BASE POINT DEVIATION DURING SCED SHORTENED INTERVALSPRESENTATION TO SEWG Jim Galvin- Chair, Settlements and Extract Working Group 9/20/2010 BACKGROUND Market trials settlement review of Base Point Deviation has identified an anomaly in the Base Point Deviation (BPD) settlement algorithm Current algorithm calculates BPD correctly when SCED intervals are 300 seconds (5 min) in duration For SCED intervals less than 5 min, it is possible for a BPD to be calculated when a resource follows all instructed Base Points and ramping conditions Goal in this presentation is to raise issue and discuss possible long term correction and interim consideration BPD- ALGORITHMS Under-generation $ Base-Point Deviation Charge = Max (0, (BPDAMT q, p, r) $/MWh RT Settlement Point Price ) x Min (1, (RTSPP p) MW Adjusted Aggregate BasePoint (AABP q, p, r) x¼( )), ¼( MW Adjusted Aggregate BasePoint (AABP q, p, r) - Coefficient applied to SPP for UnderGeneration Cahrge, 1.0 (KP) MW MW Tolerance for Under-Generation, 5MW (Q2) )]- ) x Max{0,{Min[((1MWh Time-Weighted Telemetered Generation (TWTG q, p, r) % Tolerance for Under-Generation, 5% (K2) ) }} Over-generation $ Base Point Deviation Charge (BPDAMT = Max(0, q, p, r) MW Adjusted Aggregated Base Point (AABP q, p, r) $/MWh RT Settlement Price Point per Settlement Point (RTSPP p) ),( ) x Max [0,( MW Adjusted Aggregated Base Point (AABP q, p, r) + MW The MW Tolerance for Over Generation, 5MW (Q1) MWh Time-Weighted Telemetered Generation (TWTG q, p, r) )))] Where: MWh Time-Weighted Telemetered Generation (TWTG q, p, r) = ( y MW Average Telemetered Generation (ATG q, p, r, y) x Seconds Duration of SCED Interval (TLMP y) / 3600 ) - ¼ x Max(((1 + % The Percentage Tolerance for Over Generation, 5% (K1) )x FOCUS ON AABP Identified issue focuses on the calculation of the Adjusted Aggregate Base Point (AABP) Base points are issued based on resource ramping capabilities Calculation for AABP is: Base Point for the interval (y) Base Point for previous interval (y-1) {y + (y-1)/2} * TLMP/900 TLMP is total seconds for the SCED period which is divided by the total of 900 seconds in a 15-minute settlement interval EXAMPLE Base Point Y (Current SCED) Base Point Y-1 (Previous SCED) Telemetered Gen 100 100 100 y1 150 100 125 100 150 y2 175 150 150 125 150 y3 200 175 200 150 300 y4 250 200 220 200 120 y5 250 250 250 220 180 SCED Int Telemetered Gen Previous SCED SCED Int (seconds) 1. Resource has a 10 MW per minute ramp rate and is sitting at 100 MW prior to dispatch for the next interval 2. SCED dispatches the unit (red line) with desired BP of 150 MW 3. SCED interval is shortened to 150 seconds (2.5 minutes) and unit follows ramp and reaches 125 MW (orange line) 4. Next SCED interval considers ramp rate and telemetered generation and sets next base point to 175 MW (green line) 5. Over the course of the 15-min interval, 5 total SCEDs are run and the resource follows its ramp in trying to reach the desired BP EXAMPLE SCED Int y1 y2 y3 y4 y5 Base Point Y (Current SCED) 100 150 175 200 250 250 Base Point Y-1 (Previous SCED) 100 100 150 175 200 250 Telemetered Gen 100 125 150 200 220 250 Telemetered Gen Previous SCED SCED Int (seconds) AABP TWTG 100 125 150 200 220 150 150 300 120 180 20.83333 27.08333 62.5 30 50 4.6875 5.729167 14.58333 7 11.75 900 190.4167 43.75 RTSPP Bandwidth % Tolerance MW Tolerance $100 0.05 180.8958 185.4167 KP 5 MWH BPD Undergen $147.40 1. Settlements calculates an Aggregate Adjusted Base Point using the algorithm on previous page or 190.4 MW 2. Time Weighted Telemetered Generation (TWTG) is calculated at 43.75 MWh for the 15-min interval, or 175 MW (Under-generation) 3. Tolerance band is the % tolerance (5%) or 180.9 MW (45.22 MWh) 4. ERCOT will calculate a BPD Charge of 45.22 MWh – 43.75 MWh multiplied at the RTSPP of $100, or $147.4 1 45.22396 EXAMPLE- OVER-GENERATION Base Point Y (Current SCED) 200 175 150 100 100 Base Point Y-1 (Previous SCED) 250 250 200 175 150 100 Telemetered Gen 250 225 200 150 130 100 Telemetered Gen Previous SCED SCED Int (seconds) AABP TWTG 250 225 200 150 130 150 150 300 120 180 37.5 33.33333333 54.16666667 16.66666667 23 9.895833333 8.854166667 14.58333333 4.666666667 5.75 900 164.6666667 43.75 RTSPP Bandwidth % Tolerance MW Tolerance BPD Overgen $100 0.05 172.9MWh 169.6666667 KP 5 $52.50 1. Example shows resource ramping down with same 10 MW per minute ramp rate 2. Unit follows its ramp and desired BP each SCED period 3. Resource is charged a BPD charge over the tolerance of 172.9 MW (43.22 MWh) and the TWTG of 43.75 MWh at the RTSPP of $100, for a charge of $52.50 1 43.225 QUESTIONS