Nodal Program Update andSEWG UpdateCOPS 1/11/2011
Jim Galvin
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Monthly Nodal Settlement Update
•CRR Auction Settlement
•Statements
•Invoices
•Statement, Report, Extract Issues
•Cost Metrics
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Settlement Observations- CRR Auctions
•CRR Auction for December and January completed, settled,invoiced and cleared
–January 2011 CRR Auction results delayed due to alonger than usual execution and analysis time for themarket optimizations and system lock-up when accessingthe Downloads page in the application
–As of Friday, January 21, February Auction results haveyet to be posted
–CMWG reported that run times of the solution areincreased due to the number of binding constraints, notnumber of bids
4
Settlement Observations- Statements
•Settlement Statements for DAM issued through operating day1/17/2011
–DAM results for Operating Day December 4, 2010 were delayeddue to issues with notifications
•Settlement Statements for RTM issued ( Through TD 1/10/2011)
–Some RTM SPPs affected due to previous day’s FIP/FOP valuesbeing used instead of current day’s values for December 1 andDecember 8 through December 10 – Small impact, no pricecorrections requested
–RT SPPs affected for one Settlement Interval due to a softwareerror on December 15, 2010 – A price correction will be requestedfrom the ERCOT BOD at their January 2011 meeting
•Zonal Final and True-up Resettlements continue
•Concerns through SEWG discussion on the number of statementscontinue be noted as an impact of Nodal
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Settlement Observations- Invoices
•As of January 18, 2010 all DAM Invoices will be published forDecember and DAM Invoices will have settled (Cash Cleared)through December 29 Trade Day
–Invoices through Operating Day 1/17/2011 published
•As of January 18, 2010, Six RTM Invoices have been posted, 5 ofwhich have cash cleared
•Market Participants are expressing concerns on the two settlementprocess as invoice processing is now a daily function
•ERCOT appears to be clearing all invoices, no short or no payscenarios
–One late pay scenario which created invoices for late fees forsmall dollars
•Zonal invoices continue for Final and True-up Settlements
–ERCOT published on invoice with an incorrect payment due date
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Settlement Observations- Reports and Extracts
•Extracts and Reports have been Published
–Some Market Participants had difficulty opening compressedreports in .zip format – ERCOT provided instructions
–ERCOT made minor configuration updates to the ExtractSubscriber application requiring Market Participants to verifytheir subscriptions
–Due to long run times, December 2 and 3, 2010 Settlement InputData Extract posted out of protocol
–Some 48 Hour Disclosure reports delayed for Operating daysDecember 3 and December 4, 2010 due to extensive validationsbeing performed by ERCOT on Nodal Go-live market data
–Settlement Input Data Extract XML postings reprocessed andreposted for December 1 through December 6, 2010 due toincorrect AML header tags in the public market tables
–Certain MIS Market reports not posted due to database serveroutage on December 11, 2010
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Settlement Observations- Reports and Extracts
•Extracts and Reports have been Published
–New report implemented December 14, 2010 due to NPRR293,Requirement to Post PTP Obligation Quantities Awarded in theDAM
–Delayed and missing postings for Resource Ancillary ServiceSupply Insufficiency at 1430 Report due to extensive datavalidations being performed by ERCOT
–Non-Spin Obligation (NSO) and Non-Spin Quantities (NSQ) billdeterminants not included in RTM CODE Extracts for December 1through December 3, 2010 due to missed configuration step inERCOT’s cutover tasks
–ERCOT IDR estimation calculation data is no longer provided inthe Supplemental AMS Interval Data Extract and SupplementalIDR Required Interval Data Extract – Retail extract changedwithout notice - Market Participants requested to derive estimationcalculation data -
–Missing last 15-minute interval on RT SPP Report on Real-TimePrices Displays on the ERCOT Website
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Settlement Observations- Load Zone Market Prices
Arithmetic Average Adjusted SPP
Houston
North
South
West
On-Peak
$32.06
$32.37
$30.95
$29.49
Off-Peak
$26.94
$27.28
$26.48
$21.54
Average
$29.45
$29.77
$28.63
$24.70
Houston
North
South
West
On-Peak
$56.54
$56.66
$56.09
$48.24
Off-Peak
$30.87
$30.92
$30.74
$28.72
Average
$40.38
$40.46
$40.13
$35.95
December 2010
January 2011
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Settlement Observations- Load Zone to Hub
Meeting Title (optional)
Date
Load Zone/HUB RTSPP
Period:
Dec-10
Location Average
Zone over HUB Comparison
Location
RTSPP Average
Row Labels
Average RTSPP
Location
Average RTSPP
Zone over HUB Delta
HB_HOUSTON
$29.41
LZ_HOUSTON
$29.45
HB_HOUSTON
$29.41
$0.03
HB_NORTH
$29.82
LZ_NORTH
$29.77
HB_NORTH
$29.82
-$0.05
HB_SOUTH
$28.71
LZ_SOUTH
$28.63
HB_SOUTH
$28.71
-$0.08
HB_WEST
$23.41
LZ_WEST
$24.70
HB_WEST
$23.41
$1.29
LZ_HOUSTON
$29.45
LZ_NORTH
$29.77
LZ_SOUTH
$28.63
LZ_WEST
$24.70
LZ_AEN
$29.33
LZ_CPS
$28.96
Market Wide Avg
$28.22
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•Cost to Serve Load (December 2010, based on RTM Settlements)
–AS seems within Zonal values where price per MWh is $1.11withthe premium for Responsive Reserve at $0.68
–BPD Uplift charges are a credit to Loads at less than $0.01 perMWh, total BPD charges to resources through is approximately$140K
–RUC Uplift Charge is negligible (~$2K), meaning that most all of theRUC is being assigned to Loads that are short in the market
•RUC Capacity Shortfall Charges have averaged over $45 K perday, total of over $1.1 M to date
–Revenue Neutrality uplift to Loads currently an expense of$0.46/MWh
•SEWG will evaluate the drivers of Revenue Neutrality
Settlement Observations- Cost to Serve Load December
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•Cost to Serve Load (January, based on RTM Settlements through1/10/2011)
–AS seems within Zonal values where price per MWh is $1.14
–BPD Uplift charges are a credit to Loads at less than $0.01 perMWh, total BPD charges to resources through is approximately$100K
–RUC Uplift Charge trends as in December negligible
–Revenue Neutrality uplift to Loads currently an expense of$0.27/MWh appears to be decreasing, still needs explanation
•SEWG will evaluate the drivers of Revenue Neutrality
Settlement Observations- Cost to Serve Load December
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Summary
•Overall, settlements and the reporting and extract functionality isoperational
•Improvements may be identified through SEWG discussions for futureParking Deck/NPRR consideration
–Examples of discussion points thus far include new extracts tosupport accepted QSE to QSE trades and revisiting the timelinessrequirement of 48-hours on extracts/reports
•Issues have been address or are in process of being addressed
•Invoice processing continues to be the popular topic of discussion
–Processing time and volume has increased exponentially for backoffice resources
•While prices and cost of services appear to be modest, there remainssome concern discussed on the release of the offer cap limit
Meeting Title (optional)
Date
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Questions?
Meeting Title (optional)
Date
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