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Texas Nodal

Texas Nodal

Day-Ahead CRR Settlements

Business Requirements

TPTF PresentationERCOT Settlements & Billing

September 12, 2006


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Agenda

• Overview– CRR Settlements Overview– Structure of Day-Ahead CRR Settlements Business Requirements

• Requirements Sections– Highlights of Functional Requirements & Assumptions– Suggested NPRR’s


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CRR Settlements Overview


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Structure of Day-Ahead CRR Settlements

DA CRRDA CRRCharge TypesCharge Types


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Level 1 & 2: Calculate CRR Prices



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Requirement ID

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.3(2)

NPRR associated with Synch of Zonal PRR 640

Traceability to Sub-Process Maps CSWM.P03SettleBillTransfer

Description

Calculate Minimum Resource Price (MINRESRPR) per Generation Resource (R) locating at the source Settlement Point per source Settlement Point (SRSP) for each Operating Hour of the Operating Day:

–IF a Generation Resource is a RMR unit,

THEN:

MINRESRPR equals the sum of Fuel Index Price (FIP) and RMR Contract Estimated Fuel Adder (RMRCEFA), multiplied by RMR Contract Heat Rate at the LSL level (RMRCHRLSL);

MINRESRPR_<R>_<SRSP> = (FIP + RMRCEFA_<R>_<SRSP>) * RMRCHRLSL_<R>_<SRSP>–IF a Generation Resource is not a RMR unit, and belongs to: Nuclear, Hydro, Wind, and Renewable generating units,

THEN:

MINRESRPR equals a Minimum Resource Price (MINRESPRVALUE) specified by Protocols;

MINRESRPR_<R>_<SRSP> = MINRESPRVALUE_<R>_<SRSP>–IF a Generation Resource is not a RMR Unit, and belongs to: a Combined Cycle greater than 90 MW, Combined Cycle less than or equal to 90 MW , Gas – Steam Supercritical Boiler , Gas Steam Reheat Boiler, Gas Steam Non-reheat or boiler without air-preheater, Simple Cycle greater than 90 MW, Simple Cycle less than or equal to 90 MW, and Diesel generating units,

THEN:

MINRESRPR equals the product of FIP and a Protocol-specified Heat Rate;

MINRESRPR_<R>_<SRSP> = FIP*MINRESHR_<R>_<SRSP>

Resource TypeMinimum Resource Price

(MINRESPRVALUE)

Nuclear -$20.00 /MWh

Hydro -$20.00 /MWh

Coal and Lignite $0 /MWh

Wind -$35 /MWh

Other Renewable -$10/MWh

Resource TypeMinimum Resource Price Heat Rate

(MINRESHR)

Combined Cycle greater than 90 MW 5 MMBtu/MWh

Combined Cycle less than or equal to 90 MW 6 MMBtu/MWh

Gas – Steam Supercritical Boiler 6.5 MMBtu/MWh

Gas Steam Reheat Boiler 7.5 MMBtu/MWh

Gas Steam Non-reheat or boiler without air-preheater

10.5 MMBtu/MWh

Simple Cycle greater than 90 MW 10 MMBtu/MWh

Simple Cycle less than or equal to 90 MW 11 MMBtu/MWh

Diesel 12 MMBtu/MWh

Minimum Resource Price for source Settlement Point-- Functional Requirements


Texas Nodal

Requirement ID

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.1; PR7.9.1.2; PR7.9.1.4; PR7.9.1.5; PR7.9.1.6; PR7.9.2.2; PR7.9.2.3

Traceability to Sub-Process Maps Will be completed by August 31, 2006

DescriptionCalculate Minimum Resource Price per source Settlement Point for each Operating Hour of the Operating Day:

Where: R represents each Generation Resource (r1, r2…) located at the source Settlement Point.

SRSP_R_MINRESRPRMINnr

1rRSRSP_MINRESPR

G1 G2 Gn

Resource Node: SRSP

MINRESRPR_<G1>_<SRSP> MINRESRPR_<G2>_<SRSP> MINRESRPR_<Gn>_<SRSP>

Source Settlement Point Minimum Resource Price for Source:

MINRESPR_<SRSP> = Min (MINRESRPR_<G1>_<SRSP>, MINRESRPR_<G2>_<SRSP>, …,MINRESRPR_<Gn>_<SRSP>)

This formula is not explicitly documented by Nodal Protocols.

Minimum Resource Price for source Settlement Point –Functional Requirements (cont’d.)


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Minimum Resource Price for source Settlement Point – Calculation Dependency Diagram


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Requirement ID

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.3(3)NPRR associated with Synch of Zonal PRR 640


DescriptionCalculate Maximum Resource Price (MAXRESRPR) per Generation Resource (R) locating at the sink Settlement Point per sink Settlement Point (SKSP) for each Operating Hour of the Operating Day:

- IF a Generation Resource is a RMR unit,THEN:MAXRESRPR equals the sum of Fuel Index Price (FIP) and RMR Contract Estimated Fuel Adder (RMRCEFA), multiplied by RMR Contract Heat Rate at the HSL level (RMRCHRHSL); MAXRESRPR_<R>_<SKSP> = (FIP + RMRCEFA_<R>_<SKSP>) * RMRCHRHSL_<R>_<SKSP>- IF a Generation Resource is not a RMR unit, and belongs to: Nuclear, Hydro, Wind, and Renewable generating units, THEN:MAXRESRPR equals a Minimum Resource Price (MAXRESPRVALUE) specified by Protocols; MAXRESRPR_<R>_<SKSP> = MAXRESPRVALUE_<R>_<SKSP>Note: Estimated Fuel Adder and Heat Rate at HSL are specified values by a RMR Contract.- IF a Generation Resource is not a RMR Unit, and belongs to: a Combined Cycle greater than 90 MW, Combined Cycle less than or equal to 90 MW , Gas – Steam Supercritical Boiler , Gas Steam Reheat Boiler, Gas Steam Non-reheat or boiler without air-preheater, Simple Cycle greater than 90 MW, Simple Cycle less than or equal to 90 MW, and Diesel generating units,THEN:MAXRESRPR equals the product of FIP and a Protocol-specified Heat Rate; MAXRESRPR_<R>_<SKSP> = FIP*MAXRESHR_<R>_<SKSP>

Resource TypeMaximum Resource Price

(MAXRESPRVALUE)

Nuclear $15.00 /MWh

Hydro $10.00 /MWh

Coal and Lignite $18 /MWh

Wind $0 /MWh

Other Renewable $0/MWh

Resource TypeMinimum Resource Price Heat Rate

(MAXRESHR)

Combined Cycle greater than 90 MW 9 MMBtu/MWh

Combined Cycle less than or equal to 90 MW 10 MMBtu/MWh

Gas – Steam Supercritical Boiler 10.5 MMBtu/MWh

Gas Steam Reheat Boiler 11.5 MMBtu/MWh

Gas Steam Non-reheat or boiler without air-preheater

14.5 MMBtu/MWh

Simple Cycle greater than 90 MW 14 MMBtu/MWh

Simple Cycle less than or equal to 90 MW 15 MMBtu/MWh

Diesel 16 MMBtu/MWh

Maximum Resource Price for sink Settlement Point-- Functional Requirements


Texas Nodal

Requirement ID

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.1; PR7.9.1.2; PR7.9.1.5; PR7.9.2.2


DescriptionCalculate Maximum Price per sink Settlement Point for each Operating Hour of the Operating Day:

Where: R represents each Generation Resource (r1, r2…) located at the sink Settlement Point.

SKSP_R_MAXRESRPRMaxnr

1rRSKSPMAXRESPR_

G1 G2 Gn

Resource Node: SKSP

MAXRESRPR_<G1>_<SKSP> MAXRESRPR_<G2>_<SKSP> MAXRESRPR_<Gn>_<SKSP>

Sink Settlement Point Maximum Resource Price for Sink:MAXRESPR_<SKSP> = Max (MAXRESRPR_<G1>_<SKSP>, MAXRESRPR_<G2>_<SKSP>,

…,MAXRESRPR_<Gn>_<SKSP>)

This formula is not explicitly documented by Nodal Protocols.

Maximum Resource Price for sink Settlement Point-- Functional Requirements (cont’d.)


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Maximum Resource Price for sink Settlement Point-- Calculation Dependency Diagram


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Suggested NPRR

7.9.1.3 Minimum and Maximum Resource Prices

(1) The following prices specified in paragraphs (2) and (3) below are used in CRR hedge value calculation for CRRs settled in the DAM and PTP Options settled in Real-Time.

(2) Minimum Resource Prices of Resource Types located at source Settlement Points are:• (a) Nuclear = -$20.00/MWh;• (b) Hydro = -$20.00/MWh;• (c) Coal and Lignite = $0.00/MWh;• (d) Combined Cycle greater than 90 MW = FIP * 5 MMBtu/MWh;• (e) Combined Cycle less than or equal to 90 MW = FIP * 6 MMBtu/MWh;• (f) Gas -Steam Supercritical Boiler = FIP * 6.5 MMBtu/MWh;• (g) Gas Steam Reheat Boiler = FIP * 7.5 MMBtu/MWh;• (h) Gas Steam Non-reheat or boiler without air-preheater = FIP * 10.5 MMBtu/MWh;• (i) Simple Cycle greater than 90 MW = FIP * 10 MMBtu/MWh;• (j) Simple Cycle less than or equal to 90 MW = FIP * 11 MMBtu/MWh;• (k) Diesel = FIP * 12 MMBtu/MWh;• (l) Wind = -$35/MWh;• (m) RMR Resource = RMR contract price Energy Offer Curve at LSL; and• (n) Other Renewable = -$10.

(3) Maximum Resource Prices of Resource Types located at sink Settlement Points are:• (a) Nuclear = $15.00/MWh;• (b) Hydro = $10.00/MWh;• (c) Coal and Lignite = $18.00/MWh;• (d) Combined Cycle greater than 90 MW = FIP * 9 MMBtu/MWh;• (e) Combined Cycle less than or equal to 90 MW = FIP * 10 MMBtu/MWh;• (f) Gas -Steam Supercritical Boiler = FIP * 10.5 MMBtu/MWh;• (g) Gas Steam Reheat Boiler = FIP * 11.5 MMBtu/MWh;• (h) Gas Steam Non-reheat or boiler without air-preheater = FIP * 14.5 MMBtu/MWh;• (i) Simple Cycle greater than 90 MW = FIP * 14 MMBtu/MWh;• (j) Simple Cycle less than or equal to 90 MW = FIP * 15 MMBtu/MWh;• (k) Diesel = FIP * 16 MMBtu/MWh;• (l) Wind = $0/MWh;• (m) RMR Resource = RMR contract price Energy Offer Curve at HSL; and• (n) Other Renewable = $0.

Suggestion: Add words here to address the situation where multiple

resources located at the source Settlement Point.

Suggestion: Add words here to address the situation where multiple

resources located at the sink Settlement Point.


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Variable Unit Definition Original Source

MINRESPR $/MWh Minimum Resource Price for source—The lowest Minimum Resource Price for the types of Resources located at the source Settlement Point.

Settlement System

Interval Frequency: 1/hourAdditional Comments: This Intermediate Bill Determinant is not in the protocols but is necessary.

NPRR Suggested: Remove “the types of” from the Protocol Definition because a Type of Resource could have many different Minimum Resource Prices. For instances, Minimum Resource Price for RMR resources could be different depending on the contract data.


MAXRESPR $/MWh Maximum Resource Price for sink—The highest Maximum Resource Price for the types of Resources located at the sink Settlement Point.

Settlement System

Interval Frequency: 1/hourAdditional Comments: This Intermediate Bill Determinant is not in the protocols but is necessary.

NPRR suggested: Remove “the types of” from the Protocol Definition because a Type of Resource could have different Maximum Resource Prices. For instances, Maximum Resource Price for RMR resources could be different depending on the contract data.

Suggested NPRR (cont’d)

Suggestion: Revise Protocol Definition in PR 7.9.1.1; PR7.9.1.2; PR7.9.1.4; PR7.9.1.5; PR7.9.1.6;

PR7.9.2.2; PR7.9.2.3


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Day-Ahead Obligation Price

Requirement ID TN.COMS.63C01.DAMENERGY.REQUIREMENTS.A

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.1, PR 7.9.1.5, PR 4.6.3


DescriptionCalculate Day-Ahead Obligation Price per Source and Sink pair for each Operating Hour of the Operating Day:DAOBLPR_<SRSP>_<SKSP> = DASPP_<SKSP> – DASPP_<SRSP>


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Obligation Deration Price

Requirement ID

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.1, PR 7.9.1.5 (3)


Description

Calculate Obligation Deration Price per Source and Sink pair for each Operating Hour of the Operating Day :OBLDRPR_<SRSP>_<SKSP> = {Max (0, DAWASF_<SRSP>_<C> – DAWASF_<SKSP>_<C>) * DASP_<C> * DRF_<C>}


Texas Nodal

Obligation Hedge Value Price

Requirement ID

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.1, PR 7.9.1.5


DescriptionCalculate Day-Ahead Obligation Hedge Value Price per Source and Sink pair for each Operating Hour of the Operating Day:1. IF SRSP is a Load Zone or Hub and SKSP is a Resource Node THEN:DAOBLHVPR_<SRSP>_<SKSP> = Max (0, MAXRESPR_<SKSP> – DASPP_<SRSP>)1. IF SRSP is a Resource Node and SKSP is a Load Zone or Hub THEN:DAOBLHVPR_<SRSP>_<SKSP> = Max (0, DASPP_<SKSP> – MINRESPR_<SRSP>)1. IF both SRSP and SKSP are Resource Nodes THEN DAOBLHVPR_<SRSP>_<SKSP> = Max (0, MAXRESPR_<SKSP> – MINRESPR_<SRSP>)


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Day-Ahead Option Price

Requirement ID



DescriptionCalculate Day-Ahead Option Price per Source and Sink pair for each Operating Hour of the Operating Day:DAOPTPR_<SRSP>_<SKSP> = Max (0, DASPP_<SKSP> – DASPP_<SRSP>)


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Day-Ahead Option Informational Price --- MIS Posting Only

Requirement ID

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.2 (5)


DescriptionCalculate Day-Ahead Option Informational Price to be posted in MIS Public Area per Source and Sink pair for each Operating Hour of the Operating Day:DAOPTPRINFO_<SRSP>_<SKSP> = {DASP_<C> * Max [0, (DAWASF_<SRSP>_<C> – DAWASF_<SKSP>_<C>)]}


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Option Deration Price

Requirement ID



DescriptionCalculate Option Deration Price per Source and Sink pair for each Operating Hour of the Operating Day:OPTDRPR_<SRSP>_<SKSP> = {Max (0, DAWASF_<SRSP>_<C> – DAWASF_<SKSP>_<C>) * DASP_<C> * DRF_<C>}


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Option Hedge Value Price

Requirement ID



DescriptionCalculate Day-Ahead PTP Option Hedge Value Price per Source and Sink pair for each Operating Hour of the Operating Day:1. IF the SRSP is a Load Zone or Hub AND SKSP is a Resource Node, THEN:DAOPTHVPR_<SRSP>_<SKSP> = Max (0, MAXRESPR_<SKSP> – DASPP_<SRSP>)2. IF SRSP is a Resource Node AND SKSP is a Load Zone or Hub, THEN:DAOPTHVPR_<SRSP>_<SKSP> = Max (0, DASPP_<SKSP> – MINRESPR_<SRSP>)3. IF SRSP Is a Resource Node AND SKSP is also a Resource Node, THEN:DAOPTHVPR_<SRSP>_<SKSP> = Max (0, MAXRESPR_<SKSP> – MINRESPR_<SRSP>)


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Next Level: Charge Type Calculations



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Payments and Charges for PTP Obligations in DAM-- Functional Requirements

Requirement ID

Source Mapping (Protocol/NERC/FERC and other binding documents Ref #) PR 7.9.1.1


DescriptionCalculate Day-Ahead Obligation Target Payment per CRR Owner per Source and Sink pair for each Operating Hour of the Operating Day:DAOBLTP_<CO>_<SRSP>_<SKSP> = DAOBLPR_<SRSP>_<SKSP> * DAOBL_<CO>_<SRSP>_<SKSP>

Requirement ID



DescriptionCalculate Day-Ahead Obligation Amount per CRR Owner per Source and Sink pair for each Operating Hour of the Operating Day: IF (DAOBLPR_<SRSP>_<SKSP> is Non-Positive ( ≤ 0 ) OR Both SRSP and SKSP locate at a Load Zone or Hub) THEN: DAOBLAMT_<CO>_<SRSP>_<SKSP> = (-1) * DAOBLTP_<CO>_<SRSP>_<SKSP>ELSE IF (DAOBLPR_<SRSP>_<SKSP> is Positive (>0) AND Either SRSP or SKSP is a Resource Node) THEN: DAOBLAMT_<CO>_<SRSP>_<SKSP> = (-1) * Max {(DAOBLTP_<CO>_<SRSP>_<SKSP> – DAOBLDA_<CO>_<SRSP>_<SKSP>) , Min (DAOBLTP_<CO>_<SRSP>_<SKSP>, DAOBLHV_<CO>_<SRSP>_<SKSP>)}


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Requirement ID



DescriptionCalculate Day-Ahead Obligation Derated Amount per CRR Owner per Source and Sink pair for each Operating Hour of the Operating Day: DAOBLDA_<CO>_<SRSP>_<SKSP> = OBLDRPR_<SRSP>_<SKSP> * DAOBL_<CO>_<SRSP>_<SKSP>

Requirement ID



DescriptionCalculate Day-Ahead Obligation Hedge Value per CRR Owner per Source and Sink pair for each Operating Hour of the Operating Day: DAOBLHV_<CO>_<SRSP>_<SKSP> = DAOBLHVPR_<SRSP>_<SKSP> * DAOBL_<CO>_<SRSP>_<SKSP>

Requirement ID



DescriptionCalculate Day-Ahead Obligation Credit Owner Total per CRR Owner for each Operating Hour of the Operating Day:DAOBLCROTOT_<CO> = Min (0, DAOBLAMT_<CO>_<SRSP>_<SKSP>)

Payments and Charges for PTP Obligations in DAM-- Functional Requirements (cont’d.)


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Requirement ID



DescriptionCalculate Day-Ahead Obligation Charge Owner Total per CRR Owner for each Operating Hour of the Operating Day DAOBLCHOTOT_<CO> = Max (0, DAOBLAMT_<CO>_<SRSP>_<SKSP>)

Requirement ID



DescriptionCalculate Day-Ahead Obligation Amount Owner Total per CRR Owner for each Operating Hour of the Operating Day: DAOBLAMTOTOT_<CO> = DAOBLCROTOT_<CO> + DAOBLCHOTOT_<CO>

Requirement ID



DescriptionCalculate Day-Ahead Obligation Credit Total for each Operating Hour of the Operating Day:DAOBLCRTOT = DAOBLCROTOT_<CO>

Requirement ID



DescriptionCalculate Day-Ahead Obligation Charge Total for each Operating Hour of the Operating Day::DAOBLCHTOT = DAOBLCHOTOT_<CO>

Payments and Charges for PTP Obligations in DAM-- Functional Requirements (cont’d.)


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Payments and Charges for PTP Obligations in DAM-- Calculation Dependency Diagram


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Requirement ID



Description Calculate Day-Ahead Option Target Payment per CRR Owner per Source and Sink pair for each Operating Hour of the Operating Day:

DAOPTTP_<CO>_<SRSP>_<SKSP> = DAOPTPR_<SRSP>_<SKSP> * DAOPT_<CO>_<SRSP>_<SKSP>


DAOPT MW Day-Ahead Option per CRR Owner per source and sink pair—The number of CRR Owner’s PTP Options with the source and sink pair settled in the DAM for the hour.

CRR System &MMS DAM

Interval Frequency: 1/ hour

Additional Comments:

DAOPT equals the difference between (a) and (b): (a) The amount of PTP Options acquired through PCRR Allocations, CRR Auctions, and CRR Bilateral Trades, prior to DAM execution(b) The amount of PTP Options that are declared before DAM execution by NOIE to be settled in Real-Time and not cleared in the DAM.

DAOPT shall always be equal to or greater than zero (0).Calculation of DAOPT occurs in the Settlement Interface.

Assumptions

Assumptions of upstream systems: Determination of whether or not PTP Options owned by NOIE are eligible for Real-Time Settlements is made by the original source (MMS DAM).

Payments for PTP Options in DAM-- Highlights of Functional Requirements


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Payments for PTP Options in DAM-- Calculation Dependency Diagram


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Payments for FGRs in DAM--- Highlights of Functional Requirements

Requirement ID



DescriptionIf all directional network elements associated with the FGR are Competitive Constraints, i.e. No DRF exists for any constraints to one or more network elements associated with FGR for the Operating Day ,the payment to each CRR Owner for its FGRs determined by the principle network element of each flowgate for a given hour is calculated as follows:

Calculate Day-Ahead FGR Price per Flowgate for each Operating Hour of the Operating Day:DAFGRPR_<F> = (INF_<F>_<E> * DASP_<E>_<C>)

1.Calculate Day-Ahead FGR Amount per CRR Owner per Flowgate for each Operating Hour of the Operating Day:DAFGRAMT_<CO>_<F> = (-1) * DAFGRTP_<CO>_<F>

3.Calculate Day-Ahead FGR Target Payment per CRR Owner per Flowgate for each Operating Hour of the Operating Day: DAFGRTP_<CO>_<F> = DAFGRPR_<F> * DAFGR_<CO>_<F>

Requirement ID



Description If one or more directional network elements associated with the FGR are Non-Competitive Constraints, the FGR payment may be reduced. The

payment for other FGR when it is non-competitive will be specified by Protocols upon introduction of the FGR, with the exception of MCFRI.

Assumptions:

Settlement methodology of payment for a new FGR when it’s not a competitive constraint will be specified upon the FGR introduction.


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Requirement ID



Description If one or more directional network elements associated with MCFRI are Non-Competitive, i.e. DRF exists with a positive value for at least one constraint to one

or more network elements associated with MCFRI for at least one Hour of the Operating Day , the payment to each CRR Owner for its MCFRI for a given hour, when MCFRI is NOT designated as a Competitive Constraint, is calculated as follows:

Calculate Day-Ahead FGR Price for MCFRI for each Operating Hour of the Operating Day:DAFGRPR_<MCFRI> = (INF_<MCFRI>_<E> * DASP_<E>_<C>)

Calculate Day-Ahead FGR Target Payment per CRR Owner for MCFRI for each Operating Hour of the Operating Day:DAFGRTP_<CO>_<MCFRI> = DAFGRPR_<MCFRI> * DAFGR_<CO>_<MCFRI>

Calculate Day-Ahead FGR Deration Price for MCFRI for each Operating Hour of the Operating Day:FGRDRPR_<MCFRI> =(INF_<MCFRI>_<E> * (DASP_<E>_<C> * DRF_<E>_<C>))

Calculate Day-Ahead FGR Derated Amount per CRR Owner for MCFRI for each Operating Hour of the Operating Day:DAFGRDA_<CO>_<MCFRI> = FGRDRPR_<MCFRI> * DAFGR_<CO>_<MCFRI>

Calculate Day-Ahead FGR Hedge Value Price for MCFRI for each Operating Hour of the Operating Day: DAFGRHVPR_<MCFRI> = Max {0, [DAWALBEP – MINRESPR_<SRSP>_<MCFRI> – (DASP_<E>_<C> * (DASFMCWGRS_<E>_<C> – DAWASFLB_<E>_<C>))] / (DASFMCWGRS_<MCFRI PRINCIPLE ELEMENT>_<BASE CASE>

– DAWASFLB_<MCFRI PRINCIPLE ELEMENT>_<BASE CASE>)} Calculate Day-Ahead FGR Hedge Value per CRR Owner for MCFRI for each Operating Hour of the Operating Day:

DAFGRHV_<CO>_<MCFRI> = DAFGRHVPR_<MCFRI> * DAFGR_<CO>_<MCFRI> Calculate Day-Ahead FGR Amount per CRR Owner for MCFRI for each Operating Hour of the Operating Day:

DAFGRAMT_<CO>_<MCFRI> = (-1) * Max {(DAFGRTP_<CO>_<MCFRI> – DRFRGDA_<CO>_<MCFRI>), Min (DAFGRTP_<CO>_<MCFRI>, DRFRGHV_<CO>_<MCFRI>)}

Payments for FGRs in DAM--- Highlights of Functional Requirements (cont’d.)

Assumptions:

McCamey Area WGR is the designated source of MCFRI unless specified otherwise by TPTF.


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Payments for FGRs in DAM--- Calculation Dependency Diagram


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Requirement ID



Description

Calculate Day-Ahead Obligation with Refund Target Payment per CRR Owner per Source and Sink pair for each Operating Hour of the Operating Day:DAOBLRTP_<CO>_<SRSP>_<SKSP> = DAOBLPR_<SRSP>_<SKSP> * Min (DAOBLR_<CO>_<SRSP>_<SKSP>, OBLRACT_<CO>_<SRSP>_<SKSP>)

Payments and Charges for PTP Obligations with Refund in DAM--- Highlights of Functional Requirements

NPRR Suggested:

Same variable (bill determinant) name for PTP Obligation price and PTP Obligation with Refund price as they are equivalent.DAOBLPR_<SRSP>_<SKSP> = DASPP_<SKSP> – DASPP_<SRSP>

Assumptions:

Calculation of Obligation with Refund Actual Usage (OBLRACT) as described in the formula below will be addressed by a separate set of Requirements:

OBLRACT o, (j, k)=((OBLROF o, r, (j, k) * RESACT r, (j, k), y) * TLMP y) / (TLMP y) * OBLRF o, (j, k)

Calculation of Resource Actual (RESACT) as described in the formula below will be addressed by a separate set of Requirements:

If (OS r, y exists) RESACT r, (j, k), y = OS r, y Otherwise If (EBP r, y exists) RESACT r, (j, k), y = EBP r, y Otherwise RESACT r, (j, k), y = BP r, y


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Payments and Charges for PTP Obligations with Refund in DAM--- Calculation Dependency Diagram


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Payments for PTP Options with Refund in DAM--- Highlights of Functional Requirements

Requirement ID



DescriptionCalculate Day-Ahead Option with Refund Target Payment per CRR Owner per Source and Sink pair for each Operating Hour of the Operating Day:DAOPTRTP_<CO>_<SRSP>_<SKSP> = DAOPTPR_<SRSP>_<SKSP> * Min (DAOPTR_<CO>_<SRSP>_<SKSP> , OPTRACT_<CO>_<SRSP>_<SKSP> * DAOPTR_<CO>_<SRSP>_<SKSP> / (DAOPTR_<CO>_<SRSP>_<SKSP> + RTOPTR_<CO>_<SRSP>_<SKSP>))

NPRR Suggested:Same variable (bill determinant) name for PTP Option price and PTP Option with Refund price as they are equivalent.

DAOPTPR_<SRSP>_<SKSP> = Max( 0, DASPP_<SKSP> – DASPP_<SRSP>)


RTOPTR MW Real-Time Option with Refund per pair of source and sink—The number of the NOIE CRR Owner’s PTP Options with Refund with the source and sink pair, settled in Real-Time, for the hour.

MMS DAM

Interval Frequency: 1/HourComments: RTOPTR is the amount of PTP Options with Refund that are declared before DAM execution by NOIE CRR Owners to be settled in Real-Time and not cleared in the DAM.Reference to TN.COMS.63C01.RTCRR.REQUIREMENTS.A

DAOPTR MW Day-Ahead Option with Refund per CRR Owner per pair of source and sinkThe number of CRR Owner’s PTP Options with Refund with the pair of source and sink, settled in DAM, for the hour.

CRR System & MMS DAM

Interval Frequency: 1/ hourAdditional Comments: DAOPTR is a result of PCRR Allocation. The owner of DAOPTR shall be a designated NOIE.DAOPTR equals the difference between (a) and (b): (a) The amount of PTP Options with Refund acquired through PCRR Allocations by NOIEs.(b) The amount of PTP Options with Refund that is declared before DAM execution by NOIEs to be settled in Real-Time and not cleared in the DAM.DAOPTR shall always be equal to or greater than zero (0).


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Payments for PTP Options with Refund in DAM--- Calculation Dependency Diagram


Texas Nodal

Summary

• Nodal Protocols Section 7 – 005NPRR-05_BOD_Action_Report_071806

• Nodal Protocols Section 9 – 007NPRR-05_BOD_Action_Report_071806

• NPRR (xxxx) – [approved by TPTF and scheduled to be at the 9-21-06 PRS

meeting] aimed to synchronize PRR640.

Documents

Lead from the front Texas Nodal 1 Texas Nodal Day-Ahead CRR Settlements Business Requirements TPTF Presentation ERCOT Settlements