ercot market education · 2016. 8. 4. · slide 4 module 5: objectives upon completion of this...
TRANSCRIPT
ERCOT MARKET EDUCATION
Basic Training Program
Module 5: The Adjustment Period
Slide 3
Module Overview
Slide 4
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
Slide 5
The Adjustment Period
The Adjustment Period Activity Timeline
Slide 6
Roles and Responsibilities
Participant Roles in the Adjustment Period
• ERCOT
• TSPs
• QSEs
Slide 7
ERCOT Activities
ERCOT Activities in the Adjustment Period
• Open Supplemental AS Markets (SASM) as required.
Slide 8
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
Slide 9
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.
Slide 10
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
Slide 11
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
Slide 12
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
Slide 13
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
Slide 14
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
Slide 15
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
Slide 16
TSP Activities
TSP Activities in the Adjustment Period
• Update the Outage Scheduler as needed
Slide 17
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
Slide 18
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
Slide 19
QSE Activities
QSE Activities in the Adjustment Period
• Update plans & schedules
• Submit offers, trades
• Request decommitments
Slide 20
What Information is Updated in the Adjustment Period?
QSE Activities
Current Operating Plans Offers
Schedules Trades
Slide 21
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
Slide 22
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
Slide 23
Current Operating Plan
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
Slide 24
Current Operating Plan
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
Slide 25
Current Operating Plan
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
Slide 26
Current Operating Plan
Updating a Current Operating Plan:
A C
Regulation:
10 MW
Status:
OUT
Status:
ONREG
Other options?
Slide 27
Offers
QSEs may update or submit:
• Three Part Supply Offers
• Energy Offer Curves
• Ancillary Service Offers
QSE Activities - Offers
Slide 28
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
Slide 29
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
Slide 30
Updating and Submitting Energy Offers
Energy Offer Curves
RUC Committed:
• All energy priced at or
above $1,000
• Applies only to RUC Hours
Energy Offer Curve
LSL HSL
$1000
Slide 31
Updating and Submitting Energy Offers
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
Slide 32
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
Slide 33
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.
Slide 34
Schedules
QSEs may submit or update:
• Output Schedules
• DC Tie Schedules (e-Tag through OATI)
QSE Activities - Schedules
Slide 35
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
Slide 36
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
Updating or Submitting Output Schedules
Slide 37
All Resources required to have:
• Energy Offer Curve
or
• Output Schedule
Updating or Submitting Output Schedules
Slide 38
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.
Updating or Submitting Output Schedules
Slide 39
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
Slide 40
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
Slide 41
Updating or Submitting DC Tie Schedules
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
Slide 42
Updating or Submitting DC Tie Schedules
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?
Slide 43
Trades
QSE may submit or update Trade information:
• Capacity trades
• Energy trades
• Ancillary Service trades
QSE Activities - Trades
Slide 44
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
Slide 45
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.
Slide 46
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
Slide 48
QSE Activities: Decommitment Requests
QSEs may request Resource decommitments
• May request decommitments for QSE-committed hours
• May not request decommitment for RUC-committed hours
Slide 49
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
Slide 50
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
Slide 51
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
Slide 52
Decommitments
Evaluation of Resource 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
Slide 53
Decommitments
Evaluation of Resource 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
Slide 54
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
Slide 55
Decommitments
Approval of Resource Decommitments
• QSE does not receive any notification of approval
• COP remains the same
Slide 56
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
Slide 57
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
Slide 59
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
?
Slide 60
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
Shifting Ancillary Service Supply Responsibilities
Slide 61
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
Shifting Ancillary Service Supply Responsibilities
$
Adjustment Period
Financial Impacts
Slide 63
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.
Slide 64
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
Slide 65
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.
Slide 66
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