Slide 2
Module Objectives: Real-Time Operations
Upon completion of this module,
learners will be able to:
• Describe the Settlement impacts of Real-Time Operations
• Demonstrate how Energy is Settled after Real-Time Operations
• Explain the Settlement impacts of Base Point Deviation.
• Calculate the impacts of Emergency Operations.
• Recognize the Real-Time Settlements associated with Ancillary Services.
• Explain the impacts of the CRR Auction, Trades and Day-Ahead Market on Real-Time Settlements.
Day 3
Real-Time
Statements &
8:30 A
1:00 P
Invoicing
Slide 3
RUC
Commitment
• Make-Whole
• Clawback
Decommitment
DAM Commitment
• Make-Whole
DAM
Participation in DAM
• Energy
• AS
• PTP Obligations
Settlement of CRRs
purchased in the
Auction
Course Topics
• Charges and Payments for CRRs
CRR Auction
• Revenue
Distribution
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Settlement of PTP
Obligations purchased in
the DAM
Revenue Neutrality
Supplemental Ancillary
Services Market (SASM)
Reconcile CRR
Short payments
CRR Balancing
Account
Slide 4
Real-Time Operations
Purpose of Real-Time Operations
• Manage reliability
– Match generation with demand
– Operate transmission system
within established limits
• Operate the system at least cost
Slide 5
Real-Time Operations
• Network Security Analysis
identifies transmission
constraints
• Security Constrained
Economic Dispatch (SCED)
determines least-cost
solution
Network Security Analysis
Security Constrained
Economic Dispatch
Network Security Analysis and SCED
Slide 8
Real-Time Operations
Identify Constraints, both Transmission & Resource
Transmission Constraints & Resource Dispatch Limits
Slide 9
Real-Time Operations
SCED evaluates Offers to determine least-cost solution
Transmission Constraints & Resource Dispatch Limits
Slide 10
SCED uses Energy Offer Curves:
Energy Offer Curve
Part of Three-Part Supply Offer
• Committed by DAM
• Committed by RUC
Stand Alone Energy Offer Curve
• Committed by DAM
• Submitted during Adjustment
Period
Real-Time Operations
Slide 13
Real – Time Settlements
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Settlement of PTP
Obligations purchased in
the DAM
Revenue Neutrality
Supplemental Ancillary
Services Market (SASM)
Slide 14
Real –Time Energy Imbalance
Who: All QSEs that have Generation, Load, Trades, DAM purchases
or sales, and Self-Schedules at any Settlement Point
What: A charge or payment for the imbalance of Energy at a
Settlement Point
Why: To pay or charge a QSE for their injection or withdrawal at a
Settlement Point
Fundamentals of Real–Time
Energy Imbalances
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 15
Real-Time Energy Imbalance
The basic form of the Real-Time Energy Imbalance calculation at any Settlement Point looks like this:
MINUS RTSPP ($/MWh) Real-Time Settlement Point Price
MULTIPLIED
BY
INJECTIONS ( ) WITHDRAWALS ( ) Now, we simply fill in the
appropriate elements for each
Settlement Point
Slide 16
Real-Time Energy Imbalance Sales / Purchases
RTSPP ($/MWh) Real-Time Settlement Point Price X (-1)
AT A LOAD ZONE
Real-Time Energy Imbalance
( )
( ) Self Schedule at Source
+ Energy Offers cleared in the DAM
+ Energy Trades where QSE is the seller
+ Adjusted Metered Load
Non-Modeled Metered Generation
+ Self Schedule at Sink
+ Energy Bids cleared in the DAM
+ Energy Trades where QSE is the buyer
Slide 17
Real-Time Energy Imbalance Sales / Purchases
Metered Generation
+ Self Schedule at Sink
+ Energy Bids cleared in the DAM
+ Energy Trades where QSE is the buyer
RTSPP ($/MWh) Real-Time Settlement Point Price X (-1)
AT A RESOURCE NODE
( )
Real-Time Energy Imbalance
( ) Self Schedule at Source
+
Energy Offers cleared in the DAM +
Energy Trades where QSE is the seller
Slide 18
Real-Time Energy Imbalance Sales / Purchases
RTSPP ($/MWh) Real-Time Settlement Point Price X (-1)
AT A HUB
Real-Time Energy Imbalance
Self Schedule at Sink
+ Energy Bids cleared in the DAM
+ Energy Trades where QSE is the buyer
Self Schedule at Source
+
Energy Offers cleared in the DAM +
Energy Trades where QSE is the seller ( )
( )
Slide 19
Real-Time Energy Imbalance and Self-Schedules
Self-Schedule
Specifies the amount of energy supply at one
Settlement Point used to meet the QSE’s energy
obligation at another Settlement Point
Source
Sink
Slide 20
Settlement Impact Without Self-Schedule
Sink
Real-Time Energy Imbalance and Self-Schedules
Resource
Node
Load
Zone
Payment for
injected energy
Source
Charge for withdrawn
energy
Slide 21
Real-Time Energy Imbalance and Self-Schedules
Payment or Charge
for net energy
Settlement Impact With Self-Schedule
Any congestion impact will be collected (or paid) through a separate charge.
Sink
Resource
Node
Load
Zone
Source
Slide 22
Real – Time Energy: Triggers
Trigger
#3
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Resource Node
Trigger
#2
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Load Zone
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Hub
Trigger
#1
Slide 23
Real-Time Energy Imbalance at a Hub
At a Hub a QSE may have:
• Trades
• Self-Schedules
• DAM Bids & DAM Offers
If a QSE has… The QSE will receive…
Net Injection Payment
Net withdrawal Charge
Trigger
#2
Outcome
Outcome
#2
Slide 24
Real-Time Energy Imbalance at a Hub
Injections Withdrawals
SSSK Self-Schedule at Sink SSSR Self-Schedule at
Source
DAEP DAM Energy Purchase DAES DAM Energy Sale
RTQQEP Real-Time QSE to QSE
Energy Purchase (Trade)
RTQQES Real-Time QSE to QSE
Energy Sale (Trade)
QSE3
• 8MW DAM Energy Sale (2MWh)
• Self-Schedule at Sink of 12MW (3MWh)
• Settlement Point Price is $40/MWh at H1
(-1) * Price * (Injections – Withdrawals)
(-1) * $40/MWh * (3MWh – 2MWh) = -$40
Outcome
Outcome
#2
Slide 25
Real-Time Energy Imbalance at a Hub
RTEIAMT q, p = (-1) * RTSPP p * {(SSSK q, p *¼) + (DAEP q, p* ¼)) +
(RTQQEP q, p* ¼) - (SSSR q, p* ¼) – (DAES q, p* ¼) –
(RTQQES q, p* ¼)}
-$40 q, p = (-1) * $40/MWh p * {(12MW q, p *¼) + (0MW q, p*¼) ) +
(0MW q, p* ¼) - (0MW q, p* ¼) – (8MW q, p* ¼) –
(0MW q, p* ¼)}
QSE3
• 8MW DAM Energy Sale (2MWh)
• Self-Schedule at Sink of 12MW (3MWh)
• Settlement Point Price is $40/MWh at H1
Outcome
Outcome
#2
Slide 26
Activity: Now it’s your turn!
Refer to your Settlements Workbook
In a small group, respond to the questions that
relate to Scenario #RT1.
You have 10 minutes to complete your questions.
If you can not complete all questions, don’t worry
– all questions will be reviewed as a class.
Slide 27
Real – Time Energy: Triggers
Trigger
#3
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Resource Node
Trigger
#2
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Load Zone
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Hub
Trigger
#1
Slide 28
Real-Time Energy Imbalance at a Load Zone
If a QSE has… The QSE will receive…
Net Injection Payment
Net withdrawal Charge
At a Load Zone a QSE may have:
• Metered Load
• Non-Modeled Generation
• Trades
• Self-Schedules
• DAM Bids & DAM Offers
Trigger
#1
Outcome
Outcome
#1
Slide 29
Real –Time Energy Imbalance at a Load Zone
+ ( ) Non-Modeled
Generation
( ) ( ) - DAM Energy Purchases
Trade Purchases
Self - Schedules
DAM Energy Sales
Trade Sales
Self - Schedules
RTSPP
Adjusted
Metered Load
*
Subtle Pricing Difference . . .
Real-Time Energy Imbalance at a Load Zone =
- RTSPPEW *
Slide 30
Real-Time Energy Imbalance at a Load Zone
Real-Time SPP Energy-Weighted (RTSPPEW)
• RTSPP is
• MW-weighted by SCED Interval
• Time-weighted by Settlement Interval
• RTSPPEW is
• Weighted by (MW * Time) during SCED Interval
• Summed over Settlement Interval
There are similar pricing
mechanisms at Resource Nodes.
Slide 31
Real-Time Energy Imbalance at a Load Zone
Injections Withdrawals
SSSK Self-Schedule at Sink SSSR Self-Schedule at Source
DAEP DAM Energy Purchase DAES DAM Energy Sale
RTQQEP Real-Time QSE to QSE
Energy Purchase (Trade)
RTQQES Real-Time QSE to QSE
Energy Sale (Trade)
RTMGNM Real-Time Metered
Generation Non-Modeled
RTAML Real-Time Adjusted
Metered Load
RTEIAMT q, p =
(-1) * {[RTSPP p * [(SSSK q, p *¼) + (DAEP q, p*¼) + (RTQQEP q, p* ¼)
– (SSSR q, p* ¼) – (DAES q, p* ¼) – (RTQQES q, p* ¼)]]
+ [RTSPPEW p * (RTMGNM q, p – RTAML q, p)]}
Translated into a Settlement Equation,
Slide 32
Real-Time Energy Imbalance at a Load Zone
QSE4
• Has a 12MW DAM Energy Purchase (3MWh)
• Purchased 20MW through a Trade (5MWh)
• Has Load at LZ3 of 10MWh
• The RTSPP is $100/MWh at LZ3
• The RTSPPEW is $101/MWh at LZ3
Outcome
Outcome
#1
RTEIAMT q, p =
(-1) * {[RTSPP p * [(SSSK q, p *¼) + (DAEP q, p*¼) + (RTQQEP q, p* ¼)
– (SSSR q, p* ¼) – (DAES q, p* ¼) – (RTQQES q, p* ¼)]]
+ [RTSPPEW p * (RTMGNM q, p – RTAML q, p)]}
RTEIAMT q, p =
(-1) * {[$100/MWh p * [(0MW q, p *¼) + (12MW q, p*¼) + (20MW q, p* ¼)
– (0MW q, p* ¼) – (0MW q, p* ¼) – (0MW q, p* ¼)]]
+ [$101/MWhp * (0MWh q, p – 10MWh q, p)]} = $201
Slide 33
Activity: Now it’s your turn!
Refer to your Settlements Workbook
In a small group, respond to the questions that
relate to Scenario #RT2.
You have 10 minutes to complete your questions.
If you can not complete all questions, don’t worry
– all questions will be reviewed as a class.
Slide 34
Real – Time Energy: Triggers
Trigger
#3
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Resource Node
Trigger
#2
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Load Zone
A QSE has
Generation, Load,
Trades, DAM bids,
DAM offers, or
Self-Schedules at
a Hub
Trigger
#1
Slide 35
Real-Time Energy Imbalance at a Resource Node
At a Resource Node A QSE may have:
• Metered Generation
• Trades
• Self-Schedules
• DAM Bids & DAM Offers
If a QSE has… The QSE will receive…
Net Injection Payment
Net withdrawal Charge
Trigger
#3
Outcome
Outcome
#3
Slide 36
Real-Time Energy Imbalance at a Resource Node
If all Generation Sites were simple . . .
Real-Time Energy Imbalance at a Resource Node =
( ) ( ) - Generation
DAM Energy Purchases
RT QSE to QSE Purchases
Self - Schedules
DAM Energy Sales
RT QSE to QSE Sales
Self - Schedules
Price *
Slide 37
Real-Time Energy Imbalance at a Resource Node
But in reality . . .
Many Generation Sites are complex
• Multiple generators per meter
• Multiple owners
• Load and generation
• Combined Cycle Resources
ERCOT uses a single
methodology to settle all
Generation Sites.
Slide 38
Real –Time Energy Imbalance at a Resource Node
+ ( ) Splitting Percentage
( ) ( ) - DAM Energy Purchases
RT QSE to QSE Purchases
Self - Schedules
DAM Energy Sales
RT QSE to QSE Sales
Self - Schedules
Price
* Total Site Payment
*
Introducing Net Metering . . .
Real-Time Energy Imbalance at a Resource Node =
Slide 39
Real-Time Energy Imbalance at a Resource Node
Total Site Payment: NMSAMTTOT
• For all Resources at Site
• For all QSEs at Site
Splitting Percentage: GSPLITPER
• QSE’s share of Total Site Payment
• Calculated from SCADA telemetry
Outcome
Outcome
#3 ( ) Splitting Percentage * Total Site Payment
Slide 40
Real-Time Energy Imbalance at a Resource Node
( ) Splitting Percentage * Total Site Payment
Price * Quantity
Outcome
Outcome
#3
Price: RTRMPR
• Average price at meter
• Weighted by (Base-Point * Time) during SCED Interval (RNWF)
Quantity: MEB
• Metered Energy* at bus
*Negative energy is settled at a Load Zone.
Slide 41
Real-Time Energy Imbalance at a Resource Node
Total Site Payment
• Only one generator at site
• Dispatched to 40MW for entire interval
• The Metered Energy at the bus was 10MWh
• The LMP at the bus is $30/MWh through
entire interval
Real-Time Resource Meter Price
RTRMPR = ∑(RNWF b,y
* RTLMP b, y
)
$30/MWh = 3 * ((.33) * $30/MWh)
Total Site Payment
NMSAMTTOTa = ∑ (RTRMPR b
* MEB me
)
$300a = ($30/MWh * 10MWh)
Trigger
#3
Outcome
Outcome
#3
Slide 42
Real-Time Energy Imbalance at a Resource Node
QSE1
• Has 100% of the generation at this bus
• Facility payment was $300
• Has a 40MW DAM energy Sale (10MWh)
• The Settlement Point Price is $30/MWh at RN4
(-1) * [(QSE share of site payment )
+ Price * (Non-Generation Injections – Withdrawals)]
(-1) * [(100% * $300 ) + $30/MWh * (0MW – 10MWh)] = $0
Outcome
Outcome
#3
Slide 43
Real-Time Energy Imbalance at a Resource Node
RTEIAMT q, p = (-1) * { ∑(GSPLITPER r * NMSAMTTOT a ) + RTSPP p *
[(SSSK q, p * ¼ ) + (DAEP q, p* ¼) + (RTQQEP q, p* ¼)–
(SSSR q, p* ¼) – (DAES q, p* ¼)–(RTQQES q, p* ¼)]}
$0 q, p = (-1) * {( 1 r * $300 a ) + 30 p * [(0 q, p * ¼ ) + (0q, p* ¼) + (0 q, p*
¼)–(0 q, p* ¼) – (40 q, p* ¼)–(0 q, p* ¼)]}
QSE1
• Has 100% of the generation at this bus
• Facility payment was $300
• Has a 40MW DAM energy Sale (10MWh)
• The Settlement Point Price is $30/MWh at RN4
Outcome
Outcome
#3
Slide 44
Activity: Now it’s your turn!
Refer to your Settlements Workbook
In a small group, respond to the questions that
relate to Scenario #RT3.
You have 5 minutes to complete your questions.
If you can not complete all questions, don’t worry
– all questions will be reviewed as a class.
Slide 45
Real-Time Energy Settlements - Combined Cycle Resources
CCGR 1
CCGR 2
Combined Cycle Plant
Train 1 Train 2
ST1 CT1 CT2 CT3 ST2 CT4 CT5 CT6
SCED will dispatch only the
CCGR that is currently online.
Metered generation is settled
at the Logical Resource Node.
Slide 46
Resource Node Resource RTLMP
Bill Determinant Description
Logical
Resource
Node
Physical
Resource
Node CC Train Gen Site
Resource
ID
RTEIAMT Real Time Energy Imbalance Payment X
DAES Day Ahead Energy Sales X (3PO)
GSPLITPER Generation Unit Splitting Percentage X X X
MEBMP Metered Energy Bus (MP) X X
NMRTETOTMP Net Metered Real Time Energy Total (MP) X
NMSAMTTOT Net Metering Settlement Payment X
RTRMPR Real Time Resource Meter Price X X
RTEIAMT Real Time Energy Imbalance Payment X
DAEP Day Ahead Energy Purchase X
DAES Day Ahead Energy Sales X (Energy
only)
RTQQEP Real Time QSE to QSE Purchase X
RTQQES Real Time QSE to QSE Sale X
SSSK Self Schedule at Sink X
SSSR Self Schedule at Source X
Real-Time Energy Settlements - Combined Cycle Resources
Slide 47
Real-Time Energy Payment for DC Tie Import
Who: A QSE that has a DC Tie import
What: A Payment for the Energy that is imported into the ERCOT grid
through a DC Tie
Why: When a QSE brings Power into the ERCOT grid they need to
receive a payment for it
Fundamentals of Payment for DC
Tie Import
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 48
DC Tie Import Payment: Triggers
Trigger
#1
A QSE Schedules
a DC Tie to import
power into ERCOT
area
Slide 49
DC Tie Import Payment
• A QSE Schedules a DC Tie to import energy
into ERCOT area
• The QSE receives a payment for the injection
of energy
Trigger
#1
Outcome
Outcome
#1
Slide 50
DC Tie Import Payment
A QSE1
• Schedules 100 MW import on DC Tie one
• The Settlement Point Price is $50/MWh at
DCTIE1
RTDCIMPAMT q, p = (-1) * RTSPP p * (RTDCIMP q, p * ¼)
$-1250q, p = (-1) * $50 p * (100MW q, p * ¼)
Outcome
Outcome
#1
Slide 51
Generation Resource Base Point Deviation Charge
Who: QSEs that have Resources that do not follow Base Points as
dictated by SCED
What: A charge for over generation or under generation – May not
receive this charge when helping frequency
Why: The Resource did not follow Dispatch Instructions and
Ancillary Services deployments within defined tolerances
Fundamentals of Base Point
Deviation Charge
Real-Time Real-Time Actions
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 52
Base Point Deviation Charge
• Resource did not follow
Dispatch Instructions and
Ancillary Services Deployments
within defined tolerances
• Tolerances
± 5% or ± 5MW, whichever
is greater
+ 10% for Intermittent
Renewable Resources
(when curtailed)
Generation Resource Base Point Deviation Charge
SCED
Base
Point Subject to Base
Point Deviation
Charge.
Subject to Base
Point Deviation
Charge
Slide 53
Base Point Deviation Charge
• Exclusions
– No charge during a
Frequency deviation greater
than 0.05 Hz if the QSEs
deviation helps frequency
– No charge for any intervals
with Responsive Reserve
deployments
Generation Resource Base Point Deviation Charge
SCED
Base
Point Subject to Base
Point Deviation
Charge.
Subject to Base
Point Deviation
Charge
Slide 54
Base Point Deviation Charge
• Exemptions
– RMR Units
– Qualifying Facilities (QFs) that
do not submit Energy Offer
Curves
– Quick Start Generation
Resources (QSGRs) exempt
for the first Settlement Interval
in which they are deployed
Generation Resource Base Point Deviation Charge
SCED
Base
Point Subject to Base
Point Deviation
Charge.
Subject to Base
Point Deviation
Charge
Slide 55
Determining Basepoint Deviation Charges
ERCOT compares Adjusted Aggregated Base Points to the
Time-Weighted Telemetered Generation.
Adjusted Aggregated
Base Point
Time-Weighted
Telemetered Generation
Base Point Deviation Charge
Slide 56
Base Point Deviation Charge
Calculating Adjusted Aggregated Base Point
Average Base
Point
Adjusted Aggregated
Base Point
Average
Regulation = +
Considers
Ramping
15 Minute
Value
Slide 57
Base Point Deviation Charge: Triggers
Trigger
#1
Resource did not
follow Dispatch
Instructions and
OVER Generated
Trigger
#2
Resource did not
follow Dispatch
Instructions and
UNDER Generated
Slide 58
Base Point Deviation Charge – Over Generation
• Resource did not follow Dispatch Instructions
and OVER Generated
• The Over Generation is outside of the 5% or 5
MW tolerance
• The grid frequency is 60.02 Hz
• QSE is charged:
Settlement point Price * the MW above
Tolerance
If grid frequency had been less than
59.95 Hz, then the QSE would not be
charged
Trigger
#1
Outcome
Outcome
#1
Slide 59
Base Point Deviation Charge – Over Generation
QSE1 unit 5
• Adjusted Aggregated Base Point of 40MW
• Time Weighted Telemetered Generation of
12MWh (Operated at 48MW)
• Tolerances are 5% or 5MW
• Settlement Point Price is $20/MWh at RN5
Base Point Deviation Charge
= Price * (Generation – ¼h * Max (AABP + 5% or AABP + 5MW))
= $20/MWh * (12MWh – ¼h * Max (42MW or 45MW))
= $20/MWh * (12MWh – 11.25MWh)
= $15
Outcome
Outcome
#1
Slide 60
Base Point Deviation Charge – Over Generation
BPDAMT = Max (PR1, RTSPP) * OGEN
0, TWTG – ¼ * Max (1 + K1) * AABP, (AABP + Q1)
BPDAMT q, r, p Base Point Deviation Amount
OGEN Over Generation Volume
TWTG q, r, p Time Weighted Telemetered Generation
AABP q, r, p Adjusted Aggregated Base Point
PR1 Minimum price for over-generation, $20.
K1 The percentage tolerance for over-generation, 5%.
Q1 The MW tolerance for over-generation, 5 MW.
Translated into Settlement Equations,
OGEN = Max
Slide 61
Base Point Deviation Charge – Over Generation
Outcome
Outcome
#1
QSE1 unit 5
• Adjusted Aggregated Base Point of 40MW
• Time Weighted Telemetered Generation of
12MWh (Operated at 48MW)
• Tolerances are 5% or 5MW
• Settlement Point Price is $20/MWh at RN5
BPDAMT = Max (PR1, RTSPP) * OGEN
0, TWTG – ¼ * Max (1 + K1) * AABP, (AABP + Q1) OGEN = Max
OGEN = Max (0, (12MWh – ¼h * Max (42 MW, 45MW))) = 0.75 MWh
BPDAMT = Max ($20/MWh, $20/MWh) * OGEN = $15
Slide 62
Key Differences between Intermittent Renewable Resources
(IRRs) & Conventional Resources
IRR must be Curtailed
– Curtailment Flag
IRR must be Over-Generating
– Telemetered generation
– Instructed Base Point
Wider tolerance for deviation from Base Point
Base Point Deviation Charge – IRRs
Slide 63
When are IRRs exposed to deviation charges?
IRR output within
10% acceptable range
IRR output exceeds
10% acceptable range
Curtailment Flag is not set No Charge No Charge
Curtailment Flag is set No Charge Charge
Base Point Deviation Charge – IRRs
Slide 64
Base Point Deviation Charge – IRRs
SBPBHDLFLAG SCED Base Point Below HDL FLAG
BPDAMT q, r, p Base Point Deviation Amount
OGENIRR Over Generation Volume per IRR Generation Resource
TWTG q, r, p Time Weighted Telemetered Generation
AABP q, r, p Adjusted Aggregated Base Point
PR1 Minimum price for over-generation, $20.
KIRR The percentage tolerance for IRRs, 10%.
Translated into Settlement Equations,
If SBPBHDLFLAG = 1, then
BPDAMT = Max (PR1, RTSPP) * OGENIRR
0, TWTG – ¼ * AABP * (1 + KIRR) OGENIRR = Max
Slide 65
Activity: Now it’s your turn!
Refer to your Settlements Workbook
In a small group, respond to the questions that
relate to Scenario #RT4.
You have 5 minutes to complete your questions.
If you can not complete all questions, don’t worry
– all questions will be reviewed as a class.
Slide 66
Base Point Deviation Charge: Triggers
Trigger
#1
Resource did not
follow Dispatch
Instructions and
OVER Generated
Trigger
#2
Resource did not
follow Dispatch
Instructions and
UNDER Generated
Slide 67
Base Point Deviation Charge – Under Generation
• QSE is charged:
Settlement Point Price * the MW below
Tolerance
• Resource did not follow Dispatch Instructions
and UNDER Generated
• The Under Generation is outside of the 5% or 5
MW tolerance
• The grid frequency is 59.98 Hz
If grid frequency had been greater than
60.05 Hz, then the QSE would not be
charged
Trigger
#2
Outcome
Outcome
#2
Slide 68
Base Point Deviation Charge – Under Generation
QSE4 unit 8
• Adjusted Aggregated Base Point of 40MW
• Time Weighted Telemetered Generation of
8MWh (Operated at 32MW)
• Tolerances are 5% or 5MW
• Settlement Point Price is -$20/MWh at RN8
Base Point Deviation Charge
= (-1) * Price * (¼h * Min (AABP – 5% or AABP – 5MW) – Generation)
= (-1) * -$20/MWh * (¼h * Min (38MW or 35MW) – 8MWh)
= (-1) * -$20/MWh * (8.75MWh – 8MWh)
= $15
Outcome
Outcome
#1
Slide 69
Base Point Deviation Charge – Under Generation
BPDAMT q, r, p Base Point Deviation Amount
UGEN Under Generation Volume
TWTG q, r, p Time Weighted Telemetered Generation
AABP q, r, p Adjusted Aggregated Base Point
PR2 Minimum price for under-generation, -$20.
K2 The percentage tolerance for under-generation, 5%.
Q2 The MW tolerance for under-generation, 5 MW.
KP Settlement Point Price coefficient, (1.0, for now)
Translated into Settlement Equations,
BPDAMT = (-1) * Min (PR2, RTSPP) * Min(1, KP) * UGEN
UGEN = Max 0, Min (1 – K2) * ¼ AABP, ¼ ( AABP – Q2 ) – TWTG
Slide 70
Base Point Deviation Charge – Under Generation
QSE4 unit 8
• Adjusted Aggregated Base Point of 40MW
• Time Weighted Telemetered Generation of
8MWh (Operated at 32MW)
• Tolerances are 5% or 5MW
• Settlement Point Price is -$20/MWh at RN8
Outcome
Outcome
#1
UGEN = Max (0, Min (9.5MWh, 8.75MWh) – 8MWh)
BPDAMT = (-1) * Min (PR2, RTSPP) * Min(1, KP) * UGEN
UGEN = Max 0, Min (1 – K2) * ¼ AABP, ¼ ( AABP – Q2 ) – TWTG
BPDAMT = Min (-$20/MWh, -$20/MWh) * Min (1, 1) * UGEN = $15
Slide 71
Generation Resource Base Point Deviation Payment
Who: QSEs that have load
What: Distributes the funds collected from Base Point Deviation
Charges.
Why: To keep ERCOT revenue neutral
Fundamentals of Base Point
Deviation Payment
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 72
Generation Resource Base Point Deviation Payment
Trigger
#1
Charges for Base
Point Deviations
are collected
Slide 73
Generation Resource Base Point Deviation Payment
• Resources Over or Under Generated
• ERCOT charges the QSEs representing
the Resources
• ERCOT calculates the QSE’s Load
Ratio Share
• ERCOT sums all charges made for the
interval
• ERCOT pays QSEs for their portion of
the revenue based on their share of the
load
Trigger
#1
Outcome
Outcome
#1
Slide 74
Generation Resource Base Point Deviation Payment
• ERCOT calculates the QSE’s Load
Ratio Share
• ERCOT sums all charges made for the
interval
• ERCOT pays QSEs for their portion of
the revenue based off of their share of
the load
• For interval one ERCOT charged for deviation
– Total Charges $255
• QSE 5 has thirty percent of Load
– QSE 5 is paid for 30 percent of the $255
Outcome
Outcome
#1
Slide 75
Generation Resource Base Point Deviation Payment
For interval one ERCOT charged for deviation
• Total Charges $255
QSE 5 has thirty percent of Load
• QSE 5 is paid for 30 percent of the $255
LABPDAMT q = (-1) * BPDAMTTOT * LRS q
$-76.50 = (-1) * $255 * 0.30
Outcome
Outcome
#1
Slide 76
RMR Service Charge
Who: QSEs that have load
What: A Charge based off of a QSEs Load Ratio Share to cover the
costs of RMR units
Why: To cover the costs of a service to ensure ERCOT reliability
Fundamentals of RMR Service
Charge
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 77
RMR
RMR UNIT
A Generation Resource operated under
the terms of an Agreement with ERCOT
that would not otherwise be operated
except that it is necessary to provide
voltage support, stability or management
of localized transmission constraints
under first contingency criteria where
market solutions do not exist.
Slide 79
RMR Service Charge
• There are RMR Units in the ERCOT region and Load must pay for the costs associated for them
• ERCOT will Sum all the RMR charges and
payments and the delta will be charged to load
– Standby payment
– RMR energy Payment
– RMR adjustment Charge
– RMR Day-Ahead Energy Sale Real-Time Value
– DAM Energy Revenue
– DAM Make-Whole Revenue
– RMR Non-Performance
Trigger
#1
Outcome
Outcome
#1
Slide 80
RMR Service Charge
QSE5 is Charged its portion of the RMR Service Charge
• RMR stand-by payment RMRSBAMTTOT
• -$1000
• RMR energy payment RMREAMTTOT
• -$5000
• RMR adjustment charge RMRAAMTTOT
• $500
• RMR Day-Ahead Energy Sale Real-Time Value RMRDAESRTVTOT
• $300
• DAM Energy Revenue RMRDAEREVTOT
• -$400
• DAM Make-Whole Revenue RMRDAMWREVTOT
• -$200
• RMR Non-Performance RMRNPAMTTOT
• $0
• QSE5 has 10% if the load HLRS
Outcome
Outcome
#1
Slide 81
RMR Service Charge
RMR charges and Payments
• Standby payment -$1,000
• RMR energy Payment $-5,000
• RMR adjustment Charge $500
• RMR Day-Ahead Energy Sale Real-Time
Value $300
• DAM Energy Revenue $-400
• DAM Make-Whole Revenue $-200
• RMR Non-Performance $0
• QSE5 has 10% of the load
LARMRAMT q = (-1) * (RMRSBAMTTOT + RMREAMTTOT + RMRAAMTTOT
– ∑RMRDAESRTVTOT i – (RMRDAEREVTOT +
RMRDAMWREVTOT) + RMRNPAMTTOT / H) * HLRS q
$520 = (-1) * (-$1,000 + -$5,000 + $500 – $300 – ($-400 + $-200)
+ $0 /Hours in Operating day) * 0.1
Outcome
Outcome
#1
Slide 82
Voltage Support Service
Who: QSEs that have received instructions to provide Reactive
Power from Resources exceeding their URL
What: • Payment for providing VAR exceeding URL
• Payment for reduced MW (If applicable)
Why: For providing a service that will ensure ERCOT reliability
Fundamentals of Voltage Support
Service Payments
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 83
Voltage Support Service
Voltage Support Service (VSS)
• Required to maintain voltages
within acceptable limits
• Required from all On-Line and
available Generators
– No payment for VSS up to Unit
Reactive Limit (URL)
– Payment for VSS above Unit Reactive
Limit
◦ Payment for Mvars provided
◦ Payment for lost opportunity cost
(reduced MW)
Receives
Payment
Receives
Payment
PF=1
URL Lagging
URL Leading
Mvar Output
Mvar Output
Lost
Opportunity
Lost
Opportunity
Slide 84
Voltage Support Service Charge
Who: QSEs that have load
What: A Charge to cover the costs of VSS service
Why: To cover the costs of a service to ensure ERCOT reliability
Fundamentals of Voltage Support
Service Charge
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 86
Voltage Support Service Charge
• ERCOT needed VSS
• ERCOT made Payment for providing
VAR exceeding URL and for reduced
MW
• QSE has load in the ERCOT market
• ERCOT calculates the QSEs Load
Ratio Share
• ERCOT Sums all payments made for
interval
• The QSE pays for its portion of the
service based on its share of the load
Trigger
#1
Outcome
Outcome
#1
Slide 87
Voltage Support Service Charge
• ERCOT calculates the QSEs Load Ratio
Share
• ERCOT Sums all payments made for interval
• The QSE pays for its portion of the service
based on its share of the load
• For interval one ERCOT made VSS Payments
– Payment for Vars $45.40
– Payment for Lost Opportunity $2416.67
– Total Payments $2462.07
• QSE 3 has fifty five percent of Load
– QSE 3 pays for 55 percent of the $2462.07
Outcome
Outcome
#1
Slide 88
Voltage Support Service Charge
• For interval one ERCOT made VSS
Payments
– Payment for Vars $45.40
– Payment for Lost Opportunity $2416.67
– Total Payments $2462.07
• QSE 3 has fifty five percent of Load
– QSE 3 pays for 55 percent of the $2462.07
LAVSSAMT q = (-1) * (VSSVARAMTTOT + VSSEAMTTOT) * LRS q
$1354.13 = (-1) * ($-45.40 + $-2416.67) * .55
Outcome
Outcome
#1
Slide 89
Payment for Emergency Power Increases
Who: QSEs that receive Emergency Base Points
What:
A payment to provide additional compensation for energy
produced in response to Emergency Base Points
Why:
To make up the difference between the Settlement Point Price
and the QSE’s actual cost for operating at the Emergency
Base Point
Fundamentals of Emergency
Power Increases Payment
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 90
Payment for Emergency Power Increases
Emergency Power Increases
• Can be required when
ERCOT is in an emergency
condition
• There is no market
mechanism to set the price
for the output level
40MW
50MW
Eligible for
Emergency
Energy
Payment
SCED
Base
Point
Emergency
Base Point
Paid RTSPP for all
energy produced
Slide 91
Payment for Emergency Power Increases
Emergency Power Increases
• Quick Start Generation
Resources may also be
eligible
– SCED Base Point below
COP LSL
– QSE requests manual
override of Base Point
15MW
20MW
Eligible for
Emergency
Energy
Payment
SCED
Base
Point
COP LSL
Paid RTSPP for all
energy produced
Slide 92
Payment for Emergency Power Increases
Trigger
#1
A resource
receives a
Emergency Base
Point
Slide 93
Payment for Emergency Power Increases
• ERCOT Declares a Emergency Condition
• ERCOT instructs resources to move to an
Emergency Base Point (EBP)
• Resource moves to EBP
• Calculate the emergency energy the Resource
produced
• Calculate the price for emergency energy
• Pay the Resource when emergency price is
higher than RTSPP
• No payment when emergency price is
lower than RTSPP
Trigger
#1
Outcome
Outcome
#1
Slide 94
Payment for Emergency Power Increases
Determine the Emergency Energy
• Lesser of the EBP or Actual Output minus the
original Base Point (BP)
Determine the Emergency Energy Price
• EBP average weighted price
minus the RTSPP
• EBP average weighted price
– From Resource ‘s offer
curve at EBP
– Time Weighted for the
SCED Interval
– Averaged for all Resources
at that Node
Outcome
Outcome
#1
$/MWh
MW
EBP LSL BP
RTSPP
Emergency Price
Slide 95
Payment for Emergency Power Increases
QSE4 Unit 9 Receives Emergency Base Point
– BP of 150 MW
– EBP of 200 MW
– RTMG of 50 MWh
Outcome
Outcome
#1
$/MWh
MW
EBP LSL BP
RTSPP
Emergency Price Pricing Information
– RTSPP is $50/MWh
– Unit 9 price at EBP is $55/MWh
– Unit 9 is only Resource at Resource Node
Slide 96
Payment for Emergency Power Increases
EMRE q, r,p = Max (0, Min (AEBP q,r,p , RTMG q,r,p) – ¼ * BPq r,p)
12.5MWh q, r,p = Max (0, Min (200MW q,r,p * ¼h , 50MWh q,r,p) – ¼ * 150MWq r,p)
Outcome
Outcome
#1
Determine the Emergency Energy
EMRE q, r, p Emergency Energy
AEBP q, r, p Aggregated Emergency Base Point
RTMG q, r, p Real-Time Metered Generation
BPq, r, p Base Point
Slide 97
Payment for Emergency Power Increases
Outcome
Outcome
#1
Determine the Emergency Energy Price
EMREPR q, r, p Emergency Energy Price
EBPWAPR q, r, p Emergency Base Point Weighted Average Price
RTSPP p Real-Time Settlement Point Price
EMREPR q,r,p = Max(0, EBPWAPR q,r,p – RTSPP p)
$5/MWh q,r,p = Max(0, $55/MWh q,r,p – $50/MWh p)
Slide 98
Payment for Emergency Power Increases
• Payment when emergency price is
higher than RTSPP
• No payment when the emergency price
is lower than RTSPP
Payment for Emergency Power Increases
EMREAMT q, r, p = (-1) * EMREPR q, r, p * EMRE q, r, p
$-62.50 q, r, p = (-1) * $5/MWh q, r, p * 12.5MWh q, r, p
Outcome
Outcome
#1
Slide 99
Charge for Emergency Power Increases
Who: QSEs that have load
What: A Charge to cover the costs of Emergency Power payments
Why: To cover the costs of a service to ensure ERCOT reliability
Fundamentals of Charges for
Emergency Power Increases
Real-Time Real-Time Activities
• Imbalances
• Base Point Deviations
• Other odds & ends
Slide 101
Charge for Emergency Power Increases
• ERCOT needed Emergency Power
• ERCOT made Payments for resources
that provided Emergency Power
• QSE has load in the ERCOT market
• ERCOT calculates the QSE’s Load
Ratio Share
• ERCOT Sums all payments made for
interval
• The QSE pays for its portion of the
service based on its share of the load
Trigger
#1
Outcome
Outcome
#1
Slide 102
Charge for Emergency Power Increases
• ERCOT calculates the QSE’s Load
Ratio Share
• ERCOT Sums all payments made for
interval
• The QSE pays for its portion of the
service based on its share of the load
• ERCOT made Emergency Energy Payments
– Total Payments $62.50
• QSE 5 has thirty percent of Load
– QSE 5 pays for 30 percent of the $62.50
Outcome
Outcome
#1
Slide 103
Charge for Emergency Power Increases
For interval one ERCOT made Emergency
Energy Payments
• Total Payments $62.50
QSE 5 has thirty percent of Load
• QSE 5 pays for 30 percent of the $62.50
LAEMREAMT q = (-1) * EMREAMTTOT * LRS q
$18.75 q = (-1) * $-62.50 * .30 q
Outcome
Outcome
#1
Slide 104
Payments and Charges for PTP Obligations Settled in Real-Time
Day-Ahead
Market Real-Time
Settlements
A QSE
Purchases
PTP
Obligation in
Day-Ahead
Market.
PTP
Obligation
settled in the
Real-Time
market
Slide 105
Payments and Charges for PTP Obligations Settled in Real-
Time
Who: QSEs that have purchased PTP obligations is the DAM
What: A Charge or Payment based on Real-Time Congestion
Why: To Hedge the Cost of congestion in Real-Time
Fundamentals of PTP Obligations
Settled in Real-Time
Real-Time Settlement of PTP
Obligations purchased
in DAM
Slide 106
Payments and Charges for PTP Obligations Settled in Real-Time
Trigger
#1
A QSE buys a PTP
obligation in the
DAM
Slide 107
Payments and Charges for PTP Obligations Settled in Real-Time
• A QSE buys a PTP obligation in the Day-
Ahead Market.
• The Price is the Difference between the
RTSPP of the Source and Sink
• If the Source RTSPP is less than the Sink
RTSPP then the QSE receives a payment
• If the Source RTSPP is greater than the
Sink RTSPP then the QSE receives a
charge
Trigger
#1
Outcome
Outcome
#1
Slide 108
Payments and Charges for PTP Obligations Settled in Real-Time
Settlement for DAM PTP Obligations
Real-Time Obligation
Amount
Determinants
q = QSE
j = Source Settlement Point
k = Sink Settlement Point
Real-Time Obligation Price
Real-Time Obligation
RTOBLPR (j, k) = S (RTSPP k – RTSPP j) / 4
Real-Time Settlement Point
Price
RTOBLAMT q, (j, k) = Max (0, RTOBLPR (j, k)) * RTOBL q, (j, k)
Real-Time
Settlement of PTP
Obligations purchased
in DAM
Slide 109
Payments and Charges for PTP Obligations Settled in Real-Time
• A QSE3 bought 10 MW of PTP obligations in
the Day-Ahead Market.
• The Source was RN4
• RTSPP $30/MWh for each interval in the hour
• The Sink was LZ2
• RTSPP $65/MWh for each interval in the hour
• QSE3 receives a payment
Trigger
#1
Outcome
Outcome
#1
Slide 110
Payments and Charges for PTP Obligations Settled in Real-Time
RTOBLPR (j, k) = S (RTSPP k, i – RTSPP j, i) / 4
$35/MW (j, k) = [($65/MWh k, i– $30/MWh j, i)
+($65/MWh k, i+1– $30/MWhj, i+1)
+($65/MWhk, i+2–$30/MWhj, i+2)
+ ($65/MWhk, i+3–$30/MWhj, i+3)] / 4
QSE3 receives a payment
RTOBLAMT q, (j, k) = (-1) * RTOBLPR (j, k) * RTOBL q, (j, k)
-$350 q, (j, k) = (-1) * $35/MW (j, k) * 10 MW q, (j, k)
Outcome
Outcome
#1
Slide 111
Activity: Now it’s your turn!
Refer to your Settlements Workbook
In a small group, respond to the questions that
relate to Scenario #RT5.
You have 5 minutes to complete your questions.
If you can not complete all questions, don’t worry
– all questions will be reviewed as a class.
Slide 112
Payments for PTP Obligations with Links to Options
Who: NOIE that owns PTP Options before DAM and buys PTP
Obligations in DAM linked to those Options
What: A Payment based on Real-Time Congestion
Why: To Hedge the Cost of congestion in Real-Time
Real-time Settlement of DAM PTP
Obligations with Links to Options
Real-Time Settlement of PTP
Obligations purchased
in DAM
Slide 113
Payments for PTP Obligations with Links to Options
Trigger
#1
NOIE buys DAM
PTP Obligations
based on PTP
Options they own
Slide 114
Payments for PTP Obligations with Links to Options
Settlement for DAM PTP Obligations
with Links to Options
Real-Time Obligation with
Links to an Option
Amount
Determinants
q = QSE
j = Source Settlement Point
k = Sink Settlement Point
Real-Time Obligation Price
Real-Time Obligation with
Links to an Option
RTOBLPR (j, k) = S (RTSPP k – RTSPP j) / 4
Real-Time Settlement Point
Price
RTOBLLOAMT q, (j, k) = Max (0, RTOBLPR (j, k)) * RTOBLLO q, (j, k)
Real-Time
Settlement of PTP
Obligations purchased
in DAM
Slide 115
Who: Day-Ahead and Real-Time CRR Owners
What: Prices to settle CRRs
Why: If Day-Ahead Market does not clear there are no Day-
Ahead Market Prices to Settle CRRs
Prices for Settling CRRs when
DAM does not clear
Settlement of NOIE
CRRs in Real-Time
Shortfall Charge for CRRs Settled in Real-Time
DAM
Settlement of CRRs in
the DAM
Slide 116
Real-Time Settlement of CRRs when no DAM
• DAM does not clear
• All CRRs settled in Real-Time using
RTSPP
• No Derating
• No Shortfall Charges
Trigger
#1
Outcome
Outcome
#1
Slide 117
Real-Time Revenue Neutrality Allocation
Who: QSEs that have load
What: An Allocation on of a QSEs Load Ratio Share
Why: To keep ERCOT revenue neutral
Fundamentals of Real-Time
Revenue Neutrality Allocation
Real-Time Revenue Neutrality
Slide 118
Revenue Neutrality
• ERCOT Must Be
revenue Neutral
• All revenue from Real-
Time Charges are used
to fund Real-Time
Payments
Slide 120
Revenue Neutrality
• If there is not enough
revenue collected to
cover payments, QSEs
will proved the extra
revenue based on LRS
Slide 121
Real-Time Revenue Neutrality Allocation
• All charges and payments related to energy
and congestion are summed
• Allocated to QSEs with Load
RTEIAMTTOT Real-Time Energy Imbalance Amount Total
BLTRAMTTOT Block Load Transfer Resource Amount Total
RTDCIMPAMTTOT Real-Time DC Import Amount Total
RTDCEXPAMTTOT Real-Time DC Export Amount Total
RTCCAMTTOT Real-Time Energy Congestion Cost Amount Total
RMRDAESRTVTOT RMR Day-Ahead Energy Sale Real-Time Value Total
RTOBLAMTTOT Real-Time Obligation Amount Total
RTOBLLOAMTTOT Real-Time Obligation with Links to an Option
Amount Total
Outcome
Outcome
#1
Slide 122
Real-Time Revenue Neutrality Allocation
Outcome
Outcome
#1
• Hourly values must be divided by 4
• Allocated based on Load Ratio Share
RTEIAMTTOT + BLTRAMTTOT
+ RTDCIMPAMTTOT + RTDCEXPAMTTOT
LARTRNAMT q = (-1) * + RTCCAMTTOT + RMRDAESRTVTOT * LRS q
+ RTOBLAMTTOT/4 + RTOPTAMTTOT / 4
+ RTOPTRAMTTOT /4
Slide 123
Real-Time Revenue Neutrality Allocation
RTEIAMTTOT + BLTRAMTTOT
+ RTDCIMPAMTTOT + RTDCEXPAMTTOT
LARTRNAMT q = (-1) * + RTCCAMTTOT + RMRDAESRTVTOT * LRS q
+ RTOBLAMTTOT/4 + RTOBLLOAMTTOT/4
= (-1) * ($625 + $375 – $1000/4) * .20
= (-1) * ($750) * .20
= -$150
Outcome
Outcome
#1
• RT Energy Imbalance Total = $625
• DC Tie Import Amount Total = $375
• RT Obligation Amount Total = -$1000
• QSE 4 has 20 percent of the load
Slide 124
Payments for Ancillary Services Sold in a SASM
Who: QSEs that sold Reg-Up, Reg-Down, Responsive, or Non-Spin in a
SASM
What: A Payment for the services sold in a SASM
Why: To cover the costs of a services to ensure ERCOT reliability
Fundamentals of Payments for
Services Sold in SASM
Real-Time Supplemental
Ancillary Services
Market (SASM)
Slide 125
Supplemental Ancillary Services Market
ERCOT may procure Ancillary Services in the
Adjustment Period for 3 reasons:
1) Replacement of Ancillary Services capacity due to a QSE’s failure to
provide or purchase (trade) from someone else
2) Replacement of Ancillary Services capacity that
is undeliverable due to transmission constraints
3) Increased need of Ancillary Services capacity above what was
specified in the Day-Ahead
Slide 126
Payments for Ancillary Services Sold in a SASM
Trigger
#1
ERCOT executes a
SASM and
Ancillary Services
are sold
Slide 127
Payments for Ancillary Services Sold in a SASM
• ERCOT executes a SASM
• A QSE sells its capacity for
– Regulation Up and/or
– Regulation Down and/or
– Responsive Reserve and /or
– Non-Spin
• ERCOT holds A SASM
• QSEs offer Capacities
• ERCOT will determine the Market
Clearing Price and Awards
• The QSE will receive a payment for the
services supplied
Trigger
#1
Outcome
Outcome
#1
Slide 128
Payments for Ancillary Services Sold in a SASM
• ERCOT executes A SASM
• QSEs offer Capacities
• ERCOT will determine the Market Clearing Price and
Awards
• The QSE will receive a payment for the services
supplied
In SASM1
• QSE1 is awarded 50 MW of Regulation Up
– The Clearing Price is $8/MW
• QSE4 is awarded 4 MW of Regulation Down
– The Clearing Price is $4/MW
• QSE4 is awarded 20 MW of Responsive Reserve
– The Clearing Price is $8/MW
• QSE1 is awarded 40 MW of Non-Spin
– The Clearing Price is $12/MW
Outcome
Outcome
#1
Slide 129
Payments for Ancillary Services Sold in a SASM
In SASM1
• QSE1, 50 MW of Regulation Up at $8/MW
• QSE4, 4 MW of Regulation Down at $4/MW
• QSE4, 20 MW of Responsive Reserve at $8/MW
• QSE1, 40 MW of Non-Spin at $12/MW
RTPCRUAMT q, M = (-1) * MCPCRU M * RTPCRU q, M
RTPCRDAMT q, M = (-1) * MCPCRD M * RTPCRD q,M
RTPCRRMT q, M = (-1) * MCPCRR M * RTPCRR q, M
RTPCNSAMT q,M = (-1) * MCPCNS M * RTPCNS q, M
-$400 q, M = (-1) * $8/MW M * 50MW q, M
-$16q, M = (-1) * $ 4/MW M * 4MW q,M
-$160 q, M = (-1) * $ 8/MW M * 20MW q, M
-$480 q,M = (-1) * $12/MW M * 40MW q, M
Outcome
Outcome
#1
Slide 130
Charges for Ancillary Service Capacity Replaced Due to
Failure to Provide
Who: QSEs that fail on their Ancillary Service Supply Responsibility
What: A charge for the Failure to Provide Ancillary Service Capacity
Why: To ensure costs are met in order to replace Failed Ancillary
Service Capacity
Fundamentals of Charges for
Failure to Provide
Real-Time Supplemental
Ancillary Services
Market (SASM)
Slide 131
Charges for Ancillary Service Capacity Replaced Due to Failure to
Provide
RUFQAMT q = Max (MCPCRU M ) * RUFQ q,
RDFQAMT q = Max (MCPCRD M ) * RDFQ q,
RRFQAMT q = Max (MCPCRR M ) * RRFQ q,
NSFQAMT q = Max (MCPCNS M ) * NSFQ q,
Charge for Failure to Provide
Max Price of AS Markets * Failed Quantity
Outcome
Outcome
#1
Slide 132
Adjustments to Costs for Ancillary Services Procurement
Who: QSEs that have Ancillary Service obligations
What: A charge to the QSE for its share of the net total costs incurred
in both DAM and SASMs less its DAM charge
Why: To cover the costs of a services to ensure ERCOT reliability
Fundamentals of Adjustments to
Cost for Ancillary Services
Real-Time Supplemental
Ancillary Services
Market (SASM)
Slide 133
Adjustments to Costs for Ancillary Services Procurement
Trigger
#1
ERCOT has net
costs for AS that
must be collected
from the market
Slide 134
Adjustments to Costs for Ancillary Services Procurement
Failed AS
Amounts
•DAM Procured
Amounts
•SASM Procured
Amounts
Slide 135
Adjustments to Costs for Ancillary Services Procurement
A QSE’s share of the net total cost for an
Ancillary Service for an Operating Hour is
simply
(AS Price) * (AS Quantity)
= AS Price
ERCOT Total AS Cost
( ) ERCOT Total Obligation not Self-Arranged
= AS Quantity ( ) QSE Obligation - ( ) Self-Arranged Qty
Total
AS Costs
Slide 136
Adjustments to Costs for Ancillary Services Procurement
(ERCOT Total AS Capacity) * HLRS
+ AS Replaced as Undeliverable
QSE Obligation =
QSE’s AS Obligation from Load Ratio Share
QSE’s AS that was undeliverable
QSE Obligation
Slide 137
Adjustments to Costs for Ancillary Services Procurement
ERCOT Total AS Capacity
Total ERCOT
AS Capacity
Self-Arranged Qty in all Markets +
AS Procured in Real-Time +
AS Procured in DAM –
AS Replaced as Undeliverable –
AS Failed to Provide
= ∑ All
QSEs
Slide 139
Adjustments to Costs for Ancillary Services Procurement
Putting it all together,
+ AS Replaced as Undeliverable
QSE
Obligation
=
Self-Arranged Qty in all Markets +
AS Procured in Real-Time +
AS Procured in DAM –
AS Replaced as Undeliverable –
AS Failed to Provide
∑ All
QSEs
HLRS *
Slide 140
Adjustments to Costs for Ancillary Services Procurement
Now, the QSE’s AS Cost is simply
Is this what the QSE pays for each Ancillary
Service in Real-Time?
AS Price * [ QSE Obligation – (Self-Arranged Qty) ]
Slide 141
Adjustments to Costs for Ancillary Services Procurement
The QSE already paid part of this AS
Cost in the Day-Ahead Market.
In Real-Time, the QSE pays or is paid for any difference
between their AS Cost and their Day-Ahead AS Charge
DAM Participation in DAM
• Energy
• AS
• PTP Obligations
AS Cost – RT AS
Amount
= Day-Ahead
AS Amount
Real-Time Supplemental
Ancillary Services
Market (SASM)
Slide 142
Activity: Now it’s your turn!
Refer to your Settlements Workbook
In a small group, respond to the questions that
relate to Scenario #RT6.
You have 15 minutes to complete your questions.
If you can not complete all questions, don’t worry
– all questions will be reviewed as a class.
Slide 143
Adjustments to Costs for Ancillary Services Procurement
Where:
• Net price for Reg-Up
RUPR = RUCOSTTOT / RUQTOT
• A QSE’s net quantity for Reg-Up
RUQ q = RUO q – SARUQ q
Outcome
Outcome
#1
QSE’s Net Cost for Reg-Up is calculated as
RUCOST q = RUPR * RUQ q
Slide 144
Adjustments to Costs for Ancillary Services Procurement
Where:
• A QSE’s net quantity for Reg-Up
RUOq = (SARUQq+ (RTPCRUq,m ) + PCRUq, – RURPq– RUFQq) * HLRSq
+ RURPq,m
Outcome
Outcome
#1
QSE’s Net Cost for Reg-Up is calculated as
RUCOST q = RUPR * RUQ q
𝑞
𝑚
𝑚
Slide 145
Adjustments to Costs for Ancillary Services Procurement
The Real-Time Reg-Up Amount for a QSE
RTRUAMT q = RUCOST q – DARUAMT q
Outcome
Outcome
#1
Finally, the QSE is charged the difference
between their net Reg-Up Cost and their Day-
Ahead Reg-Up Charge
There is a similar Charge Type
for each Ancillary Service Type.
Slide 146
Module summary
Day 3
Real-Time
Statements &
8:30 A
1:00 P
Invoicing
$ Describe the Settlement impacts of
Real-Time Operations.
$ Calculate various charges and
payments associated with Real-
Time Operations
$ Explain the impacts of the CRR
Auction, Trades and the Day-Ahead
Market on Real-Time Settlements