CRR Issues
Transparency provided by CRR Reports
CRR EDS handbook
Business process NPRR
TPTF
November 27, 2007
Today’s issues
• Transparency provided by CRR Reports
– “Explanation of Market Submission / Retrieval Items” document
will be updated this week per comments received
– Guidance requested about proposed report contents
• CRR EDS handbook
– Content updated
– Reminder / Status on registration
• Business process NPRR
– Discuss alternate implementation of PCRR release mechanism
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November 27, 2007
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TPTF – CRR Issues
Level of transparency for CRR ownership and market results
•
ERCOT is looking for TPTF guidance on whether protocols were
correctly interpreted
•
Three data items in particular:
1. CRR ownership of record (all owned CRRs)
2. “Base loading” CRRs (owned CRRs that are inputs into an auction)
3. Auction results
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TPTF – CRR Issues
1. CRR Ownership of Record
•
Protocol language:
NP 7.5.5.2: ERCOT shall post monthly, by the fifth Business Day of the month, on the MIS Public Area
CRR ownership of record for each source and sink pair and each flowgate: the identities of the CRR
Account Holders, type of CRR held by that account holder, and total MWs held by that account
holder.
•
Current design:
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TPTF – CRR Issues
2. Base loading CRRs
•
Protocol language:
NP 7.5.3.2(1): Not less than 20 days before each annual CRR Auction and not less than 10 days before
each monthly CRR Auction, ERCOT shall post the following to the MIS Public Area:
(a) For the CRR Auction, number and type (PTP Options or PTP Obligations) of CRRs previously
awarded or allocated for each appropriate month, including the source and sink for each such CRR;
(b) For the CRR Auction, number of MCFRIs that have been previously awarded or allocated for each
appropriate month, including the flowgate for each such MCFRI
•
Current design:
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TPTF – CRR Issues
3. Auction Results (Public)
•
Protocol language:
NP 7.5.3.1(2): Following each CRR Auction, ERCOT shall post to the MIS Public Area the following
information for all outstanding CRRs following this auction:
(a) PTP Options and PTP Options with Refund – the source and sink , and total MWs;
(b) PTP Obligations and PTP Obligations with Refund – the source and sink and total MWs;
(c) FGRs – the identity of each directional flowgate, and the magnitude of positive flow (MW) on each
directional network element represented by each flowgate;
(d) The identities of the CRR Account Holders that were awarded or allocated CRRs in or before the CRR
Auction;
(e) The clearing prices for each strip of CRR blocks awarded in the CRR Auction;
•
Current design (2 files – allocation results and auction results):
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TPTF – CRR Issues
EDS3 – Release 7 Handbook
•
CRR EDS Handbook (EDS3 – R7)
– V1.0 specifies multi-month auction trial
– In reviewing readiness metrics, a strong desire was expressed
for a full annual (24 month) CRR auction to be part of EDS
– CRR EDS Handbook has been updated (v1.04) to include
testing of a full annual (24 month) CRR Auction
– Reserving request for TPTF approval of an updated version of
the EDS Handbook until January, giving us time to finalize more
details.
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TPTF – CRR Issues
EDS Reminders
December 1, 2007
– Declare intent to participate in the EDS3-R7
email eds3@ercot.com with Primary Contact Name, Email and Telephone
Number, as well as DUNS number of participating CRR AH.
– NOIEs submit PCRR Allocation Eligibility Form, along with proof of
eligibility
Proof of eligibility includes copy of long-term contract or, if own resource, the
following: Board of Directors Resolutions, Construction Contracts, Certificates of
Completion of Construction, Property Tax Statements, Insurance Policies Listing
the Generation Resource or Audited Financial Statements.
– NOIEs wishing to be considered as NOIE Load Zones during EDS 3 R7
must submit the NOIE Load Zone Establishment form
This notification will not be considered binding for Nodal go-live, however the
indication will allow ERCOT to appropriately form the network model for EDS
activities.
– Wind Generation Resources (WGRs ) within the boundaries McCamey
Area wishing to receive MCFRIs during EDS must submit the Allocation
Eligibility Form
– NOIEs and WGRs who submit the Allocation Eligibility Form must also
submit the CRR AH application.
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TPTF – CRR Issues
EDS Reminders
January 15, 2008
– Market Participants wishing to participate in EDS3-R7 submit the
CRR AH application.
– Market Participants wishing to participate must have registered for
and completed ERCOT CRR Training.
• Note: only one representative from each participant organization is
required to attend CRR Training.
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TPTF – CRR Issues
CRR Registration status
• 20 entities (5 NOIEs) have emailed their intent to participate in
EDS3-R7
– Of those, 8 entities (3 NOIEs) have completed CRR AH
registration
• 10 entities (3 NOIEs) have completed CRR AH registration but
have not declared their intent to participate in EDS3-R7
• Notable absentees:
– CPS Energy(San Antonio), STEC, Brownsville, McCamey WGRs
Registration status as of Monday, November 26 as known by the CRR team
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TPTF – CRR Issues
Business process clarification NPRR – “release mechanism”
• ERCOT proposes to remove the “release mechanism” language in
the protocols as existing design provides a more elegant solution
• The following slides aim to explain the “release mechanism”
compared to proposed implementation
• Feedback desired on appropriate percentage for ‘base loading’ for
Monthly Auction
• Assumptions made in this example (which may not exist in reality):
– The network capacity for 2010-2011 is the same for all months
– The nominated MW is the same for all months
– The nominated MW amount is fully allocated; no monthly true-up
allocation required
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TPTF – CRR Issues
Available network capacity for 2010 and 2011
100 MW (capacity)
100 MW (capacity)
Year 2010
annual
allocation
before the
annual auc.
Year 2011
annual
auction
before the
monthly auc.
Jan monthly
auction
after the
monthly auc.
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TPTF – CRR Issues
Nominations for 2010 and 2011 submitted by NOIEs
100 MW (capacity)
100 MW (capacity)
60 MW (nominated)
60 MW (nominated)
Year 2010
annual
allocation
before the
annual auc.
Year 2011
annual
auction
before the
monthly auc.
Jan monthly
auction
after the
monthly auc.
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TPTF – CRR Issues
All nominations for 2010 and 2011 allocated – but only some
released
100 MW (capacity)
100 MW (capacity)
60 MW (allocated)
60 MW (allocated)
60*55% = 33 MW (released)
60*15% = 9 MW (released)
Year 2010
annual
allocation
before the
annual auc.
Year 2011
annual
auction
before the
monthly auc.
Jan monthly
auction
after the
monthly auc.
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TPTF – CRR Issues
Remainder network capacity (up to 55% and 15%) auctioned
100 MW (capacity)
100 MW (capacity)
60 MW (allocated)
60 MW (allocated)
55%
100*55% - 33 MW = 22 MW (auctioned)
60*55% = 33 MW (released)
Year 2010
annual
allocation
before the
annual auc.
15%
100*15% - 9 MW = 6 MW (auctioned)
60*15% = 9 MW (released)
Year 2011
annual
auction
before the
monthly auc.
Jan monthly
auction
after the
monthly auc.
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TPTF – CRR Issues
Balance of PCRRs (up to 90% or additional 35%) released to NOIEs
100 MW (capacity)
100 MW (capacity)
100*55% - 33 MW = 22 MW (auctioned)
60 MW (allocated)
60*90% - 33 = 21 MW (released)
60*55% = 33 MW (released)
100*15% - 9 MW = 6 MW (auctioned)
60*15% = 9 MW (released)
Year 2010
annual
allocation
before the
annual auc.
Year 2011
annual
auction
before the
monthly auc.
Jan monthly
auction
after the
monthly auc.
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TPTF – CRR Issues
Remainder network capacity (up to 90%) auctioned
100*90% - 33 - 21 - 22= 14 MW (auctioned)
100 MW (capacity)
100 MW (capacity)
90%
100*55% - 33 MW = 22 MW (auctioned)
60 MW (allocated)
60*90% - 33 = 21 MW (released)
60*55% = 33 MW (released)
100*15% - 9 MW = 6 MW (auctioned)
60*15% = 9 MW (released)
JAN
Year 2010
annual
allocation
before the
annual auc.
Year 2011
annual
auction
before the
monthly auc.
Jan monthly
auction
after the
monthly auc.
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TPTF – CRR Issues
Balance of PCRRs (additional 10%) for Jan 2010 released to NOIEs
100*90% - 33 - 21 - 22= 14 MW (auctioned)
100 MW (capacity)
100 MW (capacity)
60*100% - 33 - 21= 6 MW (released)
90%
100*55% - 33 MW = 22 MW (auctioned)
60 MW (allocated)
60*90% - 33 = 21 MW (released)
60*55% = 33 MW (released)
100*15% - 9 MW = 6 MW (auctioned)
60*15% = 9 MW (released)
JAN
Year 2010
annual
allocation
before the
annual auc.
Year 2011
annual
auction
before the
monthly auc.
Jan monthly
auction
after the
monthly auc.
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TPTF – CRR Issues
Summary of CRRs Distributed
Per PCRR
release
mechanism
Allocation
60
Annual
Auction
22
Monthly
Auction
14
Total
distributed
prior to DAM
96
Current PCRR
release mechanism
does not provide
10% cushion
Proposed implementation
simplifies the process
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TPTF – CRR Issues
Available network capacity for 2010 and 2011
100 MW (capacity)
100 MW (capacity)
Year 2010
annual
allocation
Year 2011
annual
auction
Jan monthly
auction
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TPTF – CRR Issues
All nominations for 2010 and 2011 allocated
100 MW (capacity)
100 MW (capacity)
60 MW (nominated & allocated)
60 MW (nominated & allocated)
Year 2010
annual
allocation
Year 2011
annual
auction
Jan monthly
auction
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TPTF – CRR Issues
Network capacity (up to 55% and 15%) auctioned
100 MW (capacity)
100 MW (capacity)
60 MW (allocated)
60 MW (allocated)
55%
100*55% - 33 MW = 22 MW (auctioned)
60*55% = 33 MW (base loaded in Auction)
15%
100*15% - 9 MW = 6 MW (auctioned)
60*15% = 9 MW (base loaded in Auction)
Year 2010
annual
allocation
Year 2011
annual
auction
Jan monthly
auction
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TPTF – CRR Issues
Network capacity (up to 90%) auctioned
100*90% - 54 - 19.8 = 16.2 MW (available for auction)
2.2 MW (previously auctioned)
6 MW (previously allocated)
100 MW (capacity)
100 MW (capacity)
60 MW (allocated)
90%
22*90% = 19.8 MW (based loaded in auction)
60*90% = 54 MW (base loaded in auction)
100*15% - 9 MW = 6 MW (auctioned)
60*15% = 9 MW (base loaded in Auction)
JAN
Year 2010
annual
allocation
Year 2011
annual
auction
Jan monthly
auction
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TPTF – CRR Issues
Summary of CRRs Distributed
Per PCRR
release
mechanism
Proposed
Implementation
90% base
loading for
Monthly
Alternate
Implementation
100% base
loading for
monthly
Allocation
60
60
60
Annual
Auction
22
22
22
Monthly
Auction
14
16.2
8
Total
distributed
prior to DAM
96
98.2
90
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TPTF – CRR Issues