules
Energy Settlement
What happens if the following schedule is not resolved?
![Page 89: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/89.jpg)
89
QSE A
R O
QSE A 100MW (South)
100MW QSE B (South)
QSE B
R O
QSE A 120MW (South)
120MW QSE B (South)
Mismatch
Energy Settlement
QSE A 100MW (South)
ERCOT 20MW (South)
Resolved in Settlement
Mismatched Schedules
![Page 90: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/90.jpg)
90
Translation: The mismatch payment or charge is equal to the mismatch amount delivered to or received from ERCOT times the MCPE.
Terms:
MISD: Payment for mismatched amount delivered to ERCOT
MISR: Charge for mismatched amount received from ERCOT
MISAMTD: Mismatched amount delivered to ERCOT
MISAMTR: Mismatched amount received from ERCOT
MCPE: Market Clearing Price for Energy
Energy Settlement
MISDiqz = -1 * MISAMTDiqz * MCPEiz
MISRiqz = MISAMTRiqz * MCPEiz
Subscripts
i: Interval
z: Zone
q: QSE
Mismatched Schedules
![Page 91: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/91.jpg)
91
Learning Objectives:Learning Objectives:
Balancing EnergyBalancing EnergyResource ImbalanceResource ImbalanceLoad ImbalanceLoad ImbalanceOOMEOOMEUninstructed Resource ChargeUninstructed Resource ChargeCongestionCongestionMismatched SchedulesMismatched SchedulesBENABENA
Energy Settlement
![Page 92: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/92.jpg)
92
BENA
ResourceImbalance
Load Imbalance
Mismatch Energy
Delivered
TCR Payments
$ $
$
$Uninstructed
Resource Charge
$
Mismatch Energy
Received$
Balancing Energy CSC
Charges
$
Balancing Energy Neutrality Adjustment
Energy Settlement
![Page 93: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/93.jpg)
93
BENAiq= -1 * (Σ (RIiz + LIiz + URCiz+ MISDiz+ MISRiz)z +
TCRPAYBei + Σ CSCBei ) * LRSiq
Terms
BENA: Balancing Energy Neutrality Adjustment
RI: Resource Imbalance
LI: Load Imbalance
URC: Uninstructed Resource Charge
MISD: Mismatched Energy Delivered
MISR: Mismatched Energy Received
TCRPAY: Transmission Congestion Right Payments
CSC: Direct Assigned Congestion Cost
LRS: Load Ratio Share Protocol 9.6.1
Energy Settlement
Balancing Energy Neutrality Adjustment
![Page 94: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/94.jpg)
94
BENAiq= -1 * (Σ (RIiz + LIiz + URCiz+ MISDiz+ MISRiz)z +
TCRPAYBei + Σ CSCBei ) * LRSiq
Translation: The Balancing Energy Neutrality Adjustment is equal to the Sum of the Load Imbalances, Resource Imbalances, Uninstructed Resource Charges, Mismatch Charges, TCR Payments and Direct Assigned Congestion costs allocated at Load Ratio Share.
Energy Settlement
Balancing Energy Neutrality Adjustment
Protocol 9.6.1
![Page 95: 1 ERCOT Wholesale Settlement Module 3. 2 BENA iq = -1 * (Σ (RI iz + LI iz + URC iz + MISD iz + MISR iz ) z + TCRPAY Bei + Σ CSC Bei ) * LRS iq Can you](https://reader034.vdocuments.net/reader034/viewer/2022050802/56649f345503460f94c51876/html5/thumbnails/95.jpg)
95
Questions