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Texas Nodal

Commercial SystemsCOMS CSD Presentation

By ERCOT

Wednesday, 1/10/2007

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Agenda

• Commercial System Solution

• Commercial Systems (COMS) Coverage

• High Level CSD Process

• Example Dependency Maps

• Outstanding Needs

• Summary

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Commercial System Solutions

• For all Commercial System Solutions with the exception of Credit Monitoring and Management (CMM), the solution will be built by customizing existing software to meet ERCOT Nodal Protocols.– LODESTAR will be used for

• Settlements and Billing• Data Aggregation• Financial Transfer• Statements and Invoices

– Siebel will be used for• Registration• Disputes

• Additional Visual Basic apps will be built as needed to supplement the LODESTAR and Siebel solutions

• CMM will purchase a COTS product from ROME and customize the implementation to meet ERCOT Nodal protocols

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Commercial Systems Coverage

• 11 Commercial System CSDs cover the associated TPTF approved Requirements– Day Ahead Market CSD

• Day-Ahead Market Energy Settlements Requirements, including Settlements for PTP Obligations Bought in DAM

• Day-Ahead Congestion Rent Requirements • Day-Ahead Make-Whole Settlements Requirements• Day-Ahead Market Ancillary Service Settlements Requirements

– Real-Time Settlement CSD• Ancillary Services Real-Time Settlements Requirements• Real-Time Energy Settlements Requirements• Black Start Services Real-Time Settlements Requirements• Real-Time Emergency Operations Settlements Requirements• Reliability Must Run Services Real-Time Settlements Requirements• Voltage Support Real-Time Settlements Requirements

– RUC Settlement CSD• Reliability Unit Commitment (RUC) Settlements Requirements• Verifiable Cost Settlement Requirements

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Commercial Systems Coverage (cont)

– Congestion Revenue Rights CSD• Day-Ahead Market Congestion Revenue Rights Requirements• Real-Time Congestion Revenue Rights Requirements• Congestion Revenue Rights Balancing Account Requirements• Congestion Revenue Rights Auction Revenue Disbursement Requirements

– Eligibility Process Settlements CSD• Eligibility Process for Settlements Requirements

– Average Incremental Energy Cost CSD• Average Incremental Energy Cost (AIEC) Settlement Requirements

– Statements and Invoices CSD• Statement Requirements• Invoice Requirements

– Financial Transfer CSD • Financial Transfer Requirements

– Data Aggregation CSD• Data Aggregation Requirements

– Registration System CSD• Registration System Requirements (not approved)

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High Level Commercial Systems CSD Process Summary

• All CSD documents follow the same conventional style as listed below:

– Function: is the beginning of the section

– Introduction: is a brief description of the section and related

calculations

– Inputs: Data elements, or processes required for section

– Processing: High level summary of process description

– Outputs: output parameters, data, processes, or resultant set

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Requirements to CSD relationship

• Dependency charts provided in the requirements documents were

used to generate process flow diagrams

• All examples in presentation are listed in CSD documents along

with many additional graphical representations.

• Additional clarifications during detailed design will flesh out the

automated and manual processes and procedures

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Day Ahead Example

Settlement System

MMS

DAESAMT Calc

DAEPAMT Calc

DAOBLPR Calc

DAEREV Calc

PCRUAMT Calc

PCRDAMTCalc

PCRRAMTCalc

PCNSAMTCalc

DARTOBLAMTCalc

RMRDAEREVTOTCalc

DARUAMT Calc

DARDAMTCalc

DARRAMTCalc

DANSAMTCalc

DACONGRENTCalc

LADAMWAMTCalc

DAMWAMTCalc

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Real Time Example

Level 1Level 2

Level 3Level 4

Settlement System

RUFQAMT

PCRUAMT

RTRUAMT

RUCOSTTOT

RUCOST

RDFQAMT

PCRDAMT

RTRDAMT

RDCOSTTOT

RDCOST

RRFQAMT

PCRRAMT

RTRRAMT

RRCOSTTOT

RRCOST

NSFQAMT

PCNSAMT

RTNSAMT

NSCOSTTOT

NSCOST

RTEIAMT

RTDCI

MPAMT

RTDCEXPAMT

BLTRAMT

RTCCAMT

BPDAMT

LABPDAMT

LARTRNAMT

ESCAMT

BSSAMT

LABSSAMT

EMREAMT

LAEMREAMT

VSSVARAMT

VSSEAMT

LAVSSAMT

RMRSBAMT

RMREAMT

RMRAAMT

RMRNPAMT

LARMRAMT

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RUC Example

RUC Settlement Process

Calculate SUPR

Calculate MEPR

Calculate RUCG

Calculate RUCMEREV

Calculate RUCEXRR

Calculate RUCHR

Calculate NCDCHR

Calculate RUCMWAMT

Calculate RUCEXRQC

Calculate RUCDCAMT

Calculate RUCCBAMT

Calculate RUCCBFC

Calculate RUCCBFR

Calculate

RUCCSAMT

Calculate

LARUCAMTCalculate

LARUCCBAMT

Calculate VERISU

Calculate VERIME

Calculate

LARUCDCAMT

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CRR Settlement Examples

Settlement System

MMSDAM

MINRESPR CALC

MAXRESPRCALC

DAOPTPRINFOCALC

DAOBLAMTCALC

DAOPTAMTCALC

CRR SYSTEM

NMMS

DAFGRAMTCALC

DAOBLRAMTCALC

DAOPTRAMTCALC

DAOBLPR CALC

DAOPTPRCALC

OPTDRPRCALC

OBLDRPRCALC

DAOBLHVPRCALC

DAOPTHVPRCALC

RTOBLPRCALC

RTOPTPRCALC

RTOPTPRINFOCALC

RTOPTHVPRCALC

RTOPTRAMTCALC

RTOPTAMTCALC

RTOBLAMTCALC

MMSRTM

DAY AHEAD CRR SETTLEMENTS REAL-TIME CRR SETTLEMENTS

Settlement System

RTCRRSAMTCALC

CRRBACRCALC

DA CRR SETTLEMENTS

DACRRSAMTCALC

RT CRR SETTLEMENTS

DACONGRENT

CRRAMTCALC

LACRRAMTCALC

DATA Aggregation

DA Payment/Charges for PTP Obligations (DAOBLAMT)DA Payment for PTP Options (DAOPTAMT)DA Payment for FGR’S (DAFGRAMT)DA Payment/Charges for PTP Obligations with Refund (DAOBLRSMT)DA Payment for PTP Options with Refund (DAOPTRAMT)

RT Payment for PTP Options (RTOPTAMT)RT Payment for PTP Options with Refund (RTOPTRAMT)

CRR Balancing Account

CRR Day Ahead and Real time

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AIEC Example

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Eligibility Example

DeterrmineSELFCOMMITFLAG

DeterrmineStartup Initiators

DeterrmineQCLAW

(QSE Clawback Intervals)

DeterrmineRUCD (RUC

Decommitments)

DeterrmineStartup Eligibility

DeterrmineStart Type for RUCD

DeterrmineEnergy Eligibility

Eligibility Process

DeterrmineBusiness Defined Errors

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Statements and Invoices Example

Begin

End

Retrieve Operating Day Datafor the market type

Business Analyst

Validates Data

Are Statements

Correct?No

Yes

Statements

Retrieve Statement Recipient Data

Retrieve Charge Type data for the

market type

Generate Statements

Save Data to Lodestar Database

Approve Statementsand Post to MIS

Backout Statements for

Re-Run

Business Analyst Makes Adjustments

Retrieve ERCOT Data

Begin

End

Retrieve Billing Parameters for

Billing Cycle

Business Analyst

Validates Data

Are Invoices Correct?

No

Yes

Invoicing

Retrieve Line Item Statement

Amounts Within Billing Parameters

Retrieve Invoice Recipient Data

Generate Invoice

Save Data to Lodestar Database

Approve Invoicesand post to MIS

Automated Validation For Invoice MIS Posting

Backout Invoices for Re-Run

Business Analyst Makes Adjustments

Retrieve Late Payment Terms,

Payment Dates, Wire Transfer Data

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Financial Transfer Example

Leve

l 1P

aymen

t P

roc

ess Inp

uts

Unpaid Credit Balance

Settlement System

Payment Process for Invoices

Number of Days in Year

Calculate Late Fee Charges

For Short-Paying Invoice Recipients

2% Factor

Leve

l 2L

evel 3

Unpaid Charge Balance

Prime Rate

Wall Street Journal

Calculate Late Fee Credits

For Invoice Recipients who were not paid in full

Calculate Late Fee Credit Ratio

Share

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Outstanding Needs and Next Steps

• Need to clarify database footprint within Detailed Design

• Need to finalize Software solution (Version of LODESTAR and patches)

• Need to solidify timing and data elements of integration points from other

Nodal Systems during Detailed Design

• Need to determine disposition of all Commercial Systems CSD punchlist

items by TPTF. This could produce additional NPRRs and/or changes to

requirements– Examples include for RUC:

• Change references of RUCDECOMMIT to be RUCD• Incorporate RUCSUFLAG changes into RUCG calculations• Remove LARUCAMTQSETOT, LARUCCBAMTQSETOT, LARUCDCAMTQSETOT• Add RUCD as driver for VERISU and VERIME • Incorporate changes from Eligibility Process into RUCDCAMT calculations

– Examples include for Eligibility:• Add SELFCOMMITFLAG determinant and QSE Self-Commitment calculations• Remove stipulation in RUC De-commitment calculations that sets all non de-committed hours to 0 in the

SUFLAG determinant will need to be removed.– This may also necessitate an NPRR

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Summary

• All CSDs are intended to cover their respective Requirements as

approved by TPTF and associated protocols

• All Commercial Systems CSD comments are due back to ERCOT

on January 18th, 2007