Nodal Protocols Revision Request
NPRR Number / NPRR Title / Nodal Protocol Revisions to the RMR Startup CalculationNodal Protocol Revisions to the RMR Startup Energy PaymentDate Posted
Nodal Protocol Section(s) Requiring Revision (Include Section No. and Title) / 6.6.6.2 RMR Payment for Energy
Revision Description / This revision incorporates language from the Eligibility Process.
Reason for Revision / To incorporate provisions for multiple starts in a day from different markets. This language points to the Eligibility Process which is used to determine if an RMR unit is to be compensated for its startup costs.
Overall Market Benefit
Overall Market Impact / None.
Consumer Impact / None.
Credit Implications
(Yes or No, and summary of impact) / None.
Reason for Revision (from Transition Plan Task Force (TPTF) Charter Scope) / (1) Revisions resulting from Commission orders;
(2) Clarifications of Protocol language that do not change the intent or technical specifications of the Protocols;
(3) Correction of technical errors or processes that are found to not be technically feasible;
(4) Revisions to the Protocols necessary to implement the results of the value engineering analysis or to otherwise avoid severe cost impacts; or
(5) Other (describe):
TPTF Review (Yes or No, and summary of conclusion)
Sponsor
Name / Nile Scott
E-mail Address /
Company / ERCOT
Company Address / 2705 West Lake Dr., Taylor, TX 76574
Phone Number / (512) 248-3949
Cell Fax Number / (512) 248-6560
Market Segment
ERCOT/Market Segment Impacts and Benefits
Instructions: To allow for comprehensive NPRR consideration, please fill out each block below completely, even if your response is “none,” “not known,” or “not applicable.” Wherever possible, please include reasons, explanations, and cost/benefit analyses pertaining to the NPRR.
Assumptions / 1 / Example: Key assumptions used in estimating market cost and/or benefit2 / Ex: Dependencies on other projects or other timing requirements
3
4
Impact Area / Monetary Impact
Market Cost / 1 / Example: Cost per MP to implement / Example: $10,000 each for 50 QSEs
2 / Ex: Add’l staff required per MP / Ex: 1.5 FTE each for 6 TDSPs @ $65/hour
3
4
Impact Area / Monetary Impact
Market Benefit / 1 / Example: Reduced MP costs / Example: 2 FTE reduction for 25 CRs @ $65/hour
2 / Ex: Enhanced MP efficiency / Ex: 2 hour savings per day for 50 generators @$65
3 / Ex: Reduced congestion cost / Ex: 0.5% reduction in total congestion cost
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Additional Qualitative Information / 1 / What to include here: Benefits that are difficult to quantify
2 / What to include here: Benefits that are not certain but relatively likely
3 / What to include here: Customer service impacts, cash flow impacts, transaction speed, etc.
4
Other Comments / 1 / Inclusion of these revisions provides for a Nodal market design that more completely reflects the intentions of the ERCOT stakeholders. What to include here: Thoughts on ERCOT systems impacts
2 / What to include here: Potential manual workarounds or delivery options
3 / What to include here: Other comments of value to PRS, TAC and the Board of Directors
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Proposed Nodal Protocol Language Revision
6.6.6.2 RMR Payment for Energy
(1) Payment for energy on the Initial Settlement and settlements executed before True-up and before actual cost data is submitted must be calculated using the estimated input/output curve and startup fuel as specified in the RMR Agreement, the actual energy produced and the Fuel Index Price. The payment for energy for all other settlements must be based on actual fuel costs for the RMR Unit. The payment for energy for each hour is calculated as follows:
RMREAMT q, r = (-1) * ((FIP + RMRCEFA q, r) * RMRSUFQ q, r / RMRH q, r) * RMRSUFLAG RMRALLOCFLAG q, r + (((FIP + RMRCEFA q, r) * RMRHR q, r, i + RMRVCC q, r) * RTMG q, r, i)
The RMRSUFQ and RMRALLOCFLAG are determined by eligibility for start payments and commitments in either the RUC or DAM markets.
The above variables are defined as follows:
Variable / Unit / DefinitionRMREAMT q, r / $ / Reliability Must Run Energy Amount per QSE per Resource by hour—The energy payment to QSE q for RMR Unit r, for the hour.
FIP / $/MMBtu / Fuel Index Price—The Fuel Index Price for the Operating Day.
RMRSUFQ q, r / MMBtu / Reliability Must Run Startup Fuel Quantity per QSE per Resource¾The Estimated Startup Fuel specified in the RMR Agreement for RMR Unit r represented by QSE q.
RMRH q, r,h / hour / Reliability Must Run Hours—The number of hours during which RMR Unit r represented by QSE q is instructed On-Line for the Operating Day.
RMRSUFLAG RMRALLOCFLAG q, r / none / Reliability Must Run Startup Flag per QSE per Resource by hour—The number that indicates whether or not the startup fuel cost of RMR Unit r represented by QSE q is allocated to the hour. The startup fuel cost will be allocated equally to all contiguous intervals for which there is an eligible start. The RMRALLOCFLAG Its value is 1 if the startup fuel cost is allocated; otherwise, its value is 0.
SUFLAG q,r / none / StartUp Flag -- The number that indicates whether or not the RMR unit is eligible for a startup fuel payment starting in that interval, and indicates the market in which the startup costs were awarded. 1 for DAM, 2 for RUC
STARTTYPE q,r / none / Start Type for the RUC market – The number that indicates the type of start for which the RMR unit is to be compensated in the hourly interval h. 1 for Hot, 2 for Intermediate (warm), or 3 for Cold.
DASTARTTYPE q,r / none / Start Type for the DA market – The number that indicates the type of start for which the RMR unit is to be compensated in the hourly interval h. 1 for Hot, 2 for Intermediate (warm), or 3 for Cold.
RMRHR q, r, i / MMBtu /MWh / Reliability Must Run Heat Rate per QSE per Resource by Settlement Interval by hour—The multiplier determined based on the input/output curve and the Real-Time generation of RMR Unit r represented by QSE q, for the 15-minute Settlement Interval i in the hour.
RMRVCC q, r / $/MWh / Reliability Must Run Variable Cost Component per QSE per Resource—The monthly cost component that is used to adjust the energy cost calculation to reflect the actual fuel costs of RMR Unit r represented by QSE q. The value is initially set to zero. For resettlements, see item (2) below.
RTMG q, r, i, / MWh / Real-Time Metered Generation per QSE per Resource by Settlement Interval by hour— The Real-Time energy from RMR Unit r represented by QSE q, for the 15-minute Settlement Interval i in the hour h.
RMRCEFA q, r / $/MMBtu / Reliability Must Run Contractual Estimated Fuel Adder—The Estimated Fuel Adder that is contractually agreed upon in Section 22F, Attachment F, Standard Form Reliability Must-Run Agreement.
q / none / A QSE.
r / none / An RMR Unit.
i / none / A 15-minute Settlement Interval.
(2) If the RMR actual fuel cost is filed in accordance with the timeline in these Protocols, the monthly RMR variable cost component is calculated for the subsequent resettlements as follows:
RMRVCC q, r = (RMRMFCOST q, r + RMREAMT q, r, f, h) /
(RTMG q, r, i)
The above variables are defined as follows:
Variable / Unit / DefinitionRMRVCC q, r / $/MWh / Reliability Must Run Variable Cost Component per QSE per Resource—The monthly cost component that is used to adjust the energy cost calculation to reflect the actual fuel costs of RMR Unit r represented by QSE q.
RMRMFCOST q, r / $ / Reliability Must Run Monthly actual Fuel Cost per QSE per Resource—The monthly actual fuel cost of RMR Unit r represented by QSE q, for the month.
RTMG q, r, i / MWh / Real-Time Metered Generation per QSE per Resource by Settlement Interval—The Real-Time energy from RMR Unit r represented by QSE q for the 15-minute Settlement Interval i.
q / none / A QSE.
r / none / An RMR Unit.
h / none / An hour in the month.
i / none / A 15-minute Settlement Interval in the month.
RMREAMT q, r, f, h / $ / Reliability Must Run Energy Amount per QSE per Resource by hour—The energy payment to QSE q for RMR Unit r, for the hour h from the former Settlement Statement f.
f / none / Amount from former settlement run.
(3) The total of the payments for energy to each QSE for all RMR Units represented by this QSE for a given hour is calculated as follows:
RMREAMTQSETOT q = RMREAMT q, r
The above variables are defined as follows:
Variable / Unit / DefinitionRMREAMTQSETOT q / $ / Reliability Must Run Energy Amount QSE Total per QSE¾The total of the energy payments to QSE q for all RMR Units represented by this QSE for the hour.
RMREAMT q, r / $ / Reliability Must Run Energy Amount per QSE per Resource by hour—The energy payment to QSE q for RMR Unit r, for the hour.
q / none / A QSE.
r / none / An RMR Unit.
Section 22
Attachment F:
Standard Form Reliability Must-Run Agreement
Standard Form Reliability Must-Run Agreement
Between
(Participant)
and
Electric Reliability Council of Texas, Inc.
This Reliability Must-Run Agreement (“Agreement”), effective as of ______of ______, ______(“Effective Date”), is entered into by and between [insert Participant’s name], a [insert business entity type and state] (“Participant”) and Electric Reliability Council of Texas, Inc., a Texas non-profit corporation (“ERCOT”).
Recitals
WHEREAS:
Participant is a Resource Entity as defined in the ERCOT Protocols, and Participant intends to supply Reliability Must-Run Service;
ERCOT is the Independent Organization certified under PURA §39.151 for the ERCOT Region; and
The Parties enter into this Agreement in order to establish the terms and conditions by which ERCOT and Participant will discharge their respective duties and responsibilities under the ERCOT Protocols.
Agreements
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, ERCOT and Participant (the “Parties”) hereby agree as follows:
Section 1. Unit-Specific Terms.
Start Date: ______, 20_____.
Stop Date: ______, 20_____.
RMR Unit:______.
D. Description of RMR Unit [including location, name of Resource, etc.]: ______, as described in more detail on Exhibit 1. Exhibit 1 should include any significant maintenance and operational information needed for ERCOT to comply with these Protocols. If Unit is a combined-cycle Generation Resource, indicate the Unit’s operational capability for each power train as envisioned to supply RMR service as specified in the ERCOT Protocols in effect on the Effective Date.
F. RMR Unit Information
(1) RMR Capacity: _____ MW.
(2) Power factor lagging
(a) _____ P.F. (at generator main leads); and
(b) _____ P.F. (at high side of main power transformer)
(3) Power factor leading
(a) _____ P.F. (at generator main leads); and
(b) _____ P.F. (at high side of main power transformer)
(4) Target Availability
G. Delivery Point: ______
H. Revenue Meter Location (Use Resource IDs): ______
I. Operational and Environmental Limitations (check and describe all that apply):
(1) Operational
¨ Maximum annual hours of operation: ______
¨ Maximum annual MWh: ______
¨ Maximum annual starts: ______
¨ Other: ______
(2) Environmental
¨ Maximum annual NOx emissions: ______
¨ Maximum annual SO2 emissions: ______
¨ Other: ______
If applicable, upon ERCOT’s request, Participant shall make reasonable efforts to secure additional credits or allowances to allow additional operation of the RMR Unit if ERCOT’s planned use will exceed any of the Environmental Limitations set forth above. Participant shall provide ERCOT with advance notice of the cost of these credits prior to making the purchase. The value of any additional credits acquired at ERCOT’s request shall be considered Eligible Costs.
J. Inputs for Payments for RMR Unit:
Estimated Start Up Fuel:______MMBtu per start.
(a) Warm Start: ____
(b) Cold Start: _____
Estimated Fuel Adder
I/O Curve (MMBtu per MW per hour), attached as Exhibit 2.
Estimated Standby Cost: $______per hour.
Incentive Factor Percentage: ______% of Eligible Costs.
K. Notice. All notices required to be given under this Agreement shall be in writing, and shall be deemed delivered three days after being deposited in the U.S. mail, first-class postage prepaid, registered (or certified) mail, return receipt requested, addressed to the other Party at the address specified in this Agreement or shall be deemed delivered on the day of receipt if sent in another manner requiring a signed receipt, such as courier delivery or Federal Express delivery. Either Party may change its address for such notices by delivering to the other Party a written notice referring specifically to this Agreement. Notices required under the ERCOT Protocols shall be in accordance with the applicable Section of the ERCOT Protocols.
If to ERCOT:
Electric Reliability Council of Texas, Inc.
7620 Metro Center Drive
Austin, Texas 78744-1654
Tel No. (512) 225-7000
Attn: ERCOT Legal Department
If to Participant:
[insert information]
NPRR Submission Form 060107_RMR_Startup_only.docNPRR Submission Form 060107.doc Page 1 of 5
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