CSWG Update To COPS8/14/2012

Jim Galvin

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Settlement Observations- LZ to Hub June 2012 to July 2012

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Load Zone/HUB RTSPP Period: Jul-12              Location Average Zone over HUB Comparison  

Location RTSPP Average Row Labels Average RTSPP Location Average RTSPP Zone over HUB DeltaLZ_HOUSTON $26.09 LZ_HOUSTON $26.09 HB_HOUSTON $26.01 $0.08LZ_NORTH $26.91 LZ_NORTH $26.91 HB_NORTH $26.60 $0.31LZ_SOUTH $26.58 LZ_SOUTH $26.58 HB_SOUTH $25.84 $0.74LZ_WEST $50.50 LZ_WEST $50.50 HB_WEST $26.21 $24.29LZ_AEN $26.54 Grand Total $32.52 Grand Total $26.17 $6.35LZ_CPS $26.03  HB_HOUSTON $26.01  HB_NORTH $26.60  HB_SOUTH $25.84  HB_WEST $26.21  Grand Total                    

Load Zone/HUB RTSPP Period: Jun-12              Location Average Zone over HUB Comparison  

Location RTSPP Average Row Labels Average RTSPP Location Average RTSPP Zone over HUB DeltaLZ_HOUSTON $28.11 LZ_HOUSTON $28.11 HB_HOUSTON $28.08 $0.03LZ_NORTH $28.38 LZ_NORTH $28.38 HB_NORTH $27.95 $0.44LZ_SOUTH $30.98 LZ_SOUTH $30.98 HB_SOUTH $27.92 $3.06LZ_WEST $43.56 LZ_WEST $43.56 HB_WEST $25.91 $17.66LZ_AEN $29.26 Grand Total $32.76 Grand Total $27.46 $5.30LZ_CPS $28.31  HB_HOUSTON $28.08  HB_NORTH $27.95  HB_SOUTH $27.92  HB_WEST $25.91  Grand Total                    

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Settlement Observations- LZ to Hub July Year over Year

Meeting Title (optional)Date

Load Zone/HUB RTSPP Period: Jul-12              Location Average Zone over HUB Comparison  

Location RTSPP Average Row Labels Average RTSPP Location Average RTSPP Zone over HUB DeltaLZ_HOUSTON $26.09 LZ_HOUSTON $26.09 HB_HOUSTON $26.01 $0.08LZ_NORTH $26.91 LZ_NORTH $26.91 HB_NORTH $26.60 $0.31LZ_SOUTH $26.58 LZ_SOUTH $26.58 HB_SOUTH $25.84 $0.74LZ_WEST $50.50 LZ_WEST $50.50 HB_WEST $26.21 $24.29LZ_AEN $26.54 Grand Total $32.52 Grand Total $26.17 $6.35LZ_CPS $26.03  HB_HOUSTON $26.01  HB_NORTH $26.60  HB_SOUTH $25.84  HB_WEST $26.21  Grand Total                    

Load Zone/HUB RTSPP Period: Jul-11              Location Average Zone over HUB Comparison  

Location RTSPP Average Row Labels Average RTSPP Location Average RTSPP Zone over HUB DeltaLZ_HOUSTON $43.18 LZ_HOUSTON $43.18 HB_HOUSTON $42.84 $0.35LZ_NORTH $46.42 LZ_NORTH $46.42 HB_NORTH $45.11 $1.31LZ_SOUTH $41.69 LZ_SOUTH $41.69 HB_SOUTH $41.52 $0.17LZ_WEST $52.10 LZ_WEST $52.10 HB_WEST $46.93 $5.17LZ_AEN $41.82 Grand Total Grand Total  LZ_CPS $42.06  HB_HOUSTON $42.84  HB_NORTH $45.11  HB_SOUTH $41.52  HB_WEST $46.93                       

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Q2 2012 v Q2 2011 Price Volatility

Price Range Q2 2012 Intervals

% of Intervals Q2 2011 Intervals

% of Intervals Variance Quarter over Quarter

< $18 3,597 41.17% 361 4.13% 3,236

$18.01 to $99.99 5,076 58.10% 8,331 95.36% (3,255)

$100 to $499.99 44 0.50% 25 0.29% 19

$500 to $1999.99 16 0.18% 15 0.17% 1

>$2,000 3 0.03% 4 0.05% (1)

Totals 8,736        

Prices are ERCOT North HUB

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Cost to Serve Load- July 2012 v 2011

Cost to Serve Load Summary: Jul-12 $0.70 Jul-11 $1.28

  Jul-12  

  Arithmetic Average Related Charges    

    Non-Spin Rsrv Chrg Reg Dn Srvc Chrg

Reg Up Srvc Chrg

Rspnsv Rsrv Srvc Chrg Revenut Neutrality Adj

  On-Peak $0.14 $0.02 $0.08 $0.43 $0.15

  Off-Peak $0.07 $0.04 $0.05 $0.26 $0.17

   Average $0.11 $0.03 $0.06 $0.34 $0.16

   

  Jul-11  

  Arithmetic Average Related Charges    

    Non-Spin Rsrv Chrg Reg Dn Srvc Chrg

Reg Up Srvc Chrg

Rspnsv Rsrv Srvc Chrg BENA

  On-Peak $0.67 $0.05 $0.21 $0.89 $0.14

  Off-Peak $0.18 $0.08 $0.11 $0.33 $0.04

   Average $0.40 $0.07 $0.16 $0.58 $0.08

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• Cost to Serve Load down year over year by $0.58 • Market prices down on average by approximately $15 • Market price volatility down significantly for Q2 2012 compared to 2011• West Zone Prices and West Zone to West HUB congestion activity

continues to be active• Significant increase in prices clearing at $18 or less• Drivers:

– Lower gas prices– Weather impact (4 degrees cooler in 2012 compared to 2011)– West wind activity

Settlement Observations- Summary

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• NPRR 347 and NPRR 391 present significant changes to the current settlement and invoicing timeline– NPRR 347 combines DAM and Real Time settlements to a single

daily invoice– NPRR 391 ramps up the due date to 2-days (bank business days)

and eliminates ACH as a method of payment of invoices• CSWG continues to follow progress of the project at the monthly

meetings with project staff reporting on status and milestones• ERCOT provided at July CSWG meeting a transition plan for the

implementation of these changes

NPRR 347 Implementation Plan

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• Last DAM Invoice is for Operating Day 11/7,• Posts on 11/9• Payments due to ERCOT on 11/15, on the 3rd BBD

• Last RTM Invoice posts on 11/15• Payments due to ERCOT on 11/26, on the 5th BBD

• First Settlement Invoice posts on 11/12• Payments due to ERCOT on 11/14, on the 2nd BBD

• Settlement Calendar• Entries for Settlement Invoices will be added in October• DAM Invoice and RTM Invoice entries will be deleted in November

• Link to ERCOT presentation: http://www.ercot.com/calendar/2012/07/20120716-CSWG

NPRR 347 Implementation Plan

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• Initial XML document outlining the invoice format will be available in advance for participants to begin formatting their systems for the changes

• Limited Testing will be available to ensure Market Participants can retrieve invoices in their new format

• Participants are encouraged to continue to follow CSWG for updates and information

NPRR 347 Implementation Plan

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Questions?

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