module 5 reliability unit commitment€¦ · module objectives: reliability unit commitment crr...

Module 5

Reliability Unit Commitment

2

Day 2

Reliability Unit

Commitment

• Describe the overall Reliability Unit Commitment settlement process.

• Identify Market and ERCOT actions that impact RUC Settlements.

• Explain the RUC Make-Whole process

• Calculate Make-Whole Payment

• Calculate RUC Capacity Short Charge

• Describe and calculate the RUC Clawback payment and charge.

Upon completion of this module, learners will be able to:

Module Objectives: Reliability Unit Commitment

CRR BalancingAccount

3

It ensures:

• Enough capacity is committed to serve the forecasted load

• Committed capacity is in the right locations

Purpose of Reliability Unit Commitment (RUC)


4

• ERCOT provides QSE with a payment guarantee

• May provide Make-Whole Payment

• May clawback “excess revenues”

Cost recovery

• Capacity-short QSEs responsible for Make-Whole (Up to a limit)

• Some costs may be socialized acrossall QSEs

If ERCOT commits a Resource through RUC


5

Operational

• Update COP – ONOPTOUT

• Must start resource if available

• May provide ancillary services

Financial

• No RUC Make-Whole Payments

• No Clawback Charges

A QSE may opt out of RUC settlement by self-committing for all hours of the RUC instruction

Reliability Unit Commitment Opt Out

6

Reliability Unit Commitment: Settlements

DAMParticipation in DAM• Energy• AS• PTP Obligations

DAM Commitment• Make-Whole

Settlement of CRRs purchased in the Auction

CRR Auction

Revenue Distribution

Charges & Payments for CRRs RUC

Commitment• Make-Whole• Clawback

Decommitment

7

QSE’s Representing RUC committed resources may receive a Make-Whole payment

Outcome #1

RUC Make-Whole Payment

What: Payment when the Real-Time revenues are less than actual costs for a RUC-Committed Resource

Why: To ensure that a QSE recovers its costs to run a RUC-Committed Resource

8

Calculating RUC Make-Whole Payment


Incremental Energy Costs

Minimum Energy Costs

Revenues Received

$

Costs Incurred

Start-up Costs

9





Start-up Costs

Revenues Received

$

Costs Incurred

Real-TimeRevenues

10

Real-TimeRevenues





Start-up Costs

Revenues Received

$

Costs Incurred

Real-Time Revenues = RT SPP * Metered Generation

11



Start-up Costs

What if revenues are less than cost?


Revenues Received

Real-TimeRevenues

$

Costs Incurred

12



Start-up Costs



Real-TimeRevenues

Make-Whole Payment

Revenues Received

$

Costs Incurred

Difference = Make-Whole Payment

13

Subtract Incremental Energy Costs from both columns

Now we re-arrange the balance sheet slightly ...


Real-TimeRevenues

Make-Whole Payment


Start-up Costs

Revenues Received

$

Costs Incurred


IncrementalEnergy Costs

14



Make-Whole Payment Minimum Energy Costs

Start-up Costs

Revenues Received Costs Incurred

Real-TimeRevenues


Real-Time Revenues – Incremental Energy Costs

= RT SPP * Metered Generation – AIEC *Metered

GenerationAbove LSL ( )$

15



Make-Whole Payment Minimum Energy Costs

Start-up Costs

Revenues Received

$

Costs Incurred

Real-TimeRevenues


RUC Guaranteed Amount

16


RUC Guaranteed Amount( ) ( )<Resource

Revenues

A QSE is paid the Real-time Settlement Point Price for all energy produced by its Resource

A QSE will also receive a Make-Whole Payment if its Resource’s net revenues are less than its Startup and


Trigger #1

17


( ) ( )Trigger #1 < RUC Guaranteed

AmountResourceRevenues

18

Calculate RUC Guaranteed Amount


RUC Guaranteed Amount = ( )Startup costs

Minimum energy costs+

$ to Start Up$/MWh at LSL

Startup Offer Minimum-Energy Offer

$/MWh Above LSL

Energy Offer Curve

19

Startup Cap =Verifiable Startup

Costs

Minimum Energy Cap

=Verifiable

Minimum-Energy Costs

Startup and Minimum Energy costs subject to caps


If ERCOT has Verifiable Costs Otherwise

Startup Cap =Resource Category

Startup Offer Generic Cap

Minimum Energy Cap

=Resource Category

Minimum-Energy Generic Cap

20

Otherwise,

If QSE submitted valid Three-Part Supply Offer,


Startup Price (SUPR)

Startup Offer (SUO)Startup Cap (SUCAP)

Minimum Energy Price (MEPR)

Minimum Energy Offer (MEO) Minimum Energy Cap (MECAP)

SUPR = Min(SUO, SUCAP) MEPR = Min(MEO, MECAP)

SUPR = SUCAPMEPR = MECAP

21


22


( ) ( )<

Startup Price (SUPR) $ 5000

RUC Startup Flag (RUCSUFLAG) 1

Minimum Energy Price (MEPR) $10/MWh

Low Sustained Limit (LSL) 20MW

Real-Time Metered Generation (RTMG) 50MWh


ResourceRevenues

RUCG q,r,d = (SUPR q,r,s * RUCSUFLAG q,r,s)

+ (MEPR q,r,i * Min ((LSL q,r,i * (¼)), RTMG q,r,i))

QSE4’s Resource is

committed for 5 hours

�𝑠𝑠

�𝑖𝑖

Trigger #1

23


( ) ( )< RUC Guaranteed Amount

ResourceRevenues

RUCG = (SUPR * RUCSUFLAG) + ∑(MEPR * Min ((LSL * (¼)), RTMG ))

RUCG = ($5000 * 1) + ($10/MWh * Min(20MW * ¼h, 50MWh) * 4i/h * 5h)= $5000 + ($10/MWh * (20MW * ¼h) * 4i/h * 5h)= $5000 + ($10/MWh * 100MWh)= $6000

Trigger #1

24



ResourceRevenues

• Per QSE

• Per Resource

• Per Operating Day with RUC Commitment


QSE1 $4,000

QSE4 $6,000

QSE6 $8,000

Trigger #1

25


26



ResourceRevenues

Resource Revenues = ( )Minimum-Energy Revenue up to LSL

Revenue Less Cost above LSL

Revenue Less Cost during QSE-Clawback intervals

++

Trigger #1

27

Calculate Resource Revenues


• Per QSE• Per Resource• Per Operating Day with RUC

Commitment $/MWh

MWLSL

SPP

Minimum-Energy revenue up to LSL

28

RUC Minimum Energy Revenue= (Price)* (Quantity)




Quantity = Minimum of:

Real-Time Metered

Generation¼ of LSL

29



RUC Minimum-Energy Revenue

Real-Time Settlement PointPrice

Low Sustained LimitReal-Time Metered Generation

Determinants

RUCMEREVq,r,d = ∑ (RTSPP p,i * Min (RTMG q,r,i , (LSL q,r,i * (¼))))


30



RUCMEREV = ∑ (RTSPP * Min (RTMG, (LSL * (¼))))

RUCMEREV = $50/MWh * Min (50MWh, (20MW * ¼h)) * 4i/h * 5h= $50/MWh * (20MW * ¼h) * 4i/h * 5h= $50/MWh * 100MWh= $5000


31



ResourceRevenues

RUC Guaranteed

Amount

Minimum-Energy revenue

up to LSL

Revenue Less Cost Above LSL

During RUC-Committed Hours

Revenue Less Cost During QSE-

Clawback Intervals

QSE1 $4,000 $2,000

QSE4 $6,000 $5,000

QSE6 $8,000 $4,000

Trigger #1

32

Energy Offer Curves for RUC-Committed Resources have a

$1500 floor price



• Per QSE• Per Resource• Per Operating Day with

RUC Commitment

$/MWh

MWLSL

Costs(AIEC)

SPP

RTMG * 4

Energy Offer Curve

EOCPRCAPRevenues$1500

HSL

Revenue Less Cost Above LSL During RUC-Committed Hours

33



Revenues CostsEnergy Revenue above LSL

Average Incremental Energy Cost above LSLVoltage Support Service

Emergency Power Increase


34



RUCEXRR q,r,d = Max {0, ∑ [RTSPPp,i * Max (0, RTMG q,r,i – (LSL q,r,i * (¼))) + (-1) * (VSSVARAMT q,r,i + VSSEAMT q,r,i)+ (-1) * EMREAMT q,r,i

– RTAIEC q,r,i * Max (0, RTMG q,r,i – (LSL q,r,i * (¼)))]}


Additional DeterminantsRevenue Less Cost Above LSL (RUCEXRR)Voltage Support Service VAR AmountVoltage Support Service Energy AmountEmergency Energy AmountReal-Time Average Incremental Energy Cost

35



RUCEXRR q,r,d = Max {0, ∑ [RTSPPp,i * Max (0, RTMG q,r,i – (LSL q,r,i * (¼))) + (-1) * (VSSVARAMT q,r,i + VSSEAMT q,r,i)+ (-1) * EMREAMT q,r,i

– RTAIEC q,r,i * Max (0, RTMG q,r,i – (LSL q,r,i * (¼)))]}


Average Incremental Energy Cost (RTAIEC) $20/MWh

RT Settlement Point Price (RTSPP) $50/MWh


36



RUCEXRR = Max {0, ∑ [RTSPP * Max (0, RTMG – (LSL * (¼))) – RTAIEC * Max (0, RTMG – (LSL * (¼)))]}

RUCEXRR = Max {0, [$50/MWh * Max (0, 50MWh– (20MW* (¼))) – $20/MWh* Max (0, 50MWh– (20MW* (¼)))] * 4i/h * 5h}

= Max {0, [$50/MWh * Max (0, 45MWh) – $20/MWh * Max (0, 45MWh)] * 4i/h * 5h}

= Max {0, 45MWh * ($50/MWh – $20/MWh )] * 4i/h * 5h}

= $1350 * 4i/h * 5h

= $27,000


37



ResourceRevenues

RUC Guaranteed

Amount


up to LSL




Clawback Intervals

QSE1 $4,000 $2,000 $1,000

QSE4 $6,000 $5,000 $27,000

QSE6 $8,000 $4,000 $4,000

Trigger #1

38

• QSE-Committed Interval

• Contiguous block with one RUC-Committed hour

• QSE-Committed AFTER RUC-Commitment



Revenue Less Cost During QSE Clawback Intervals

Hour5 10 15 20

QSE-Committed

RUC-Committed

39



Revenues CostsEnergy Revenue Minimum Energy Costs

Voltage Support Service Average Incremental Energy Cost above LSLEmergency Power Increase


40



Additional DeterminantsRevenue Less Cost (RUCEXRQC)

RUCEXRQCq,r,d = Max {0, ∑ [(RTSPPp,i * RTMG q,r,i) + (-1) * (VSSVARAMT q,r,i + VSSEAMT q,r,i)+ (-1) * EMREAMT q,r,i

– [MEPR q,r,i * Min (RTMG q,r,i , (LSL q,r,i * (¼)))]– RTAIEC q,r,i * Max (0, RTMG q,r,i – (LSL q,r,i * (¼)))]}


41




Average Incremental Energy Cost (RTAIEC) $20/MWh

RT Settlement Point Price (RTSPP) $50/MWh

RUCEXRQCq,r,d = Max {0, ∑ [(RTSPPp,i * RTMG q,r,i) + (-1) * (VSSVARAMT q,r,i + VSSEAMT q,r,i)+ (-1) * EMREAMT q,r,i

– [MEPR q,r,i * Min (RTMG q,r,i , (LSL q,r,i * (¼)))]– RTAIEC q,r,i * Max (0, RTMG q,r,i – (LSL q,r,i * (¼)))]}


42



RUCEXRQC = Max {0, ∑ [(RTSPP * RTMG) – [MEPR * Min (RTMG, (LSL * (¼)))]– RTAIEC * Max (0, RTMG – (LSL * (¼)))]}

RUCEXRQC = Max {0, [($50/MWh * 50MWh) – [$10/MWh * Min (50MWh, (20MW * (¼)))]– $20/MWh * Max (0, 50MWh – (20MW * (¼)))] * 4i/h * 2h}

= Max {0, [($50/MWh * 50MWh) – [$10/MWh * 5MWh]– ($20/MWh * 45MWh)] * 4i/h * 2h}

= Max {0, [$2500 – $50 – $900] * 4i/h * 2h}

= $1550 * 4i/h * 2h = $12,400


43



ResourceRevenues

RUC Guaranteed

Amount


up to LSL




Clawback Intervals

QSE1 $4,000 $2,000 $1,000 $0

QSE4 $6,000 $5,000 $27,000 $12,400

QSE6 $8,000 $4,000 $4,000 $8,000

Trigger #1

44



ResourceRevenues

RUC Guaranteed

AmountResource Revenues

QSE1 $4,000 $2,000 + $1,000 + $0 = $3,000

QSE4 $6,000 $5,000 + $27,000 + $12,400 = $44,400

QSE6 $8,000 $4,000 + $4,000 + $8,000 = $16,000

Trigger #1

45


46



ResourceRevenues


Resource Revenues

Eligible for Make-Whole Payment?

QSE1 $4,000 $3,000 Yes

QSE4 $6,000 $44,400 No

QSE6 $8,000 $16,000 No

?

??

Trigger #1

Outcome #1

47

• QSE1 Resource is RUC-Committed

• QSE1 is eligible for a Make-Whole Payment


RUCMWAMT = (-1) * Max (0, RUCG – RUCMEREV

– RUCEXRR – RUCEXRQC) / ∑ RUCHR

Trigger #1

RUCHR will be set to 1 for each RUC-Committed hour of the day.

Outcome #1

48

• QSE1 is RUC-Committed

• QSE1 is eligible for a Make-Whole Payment


RUCMWAMT = (-1) * Max (0, RUCG – RUCMEREV– RUCEXRR – RUCEXRQC) / ∑ RUCHR

RUCMWAMT = (-1) * Max(0, $4000–$2000–$1000– 0) / 5= - $200 per hour

Trigger #1

Outcome #1

49

• Make-Whole is paid at the Train level

• RUC Guaranteed Amount

• Start-up Costs

• Minimum Energy Costs

• May include Transition Cost

What if the RUC-committed Resource is part of a Combined Cycle Plant?

RUC Make Whole - Combined Cycle Resources

RUC may start any offered CCGR and transition from one offered

CCGR to another

50

RUC Make-Whole Payment for CCGR Transitions

DAM to RUC • RUC is contiguous to DAM commitment, • RUC committed in different configuration, • Train is online and generating in the RUC

committed configuration for at least 1 minute

RUC to RUC • RUC is contiguous to previous RUC, • RUC committed in different configuration, • Train is online and generating in the RUC


SELF to RUC • RUC is contiguous to previous SELF commitment,• RUC committed in different configuration, • Train is online and generating in the RUC


1

2

3

51


CCGR 1

CCGR 2

Combined Cycle Plant

Train 1 Train 2

ST1 CT1 CT2 CT3 ST2 CT4 CT5 CT6

RUC Guaranteed Amount may include Transition Cost from

CCGR1 to CCGR2

52


ResourceRevenues

RUCG q,r,d = ∑(SUPR q,r,s * RUCSUFLAG q,r,s) + ∑(Transition costs)+ ∑(MEPR q,r,i * Min ((LSL q,r,i * (¼)), RTMG q,r,i))

Max(0, SUPR afterCCGR – SUPR beforeCCGR)

--and--

Max(0, SUPR beforeCCGR – SUPR afterCCGR) RUC-to-QSE Transition

Transition to RUC


Transition costs:

Trigger #1

53





CRR Auction




Decommitment

54

To remain revenue neutral, ERCOT will first try to directly assign all costs incurred for Make-Whole Payments.


Costs are distributed based on QSE’s shortfalls in each 15-minute interval.

RUC Commitment Period

55

RUC Capacity-Short Charge

Charge to a QSE that was capacity-short in a RUC

What: Charge to QSEs that are capacity short

Why: Collect funds to pay the Make-Whole Payments to eligible QSEs

Charge to a QSE that was capacity-short in a RUC

Outcome #1

56

When a QSE does not provide enough capacity to meet its obligations, it may be assessed a Capacity Short Charge

RUC Capacity Short Charge


Capacity Required to meet QSE Obligations

QSE Shortfall

Capacity arranged by

QSE

57

• Execution of RUC

• Real-time Operations

Measure QSE Shortfall twice for each hour:


Capacity required to meet QSE

Obligations

QSE Shortfall

Capacity arranged by

QSE

QSE Shortfall

RUC (DRUC / HRUC) Real-Time

Capacity required to meet QSE

ObligationsCapacity

arranged by QSE

Worst case wins!

58

All QSEs who were capacity short in each RUC will pay a portion of the RUC Make Whole Payments for that particular RUC:



RUC Make Whole Total( )RUC Capacity Shortfall

Ratio Share *RUC Capacity Short Charge

by 15-Minute Settlement Interval

=

59

The charge to each QSE is capped at

Short Charge Cap


RUC Make Whole Total

RUC Capacity Total RUC Capacity Shortfall2 **

Price / MWof RUC ProcurementRUC Capacity Shortfall2 ** ( )

. . . which is the same as

60

A QSE with a capacity shortfall will pay the lesser of



RUC Make Whole Total( )RUC Capacity Shortfall

Ratio Share *

RUC Capacity Shortfall2 **

or their cap

Price / MWof RUC Procurement( )

61

RUCCSAMT = (-1) * Max [(RUCSFRS * RUCMWAMTRUCTOT), (2 * RUCSF * (RUCMWAMTRUCTOT / RUCCAPTOT))] / 4

RUCCSAMT ruc, i, q RUC Capacity Shortfall AmountRUCSFRS ruc, i, q RUC Shortfall Ratio Share

RUCMWAMTRUCTOT ruc, h RUC Make Whole Amount Total per RUCRUCSF ruc, i, q RUC ShortfallRUCCAPTOT ruc, h RUC Capacity Total



62

• Per RUC process

• Per QSE

• Per 15-minute Interval

RUC Shortfall Ratio Share


RUCSFRS ruc,i,q = RUCSF ruc,i,q / RUCSFTOT ruc,i

DeterminantsRUC Shortfall Ratio ShareRUC ShortfallRUC Shortfall Total

63

ERCOT takes Snapshots:

• QSE’s market position each time RUC is executed

• QSE’s market position at end of each Adjustment Period

Determining a QSE’s RUC Shortfall


DAM DRUC

64

Looks at QSE’s market position for each hour during the RUC Study Period

RUC Snapshot (DRUC)


17 18 19 20 21 22 23 24

9 10 11 12 13 14 15 16

1 2 3 4 5 6 7 8

65

Looks at QSE’s market position at the end of each Adjustment Period

Adjustment Period Snapshot


17 18 19 20 21 22 23 24

9 10 11 12 13 14 15 16

1 2 3 4 5 6 7 8

ADJ1

ADJ2

ADJ3 . . .

ADJ6 . . .

ADJ12

ADJ22

. . .

. . .

66

For each hour:

• ERCOT compares the Adjustment Snapshot with the corresponding hour in the RUC Snapshot

• The QSE’s RUC shortfall is based on the snapshot that is the most short

Determine QSE’s RUC Shortfall


17 18 19 20 21 22 23 24

9 10 11 12 13 14 15 16

1 2 3 4 5 6 7 8

ADJ1

ADJ2

ADJ3

ADJ4

ADJ5

ADJ6

ADJ7

ADJ8

ADJ9

ADJ10

ADJ11

ADJ12

ADJ13

ADJ14

ADJ15

ADJ16

ADJ17

ADJ18

ADJ19

ADJ20

ADJ21

ADJ22

ADJ23

ADJ24

67

RUC Shortfall


RUCSFruc,i,q = Max (0, Max (RUCSFSNAPruc,q,i, RUCSFADJruc,q,i)

– ∑ RUCCAPCREDITq,i,z)

RUC ShortfallRUC Short Fall at SnapshotRUC Short Fall at Adjustment

PeriodRUC Capacity Credit

RUCSFSNAP • Snapshot of the QSEs market position

each time a RUC is executed

• Different RUCSNAP for each RUC

Determinants

Prior RUCs

68

High Ancillary Service Limits + DC Tie Imports

Capacity Purchase – Capacity Sales (Capacity Trades)

Day-Ahead Energy Purchases – Day-Ahead Energy Sales

QSE-to-QSE Energy Purchases – QSE-to-QSE Energy Sales (Energy Trades)

RUC Shortfall


Capacity at snapshot:

RUCSFSNAPruc,q,i = Max (0, ((∑ RTAMLq,p,i * 4) + ∑ RTDCEXPq,p,i

– RUCCAPSNAPruc,q,i ))

69

RUCSFSNAPruc,q,i = Max (0, ((∑ RTAMLq,p,i * 4) + ∑ RTDCEXPq,p,i

– RUCCAPSNAPruc,q,i ))

RUCCAPSNAPruc,q,i = ∑ HASLSNAPq,r,h

+ (RUCCPSNAPq,h – RUCCSSNAPq,h) + (∑ DAEPq,p,h – ∑ DAESq,p,h) + (∑ RTQQEPSNAPq,p,i – ∑ RTQQESSNAPq,p,i)

+ ∑ DCIMPSNAPq,p,i

RUC Shortfall


RUC Capacity Snapshot at time of RUC

High Ancillary Service Limit at Snapshot

RUC Capacity Purchase

Day-Ahead Energy PurchaseDay-Ahead Energy SaleQSE-to-QSE Energy Purchase QSE-to-QSE Energy Sale

Determinants

RUC Capacity Sale

DC Import at Snapshot

Real-Time DC Tie Export(Oklaunion Exemption)

70

RUC Shortfall


RUCSFADJ

• Snapshot of the QSEs market position at the end of the Adjustment period

• Built over time

• Complete at the end of the last Adjustment period of the day


– ∑ RUCCAPCREDITq,i,z)Prior RUCs



Determinants

71

High Ancillary Service Limits + DC Tie Imports

QSE-to-QSE Energy Purchases – QSE-to-QSE Energy Sales (Energy Trades)

Day-Ahead Energy Purchases – Day-Ahead Energy Sales

Capacity Purchase – Capacity Sales (Capacity Trades)

RUC Shortfall


Capacity at Adjustment Period:

RUCSFADJruc,q,i = Max (0, ((∑ RTAMLq,p,i * 4) + ∑ RTDCEXPq,p,i

– ∑ HASLSNAPruc,q,r,h – RUCCAPADJq,i ))WGR

72

RUC Shortfall


RUCCAPADJ q,i = ∑ HASLADJ q,r,h

+ (RUCCPADJ q,h – RUCCSADJ q,h) + (∑ DAEP q,p,h – ∑ DAES q,p,h) + (∑ RTQQEPADJ q,p,i– ∑ RTQQESADJ q,p,i)+ ∑ DCIMPADJq,p,i

RUCSFADJruc,q,i = Max (0, ((∑ RTAMLq,p,i * 4) + ∑ RTDCEXPq,p,i

– ∑ HASLSNAPruc,q,r,h – RUCCAPADJq,i ))

RUC Capacity Snapshot at Adjustment Period

High Ancillary Service Limit at Adjustment Period

RUC Capacity Purchase

Day-Ahead Energy PurchaseDay-Ahead Energy SaleQSE-to-QSE Energy Purchase QSE-to-QSE Energy Sale

Determinants

RUC Capacity Sale

DC Import at Adjust. Period

Real-Time DC Tie Export(Oklaunion Exemption)

WGR

73

In a small group, respond to the questions that relate to Scenario #RUC1

You have 10 minutes to complete your questions.

Refer to your Settlements Workbook

Activity: Now it’s your turn!

If you can not complete all questions, don’t worry –all questions will be reviewed as a class.

74

RUC Shortfall


Capacity Credit

• Credit to QSEs to ensure not charged twice for the same capacity shortage


– ∑ RUCCAPCREDITq,i,z)Prior RUCs



Determinants

75

RUC Shortfall


RUCCAPCREDIT ruc,i,q

= Min [RUCSF ruc,i,q, (RUCCAPTOT ruc,h * RUCSFRS ruc,i,q)]

RUC Capacity Credit

RUC Capacity Total

RUC Shortfall

RUC Shortfall Ratio Share

RUCSF

RUCCAPTOT * RUCSFRSDeterminants

76

In a small group, respond to the questions that relate to Scenario #RUC2.

You have 5 minutes to complete your questions.

Refer to your Settlements Workbook

Activity: Now it’s your turn!

If you can not complete all questions, don’t worry –all questions will be reviewed as a class.

77

RUCSFRS = RUCSF / RUCSFTOT

= 20 MW / 100 MW

= 0.20


QSE3 is capacity-short for a RUC process

• 20 MW

Total short is• 100 MW

RUC Shortfall Ratio ShareTrigger #1

Outcome #1

78

• QSE3:• RUC Shortfall: 20 MW• RUC Shortfall Ratio Share of: 20 %

• ERCOT-wide Values• Total RUC Make-Whole Payments: -$800• RUC Capacity Total: 400 MW


RUCCSAMT = (-1) * Max [(RUCSFRS * RUCMWAMTRUCTOT), (2 * RUCSF * (RUCMWAMTRUCTOT / RUCCAPTOT))] / 4

RUCCSAMT = (-1) * Max [(.20 * $-800), (2 * 20 MW * ($-800/400 MW))] / 4

= (-1) * Max [(-$160), (-$80)] / 4

= $20

Trigger #1

79

RUC Capacity Short Charge is limited to $20 by the Short Charge Cap.

Without cap, charge would have been $40.


Trigger #1

Outcome #1

• QSE3:• RUC Shortfall: 20 MW• RUC Shortfall Ratio Share of: 20 %

• ERCOT-wide Values• Total RUC Make-Whole Payments: -$800• RUC Capacity Total: 400 MW

80

If after all the Capacity-Short charges have been collected ...

Reliability Unit Commitment Settlements

Total RUC Make-Whole Payments

Total Capacity-Short Charges

... then ERCOT needs additional funds for Make-Whole Payments.

81

RUC Make-Whole Uplift Charge

Charge to all QSEs to collect enough funds to pay the RUC Make-Whole Payments

What:

If the revenues from the Capacity-Short Charge don’t cover all RUC Make-Whole Payments then additional funds will be uplifted to QSEs on a Load Ratio Share basis

Why: Keep ERCOT revenue neutral

Charge to all QSEs to collect enough funds to pay the RUC Make-Whole Payments

Outcome #1

82

LARUCAMTq,i = (-1) * (RUCMWAMTTOTh / 4 + RUCCSAMTTOTi ) * LRSq,i


RUC Make-Whole Uplift ChargeRUC Make-Whole Amount TotalRUC Capacity Amount TotalLoad Ratio Share

Total RUC Make-Whole Payments / 4

Total Capacity-Short Charges for the interval

Uplifted at Load Ratio Share

Determinants

83

QSE5 represents Load• Load Ratio Share = .25

ERCOT-wide Values• Total RUC Make-Whole Payments: -$800• RUC Capacity-Short Charge Total: $100

ERCOT needs additional funds to pay Make-whole Payments


LARUCAMT = (-1) * ( RUCMWAMTTOT / 4 + RUCCSAMTTOT ) * LRS

LARUCAMT = (-1) * (- $800 / 4 + $ 100) * .25= (-1) * ( - $100 ) * .25= $25

Trigger #1

Outcome #1

84





CRR Auction




Decommitment

85

RUC Clawback Charge

Charge to all QSEs whose revenues exceed the RUC Guarantee

What: Collects a portion of revenue above costs

Why: Resource was committed for reliability. Excess revenue should be returned to Load

Charge to all QSEs whose revenues exceed the RUC Guarantee

Outcome #1

86


What if revenues are greater than cost?


Start-up Costs

Revenues Received Costs Incurred

Real-TimeRevenues


$

87


What if revenues are greater than cost?


Start-up Costs

Revenues Received

$

Costs Incurred

Clawback Charge

Real-TimeRevenues


But how does ERCOT determine how much to clawback?

88

Clawback Factors

RUC Clawback Charge

Three-Part Supply Offer in DAM

No Three-Part Supply Offer in DAM

RUC ClawbackFactor for RUC hours

50% 100%

RUC ClawbackFactor for QSE hours

0% 50%

89

RUC Clawback Charge


Resource Revenues

Receive a RUC Clawback Charge?

QSE1 $4,000 $3,000 No

QSE4 $6,000 $44,400 Yes

QSE6 $8,000 $16,000 It depends . . .

??

RUC Guaranteed Amount( ) ( )>Resource

Revenues

?

Trigger #1

Outcome #1

90

Calculate Clawback Amount

RUC Clawback Charge

RUCCBAMT = [(RUCMEREV + RUCEXRR – RUCG) * RUCCBFR+ (RUCEXRQC * RUCCBFC)] / ∑ RUCHR

RUCCBAMT q, r, h RUC Clawback Charge AmountRUCMEREVq, r, d RUC Minimum-Energy Revenue RUCEXRR q, r, d Revenue Less Cost Above LSL from RUC HoursRUCG q, r, d RUC GuaranteeRUCEXRQC q, r, d Revenue Less Cost from QSE Clawback IntervalsRUCCBFR q, r, d RUC Clawback Factor for RUC-Committed HoursRUCCBFC q, r, d RUC Clawback Factor for QSE Clawback IntervalsRUCHR RUC Hour

91

• QSE4’s Resource Revenues are greater than its RUC Guaranteed Amount

• QSE4’s Resource was committed with a Three-Part Supply Offer

RUC Clawback Charge

RUCCBAMT = [(RUCMEREV + RUCEXRR – RUCG) * RUCCBFR+ (RUCEXRQC * RUCCBFC)] / ∑ RUCHR

= [($5,000 + $27,000 – $6000) * 0.5+ ($12,400 * 0)] / 5

= [$26,000 * 0.5] / 5= $2600 per hour

Trigger #1

92

RUC Clawback Payment

Payment to all QSEs that represent Load

What: Revenue collected above costs through Clawback charge


Payment to all QSEs that represent Load

Outcome #1

93

• ERCOT receives funds from Clawback charges

• QSE5 represents Load• Load Ratio Share (LRS) of 30%

RUC Clawback Payment

LARUCCBAMT = (-1) * (RUCCBAMTTOT * (¼) * LRS)= (-1) * ($2600 * (¼) * 0.30)= (-1) * ($650 * 0.30)= -$195

RUC Clawback Payment = (-1) * (Hourly RUC Clawback * (¼) * QSE’s LRS)

Trigger #1

Outcome #1

94





CRR Auction




Decommitment

95

RUC Payment for Decommitment

If all criteria met:

• ERCOT pays QSE for decommittment

• Payment occurs only for Operating Day of decommitment

• QSE gets RUC Capacity Credit

Payment to QSE for a QSE-committed Resource that the RUC process decommitted

Outcome #1

96

Decommitment of a QSE-Committed Resource


RUC Decommitment Payment• Start-up Cost (SUPR)• Less cost savings (MEPR – RTSPP), if any• Distributed across Decommitted Hours (NCDCHR)

Where,

SUPR = Min(SUO, SUCAP) MEPR = Min(MEO, MECAP)

Startup Price (SUPR)

Startup Offer (SUO)Startup Cap (SUCAP)

Minimum Energy Price (MEPR)

Minimum Energy Offer (MEO) Minimum Energy Cap (MECAP)

97

• ERCOT decommits QSE1 Unit 1

• QSE-Committed Resource

• Resource is NOT scheduled to shutdown within the Operating Day


RUCDCAMT= (-1) * Max {0, [SUPR - (Max (0, MEPR – RTSPP)

* (LSL * (¼)))]} / NCDCHR

RUCDCAMT= (-1) * Max {0, [$1200 - (Max (0, $30 – $40)

* (10MW * (¼)))]} / 6

= (-1) * $1200 / 6 = -$200

Trigger #1

Outcome #1

98

• ERCOT decommits QSE1 Unit 1

• QSE-Committed Resource

• Resource IS scheduled to shutdown within the Operating Day


QSE will not receive payment for decommitment

Trigger #1

Outcome #2

99

RUC Decommitment Charge

What: Charge to fund Decommitment Payments


Charge to QSEs that represent Load Outcome #1

100

• Resource are decommitted by the RUC process and are eligible to receive a decommitment payment

• QSE5 represents Load

• Load Ratio Share of 30%

RUC Decommitment Charge

RUC Decommitment Charge= (-1) * [(RUC Decommitment Payments / 4 ) * LRS]

LARUCDCAMTq,i = (-1) * [(RUCDCAMTTOTh / 4 ) *LRS q,i ]= (-1) * [(-$200 / 4 ) * 0.30]= (-1) * [ -$50 * 0.30 ]= $15

Trigger #1

Outcome

101

Module Summary

$ Describe the overall Reliability Unit Commitment Settlement process

$ Identify Market and ERCOT actions that impact RUC Settlements.

$ Calculate various charges and payments associated with RUC Commitments and Decommitments

Day 2

Reliability Unit

8:30 A

Commitment

CRR BalancingAccount

11:30

module 5 reliability unit commitment€¦ · module objectives: reliability unit commitment crr...

Documents