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Settlement of Mothballed RMR Resourcesfor
System Capacity
November 15, 2011RDTF Meeting
Ino González
ERCOT
November 14, 2011
Slide 2
RMR for Summer 2011
RMR Contracts for Mothballed Units
ERCOT signed RMR Agreements with three Resource Entities to return Mothballed Generation Resources to service to mitigate capacity shortages during the extreme heat and drought conditions impacting the ERCOT Region.
OutcomeContracts
RMR
Slide 3
RMR for Summer 2011
RMR Contracts for Mothballed Units
• Garland Power & Light– Spencer 4– Spencer 5
• NRG Texas Power, LLC– SR Bertron 1– SR Bertron 2
• Contracts terminated October 31, 2011
OutcomeContracts
RMR
122 MW
292 MW
Slide 4
RMR for Summer 2011
Operation for these RMR Units was as follows:
• No Three Part Supply Offers• Not offered into DAM• Committed only by Hourly RUC• Resources came on-line with no Energy
Offer Curve
OutcomeOperation
s
RMR
Slide 5
RMR for Summer 2011
What happens when an on-line Resource has no Energy Offer Curve?
– ERCOT creates proxy Offer Curve
OutcomeOperation
s
RMR
MW
$/MWh
Proxy Energy Offer Curve
0
$2999.99LSL+1MW
-$250
$3000
LSL
HSL
Slide 6
RMR for Summer 2011
What happens when an on-line Resource has no Energy Offer Curve?
– Resource is very expensive to dispatch above LSL
OutcomeOperation
s
RMR
MW
$/MWh
Proxy Energy Offer Curve
0
$2999.99LSL+1MW
-$250
$3000
LSL
HSL
Slide 7
RMR for Summer 2011
Payment process for RMR unitsOutcomeSettlement
s
The Settlement process for these RMR Resources followed
standard RMR Settlement practices per Protocol section 6.6.6 & Reliability Must-Run
Settlement
The Settlement process for these RMR Resources followed
standard RMR Settlement practices per Protocol section 6.6.6 & Reliability Must-Run
Settlement
Slide 8
RMR for Summer 2011
Payment process for RMR units
ERCOT ultimately provides two types of payments to the QSE for an RMR Resource
– Standby Payment◦ Includes costs to return to operational
status◦ Ongoing operation and maintenance costs
– Energy Payment◦ Fuel costs
» Incremental Heat Rate» Fuel Index Price and Fuel adder» Startup fuel
OutcomeSettlement
s
Slide 9
RMR for Summer 2011
Payment process can be complex
Lots of other Moving Parts for RMR Settlement
– Real-Time Energy Imbalance Payment
– RUC Make-Whole Payment– RUC Clawback Charge
OutcomeSettlement
s
???
QSE is exposed to the usual Payments and Charges for a
Resource
QSE is exposed to the usual Payments and Charges for a
Resource
Slide 10
RMR for Summer 2011
OutcomeSettlement
s
ERCOT then Reverses these Charges and payments through
the RMR Adjustment Charge
ERCOT then Reverses these Charges and payments through
the RMR Adjustment Charge
???
Payment process can be complex
Lots of other Moving Parts for RMR Settlement
– Real-Time Energy Imbalance Payment
– RUC Make-Whole Payment– RUC Clawback Charge
Slide 11
RMR for Summer 2011
Costs Uplifted to QSEs with Load
Net of all RMR charges and payments– Standby payment– Energy Payment– RMR Adjustment Charge– RMR Non-Performance Charge
◦ $10,000 per event of Unexcused Misconduct
◦ Would reduce charge to QSEs with Load
OutcomeSettlement
s
???
Slide 12
RMR for Summer 2011
A few notes about Capacity Short Charges
• QSEs who are capacity short pay a portion of the RUC Make Whole Costs
• The RUC Capacity Short Charges are not affected by the RMR Adjustment Charge
OutcomeSettlement
s
???
QSEs who are capacity short will still pay RUC Capacity Short Charge, even
if RUC Make-Whole payments were calculated only for these RMR units
QSEs who are capacity short will still pay RUC Capacity Short Charge, even
if RUC Make-Whole payments were calculated only for these RMR units
Slide 13
RMR for Summer 2011
Intervals of RUC deployment for SPNCE_4 RMR Unit
Operating Day
RUC Make Whole
$
Number of Intervals
TWTG ≤ LSL1
Number of Intervals
TWTG > LSL1
8/23/118/24/118/28/118/29/118/31/11
0000
2,834.76
72654
1922242118
Total in period =
Percent in period =
24
19
104
81
1 Where TWTG (MW) = TWTG (MWh) *4
Slide 14
RMR for Summer 2011
Intervals of RUC deployment for SPNCE_5 RMR Unit
Operating Day
RUC Make Whole
$
Number of Intervals
TWTG ≤ LSL1
Number of Intervals
TWTG > LSL1
8/23/118/24/118/28/118/29/118/31/11
0000
4,805.36
5108
116
1620211516
Total in period =
Percent in period =
40
31
88
69
1 Where TWTG (MW) = TWTG (MWh) *4
Slide 15
RMR for Summer 2011
Intervals of RUC deployment for SRG_G2 RMR Unit
Operating Day
RUC Make Whole
$
Number of Intervals
TWTG ≤ LSL1
Number of Intervals
TWTG > LSL1
8/28/118/29/118/31/11
10/10/11
000
18,647.2
Total in period =
77
1114
39
1813134
48
Percent in period = 45 55
1 Where TWTG (MW) = TWTG (MWh) *4
Slide 16
RMR for Summer 2011
Relevant Charge Types Impacted by Capacity RMR Units
Charge Type by Name
Bill Determinant Code
Description
RMR Standby Payment
• RMRSBAMT• RMRSBPR• RMRMNFC
• RMR Standby Payment• RMR Standby Price• RMR Monthly Non-Fuel Cost
RMR Payment for Energy
• RMREAMT• RMRSUFQ• RMRCEFA• RMRHR• RMRMFCOST• RTMG
• RMR Energy Amount• RMR Startup Fuel Quantity• RMR Contracted Fuel Adder• RMR Incremental Heat Rate• RMR Monthly Actual Fuel Cost• Real-Time Metered Generation
Slide 17
RMR for Summer 2011
Relevant Charge Types Impacted by Capacity RMR Units- Cont.
Charge Type by Name
Bill Determinant Code
Description
RMR Adjustment Charge
• RMRAAMT• RTEIAMT• RUCMWAMT• RUCDAMT
• RMR Adjustment Charge• Real-Time Imbalance Amount• RUC Make-Whole Amount• RUC Decommitment Amount
RMR Service Charge
• LARMRAMT•RMRSBAMTTOT• RMREAMTTOT• RMRAAMTTOT• HLRS
• Load-Allocated RMR Amount•RMR Standby Amount Total• RMR Energy Amount Total• RMR Adjustment Amount• Hourly LRS
Slide 18
RMR for Summer 2011
RMR Reports Available through MIS*OutcomeMIS Posting
* https://mis.ercot.com – Requires a Digital Certificate