texas nodal 1 texas nodal settlements mini-market - crr july 31, 2007

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Texas Nodal

Settlements Mini-Market - CRR

July 31, 2007


Roadmap

• Introduction of CRR in Texas Nodal Market

• Nodal Settlements Mini-Market – CRR– Day-Ahead Market CRR Settlements– Real-Time CRR Settlements– Daily CRR Balancing Account


Texas Nodal- Texas Nodal CRR Introduction -

July 31, 2007


What is a CRR?

• Congestion Revenue Rights– Definition:

• A Congestion Revenue Right (CRR) is a financial instrument that entitles the CRR Owner to be charged or to receive compensation for congestion rents that arise when the ERCOT Transmission Grid is congested in the Day-Ahead Market (DAM) or in Real-Time (RT).

• CRRs do not represent a right to receive, or obligation to deliver, physical energy.

– Types of CRRs:• Point-to-Point (PTP) CRR:

– Obligations (some maybe PCRRs)– Options (some maybe PCRRs)– Obligations with Refund (all PCRRs)– Options with Refund (all PCRRs)

• Flowgate Right (FGR)


CRR Traits

• Traits of a CRR– Acquired in 3 Time of Use Blocks:

• Weekday Peak (5*16, excluding holidays)• Weekend Peak (2*16, including holidays)• Off Peak (7*8)• Same MW amount for each hour in the TOU block

– Defined in Unit of MW

– Financially Binding (Owners are paid/charged regardless of their actual energy schedule or generation)

– Do not represent a right for physical delivery


PTP CRR

• PTP CRR :

– PTP Obligation, PTP Option, PTP Obligation with Refund, PTP Option with Refund

– Described from a Source (Injection) Settlement Point to a Sink (Withdrawal) Settlement Point:

– Source/Sink Settlement Point can be:• Resource Node• Load Zone• Trading Hub


PTP Obligation

• PTP Obligation can be either a payment or charge to CRR Owners depending on the direction of congestion in relation to the PTP Obligation.

– A revenue entitlement from ERCOT to CRR Owners when congestion is in the same direction as the PTP Obligation

Sink Source

150 MW

LMP = $20/MWhLMP = $30/MWh

Limit: 100 MW

50 MW100 MW

PTP Obligation Price = LMP sink – LMP source = 10 $/MW


PTP Obligation - continued

• PTP Obligation can be either a payment or charge to CRR Owners depending on the direction of congestion in relation to the PTP Obligation.

– A charge to CRR Owners when congestion is in the opposite direction as the PTP Obligation

Source Sink

150 MW

LMP = $20/MWhLMP = $30/MWh

Limit: 100 MW

PTP Obligation Price = LMP sink – LMP source = - 10 $/MW

50 MW100 MW


PTP Option

• PTP Option never results in a charge to CRR Owners.

– A revenue entitlement from ERCOT to CRR Owners when congestion is in the same direction as the PTP Option

Sink Source

150 MW

LMP = $20/MWLMP = $30/MW

Limit: 100 MW

50 MW100 MW

PTP Option Price = Max(0, LMP sink – LMP source ) = 10 $/MW per hour

Same Value as PTP Obligation


PTP Option - continued

• PTP Option never results in a charge to CRR Owners.

– Zero value when congestion is in the opposite direction as the PTP Option

Source Sink

150 MW

LMP = $20/MWLMP = $30/MW

Limit: 100 MW

50 MW100 MW

PTP Option Price = Max(0, LMP sink – LMP source ) = 0 $/MW per hour

PTP Obligation would be negative value


PTP CRR with Refund

• PTP Obligations with Refund and PTP Options with Refund

– It is evaluated in the same manner as a PTP Obligation or PTP Option.

– All are PCRRs.

– The NOIE will be paid the minimum of: PCRR Actual Usage or PCRR with refund MW amount.


Flowgate Right

• Flowgate – Predefined directional network element or a predefined bundle of

directional network elements

• Flowgate Right– McCamey Area flowgates are the only flowgates where FGRs are

available in ERCOT– It never results in a charge to CRR Owners


CRR Acquisition

Day-Ahead Market

CRR Market

Settlements

Annual / Monthly CRR Auction

Bilateral MarketMcCamey Area Flowgate Rights

Allocations

PCRR Allocation

PTP Obligation


Texas Nodal

Overview:

Settlements Mini-Market - CRR July 31, 2007


Settlement Mini-Market CRR Overview

• “Settlements Mini-Market – CRR” cover:– CRR Settlements in Day-Ahead Market– CRR Settlements in Real-Time (when there’s Day-Ahead Market)– CRR Settlements in Real-Time (when there’s no Day-Ahead Market)– Daily CRR Balancing Account Settlements

• “Settlements Mini-Market – CRR” set Scenarios for: – CRR Types:

• Point-to-Point Obligation • Point-to-Point Obligation with Refund• Point-to-Point Option• Point-to-Point Option with Refund• Flowgate Right

– CRR Account Owners:• NOIE CRR Owner• Non-NOIE CRR Owner

– Power Company– Financial Institute


Mini-System Description

SettlementSettlement PointPoint

Settlement Settlement Point TypePoint Type ResourceResource LoadLoad

ElectricalElectrical BusBus

4060_RNResourceNode Mandy_G1 -- Bus 2

4071_RNResourceNode RMR_G1 -- Bus 3

4072_RNResourceNode

ANNA_GT5,INO_NUKEUMIT1 -- Bus 4

4075_RNResourceNode

WIND1, WIND2,WIND3 -- Bus 6

NORTH_LZ Load Zone -- Load A & B Bus 1 & 3

SOUTH_LZ Load Zone -- Load C & D Bus 4 & 5

WEST_LZ Load Zone -- Load E & F Bus 2 & 6

NORTH_HUB Trading Hub -- -- Bus 1 & 3

SOUTH_HUB Trading Hub -- -- Bus 4 & 5

WEST_HUB Trading Hub -- -- Bus 2 & 6

ERCOT_345HUB Trading Hub -- --Bus 1, 2, 3, 4 & 5


Mini-System Description – Continued

BranchBranch FromFrom ToToReactanceReactance (X)(X)

Line Limit Line Limit (MW)(MW)

Bus1-Bus2 1 2 0.0020 100

Bus1-Bus3 1 3 0.0025 150

Bus6-Bus1 6 1 0.0020 75

Bus3-Bus2 3 2 0.0010 200

Bus2-Bus5 2 5 0.0020 150

Bus6-Bus2 6 2 0.0020 100

Bus4-Bus3 4 3 0.0015 200

Bus5-Bus4 5 4 0.0020 200

Bus2-Bus1 2 1 0.0020 100

Bus3-Bus1 3 1 0.0025 150

Bus1-Bus6 1 6 0.0020 75

Bus2-Bus3 2 3 0.0010 200

Bus5-Bus2 5 2 0.0020 150

Bus2-Bus6 2 6 0.0020 100

Bus3-Bus4 3 4 0.0015 200

Bus4-Bus5 4 5 0.0020 200


Texas Nodal


Day-Ahead Market - CRR Settlements

July 31, 2007


Day-Ahead CRR Settlement Overview

• DA CRR Settlement Scenarios:

• Unconstrained Network (No Congestion) – Interval 2, Interval 6, and Interval 20

• Constrained Network (with Congestion)– Other Intervals


High-Level Day-Ahead CRR Settlement Dependencies


Day-Ahead CRR Global Calculations

• Global Calculations – Day-Ahead Option (DAOPT) and Day-Ahead Option with Refund

(DAOPTR)– Minimum Resource Price for Source Settlement Point (MINRESPR)– Maximum Resource Price for Sink Settlement Point (MAXRESPR)– Day-Ahead Obligation Price (DAOBLPR)– Obligation Deration Price (OBLDRPR)– Day-Ahead Obligation Hedge Value Price (DAOBLHVPR)– Day-Ahead Option Price (DAOPTPR)– Option Deration Price (OPTDRPR)– Day-Ahead Option Hedge Value Price (DAOPTHVPR)


Day-Ahead CRR Charge Types

• Day-Ahead Market Charge Types (5)– Payments and Charges for PTP Obligations Settled in DAM

(DAOBLAMT)– Payments and Charges for PTP Obligations with Refund Settled in

DAM (DAOBLRAMT)– Payments for PTP Options Settled in DAM (DAOPTAMT)– Payments for PTP Options with Refund Settled in DAM

(DAOPTRAMT)– Payments for FGR Settled in DAM (DAFGRAMT)


Day-Ahead Obligation Price (DAOBLPR)

– Day-Ahead Obligation Price (DAOBLPR) is the difference between the Day-Ahead Settlement Point Prices at the sink Settlement Point and the source Settlement Point

DAOBLPR = DASPP_<SKSP> - DASPP_<SRSP>

– The value of DAOBLPR ($/MW per hour) could be negative, zero, or positive

Example:

CRR Hour EndingDASPP at Sink

($/MWh)DASPP at Source

($/MWh)DAOBLPR

($/MW per Hr)

PTP Obligation: 4060_RN → 4071_RN

2 14.28 14.28 0


10 74.60 86.89 -12.29


18 67.13 57.62 9.51

DASPP = Day-Ahead Settlement Point Price; DAOBLPR = Day-Ahead Obligation Price<SRSP> = Source Settlement Point; <SKSP> = Sink Settlement Point


Day-Ahead Option Price (DAOPTPR)

– Day-Ahead Option Price (DAOPTPR) is the positive difference between the Day-Ahead Settlement Point Prices at the sink Settlement Point and the source Settlement Point

DAOPTPR = Max(0, DASPP_<SKSP> - DASPP_<SRSP>)

– The value of DAOPTPR ($/MW per hour) shall always be ≥ zero

Example:

CRR Hour EndingDASPP at Sink

($/MWh)DASPP at Source

($/MWh)DAOPTPR

($/MW per Hr)

PTP Option: 4060_RN →SOUTH_HUB

2 14.28 14.28 0


10 68.86 86.89 0


18 61.11 57.62 3.49

DASPP = Day-Ahead Settlement Point Price; DAOBLPR = Day-Ahead Obligation Price<SRSP> = Source Settlement Point; <SKSP> = Sink Settlement Point


Obligation Deration Price (OBLDRPR)

– For PTP Obligations that has a positive value (i.e., DAOBLPR > 0) and either its source or sink is a Resource Node, the PTP Obligation payment may be reduced (derated) due to directional network elements that are oversold in previous CRR auctions. Obligation Deration Price (OBLDRPR) is one of the prices calculated for CRR deration.

OBLDRPR_<SRSP>_<SKSP> = {Max (0, DAWASF_<SRSP>_<C> - DAWASF_<SKSP>_<C>)

c

* DASP_<C> * DRF_<C>}

Example:Table 1: Day-Ahead Weighted Average Shift Factor (Hour Ending 18)

Table 2: Day-Ahead Shadow Price and Deration Factor (Hour Ending 18)

Table 3: Calculated Obligation Deration Price (Hour Ending 18)

Settlement Point

DA Weighted Shift Factor(DAWASF)

Constraint I(BASE

SBus4ToBus3)

Constraint II(BASE

SBus3ToBus2)

Constraint III(BASE SBus6ToBus2)

Constraint IV(BASE

SBus4ToBus5)

Constraint V(BASE

SBus6ToBus1)

4060_RN (Slack Bus) 0.0000 0.0000 0.0000 0.0000 0.0000

4071_RN -0.1260 0.6932 0.0603 0.1260 -0.0603

ConstraintDASP

($/MW per Hr)DRF

I 3.12 0.02

II 0 0.01

III 0 0.12

IV 0 0.03

V 151.3 0.09

CRROBLDRPR

($/MW per Hr)

PTP Obligation:4060_RN → 4071_RN 0.83

DAWASF = Day-Ahead weighted average shift factor for source/sink Settlement Point for the ConstraintDASP = Day-Ahead Shadow Price for the ConstraintDRF = Deration Factor for the Constraint<SRSP> = Source Settlement Point; <SKSP> = Sink Settlement Point ;<C> = A Constraint


Option Deration Price (OPTDRPR)

– For PTP Options with a source or a sink that is a Resource Node, the PTP Option payment may be reduced (derated) due to directional network elements that are oversold in previous CRR auctions. Option Deration Price (OPTDRPR) is one of the prices calculated for CRR deration.

OPTDRPR_<SRSP>_<SKSP> = {Max (0, DAWASF_<SRSP>_<C> - DAWASF_<SKSP>_<C>)

c

* DASP_<C> * DRF_<C>} Example:

Table 1: Day-Ahead Weighted Average Shift Factor (Hour Ending 18)

Table 2: Day-Ahead Shadow Price & Deration Factor (Hour Ending 18)

Table 3: Calculated Option Deration Price (Hour Ending 18)

Settlement Point

DA Weighted Shift Factor

Constraint I(BASE

SBus4ToBus3)

Constraint II(BASE

SBus3ToBus2)

Constraint III(BASE

SBus6ToBus2)

Constraint IV(BASE

SBus4ToBus5)

Constraint V(BASE

SBus6ToBus1)

4060_RN (Slack Bus) 0.0000 0.0000 0.0000 0.0000 0.0000

SOUTH_HUB 0.4767 0.3781 0.0329 0.0233 -0.0329

ConstraintDASP

($/MW per Hr)DRF

I 3.12 0.02

II 0 0.01

III 0 0.12

IV 0 0.03

V 151.3 0.09

CRROPTDRPR

($/MW per Hr)

PTP Option:4060_RN → SOUTH_HUB 0.45

DAWASF = Day-Ahead weighted average shift factor for source/sink Settlement Point for the ConstraintDASP = Day-Ahead Shadow Price for the ConstraintDRF = Deration Factor for the Constraint<SRSP> = Source Settlement Point; <SKSP> = Sink Settlement Point ;<C> = A Constraint


Minimum Resource Price (MINRESPR)

– Minimum Resource for Resource located at source Settlement Point (MINRESRPR)• If a Generation Resource is RMR unit,

MINRESRPR = (FIP + RMRCEFA) * RMRCHRLSL(RMRCEFA and RMRCHRLSL are RMR Contract specified values)

If a Generation Resource is not RMR unit, and belongs to: Nuclear, Hydro, Coal and Lignite, Wind, or Other Renewable generating units,

MINRESRPR = MINRESPRVALUE• If a Generation Resource is not RMR Unit, and belongs to: Combined Cycle, Gas-Steam Supercritical Boiler,

Gas-Steam Reheat Boiler, Gas-Steam Non-Reheat or Boiler without Air-Preheater, Simple Cycle, or Diesel generating units,

MINRESRPR = FIP * MINRESHR(MINRESPRVALUE, and MINRESHR are specified by Nodal Protocols for various Resource Types)

– Minimum Resource Price for source Settlement Point (MINRESPR)• The lowest Minimum Resource Price for the types of Resources (MINRESRPR) located at the source Settlement

Point ($/MWh) rn

MINRESPR_<SRSP> = MIN (MINRESRPR_<R>_<SRSP>)Example: R=r1

SettlementPoint

ResourceResource

TypeFIP

($/MMBtu)MINRESPRVALUE

($/MWh)MINRESHR

(MMBtu/MWh)MINRESRPR

($/MWh)MINRESPR

($/MWh)

4072_RN

NO_NUKEUMIT1 Nuclear 7.39 -20 --- -20

-20ANNA_GT5

Simple Cycle ≤ 90MW

7.39 --- 11 81.29

MINRESPRVALUE = Minimum Resource Price for Resource Type specified by Protocols; MINRESHR = Minimum Resource Price Heat Rate specified by ProtocolsFIP = Fuel Index Price


– Maximum Resource for Resource located at sink Settlement Point (MAXRESRPR)• If a Generation Resource is RMR unit,

MAXRESRPR = (FIP + RMRCEFA) * RMRCHRHSL(RMRCEFA and RMRCHRHSL are RMR Contract specified values)

If a Generation Resource is not RMR unit, and belongs to: Nuclear, Hydro, Coal and Lignite, Wind, or Other Renewable generating units,

MAXRESRPR = MAXRESPRVALUE• If a Generation Resource is not RMR Unit, and belongs to: Combined Cycle, Gas-Steam Supercritical Boiler,

Gas-Steam Reheat Boiler, Gas-Steam Non-Reheat or Boiler without Air-Preheater, Simple Cycle, or Diesel generating units,

MAXRESRPR = FIP * MAXRESHR(MAXRESPRVALUE, and MAXRESHR are specified by Nodal Protocols for various Resource Types)

– Maximum Resource Price for sink Settlement Point (MAXRESPR)• The highest Maximum Resource Price for the types of Resources (MAXRESRPR) located at the sink Settlement

Point ($/MWh) rn

MAXRESPR_<SRSP> = MAX (MAXRESRPR_<R>_<SRSP>) Example: R=r1

Maximum Resource Price (MAXRESPR)

SettlementPoint

ResourceResource

TypeFIP

($/MMBtu)MAXRESPRVALUE

($/MWh)MAXRESHR

(MMBtu/MWh)MAXRESRPR

($/MWh)MAXRESPR

($/MWh)

4072_RN

NO_NUKEUMIT1 Nuclear 7.39 15 --- 15

110.85ANNA_GT5

Simple Cycle ≤ 90MW

7.39 --- 15 110.85

MAXRESPRVALUE = Maximum Resource Price for Resource Type specified by Protocols; MAXRESHR = Maximum Resource Price Heat Rate specified by ProtocolsFIP = Fuel Index Price


Day-Ahead Obligation Hedge Value Price (DAOBLHVPR)

• For PTP Obligations that has a positive value (i.e., DAOBLPR > 0) and either its source or sink is a Resource Node, the PTP Obligation payment may be reduced (derated) due to directional network elements that are oversold in previous CRR auctions. Day-Ahead Obligation Hedge Value Price (DAOBLHVPR) is one of the prices calculated for CRR deration.

• Calculation of DAOBLHVPR depends on the source and sink Settlement Point pair configuration• If source Settlement Point is a Load Zone/Hub and sink Settlement Point is a Resource Node

– DAOBLHVPR_<SRSP>_<SKSP>= Max (0, MAXRESPR_<SKSP> – DASPP_<SRSP>)• If source Settlement Point is a Resource Node and sink Settlement Point is a Load Zone/Hub

– DAOBLHVPR_<SRSP>_<SKSP>= Max (0, DASPP_<SKSP> – MINRESPR_<SRSP>)• If both source and sink Settlement Points are Resource Nodes

– DAOBLHVPR_<SRSP>_<SKSP>= Max (0, MAXRESPR_<SKSP> – MINRESPR_<SRSP>)

Example:Table 1: Day-Ahead Settlement Point Price, Minimum Resource Price, & Maximum Resource Price (Hour Ending 18)

Table 2: Calculated Day-Ahead Obligation Hedge Value Price (Hour Ending 18)

Settlement Point Settlement TypeDASPP ($/MWh)

Minimum Resource Price

($/MWh)

Maximum Resource Price

($/MWh)

4060_RN Resource Node 57.62 81.29 110.85

4071_RN Resource Node 67.13 133.38 148.2

CRRDAOBLHVPR($/MW per Hr)

PTP Obligation4060_RN → 4071_RN 66.91

MINRESPR = Minimum Resource Price for source Settlement PointMAXRESPR = Maximum Resource Price for sink Settlement PointDASPP = Day-Ahead Settlement Point Price


Day-Ahead Option Hedge Value Price (DAOPTHVPR)

• For PTP Options with a source or a sink that is a Resource Node, the PTP Option payment may be reduced (derated) due to directional network elements that are oversold in previous CRR auctions. Day-Ahead Option Hedge Value Price (DAOPTHVPR) is one of the prices calculated for CRR deration.

• Calculation of DAOPTHVPR depends on the source and sink Settlement Point pair configuration• If source Settlement Point is a Load Zone/Hub and sink Settlement Point is a Resource Node

– DAOPTHVPR_<SRSP>_<SKSP>= Max (0, MAXRESPR_<SKSP> – DASPP_<SRSP>)• If source Settlement Point is a Resource Node and sink Settlement Point is a Load Zone/Hub

– DAOPTHVPR_<SRSP>_<SKSP>= Max (0, DASPP_<SKSP> – MINRESPR_<SRSP>)• If both source and sink Settlement Points are Resource Nodes

– DAOPTHVPR_<SRSP>_<SKSP>= Max (0, MAXRESPR_<SKSP> – MINRESPR_<SRSP>)

Example:Table 1: Day-Ahead Settlement Point Price, Minimum Resource Price, & Maximum Resource Price (Hour Ending 18)

Table 2: Calculated Day-Ahead Option Hedge Value Price (Hour Ending 18)

Settlement Point Settlement TypeDASPP ($/MWh)

Minimum Resource Price

($/MWh)

Maximum Resource Price

($/MWh)

4060_RN Resource Node 57.62 81.29 110.85

SOUTH_HUB Trading Hub 61.11 ---- ----

CRRDA OPTHVPR($/MW per Hr)

PTP Option4060_RN → SOUTH_HUB 0

MINRESPR = Minimum Resource Price for source Settlement PointMAXRESPR = Maximum Resource Price for sink Settlement PointDASPP = Day-Ahead Settlement Point Price


Day-Ahead Option (DAOPT) and Day-Ahead Option with Refund (DAOPTR)

– Day-Ahead Option (DAOPT) and Day-Ahead Option with Refund (DAOPTR)• DAOPT – CRR Owner’s PTP Options that are settled in the Day-Ahead Market for a

source and sink Settlement Point pair (MW)

DAOPT = OPT – RTOPTDAOPTR – NOIE CRR Owner’s PTP Options with Refund that are settled in the Day-Ahead Market (MW)

DAOPTR = OPTR – RTOPTR

Example:

OPT – CRR Owner’s PTP Options, acquired through PCRR Allocations, CRR Auctions, and CRR Bilateral Trades, with the source and sink pair, prior to Day-Ahead Market executionOPTR – NOIE CRR Owner’s PTP Options with Refund, acquired through PCRR Allocations by NOIEs, with the pair of source and sink, prior to Day-Ahead Market execution RTOPT / RTOPTR– NOIE CRR Owner’s PTP Options / PTP Options with Refund with the pair of source and sink, settled in Real-Time

CRR CRR Owner Hour EndingOPT / OPTR

(MW)RTOPT / RTOPTR

(MW)DAOPT (MW)

PTP Option: 4060_RN → SOUTH_HUB(OPT_CO2_4060_RN_SOUTH_HUB)

CO2 (Power Co.)

18 75.6 0 75.6

PTP Option: 4072_RN → SOUTH_LZ(OPT_CO4_4072_RN_SOUTH_LZ) CO4 (NOIE)

18 120.5 95 25.5


Day-Ahead Obligation Amount (DAOBLAMT)

– Day-Ahead Obligation Amount (DAOBLAMT) is the payment or charge to a CRR Owner for its PTP Obligations with the pair of source/sink settled in the Day-Ahead Market• Exception: For a PTP Obligation that has a positive value (DAOBLPR > 0) and source or sink at a Resource

Node, the payment may be reduced due to directional network elements that are oversold in previous CRR auctions.

– If DAOBLPR ≤ 0 OR both source and sink Settlement Points are Load Zones/HubsDAOBLAMT = (-1) * DAOBLTP

– If DAOBLPR > 0 AND either source or sink Settlement Point is a Resource NodeDAOBLAMT = (-1) * Max {(DAOBLTP – DAOBLDA), Min (DAOBLTP, DAOBLHV)}

Where: DAOBLTP = DAOBLPR * DAOBL ; DAOBLDA = OBLDRPR * DAOBL; DAOBLHV = DAOBLHVPR * DAOBL

Example:Table 1: Calculated Day-Ahead Obligation Target Payment, Day-Ahead Obligation Derated Amount, & Day-Ahead Obligation Hedge Value

(Hour Ending 18)

Table 2: Calculated Day-Ahead Obligation Amount (Hour Ending 18)

CRR Owner

CRRDAOBL

(MW)

DAOBLPR($/MW per

Hr)

DAOBLTP($)

OBLDRPR ($/MW per

Hr)

DAOBLDA($)

DAOBLHVPR ($/MW per Hr)

DAOBLHV($)

CO1PTP Obligation

4060_RN → 4071_RN 125.2 9.51 1,190.65 0.83 103.92 66.91

8,377.13

CRR Owner

CRR Source Point Type Sink Point TypeDAOBLAMT

($)

CO1PTP Obligation

4060_RN → 4071_RNResource Node Resource Node

- $ 1,190.65

DAOBL= Day-Ahead Obligation; DAOBLPR = Day-Ahead Obligation Price; DAOBLTP = Day-Ahead Obligation Target Payment; OBLDRPR = Obligation Deration Price; DAOBLDA = Day-Ahead Obligation Derated Amount; DAOBLHVPR = Day-Ahead Obligation Hedge Value Price; DAOBLHV = Day-Ahead Obligation Hedge Value

“-” is a payment


Day-Ahead Obligation Other Calculations

– Other Output Bill Determinants

DAOBLCROTOT_<CO> = Min (0, DAOBLAMT_<CO>) SRSP SKSP

DAOBLCHOTOT_<CO> = Max (0, DAOBLAMT_<CO>) SRSP SKSP

DAOBLAMTOTOT_<CO> = DAOBLCROTOT_<CO> + DAOBLCHOTOT_<CO>

DAOBLCRTOT = DAOBLCROTOT_<CO> CO

DAOBLCHTOT = DAOBLCHOTOT_<CO> CO


Day-Ahead Option Amount (DAOPTAMT)

– Day-Ahead Option Amount (DAOPTAMT) is the payment to a CRR Owner for its PTP Options with the pair of source/sink settled in the Day-Ahead Market

• Exception: For a PTP Option that source or sink at a Resource Node, the payment may be reduced due to directional network elements that are oversold in previous CRR auctions.

– If both source and sink Settlement Points are Load Zones/HubsDAOPTAMT = (-1) * DAOPTTP

– If either source or sink Settlement Point is a Resource NodeDAOPTAMT = (-1) * Max {(DAOPTTP – DAOPTDA), Min (DAOPTTP, DAOPTHV)}

Where:DAOPTTP = DAOPTPR * DAOPT; DAOPTDA = OPTDRPR * DAOPT; DAOPTHV = DAOPTHVPR * DAOPT

Example:

Table 1: Calculated Day-Ahead Option Target Payment, Day-Ahead Option Derated Amount, & Day-Ahead Option Hedge Value (Hour Ending 18)

Table 2: Calculated Day-Ahead Option Amount (Hour Ending 18)

CRR Owner

CRRDAOPT(MW)

DAOPTPR ($/MW per

Hr)

DAOPTTP ($)

OPTDRPR($/MW per

Hr)

DAOPTDA ($)

DAOPTHVPR($/MW per

Hr)

DAOPTHV($)

CO2PTP Option

4060_RN → SOUTH_HUB 75.6 3.49 263.84 0.45 34.02 0 0.00

CRR Owner CRR Source Point Type Sink Point TypeDAOPTAMT

($)

CO2PTP Option

4060_RN → SOUTH_HUBResource Node Trading Hub

- $229.82

DAOPT= Day-Ahead Option; DAOPTPR = Day-Ahead Option Price; DAOPTTP = Day-Ahead Option Target Payment; OPTDRPR = Option Deration Price; DAOPTDA = Day-Ahead Option Derated Amount; DAOPTHVPR = Day-Ahead Option Hedge Value Price; DAOPTHV = Day-Ahead Option Hedge Value


Day-Ahead Option Other Calculations


DAOPTAMTOTOT_<CO> = DAOPTAMT_<CO> SRSP SKSP

DAOPTAMTTOT = DAOPTAMTOTOT_<CO> CO


Day-Ahead FGR Amount (DAFGRAMT) - MCFRI

– If all directional network elements associated with the FGR are Competitive Constraints, the payment to each CRR Owner for its FGRs determined by the principle network element of each flowgate for a given hour is:

DAFGRAMT = (-1) * DAFGRTP– If one or more directional network elements associated with MCFRI are Non-Competitive, the payment to each CRR Owner for its FGRs determined by the principle network element of each

flowgate for a given hour is:DAFGRAMT = (-1) * Max {(DAFGRTP – DAFGRDA), Min (DAFGRTP, DAFGRHV)}

Where:DAFGRTP = DAFGRPR * DAFGR; DAFGRHV = DAFGRHVPR * DAFGR; DAFGRDA = FGRDRPR * DAFGR

Example:

Table 1: Calculated Day-Ahead FGR Target Payment, Day-Ahead FGR Derated Amount, & Day-Ahead FGR Hedge Value (Hour Ending 11)

Table 2: Calculated Day-Ahead FGR Amount (Hour Ending 11)

CRR Owner

FGRDAFGR

(MW)DRF

DAFGRPR($/MW per

Hr)

DAFGRTP($)

FGRDRPR($/MW per

Hr)

DAFGRDA($)

DAFGRHVPR ($/MW per Hr)

DAFGRHV($)

CO5 MCFRI1 89.5 0.12 128.16 11470.32 15.38 1376.51 73.28 6558.56

CRR Owner FGRDA FGR Amount

($)

CO5 MCFRI1 - $10093.81

DAFGR= Day-Ahead FGR; DAFGRPR = Day-Ahead FGR Price; DAFGRTP = Day-Ahead FGR Target Payment; FGRDRPR = FGR Deration Price; DAFGRDA = Day-Ahead FGR Derated Amount; DAFGRHVPR = Day-Ahead FGR Hedge Value Price; DAFGRHV = Day-Ahead FGR Hedge Value


Day-Ahead FGR Other Calculations


DAFGRAMTOTOT_<CO> = DAFGRAMT_<CO>_<F> F

DAFGRAMTTOT = DAFGRAMTOTOT_<CO> CO


Day-Ahead Obligation with Refund Amount (DAOBLRAMT)

– ERCOT shall pay the owner of a PTP Obligation with Refund the difference in the Day-Ahead Settlement Point Prices between the sink Settlement Point and the source Settlement Point, subject to a charge for refund, when the price difference is positive (DAOBLRAMT)• Exception: The payment of PTP Obligations with Refund may be further reduced due to transmission

elements that are oversold in previous CRR Auctions– If DAOBLPR ≤ 0: DAOBLRAMT = (-1) * DAOBLRTP– If DAOBLPR > 0: DAOBLRAMT = (-1) * Max {(DAOBLRTP – DAOBLRDA), Min (DAOBLRTP, DAOBLRHV)}

Where:

DAOBLRTP = DAOBLPR * Min (DAOBLR, OBLRACT); DAOBLRDA = OBLDRPR * Min (DAOBLR, OBLRACT); DAOBLRHV = DAOBLHVPR * Min (DAOBLR, OBLRACT)

Example:Table 1: Calculated Day-Ahead Obligation with Refund Target Payment, Day-Ahead Obligation with Refund Derated Amount, &

Day-Ahead Obligation with Refund Hedge Value (Hour Ending 11)

Table 2: Calculated Day-Ahead Obligation Amount (Hour Ending 11)

CRR Owner

CRROBLRACT

(MW)DAOBLR

(MW)

DAOBLPR($/MW per

Hr)

DAOBLRTP($)

OBLDRPR

($/MW per Hr)

DAOBLRDA($)

DAOBLRHV

($/MWh)

DAOBLRHV($)

CO4

PTP Obligation with Refund

4060_RN → NORTH_LZ

6.1 13 -13.82 -84.30 0.03 0.18 0 0

CRR Owner

CRRDAOBLRAMT

($)

CO4PTP Obligation with Refund

4060_RN → NORTH_LZ 84.30

OBLRACT = Obligation with Refund Actual UsageDAOBLR= Day-Ahead Obligation with Refund; DAOBLPR = Day-Ahead Obligation Price; DAOBLRTP = Day-Ahead Obligation with Refund Target Payment; OBLDRPR = Obligation Deration Price; DAOBLRDA = Day-Ahead Obligation with Refund Derated Amount; DAOBLHVPR = Day-Ahead Obligation with Refund Hedge Value Price;DAOBLRHV = Day-Ahead Obligation Hedge Value


Day-Ahead Obligation with Refund Other Calculations


DAOBLRCROTOT_<CO> = Min (0, DAOBLRAMT_<CO>) SRSP SKSP

DAOBLRCHOTOT_<CO> = Max (0, DAOBLRAMT_<CO>) SRSP SKSP

DAOBLRAMTOTOT_<CO> = DAOBLRCROTOT_<CO> + DAOBLRCHOTOT_<CO>

DAOBLRCRTOT = DAOBLRCROTOT_<CO> CO

DAOBLRCHTOT = DAOBLRCHOTOT_<CO> CO


Day-Ahead Option with Refund Amount (DAOPTRAMT)

– ERCOT shall pay the owner of a PTP Option with Refund the difference in the Day-Ahead Settlement Point Prices between the sink Settlement Point and the source Settlement Point, if positive, subject to a charge for refund (DAOPTRAMT)

• Exception: The payment of PTP Options with Refund may be further reduced due to transmission elements that are oversold in previous CRR Auctions

DAOPTRAMT = (-1) * Max {(DAOPTRTP – DAOPTRDA), Min (DAOPTRTP, DAOPTRHV)}

Where:DAOPTRTP = DAOPTPR * Min (DAOPTR, OPTRACT * DAOPTR / (DAOPTR + RTOPTR))DAOPTRDA = OPTDRPR * Min (DAOPTR, OPTRACT * DAOPTR / (DAOPTR + RTOPTR))DAOPTRHV = DAOPTHVPR * Min (DAOPTR, OPTRACT * DAOPTR / (DAOPTR + RTOPTR))

Example:Table 1: Calculated Day-Ahead Option with Refund Target Payment, Day-Ahead Option with Refund Derated Amount, & Day-Ahead Option

with Refund Hedge Value (Hour Ending 24)

Table 2: Calculated Day-Ahead Option with Refund Amount (Hour Ending 24)

CRR Owner

CRROPTRACT

(MW)DAOPTR

(MW)RTOPTR

(MW)DAOPTPR

($/MWh)DAOPTRTP

($)

OPTDRPR ($/MW per

Hr)

DAOPTRDA($)

DAOPTHVPR

($/MWh)

DAOPTRHV($)

CO3

PTP Option with Refund:

4072_RN → NORTH_LZ 31.5 35 10 14.18 347.41 0 0 109.15 2674.18

CRR Owner CRRDAOPTRAMT

($)

CO3PTP Option with Refund:

4072_RN → NORTH_LZ- $347.41

OPTRACT = Option with Refund Actual UsageDAOPTR= Day-Ahead Option with Refund; RTOPTR= Real-Time Option with Refund; DAOPTPR = Day-Ahead Option Price;DAOPTRTP = Day-Ahead Option with Refund Target Payment; OPTDRPR = Option Deration Price; DAOPTRDA = Day-Ahead Option with Refund Derated Amount; DAOPTHVPR = Day-Ahead Option with Refund Hedge Value Price;DAOPTRHV = Day-Ahead Option Hedge Value


Day-Ahead Option other Calculations


DAOPTRAMTOTOT_<CO> = DAOPTRAMT_<CO> SRSP SKSP

DAOPTRAMTTOT = DAOPTRAMTOTOT_<CO> CO


Texas Nodal


Real-Time - CRR Settlements July 31, 2007


High-Level Real-Time CRR Settlement Dependencies


Real-Time CRR Calculations

• Global Calculations– Real-Time Obligation Price (RTOBLPR)– Real-Time Option Price (RTOPTPR)– Real-Time Option Hedge Value Price (RTOPTHVPR)


Real-Time CRR Charge Types

• Real-Time Charge Types (when DAM is executed)– Payments and Charges for Real-Time Obligations Settled in Real-

Time (RTOBLAMT)– Payments for NOIE’s PTP Options Settled in Real-Time

(RTOPTAMT)– Payments for NOIE’s PTP Options with Refund Settled in Real-

Time (RTOPTRAMT)• Real-Time Charge Types (when DAM is not executed)

– No-DAM Real-Time Obligation Amount (NDRTOBLAMT)– No-DAM Real-Time Option Amount (NDRTOPTAMT)– No-DAM Real-Time Option with Refund Amount (NDRTOPTRAMT)– No-DAM Real-Time FGR Amount (NDRTFGRAMT)– No-DAM Real-Time Obligation with Refund Amount

(NDRTOBLRAMT)


Real-Time Obligation Price (RTOBLPR)

– Real-Time Obligation Price (RTOBLPR) is the difference between the Real-Time Settlement Point Prices at the sink Settlement Point and the source Settlement Point

4

RTOBLPR = (RTSPP_<SKSP> - RTSPP_<SRSP>)i / 4 i = 1

Example:

CRR IntervalRTSPP at Sink

($/MWh)RTSPP at Source

($/MWh)RTOBLPR

($/MW per Hr)

PTP Obligation: 4071_RN SOUTH_LZ

3

i= 9 21.15i=10 25.22i=11 0.97 i=12 14.59

i= 9 18.36i=10 27.29i=11 12.17i=12 4.59

-0.12

PTP Obligation: 4071_RN SOUTH_LZ

24

i=93 47.97i=94 115.52i=95 141.95i=96 117.46

i=93 11.03i=94 54.57i=95 42.09i=96 136.97

44.56

i = 15-minute Settlement Interval;RTSPP = Real-Time Settlement Point Price ; RTOBLPR = Real-Time Obligation Price<SRSP> = Source Settlement Point; <SKSP> = Sink Settlement Point


Real-Time Option Price (RTOPTPR)

– Real-Time Option Price (RTOPTPR) is the difference between the Real-Time Settlement Point Prices at the sink Settlement Point and the source Settlement Point

4

RTOPTPR = Max (0, RTSPP_<SKSP> - RTSPP_<SRSP>)i / 4i = 1

Example:

CRR IntervalRTSPP at Sink

($/MWh)RTSPP at Source

($/MWh)RTOPTPR

($/MW per Hr)

PTP Option: 4072_RN NORTH_LZ

17

i=65 7.46i=66 6.06i=67 2.71i=68 5.73

i=65 26.73i=66 14.31i=67 20.21i=68 16.33

0

PTP Option: 4072_RN NORTH_LZ

19

i=73 19.67i=74 243.32i=75 196.78i=76 192.95

i=73 106.07i=74 120.92i=75 9.81i=76 71.46

107.72

i = 15-minute Settlement Interval;RTSPP = Real-Time Settlement Point Price ; RTOPTPR = Real-Time Option Price<SRSP> = Source Settlement Point; <SKSP> = Sink Settlement Point


Real-Time Option Hedge Value Price (RTOPTHVPR)

– For PTP Options with a source or a sink that is a Resource Node, the PTP Option payment may be reduced (derated) due to directional network elements that are oversold in previous CRR auctions. Real-Time Option Hedge Value Price (RTOPTHVPR) is one of the prices calculated for CRR deration.

– Calculation of RTOPTHVPR depends on the source and sink Settlement Point pair configuration

• If source Settlement Point is a Load Zone/Hub and sink Settlement Point is a Resource Node

4

RTOPTHVPR = Max (0, MAXRESPR_<SKSP> – RTSPP_<SRSP>)i / 4 i=1

• If source Settlement Point is a Resource Node and sink Settlement Point is a Load Zone/Hub

4

RTOPTHVPR = Max (0, RTSPP_<SKSP> – MINRESPR_<SRSP>)i / 4 i=1

• If both source and sink Settlement Points are Resource Nodes4

RTOPTHVPR = Max (0, MAXRESPR_<SKSP> – MINRESPR_<SRSP>)i / 4 i=1

MAXRESPR = Maximum Resource Price for sink Settlement PointMINRESPR = Minimum Resource Price for source Settlement PointRTSPP = Real-Time Settlement Point Price for source/sink Settlement Point


Real-Time Obligation Amount (RTOBLAMT)

– ERCOT shall pay or charge the QSE of each PTP Obligation acquired in the Day-Ahead Market the difference in Real-Time Settlement Point Prices between the sink Settlement Point and the source Settlement Point

RTOBLAMT = (-1) * RTOBLPR * RTOBL

RTOBLAMTQSETOT_<Q> = RTOBLAMT_<Q>_<SRSP>_<SKSP> SRSP SKSP

Example:

Table 1: Calculated Real-Time Obligation Amount (Hour Ending 2)

CRR Owner CRRRTOBL(MW)

RTOBLPR ($/MW per Hr)

RTOBLAMT($)

QSE1PTP Obligation

4060_RN NORTH_HUB 25.80 -4.31 111.20

QSE2PTP Obligation

SOUTH_HUB NORTH_LZ 97.30 3.01 - $292.87

RTOBL = Real-Time ObligationRTOBLPR = Real-Time Obligation Price<SRSP> = Source Settlement Point<SKSP> = Sink Settlement Point


Real-Time Option Amount (RTOPTAMT)

– ERCOT shall pay the NOIE CRR Owner that owns a PTP Option that was declared before Day-Ahead Market execution by the NOIE to be settled in Real-Time and not cleared in the Day-Ahead Market, the positive difference in Real-Time Settlement Point Prices between the sink and the source. (RTOPTAMT)

• Exception: For a PTP Option that source or sink at a Resource Node, the payment may be reduced due to directional network elements that are oversold in previous CRR auctions.

– If both source and sink Settlement Points are Load Zones/Hubs

RTOPTAMT = (-1) * RTOPTTP

– If either source or sink Settlement Point is a Resource Node

RTOPTAMT = (-1) * Max {(RTOPTTP – RTOPTDA), Min (RTOPTTP, RTOPTHV)}

Where

RTOPTTP = RTOPTPR * RTOPT; RTOPTDA = OPTDRPR * RTOPT; RTOPTHV = RTOPTHVPR * RTOPT

Example:

Table 1: Calculated Real-Time Option Target Payment, Real-Time Option Derated Amount, & Real-Time Option Hedge Value (Hour Ending 11)

Table 2: Calculated Real-Time Option Amount (Hour Ending 11)

CRR Owner

CRRRTOPT(MW)

RTOPTPR ($/MW per

Hr)

RTOPTTP ($)

OPTDRPR($/MW per

Hr)

RTOPTDA ($)

RTOPTHVPR($/MW per Hr)

RTOPTHV($)

CO4PTP Option

4072_RN → SOUTH_LZ 95 9.26 879.70 0.07 6.65 79.83 7583.85

CRR Owner

CRRRTOPTAMT

($)

CO4PTP Option

4072_RN → SOUTH_LZ - $879.70

RTOPT = Real-Time OptionRTOPTPR = Real-Time Option PriceRTOPTTP = Real-Time Option Target PaymentOPTDRPR = Option Deration PriceRTOPTDA = Real-Time Option Derated AmountRTOPTHVPR = Real-Time Option Hedge Value PriceRTOPTHV = Real-Time Option Hedge Value


Real-Time Option Amount (RTOPTAMT) (continued)


RTOPTAMTOTOT_<CO> = RTOPTAMT_<CO>_<SRSP>_<SKSP> SRSP SKSP

RTOPTAMTTOT = RTOPTAMTOTOT_<CO> CO


Real-Time Option with Refund Amount (RTOPTRAMT)

– ERCOT shall pay the NOIE that owns a PTP Option with Refund that was allocated to that NOIE as a PCRR and that was, declared before Day-Ahead Market execution by the NOIE to be settled in Real-Time but not cleared in the Day-Ahead Market, for MW quantity up to the pro-rata actual usage based on the positive difference in Real-Time Settlement Point Prices between the sink and source.

• Exception: The payment of PTP Options with Refund may be further reduced due to transmission elements that are oversold in previous CRR auctions

RTOPTRAMT = (-1) * Max {(RTOPTRTP – RTOPTRDA), Min (RTOPTRTP, RTOPTRHV)}

Where

RTOPTRTP = RTOPTPR * Min (RTOPTR, OPTRACT * (RTOPTR / (DAOPTR + RTOPTR)))

RTOPTRDA = OPTDRPR * Min (RTOPTR, OPTRACT * (RTOPTR / (DAOPTR + RTOPTR)))

RTOPTRHV = RTOPTHVPR * Min (RTOPTR, OPTRACT * (RTOPTR / (DAOPTR + RTOPTR)))

OPTRACT = Option with Refund Actual Usage


RTOPTRAMTOTOT_<CO> = RTOPTRAMT_<CO> SRSP SKSP

RTOPTRAMTTOT = RTOPTRAMTOTOT_<CO> CO


Real-Time Option with Refund Amount (RTOPTRAMT) (continued)

Example:

Table 1: Calculated Real-Time Option w/ Refund Target Payment, Real-Time Option w/ Refund Derated Amount, & Real-Time Option w/ Refund Hedge Value (Hour Ending 2)

Table 2: Calculated Real-Time Option w/ Refund Amount (Hour Ending 2)

CRR Owner

CRRRTOPTRAMT

($)

CO3PTP Option w/ Refund

4072_RN → SOUTH_LZ - $146.74

CRROwner

CRROPTRACT

(MW)RTOPTR

(MW)DAOPTR

(MW)

RTOPTPR($/MW per

Hr)

RTOPTRTP($)

OPTDRPR($/MW per

Hr)

RTOPTRDA ($)

RTOPTHVPR($/MW per Hr)

RTOPTRHV($)

CO3PTP Option w/ Refund4072_RN NORTH_LZ 26.10 23 22 11.00 146.74 0.00 0.00 37.43 499.32

OPTRACT: Option with Refund Actual UsageRTOPTR = Real-Time Option with RefundDAOPTR = Day-Ahead Option with RefundRTOPTPR = Real-Time Option PriceRTOPTRTP = Real-Time Option with Refund Target PaymentOPTDRPR = Option Deration PriceRTOPTRDA = Real-Time Option with Refund Derated AmountRTOPTHVPR = Real-Time Option Hedge Value PriceRTOPTRHV = Real-Time Option with Refund Hedge Value


No DAM Real-Time Obligation Amount (NDRTOBLAMT)

– When the Day-Ahead Market is not executed, ERCOT shall pay or charge the owner of each PTP Obligation based on the difference in Real-Time Settlement Point Prices between the sink Settlement Point and the source Settlement Point.

– ERCOT does not reduce the “No DAM PTP Obligation” payment for transmission elements that are oversold in previous CRR auctions

NDRTOBLAMT = (-1) * RTOBLPR * DAOBL

NDRTOBLAMTOTOT_<CO> = NDRTOBLAMT_<CO>_<SRSP>_<SKSP> SRSP SKSP

NDRTOBLAMTTOT = NDRTOBLAMTOTOT_<CO> CO


No DAM Real-Time Option Amount (NDRTOPTAMT)

– When the Day-Ahead Market is not executed, ERCOT shall pay the owner of each PTP Option based on the positive difference in Real-Time Settlement Point Prices between the sink Settlement Point and the source Settlement Point

– ERCOT shall not reduce the “No DAM PTP Option” payment due to transmission elements that are oversold in previous CRR auctions.

NDRTOPTAMT = (-1) * NDRTOPTTP

NDRTOPTTP = RTOPTPR * OPT

NDRTOPTAMTOTOT_<CO> = NDRTOPTAMT_<CO>_<SRSP>_<SKSP> SRSP SKSP

NDRTOPTAMTTOT = NDRTOPTAMTOTOT_<CO> CO


No DAM Real-Time Option with Refund Amount (NDRTOPTRAMT)

– When the Day-Ahead Market is not executed, ERCOT shall pay the NOIE owner of each PTP Option with Refund that was allocated to that NOIE as a PCRR, for the quantity up to the actual usage based on the positive difference in Real-Time Settlement Point Prices between the sink Settlement Point and the source Settlement Point

– ERCOT shall not reduce the “No DAM PTP Options with Refund” payment due to transmission elements that are oversold in previous CRR auctions

NDRTOPTRAMT = (-1) * NDRTOPTRTP

NDRTOPTRTP = RTOPTPR * MIN (OPTR, OPTRACT)

NDRTOPTRAMTOTOT_<CO> = NDRTOPTRAMT_<CO>_<SRSP>_<SKSP> SRSP SKSP

NDRTOPTRAMTTOT = NDRTOPTRAMTOTOT_<CO> CO


No DAM Real-Time FGR Amount (NDRTFGRAMT)

– In the event that ERCOT is unable to execute the Day-Ahead Market, ERCOT shall pay the owner of the FGR an amount based on the time-weighted Shadow Price of each SCED interval for each directional network element associated with the FGR for each contingency (including the null contingency or base case) normalized to the impact of the principal network element of the FGR (the normal rating of which is used to determine the total MW amount for the flowgate)

NDRTFGRAMT = (-1) * NDRTFGRTP

NDRTFGRTP = NDRTFGRPR * DAFGR

NDRTFGRAMTOTOT_<CO> = NDRTFGRAMT_<CO>_<F> F

NDRTFGRAMTTOT = NDRTFGRAMTOTOT_<CO> CO


No DAM Real-Time Obligation with Refund Amount (NDRTOBLRAMT)

– In the event that ERCOT is unable to execute the Day-Ahead Market, ERCOT shall pay or charge the NOIE owner of a PTP Obligation with Refund, for the quantity up to the actual usage based on the difference in the Real-Time Settlement Point Prices between the sink Settlement Point and the source Settlement Point

NDRTOBLRAMT = (-1) * NDRTOBLRTP

NDRTOBLRTP = RTOBLPR * Min (DAOBLR, OBLRACT)

NDRTOBLRAMTOTOT_<CO> = NDRTOBLRAMT_<CO>_<SRSP>_<SKSP>SRSP SKSP

NDRTOBLRAMTTOT = NDRTOBLRAMTOTOT_<CO> CO


Texas Nodal


- CRR Balancing Account - July 31, 2007


Daily CRR Balancing Account

• Daily CRR Balancing Account Calculations and Charge Types

– Credit to CRR Balancing Account (CRRBACR)

– Day-Ahead Shortfall Charges to CRR Owners (DACRRSAMT)

– Real-Time Shortfall Charges to CRR Owners (RTCRRSAMT)

• Scenarios in Settlements Mini-Market:

– DA Congestion Rent > Net Amount due to CRR Owners (CRR Balancing Account Credit)

• (Interval 1, Interval 3 ~5, Interval 7~ 10, Interval 12 ~ 16, Interval 19, Interval 21 ~ 24)

– DA Congestion Rent < Net Amount due to CRR Owners (Short-Pay CRR Owners)

• (Interval 11, Interval 17, Interval 18)


Credit to CRR Balancing Account (CRRBACR)

• If the Day-Ahead Congestion Rent (DACONGRENT) is greatergreater than the total payment to all CRR Owners for the CRRs settled in the Day-Ahead Market for any Operating Hour, a credit is put into the CRR Balancing Account for that Operating Hour

CRRBACR = Max (0, (DACONGRENT + DACRRCRTOT + DACRRCHTOT))

Where:

Day-Ahead CRR Credit Total DACRRCRTOT = DAOBLCRTOT + DAOBLRCRTOT + DAOPTAMTTOT+ DAOPTRAMTTOT + DAFGRAMTTOT

Day-Ahead CRR Charge Total DACRRCHTOT = DAOBLCHTOT + DAOBLRCHTOT

Example:

IntervalDACONGRENT

($)DACRRCRTOT

($)DACRRCHTOT

($)CRRBACR

($)

1 $ 1862.27 - $188.38 0 $ 1673.89

DACONGRENT = Day-Ahead Congestion RentDACRRCRTOT = Day-Ahead CRR Credit TotalDACRRCHTOT = Day-Ahead CRR Charge Total


Day-Ahead Shortfall Charges to CRR Owners (DACRRSAMT)

• For each Operating Hour, if the Day-Ahead Congestion Rent (DACONGRENT) is lessless than the total payment to all CRR Owners for the CRRs settled in the Day-Ahead Market, a charge will be made to each CRR Owner for any of its CRRs settled in the Day-Ahead Market or Real-Time Market that have positive settlement prices, except for CRRs bought in the Day-Ahead Market

DACRRSAMT = DACRRSAMTTOT * CRRCRRSDA

Where:

DACRRSAMTTOT = Day-Ahead CRR Shortfall Amount Total

= (-1) * Min (0, DACONGRENT + DACRRCRTOT + DACRRCHTOT)

CRRCRRSDA = CRR Credit Ratio Share Day-Ahead per CRR Owner

= (DAOBLCROTOT + DAOBLRCROTOT + DAOPTAMTOTOT

+ DAOPTRAMTOTOT + DAFGRAMTOTOT)

/ (DACRRCRTOT + RTOPTAMTTOT + RTOPTRAMTTOT)

Example:Table 1: Calculated Day-Ahead CRR Shortfall Amount Total

Table 2: Calculated Day-Ahead CRR Shortfall Amount Charges to CRR Owner

IntervalDACONGRENT

($)DACRRCRTOT

($)DACRRCHTOT

($)DACRRSAMTTOT

($)

11 $ 16164.66 - $18931.10 $805.13 $ 1961.31

IntervalCRR

OwnerCRRCRRSDA

DACRRSAMT($)

11 CO2 0.005628 11.04

DACONGRENT = Day-Ahead Congestion RentDACRRCRTOT = Day-Ahead CRR Credit TotalDACRRCHTOT = Day-Ahead CRR Charge TotalDACRRSAMTTOT = Day-Ahead CRR Shortfall Amount TotalCRRCRRSDA = CRR Credit Ratio Share Day-Ahead


Real-Time Shortfall Charges to CRR Owners (RTCRRSAMT)

• For each Operating Hour, if the Day-Ahead Congestion Rent (DACONGRENT) is lessless than the total payment to all CRR Owners for the CRRs settled in the Day-Ahead Market, a charge will be made to each CRR Owner for any of its CRRs settled in the Day-Ahead Market or Real-Time Market that have positive settlement prices, except for CRRs bought in the Day-Ahead Market

RTCRRSAMT = DACRRSAMTTOT * CRRCRRSRT

Where:

DACRRSAMTTOT = Day-Ahead CRR Shortfall Amount

DACRRSAMTTOT = (-1) * Min (0, DACONGRENT + DACRRCRTOT + DACRRCHTOT)

CRRCRRSRT = CRR Credit Ratio Share Real-Time per CRR Owner

CRRCRRSDA = (RTOPTAMTOTOT + RTOPTRAMTOTOT)

/ (DACRRCRTOT + RTOPTAMTTOT + RTOPTRAMTTOT)

Example:Table 1: Day-Ahead CRR Shortfall Amount Total

Table 2: Calculated Real-Time CRR Shortfall Amount Charges to CRR Owner

IntervalDACRRSAMTTOT

($)

11 $ 1961.31

IntervalCRR

OwnerCRRCRRSRT

RTCRRSAMT($)

11 CO4 0.044405 87.09DACRRSAMTTOT: Day-Ahead CRR Shortfall Amount TotalCRRCRRSRT = CRR Credit Ratio Share Real-Time


Texas Nodal

CRR Settlements

- Acronyms - July 31, 2007


CRR Settlements - Acronyms

C Constraint Identifier

A CRR Annual / Monthly Auctions

CH CRR Account Holder

CO CRR Owner

CRRBACR CRR Balancing Account Credit

CRRNZREV CRR Non-Zonal Revenue

CRRRAMT Monthly Refund to Short-Paid CRR Owners

CRRZREV CRR Zonal Revenue per 2003 ERCOT Congestion Management Zone

DACONGRENT Day-Ahead Congestion Rent

DACRRSAMT Day-Ahead Shortfall Charges to CRR Owners

DAFGR Day-Ahead FGR (MW)

DAFGRAMT Day-Ahead FGR Amount

DAFGRDA Day-Ahead FGR Derated Amount

DAFGRHV Day-Ahead FGR Hedge Value

DAFGRHVPR Day-Ahead FGR Hedge Value Price

DAFGRPR Day-Ahead FGR Price

DAFGRTP Day-Ahead FGR Target Payment

DAM Day-Ahead Market



DAOBL Day-Ahead Obligation (MW)

DAOBLAMT Day-Ahead Obligation Amount

DAOBLDA Day-Ahead Obligation Derated Amount

DAOBLHV Day-Ahead Obligation Hedge Value

DAOBLHVPR Day-Ahead Obligation Hedge Value Price

DAOBLR Day-Ahead Obligation with Refund (MW)

DAOBLRAMT Day-Ahead Obligation with Refund Amount

DAOBLRDA Day-Ahead Obligation with Refund Derated Amount

DAOBLRHV Day-Ahead Obligation with Refund Hedge Value

DAOBLRTP Day-Ahead Obligation with Refund Target Payment

DAOBLTP Day-Ahead Obligation Target Payment

DAOPT Day-Ahead Option (MW)

DAOPTAMT Day-Ahead Option Amount

DAOPTDA Day-Ahead Option Derated Amount

DAOPTHV Day-Ahead Option Hedge Value

DAOPTHVPR Day-Ahead Option Hedge Value Price

DAOPTPR Day-Ahead Option Price

DAOPTR Day-Ahead Option with Refund (MW)



DAOPTRAMT Day-Ahead Option with Refund Amount

DAOPTRDA Day-Ahead Option with Refund Derated Amount

DAOPTRHV Day-Ahead Option with Refund Hedge Value

DAOPTRTP Day-Ahead Option with Refund Target Payment

DAOPTTP Day-Ahead Option Target Payment

DASFMCWGRS Day-Ahead Shift Factor of McCamey WGRs

DASP Day-Ahead Shadow Price

DAWALBEP Day-Ahead Weighted Average Load Bus Energy Price

DAWASF Day-Ahead Weighted Average Shift Factor

DAWASFLB Day-Ahead Weighted Average Shift Factor of Load Buses

DRF Deration Factor

E Directional Network Element

F Flowgate

FGR Flowgate Right

FGRDRPR FGR Deration Price

FIP Fuel Index Price

INF Impact Normalization Factor

LACMRNZAMT Load-Allocated CRR Monthly Revenue Non-Zonal Amount

LACMRZAMT Load-Allocated CRR Monthly Revenue Zonal Amount per Zone

LACRRAMT CRR Balancing Account Closure



MAXRESHR Maximum Resource Price Heat Rate

MAXRESPR Maximum Resource Price for sink Settlement Point

MAXRESRPR Maximum Resource Price for Resources located at the sink Settlement Point

MCFRI McCamey Flowgate Right

MINRESHR Minimum Resource Price Heat Rate

MINRESPR Minimum Resource Price for source Settlement Point

MINRESRPR Minimum Resource Price for Resources located at the source Settlement Point

NDRTFGRAMT No DAM FGR Amount

NDRTOBLAMT No DAM Real-Time Obligation Amount

NDRTOBLRAMT No DAM Real-Time Obligation with Refund Amount

NDRTOPTAMT No DAM Real-Time Option Amount

NDRTOPTRAMT No DAM Real-Time Option with Refund Amount

OBLDRPR Obligation Deration Price

OBLRACT Obligation with Refund Actual usage

OPT PTP Options (MW)

OPTDRPR Option Deration Price

OPTR PTP Options with Refund (MW)

OPTRACT Option with Refund Actual usage

PCRR Pre-Assigned Congestion Revenue Right

PCRRNZREV PCRR Non-Zonal Revenue

PCRRZREV PCRR Zonal Revenue per 2003 ERCOT Congestion Management Zone



PTP Point-to-Point

Q Qualified Scheduling Entity (QSE)

R Resource

RMRCEFA RMR Contract Estimated Fuel Adder

RMRCHRHSL RMR Contract Heat Rate at HSL Level

RMRCHRLSL RMR Contract Heat Rate at LSL Level

RTCRRSAMT Real-Time Shortfall Charges to CRR Owners

RTOBL Real-Time Obligation (MW)

RTOBLAMT Real-Time Obligation Amount

RTOBLPR Real-Time Obligation Price

RTOBLR Real-Time Obligation with Refund

RTOBLRAMT Real-Time Obligation with Refund Amount

RTOPT Real-Time Option (MW)

RTOPTAMT Real-Time Option Amount

RTOPTDA Real-Time Option Derated Amount

RTOPTHV Real-Time Option Hedge Value

RTOPTHVPR Real-Time Option Hedge Value Price

RTOPTPR Real-Time Option Price

RTOPTR Real-Time Option with Refund (MW)

RTOPTRAMT Real-Time Option with Refund Amount



RTSP Real-Time Shadow Price

RTSPP Real-Time Settlement Point Price

SCED Security-Constrained Economic Dispatch

SKSP Sink Settlement Point

SRSP Source Settlement Point

Z Zone


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texas nodal 1 texas nodal settlements mini-market - crr july 31, 2007

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