ercot market education · 2016. 8. 4. · slide 4 module 5: objectives upon completion of this...

ERCOT MARKET EDUCATION

Basic Training Program

Module 5: The Adjustment Period

Module Overview

Module 5: Objectives

Upon completion of this module,

you will be able to:

• Describe key activities & processes

associated with the Adjustment Period

• List the types of information that can be

updated or submitted

• Identify potential impacts of Adjustment

Period activities on settlements

The Adjustment Period

The Adjustment Period Activity Timeline

Roles and Responsibilities

Participant Roles in the Adjustment Period

• ERCOT

• TSPs

• QSEs

ERCOT Activities

ERCOT Activities in the Adjustment Period

• Open Supplemental AS Markets (SASM) as required.

Supplemental Ancillary Service Market (SASM)

What is a Supplemental Ancillary Service Market (SASM)?

• Market that allows ERCOT to procure additional Ancillary

Services.

• Differs from the Day-Ahead Market in that there is no co-

optimization with energy.

SASM can occur no less than 2 hours

before the start of the Operating Hour for

which the AS capacity is needed

AS Insufficiencies in the Adjustment Period

ERCOT may procure AS in the Adjustment Period if:

1. Individual QSEs fail to provide their AS Supply

Responsibility

2. Transmission constraints prevent delivery of AS capacity

3. More Ancillary Service Capacity is needed above what

was identified in the Day-Ahead Plan.

AS Insufficiencies in the Adjustment Period

Methods ERCOT may use to procure AS:

If insufficiency due to… Then…

QSE failure to provide • ERCOT may allow QSE to substitute AS capacity

• ERCOT may procure the AS capacity by running a

Supplemental Ancillary Service Market (SASM)

Transmission

Constraints

• ERCOT notifies affected QSE of the constraints

• ERCOT may allow QSE to substitute AS capacity

• ERCOT may procure the AS capacity by running

SASM

More AS is needed • ERCOT increases each QSEs AS Supply

Obligation

• ERCOT may procure the AS capacity by running

SASM

SASM in the Adjustment Period

SASM Process Timeline

X = Time when ERCOT sends notice to QSEs of the SASM; not

less than 2 hours before the start of the Operating Hour

SASM in the Adjustment Period

SASM Timeline

X = Time when ERCOT sends notice to QSEs of the SASM; not

less than 2 hours before the start of the Operating Hour

TSP Activities

TSP Activities in the Adjustment Period

• Update the Outage Scheduler as needed

TSP Activities – Outage Scheduler

What is the Outage Scheduler?

• The Outage Scheduler is used by TSPs and QSEs for

outage coordination.

Outage Scheduler impacts:

• Day-Ahead Market

• Reliability Unit Commitment

• Hourly Transmission

Security Analysis

TSP Activities – Outage Scheduler

Updating and Submitting the Outage Scheduler

• Weather or other conditions impact equipment

• TSP must report outages lasting longer than 2 hours

QSE Activities

QSE Activities in the Adjustment Period

• Update plans & schedules

• Submit offers, trades

• Request decommitments

What Information is Updated in the Adjustment Period?

QSE Activities

Current Operating Plans Offers

Schedules Trades

Current Operating Plans (COP)

QSEs must maintain COP information

• COP used to plan for Real-Time

• COP reflects “expected” operating conditions for next 7

Operating Days

QSE Activities - COP

COP used in Day-Ahead Market & RUC

processes, NOT Real-Time Operations

Current Operating Plan

Current Operating Plan Updates

COP should reflect:

• Expected Resource status

• Expected Ancillary Service Resource Responsibilities

• Expected High & Low Sustained Limits,

• Expected High & Low Emergency Limits


Updating a Current Operating Plan (COP)

After an event that impacts status or availability, the QSE has 60 minutes to update the COP

Examples:

• Day-Ahead Market Ancillary Service Awards

• Changes to Resource Status or Ancillary Service Responsibilities

• RUC commitments


Updating a Current Operating Plan

• Scheduled for 10 MW of Regulation

• Resource A is forced Off-Line

• QSE can provide from Resource C

A C

Regulation:

10 MW

Status:

ONREG

Status:

ON


Updating a Current Operating Plan:

• QSE must update COP for both

Resources

• ERCOT can veto any changes in AS

Resource Responsibilities

A C

Regulation:

10 MW

Status:

OUT

Status:

ONREG


Updating a Current Operating Plan:

A C

Regulation:

10 MW

Status:

OUT

Status:

ONREG

Other options?

Offers

QSEs may update or submit:

• Three Part Supply Offers

• Energy Offer Curves

• Ancillary Service Offers

QSE Activities - Offers

Offers

Updating or Submitting Energy Offers

Three-Part Supply Offers:

• May be submitted during the Adjustment Period

• Energy Offer Curve may be updated

• Start-up and Minimum Energy Offers may be updated for

intervals in which the Resource is not DAM or RUC

committed

Updating and Submitting Energy Offers

Energy Offer Curves

In the Adjustment Period:

• May be submitted the first time

• Must be submitted or updated for

certain Resources

• RUC Committed

• Providing On-Line Non-Spin

Reserve

Energy Offer Curve


Energy Offer Curves

RUC Committed:

• All energy priced at or

above $1,000

• Applies only to RUC Hours

Energy Offer Curve

LSL HSL

$1000


Energy Offer Curves

On-Line Non-Spin Reserve Service:

• Floor price for Energy

• Requirements vary depending

on status of Resource

• On-Line Non-Spin

Priced at or above $75

LSL HSL

Energy Offer Curve

$75

On-Line Non-Spin

Responsibility

Offers

AS Qty AS Qty

NEW OFFERS RESUBMITTED OFFERS

Updating or Submitting Ancillary Service

Offers

In the Adjustment Period, an Ancillary Service Offer may be:

• Submitted the first time

• Resubmitted with new price

Updating or Submitting Ancillary Service

Offers

Offers

AS Qty AS Qty

NEW OFFERS RESUBMITTED OFFERS

Offers must be submitted prior to ERCOT’s

notification of intent to hold a SASM.

Schedules

QSEs may submit or update:

• Output Schedules

• DC Tie Schedules (e-Tag through OATI)

QSE Activities - Schedules

Schedules

Updating or Submitting Output Schedules

In the Adjustment Period, an Output Schedule can be:

• Submitted for the first time

• Updated after its submittal

• Replaced by an Energy Offer Curve

Output Schedules

• Reflect a Resource’s QSE-scheduled output for every five

minute interval.

• Resource becomes “price taker” for energy at the

Resource’s Settlement Point


All Resources required to have:

• Energy Offer Curve

or

• Output Schedule


Output Schedules and Energy Offer Curves

• If neither exists for a particular On-Line Resource

• ERCOT notifies the QSE

• Creates an Output Schedule equal to the current

telemetered output of the Resource

• Submission of an Energy Offer Curve automatically deletes

any Output Schedules for that Resource.


Schedules

Updating or Submitting Schedules

DC Tie Schedules

• DC Tie Schedules can be updated or submitted for the first

time during the Adjustment Period.

• QSE may update DC Tie Schedules as circumstances

change for parties in the transaction

Updating or Submitting DC Tie Schedules

DC Tie Schedule deadlines

• OATI accepts e-Tags 10 minutes before flow

• ERCOT settlement impact changes after

the Adjustment Period


Submitted within

Adjustment Period

DC Tie Import

• Energy supply in Real-Time

• Capacity supply in RUC

DC Tie Export

• Energy Obligation in Real-Time

• Capacity Obligation in RUC

Submitted after

Adjustment Period

DC Tie Import

• Energy supply in Real-Time

• No Capacity supply in RUC

DC Tie Export

• Energy Obligation in Real-Time

• Capacity Obligation in RUC


E X

Updating DC Tie Schedules

• QSE planned to use Resource E to

export energy through the Eagle

Pass DC Tie for Hour Ending 7

• Resource trips offline

QSE may choose to update its DC

Tie Schedule

Is it necessary?

Trades

QSE may submit or update Trade information:

• Capacity trades

• Energy trades

• Ancillary Service trades

QSE Activities - Trades

Trades

Updating or Submitting Trades

• QSEs may report trades for the first time or update

previously submitted trades:

• Energy and Capacity Trades create a supply or an

obligation in HRUC

• Ancillary Service Trades may change QSE’s Ancillary

Service Supply Responsibility

Trades

Updating or Submitting Ancillary Service Trades

• Submitted or updated during Adjustment Period

• Affects QSE’s AS Supply Responsibility

Any changes in the specific Resources

providing Ancillary Services must be

approved by ERCOT.

X

Trades

Updating or Submitting AS Trades

• QSE 1 AS Supply Responsibility:

Responsive Reserve at 65 MW

• When Resource trips offline,

QSE 1 trades with QSE 2 for 50 MW

50 MW 15 MW 50 MW

Decommitments

QSE Activities: Decommitment Requests

QSEs may request Resource decommitments

• May request decommitments for QSE-committed hours

• May not request decommitment for RUC-committed hours

Decommitments

QSE Self-Commits by:

• Indicating status of “ON” in the Resource’s COP for

specific hours

QSE Requests Decommitment by:

• Changing the COP status to “OFF” for the selected hours

QSEs may not request Decommitment

for RUC-committed intervals

Decommitments

QSE requests decommitment

• Initially committed for Hours Ending 2 through 5

• QSE changes status to “Off” for Hours Ending 3 through 5

and updates COP to reflect change

• HRUC will evaluate request

Decommitments

Evaluation of Resource Decommitments

• Request for decommitment is evaluated in next HRUC

• Two key inputs are considered

RUC

Three-Part

Supply Offer

Current

Operating Plan

Decommitments


• HRUC studies the reliability of the system without the

decommitted Resource

• If additional capacity is needed for reliability, HRUC will:

• Determine least cost solution for committing capacity

• See decommitted Resource as Off-line but available

RUC

Three-Part

Supply Offer

Current

Operating Plan

Decommitments


To evaluate a request for decommitment, HRUC will not

consider Startup Costs.

HRUC considers only the

Minimum Energy Offer.

StartUp Offer Minimum-Energy Offer Energy Offer Curve

X X

RUC

Three-Part

Supply Offer

Current

Operating Plan

Decommitments

Notification of Denied Resource Decommitment

• ERCOT notifies the QSE that decommitment is denied

• Affected intervals become RUC-Committed

• QSE updates its COP to denote RUC-Committed Intervals

Decommitments

Approval of Resource Decommitments

• QSE does not receive any notification of approval

• COP remains the same

Decommitments Due to Forced Outage

• Only time when a QSE can decommit a Resource for a

RUC-committed interval

• Resource’s telemetered status will automatically notify

ERCOT of a Forced Outage for Real-Time activities.

Decommitments

Decommitments Due to Forced Outage

The QSE will inform ERCOT of:

• Nature of forced outage

• Actual Start time of Forced Outage or de-rating

• Planned End time of Forced Outage or de-rating.

• Revised HSL and/or LSL

Decommitments

The QSE must also

update the COP for

future hours

Shifting Ancillary Service

Supply Responsibilities

Changing Ancillary Service Commitments

• During the Adjustment Period, QSEs may revise how they

meet their AS Supply Responsibility

• Provide from another Resource they control

• Buy back from the Market

Shifting Ancillary Service Supply Responsibilities

?

Provide Ancillary Service from Another Resource

• QSE Updates COP

• ERCOT evaluates the change

• If unfeasible, QSE must update COP within 60 minutes

• No news is good news


Buy Back Ancillary Service from the Market

• QSE requests modification

• Reduce their AS Resource Responsibilities

• Provide equal quantity of AS Offers

• ERCOT runs a Reconfiguration SASM at 0900


$

Adjustment Period

Financial Impacts

SASM Settlement Calculation

How are SASMs settled?

• Each SASM sets its own Market Clearing Price for Capacity

(MCPC) for each cleared Ancillary Service.

• QSEs with cleared offers are paid

• QSEs with obligations are charged

When are SASM prices finalized?

• SASM MCPCs are finalized by 1600 of the next Business

Day after the Operating Day.

SASM Settlement Circumstances

If…. Then…

Ancillary Service Plan was

increased after DAM

QSEs that did not self-arrange their

SASM obligations will be charged

based on the SASM MCPC.

Ancillary Service was undeliverable

due to a Transmission Constraint

QSE who could not deliver the AS is

charged a price based on the net

cost of the Ancillary Service across

all Markets.

QSE failed to provide its Ancillary

Service Supply Responsibility

QSE who failed to provide is

charged the highest price from all

the Ancillary Service markets.

Also Applies to

Reconfiguration SASM

SASM Settlement Data on MIS

What is posted on the MIS Public Area

• SASM MCPCs for each AS type for each hour

• Total AS procured in MW by AS type for each hour

• Aggregated AS Offer Curve for each AS by hour.

Module 5: Summary

You have learned:

• Activities of ERCOT, TSPs, and QSEs in

the Adjustment Period

• The types of information that can be

“adjusted” during the Adjustment Period

• The financial impacts of Supplemental

Ancillary Services Markets in the

Adjustment Period

Module Conclusion

ercot market education · 2016. 8. 4. · slide 4 module 5: objectives upon completion of this...

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