Overview of Governing Document for

Weather-Sensitive ERS Pilot Project

Stakeholder Workshop

Mark Patterson, ERCOT StaffMarch 1, 2013

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Draft Governing Document

This presentation is intended to highlight significant details noted in the Governing Document for Weather-Sensitive ERS Pilot Project and may not cover every aspect of the document.

It is the responsibility of participants in the Weather-Sensitive ERS Pilot Project to familiarize themselves with all aspects of the Governing Document.

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Stated objectives for requesting Weather-Sensitive ERS Pilot Project are:

•Evaluate the ability of Weather-Sensitive Loads to provide dispatchable demand response during summer system conditions;

•Evaluate the accuracy of Qualified Scheduling Entity (QSE) projections of demand response capabilities and Load growth;

•Evaluate deployment impacts on end-use customers;

•Identify any unforeseen challenges in procuring, deploying and evaluating the performance of Weather-Sensitive Loads.

Purpose

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Project Timeline

• Pilot Timeline:– June through September 2013 ERS Contract Period

• Other important dates:– April 1, 2013: ERS Resource Identification (ERID) submission

window opens– May 10, 2013: Offer submission deadline– May 24, 2013: Award Notifications go out to QSEs– May 31, 2013: ERCOT publishes procurement results– June 1, 2013: Contract Period for Pilot Project begins– September 30, 2013: Contract Period for Pilot Project ends

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Eligibility and Qualification

To be eligible to participate: 

(a) The Load must consist exclusively of residential sites and must qualify for performance evaluation under either the regression baseline methodology or the control group baseline methodology; or

(b) The Load must consist exclusively of non-residential sites and must qualify as Weather-Sensitive under the regression baseline evaluation methodology.

Note: 1) Regression baseline requires all sites in an ERS load must have at least 9 months of interval meter data.2) Control Group baseline must have interval metering but not historical meter data.

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QSE Requirements to Participate

• Must have capability to receive both Extensible Markup Language (XML) messaging and Verbal Dispatch Instruction (VDI)

• Must submit a fully executed Weather-Sensitive ERS Pilot Project Supplement to Market Participant Agreement (this is an attachment to the Governing Document)

• Must agree to participate in a post pilot survey (if applicable)

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Procurement

• Maximum pilot size of 30 MWs

• Procure for June through September 2013 pilot project term, BH2, BH3, and Weekend/Holiday Peak Time Period only– (Weekend/Holiday Peak Time Period - 1 p.m. to 8 p.m. on

Saturdays, Sundays, and Holidays)

• Minimum Offer size – 100 KW

• Payment– QSEs representing Weather-Sensitive ERS Loads participating

in the BH2 and BH3 ERS Time Periods will be paid the clearing price for the corresponding Time Periods in the 30-Minute ERS pilot project

– For the Weekend/Holiday Peak Time Period will be paid the time-weighted average of the clearing price for BH2 and BH3

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• Offers must include projection of the maximum number of sites in the aggregation for the ERS Contract Period

• ERCOT will reject offers that violate the following:– (a) 100% of the Load’s initial size; or – (b) Two MW times the QSE’s projection of the maximum number

of sites in the aggregation during the pilot project term, divided by the MW capacity offered for the aggregation.

• QSE’s may modify the population of an aggregation once per month (same limits above apply)

• Not eligible for renewal opt-in

• QSEs may not self-provide Weather-Sensitive ERS

Procurement (Cont’)

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Deployment Requirements

• Deployment instructions:– BH2 and BH3 deployments use both XML and VDI– Weekend/Holiday Peak use VDI only

• ERCOT will modify operator dispatch instruction to explicitly state Weather-Sensitive ERS in the instruction

• 30-Minute Ramp period applies

• Must remain deployed until recalled by ERCOT, but no single deployment will last longer than 3 hours

• Unannounced testing at least once but no more than twice per month.

• Test deployments may be reduced by EEA deployments but they do not reduce number of allowed EEA deployments

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EEA Deployment

• Actual (non-test) deployments may only occur in Energy Emergency Alert (EEA)

• Deployment of 10-Minute ERS or 30-Minute ERS shall not be considered a deployment of Weather-Sensitive ERS unless VDI explicitly states Weather-Sensitive ERS

• Maximum of 8 EEA Deployments during 4 month pilot period

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Performance Evaluation

• Event and Test Performance Analysis– For each test and EEA deployment event ERCOT to calculate

Load and QSE portfolio-level ERS Event Performance Factors– For test deployments capacity obligations will be prorated based

on number of sites dispatched during test

• Availability factor set to 1.0

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Other

• Loads participating in pilot will not be subject to suspensions

• Payments and charges associated with Weather-Sensitive ERS Pilot Project will be separate from other ERS charges on Settlements Statements

• Estimated cost of Pilot - $19,500

• No additional ERCOT personnel impacts for pilot

• Procurement cost will be managed under the $50 million annual cap for ERS

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Questions?

mpatterson@ercot.com512/248-3912