CRR Issues
Transparency provided by CRR ReportsCRR EDS handbookBusiness process NPRR
TPTFNovember 27, 2007
2TPTF – CRR IssuesNovember 27, 2007 2
Today’s issues
• Transparency provided by CRR Reports– “Explanation of Market Submission / Retrieval Items” document
will be updated this week per comments received– Guidance requested about proposed report contents
• CRR EDS handbook– Content updated– Reminder / Status on registration
• Business process NPRR– Discuss alternate implementation of PCRR release mechanism
3TPTF – CRR IssuesNovember 27, 2007 3
Level of transparency for CRR ownership and market results
• ERCOT is looking for TPTF guidance on whether protocols were correctly interpreted
• Three data items in particular:
1. CRR ownership of record (all owned CRRs)
2. “Base loading” CRRs (owned CRRs that are inputs into an auction)
3. Auction results
4TPTF – CRR IssuesNovember 27, 2007 4
1. CRR Ownership of Record
• Protocol language:NP 7.5.5.2: ERCOT shall post monthly, by the fifth Business Day of the month, on the MIS Public Area
CRR ownership of record for each source and sink pair and each flowgate: the identities of the CRR Account Holders, type of CRR held by that account holder, and total MWs held by that account holder.
• Current design:
5TPTF – CRR IssuesNovember 27, 2007 5
2. Base loading CRRs
• Protocol language:NP 7.5.3.2(1): Not less than 20 days before each annual CRR Auction and not less than 10 days before each monthly CRR Auction, ERCOT shall post the following to the MIS Public Area:
(a) For the CRR Auction, number and type (PTP Options or PTP Obligations) of CRRs previously awarded or allocated for each appropriate month, including the source and sink for each such CRR;
(b) For the CRR Auction, number of MCFRIs that have been previously awarded or allocated for each appropriate month, including the flowgate for each such MCFRI
• Current design:
6TPTF – CRR IssuesNovember 27, 2007 6
3. Auction Results (Public)
• Protocol language:NP 7.5.3.1(2): Following each CRR Auction, ERCOT shall post to the MIS Public Area the following
information for all outstanding CRRs following this auction:
(a) PTP Options and PTP Options with Refund – the source and sink , and total MWs;
(b) PTP Obligations and PTP Obligations with Refund – the source and sink and total MWs;
(c) FGRs – the identity of each directional flowgate, and the magnitude of positive flow (MW) on each directional network element represented by each flowgate;
(d) The identities of the CRR Account Holders that were awarded or allocated CRRs in or before the CRR Auction;
(e) The clearing prices for each strip of CRR blocks awarded in the CRR Auction;
• Current design (2 files – allocation results and auction results):
7TPTF – CRR IssuesNovember 27, 2007 7
EDS3 – Release 7 Handbook
• CRR EDS Handbook (EDS3 – R7)
– V1.0 specifies multi-month auction trial– In reviewing readiness metrics, a strong desire was expressed
for a full annual (24 month) CRR auction to be part of EDS– CRR EDS Handbook has been updated (v1.04) to include
testing of a full annual (24 month) CRR Auction– Reserving request for TPTF approval of an updated version of
the EDS Handbook until January, giving us time to finalize more details.
8TPTF – CRR IssuesNovember 27, 2007 8
EDS Reminders
December 1, 2007– Declare intent to participate in the EDS3-R7
email [email protected] with Primary Contact Name, Email and Telephone Number, as well as DUNS number of participating CRR AH.
– NOIEs submit PCRR Allocation Eligibility Form, along with proof of eligibility
Proof of eligibility includes copy of long-term contract or, if own resource, the following: Board of Directors Resolutions, Construction Contracts, Certificates of Completion of Construction, Property Tax Statements, Insurance Policies Listing the Generation Resource or Audited Financial Statements.
– NOIEs wishing to be considered as NOIE Load Zones during EDS 3 R7 must submit the NOIE Load Zone Establishment form
This notification will not be considered binding for Nodal go-live, however the indication will allow ERCOT to appropriately form the network model for EDS activities.
– Wind Generation Resources (WGRs ) within the boundaries McCamey Area wishing to receive MCFRIs during EDS must submit the Allocation Eligibility Form
– NOIEs and WGRs who submit the Allocation Eligibility Form must also submit the CRR AH application.
9TPTF – CRR IssuesNovember 27, 2007 9
EDS Reminders
January 15, 2008 – Market Participants wishing to participate in EDS3-R7 submit the
CRR AH application. – Market Participants wishing to participate must have registered for
and completed ERCOT CRR Training. • Note: only one representative from each participant organization is
required to attend CRR Training.
10TPTF – CRR IssuesNovember 27, 2007 10
CRR Registration status
• 20 entities (5 NOIEs) have emailed their intent to participate in EDS3-R7– Of those, 8 entities (3 NOIEs) have completed CRR AH
registration• 10 entities (3 NOIEs) have completed CRR AH registration but
have not declared their intent to participate in EDS3-R7
• Notable absentees:– CPS Energy(San Antonio), STEC, Brownsville, McCamey
WGRs
Registration status as of Monday, November 26 as known by the CRR team
11TPTF – CRR IssuesNovember 27, 2007 11
Business process clarification NPRR – “release mechanism”
• ERCOT proposes to remove the “release mechanism” language in the protocols as existing design provides a more elegant solution
• The following slides aim to explain the “release mechanism”
compared to proposed implementation
• Feedback desired on appropriate percentage for ‘base loading’ for Monthly Auction
• Assumptions made in this example (which may not exist in reality):– The network capacity for 2010-2011 is the same for all months– The nominated MW is the same for all months – The nominated MW amount is fully allocated; no monthly true-up
allocation required
12TPTF – CRR IssuesNovember 27, 2007 12
Available network capacity for 2010 and 2011
100 MW (capacity) 100 MW (capacity)
Year 2010 Year 2011
annual allocation
annualauction
before the monthly auc.
Jan monthly auction
after the monthly auc.
before the annual auc.
13TPTF – CRR IssuesNovember 27, 2007 13
Nominations for 2010 and 2011 submitted by NOIEs
100 MW (capacity) 100 MW (capacity)
60 MW (nominated) 60 MW (nominated)
Year 2010 Year 2011
annual allocation
annualauction
before the monthly auc.
Jan monthly auction
after the monthly auc.
before the annual auc.
14TPTF – CRR IssuesNovember 27, 2007 14
All nominations for 2010 and 2011 allocated – but only some released
100 MW (capacity) 100 MW (capacity)
60 MW (allocated) 60 MW (allocated)
60*55% = 33 MW (released)
60*15% = 9 MW (released)
Year 2010 Year 2011
annual allocation
annualauction
before the monthly auc.
Jan monthly auction
after the monthly auc.
before the annual auc.
15TPTF – CRR IssuesNovember 27, 2007 15
Remainder network capacity (up to 55% and 15%) auctioned
100 MW (capacity) 100 MW (capacity)
100*55% - 33 MW = 22 MW (auctioned)
60*55% = 33 MW (released)
60*15% = 9 MW (released)
100*15% - 9 MW = 6 MW (auctioned)
60 MW (allocated) 60 MW (allocated)
55
%1
5%
Year 2010 Year 2011
annual allocation
annualauction
before the monthly auc.
Jan monthly auction
after the monthly auc.
before the annual auc.
16TPTF – CRR IssuesNovember 27, 2007 16
Balance of PCRRs (up to 90% or additional 35%) released to NOIEs
100 MW (capacity) 100 MW (capacity)
100*55% - 33 MW = 22 MW (auctioned)
60*55% = 33 MW (released)
60*90% - 33 = 21 MW (released)
Year 2010 Year 2011
annual allocation
annualauction
before the monthly auc.
Jan monthly auction
after the monthly auc.
before the annual auc.
60*15% = 9 MW (released)
100*15% - 9 MW = 6 MW (auctioned)
60 MW (allocated)
17TPTF – CRR IssuesNovember 27, 2007 17
Remainder network capacity (up to 90%) auctioned
100 MW (capacity) 100 MW (capacity)
90
%
Year 2010 Year 2011
JAN
100*55% - 33 MW = 22 MW (auctioned)
60*55% = 33 MW (released)
60*90% - 33 = 21 MW (released)
100*90% - 33 - 21 - 22= 14 MW (auctioned)
annual allocation
annualauction
before the monthly auc.
Jan monthly auction
after the monthly auc.
before the annual auc.
60*15% = 9 MW (released)
100*15% - 9 MW = 6 MW (auctioned)
60 MW (allocated)
18TPTF – CRR IssuesNovember 27, 2007 18
Balance of PCRRs (additional 10%) for Jan 2010 released to NOIEs
100 MW (capacity) 100 MW (capacity)
100*90% - 33 - 21 - 22= 14 MW (auctioned)
60*100% - 33 - 21= 6 MW (released)
Year 2010 Year 2011
JAN
100*55% - 33 MW = 22 MW (auctioned)
60*55% = 33 MW (released)
60*90% - 33 = 21 MW (released)
60 MW (allocated)
90
%
annual allocation
annualauction
before the monthly auc.
Jan monthly auction
after the monthly auc.
before the annual auc.
60*15% = 9 MW (released)
100*15% - 9 MW = 6 MW (auctioned)
19TPTF – CRR IssuesNovember 27, 2007 19
Summary of CRRs Distributed
Proposed implementation simplifies the process
Per PCRR release
mechanism
Allocation 60
Annual Auction
22
Monthly Auction
14
Total distributed prior to DAM
96
Current PCRR release mechanism
does not provide 10% cushion
20TPTF – CRR IssuesNovember 27, 2007 20
Available network capacity for 2010 and 2011
100 MW (capacity) 100 MW (capacity)
Year 2010 Year 2011
annual allocation
annualauction
Jan monthly auction
21TPTF – CRR IssuesNovember 27, 2007 21
All nominations for 2010 and 2011 allocated
100 MW (capacity) 100 MW (capacity)
60 MW (nominated & allocated) 60 MW (nominated & allocated)
Year 2010 Year 2011
annual allocation
annualauction
Jan monthly auction
22TPTF – CRR IssuesNovember 27, 2007 22
Network capacity (up to 55% and 15%) auctioned
100 MW (capacity) 100 MW (capacity)
100*55% - 33 MW = 22 MW (auctioned)
60*55% = 33 MW (base loaded in Auction)
60*15% = 9 MW (base loaded in Auction)
100*15% - 9 MW = 6 MW (auctioned)
60 MW (allocated) 60 MW (allocated)
55
%1
5%
Year 2010 Year 2011
annual allocation
annualauction
Jan monthly auction
23TPTF – CRR IssuesNovember 27, 2007 23
Network capacity (up to 90%) auctioned
100 MW (capacity) 100 MW (capacity)
90
%
Year 2010 Year 2011
JAN
60*90% = 54 MW (base loaded in auction)
60 MW (allocated)
100*90% - 54 - 19.8 = 16.2 MW (available for auction)
annual allocation
annualauction
Jan monthly auction
60*15% = 9 MW (base loaded in Auction)
100*15% - 9 MW = 6 MW (auctioned)
22*90% = 19.8 MW (based loaded in auction)
2.2 MW (previously auctioned)
6 MW (previously allocated)
24TPTF – CRR IssuesNovember 27, 2007 24
Summary of CRRs Distributed
Per PCRR release
mechanism
Proposed Implementation
90% base loading for
Monthly
Alternate Implementation
100% base loading for
monthly
Allocation 60 60 60
Annual Auction
22 22 22
Monthly Auction
14 16.2 8
Total distributed prior to DAM
96 98.2 90
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