settlements 301 · slide 11 dam commitment • make-whole dam participation in dam • energy •...

Settlements 301

Legal Disclaimers and Admonitions

PROTOCOL DISCLAIMER

This presentation provides a general overview of the Texas Nodal Market and is not

intended to be a substitute for the ERCOT Nodal Protocols (available at

http://www.ercot.com/mktrules/nprotocols/current), as amended from time to time. If any

conflict exists between this presentation and the ERCOT Nodal Protocols, the ERCOT

Nodal Protocols shall control in all respects.

ANTITRUST ADMONITION

ERCOT strictly prohibits market participants and their employees, who are participating in

ERCOT activities, from using their participation in ERCOT activities as a forum for

engaging in practices or communications that violate antitrust laws. The ERCOT Board

has approved guidelines for Members of ERCOT Committees, subcommittees, and

working groups to be reviewed and followed by each market participant attending ERCOT

meetings.

Housekeeping

• Restrooms

• Refreshments

• Attendance sheet

• Exam

• Questions

• Microphones Please turn off cell phones

& other electronics

Course Introduction & Market

Settlement Terminology

Course Audience

This course is designed to provide key information to anyone

who needs to understand financial settlements in the ERCOT

Wholesale Market.

This includes:

• Market Participants and ERCOT

staff who will be directly involved

in Congestion Revenue Rights,

Day-Ahead, and Real-Time

Settlements and Invoicing

• All Market Participants who are part of the settlement

process

Course Objectives

Upon completion of this course, learners should be able

to:

• Describe the settlement process in the ERCOT Wholesale

Market

• Identify how market actions cause or affect ERCOT Market

Settlements

• Combine ERCOT settlement equations with a QSE’s or

CRRAH’s market activities to predict settlement results.

• Analyze a QSE’s Settlement Statement for validation.

Course Topics

• Charges and Payments for CRRs CRR Auction

Revenue

Distribution

Charges and Payments for CRRs

Course Topics

• Charges and Payments for CRRs

DAM Commitment

• Make-Whole

DAM

Participation in DAM

• Energy

• AS

• PTP Obligations

Settlement of CRRs

purchased in the

Auction

CRR Auction

Revenue

Distribution


DAM Commitment

• Make-Whole

DAM


• Energy

• AS

• PTP Obligations

Settlement of CRRs

purchased in the

Auction

Course Topics


Reconcile CRR

Short payments

CRR Balancing

Account

CRR Auction

Revenue

Distribution


DAM Commitment

• Make-Whole

DAM


• Energy

• AS

• PTP Obligations

Settlement of CRRs

purchased in the

Auction

Course Topics


RUC

Commitment

• Make-Whole

• Clawback

Decommitment

CRR Balancing

Account

CRR Auction

Revenue

Distribution


Reconcile CRR

Short payments

DAM Commitment

• Make-Whole

DAM


• Energy

• AS

• PTP Obligations

Settlement of CRRs

purchased in the

Auction

Course Topics


RUC

Commitment

• Make-Whole

• Clawback

Reconcile CRR

Short payments

CRR Balancing

Account

Decommitment

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

Real Time Ancillary

Service Settlements

Course Topics

RUC

DAM

Real-Time CRR

Auction

CRR Balancing

Account

Statements & Invoicing

Day 2

Reliability Unit

Commitment

Day 1

Course Introduction

Congestion Revenue

Day-Ahead Market

Rights

Day 3

Real-Time

Statements &

Invoicing

Balancing Account

Course Agenda

Classroom Approach

• Review Operational Concepts

• Define operational impact to settlements

• Settlement Examples

– Payments

– Charges

– Revenue Neutrality

◦ Direct Assignment

◦ Obligation

◦ Load Allocation

The Settlements Story

Cast of Characters

Introductions

Please let us know your:

• Name

• Company for which you work

• Market Entity

– QSE

– TSP

– ERCOT

– Resources

– Other

• Experience in the industry or experience with Settlements

LMP

UFE

AML

LRS

SPP

DAM

CRR

PTP

AMT

RUC

Activity: Market Settlement Terminology

Terminology – Something old; Something new

As a class, we will:

• See two definitions on the screen for a Nodal Settlements

term

• Choose which statement is true


Locational Marginal Pricing (LMP):

The marginal cost of relieving one MW of congestion on a

Transmission constraint N

The offer-based marginal cost of serving the next

increment of Load at an Electrical Bus True ?

?


Settlement Point Price:

A price calculated for a Settlement Point for each Settlement

Interval using Shadow Prices M

A price calculated for a Settlement Point for each Settlement

Interval using LMPs True

?

?


Settlement Intervals:

15 minutes:

• Day-Ahead Market

Hourly:

• Real-Time

• Congestion Revenue Rights N

15 minutes:

• Real-Time

Hourly:

• Congestion Revenue Rights

• Day-Ahead Market

True ?

?


Charge Type:

A line item on an ERCOT Settlement Statement True

A choice a customer must make when paying their bill (i.e.

Visa, MasterCard, etc.) N ?

?


Billing Determinant:

A variable used in Settlements to calculate a Charge Type True

A flag that determines the Statement on which a Charge

Type Appears M ?

?


Adjusted Metered Load:

Load usage data that has been adjusted for the difference

between scheduled load and actual load. N

Load usage data that has been adjusted for Transmission

Losses, Distribution Losses, and Unaccounted for Energy

(UFE) True ?

?


Metering and Data Aggregation

Meter Data

Load Serving Entity (LSE)

Qualified Scheduling Entity (QSE)

Distribution Losses

Transmission Losses

Adjusted Metered Load (QSE)

Unaccounted For Energy (UFE)


Load Ratio Share:

The ratio of an Entity’s Adjusted Metered Load to total ERCOT

Adjusted Metered Load for an interval True

The ratio of an Entity’s Adjusted Metered Load to Adjusted

Metered Generation for an interval M ?

?

Module Summary

$ Overview of course logistics

Course Introduction

Congestion Revenue

Day-Ahead Market

Rights

$ Define Nodal settlement terms

commonly used in ERCOT

Settlements

Day 1

settlements 301 · slide 11 dam commitment • make-whole dam participation in dam • energy •...

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