role of account management at ercot prr 672 collaborative analysis presentation to rms november 8,...

Role of Account Management at ERCOT

PRR 672 Collaborative Analysis

Presentation to RMS

November 8, 2006

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Background of PRR672

• PRR written as a result of changes from Terms and Conditions.

• PRR requested timing changes for ERCOT processing of

transactions – TCTF noted in original PRR:

– A group needs to review CR and TDSP transaction timing requirements related to Terms and Conditions project to be addressed in a separate PRR.

• Group shared that ERCOT timing was first priority. TDSPs and CRs are reviewing timing changes.

– Due to the mandatory nature of the rulemaking, TCTF would also ask that ERCOT consider and present other options that may be less expensive to implement in the event that the changes proposed in this PRR would be cost prohibitive or would not allow implementation by the dates required by the rulemaking.

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Background of PRR672

• PRR puts ERCOT transaction timings into four categories based on their priority in the marketplace:– Level 1 Transactions: Including transaction pairs (inbound and outbound)

relating to 814_16 priority move-ins and 814_20 creates (adds), which should be processed within 1 Retail Business Hour (any hour within a Retail Business Day as defined in Section 2 of Protocols).

– Level 2 Transactions: Including transaction pairs relating to standard move-ins, move-outs, Off cycle Drops to AREP and Off cycle switches, which should be processed within 2 Retail Business Hours.

– Level 3 Transactions: Including transaction pairs relating to historical usage transactions, and 814_20 changes, which should be processed within 4 Retail Business Hours.

– Level 4 Transactions: Including pairs relating to On-cycle Switches, On-cycle Drops, 814_26 Ad Hoc Usage Request, Establishing/Deleting CSA within 1 Retail Business Day.

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PRS recommendation 7/20/06

• On 07/20/06, PRS voted to recommend approval of PRR672 as submitted by the Retail Market Subcommittee (RMS). Revised language will be grey-boxed until system implementation. ERCOT will be directed to implement priority move-ins within two (2) Retail Business Hours with the TX SET 3.0 implementation. Remaining grey-boxed language will be implemented with future system functionality. ERCOT and Market Participants will have a collaborative analysis of Retail Business Processes (RBP) associated with PRR672 transaction timing changes. Results of the analysis will be presented to RMS no later than the November 2006 RMS meeting.

• Rank and priority: – Two (2) Retail Business Hours processing and sorting of priority move-in

to be included with TX SET 3.0.– All other changes for PRR672 will be included in Project 60008_01

(priority 1.1; rank 10) • The motion passed with one (1) abstention from the Municipal segment.

All Market Segments were present for the vote.

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TAC recommendation to BOD 8/3/06

• On 08/03/06, TAC voted to recommend approval of PRR672 with

Phase 2 and Phase 3 language to be grey-boxed and assigned a

high priority to Phase 1.

• Priorities for Phase 2 and Phase 3 will be considered after

system and impact analyses have been completed and issues

have been further vetted.

• TAC will present Phase 1 and its associated costs to the ERCOT

Board for approval at this time.

• Phase 2 and Phase 3 costs will be further defined upon

completion of analysis.

• The motion passed with two oppositions from the Consumer

segment. All Market Segments were present for the vote.

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BOD action 8/15/06

• The Board voted unanimously to approve PRR672 as

recommended by TAC.

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Collaborative Analysis – Level 1 Recap

• Level 1 Transactions: Including transaction pairs (inbound and outbound) relating to 814_16 priority move-ins and 814_20 creates (adds), which should be processed within 1 Retail Business Hour (any hour within a Retail Business Day as defined in Section 2 of Protocols).

• Findings support timing changes for:– 814_16 Priority Move-Ins

• Approach - Two (2) Retail Business Hours processing and sorting of priority move-in to be included with TX SET 3.0.

• Approach – additional system changes (going from 2hr to 1hr) to be managed in PR60008 – Market decision to re-rank

• Findings by ERCOT support alternative to changing transaction timing for:

– 814_20 Creates (adds)• ERCOT recommends near term approach – changing transaction flow process for

814_20s (Two SIRs to be in Feb 2007 release)– Automate the 814_20s throttling capabilities within current processing pipe (all 814s) – Building a separate processing pipe for 814_20/814_21 processing

• ERCOT requests the market to review the production results from the near-term before adding system changes to PR60008 for the 814_20s

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Findings from Analysis – Level 1 transactions

• Priority Move-Ins

– TDSP needs to receive by 5pm or the order is considered received the next business day.

– CRs may need to review their batch times

– CRs may need to review their call center scripts to ensure that customer expectations are set appropriately

Tim

e re

ceiv

ed b

y E

RC

OT

To

tal

Mo

ve-i

ns

Rec

eive

d

Ou

t b

y 5p

m

No

t o

ut

by

5pm

% D

id n

ot

Get

Ou

t

12 a.m. 150 150 - 0% 1 a.m. 130 130 - 0% 2 a.m. 159 159 - 0% 3 a.m. 102 102 - 0% 4 a.m. 100 100 - 0% 5 a.m. 100 100 - 0% 6 a.m. 808 808 - 0% 7 a.m. 5,020 5,020 - 0% 8 a.m. 6,494 6,494 - 0% 9 a.m. 4,916 4,916 - 0% 10 a.m. 7,272 7,271 1 0% 11 a.m. 7,139 7,138 1 0% 12 p.m. 11,000 10,490 510 5% 1 p.m. 11,633 9,497 2,136 18% 2 p.m. 8,898 3,659 5,239 59% 3 p.m. 8,176 566 7,610 93% 4 p.m. 10,281 440 9,841 96%

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Collaborative Analysis – Level 2 recap

• Level 2 Transactions: Including transaction pairs relating to standard move-ins, move-outs, Off cycle Drops to AREP and Off cycle switches, which should be processed within 2 Retail Business Hours

• Findings support timing changes for:– Standard Move-ins– Move outs

• Approach – additional system changes (going to 2 hr) to be managed in PR60008 – Market decision to re-rank

• ERCOT does not believe that the analysis support the timing changes for the following:

– Off-cycle Switches – Off-cycle Drop to AREP

• ERCOT plans to file another PRR to move these to Level 4• Market participants did not agree with the moving from Level 2 to Level 4

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• Standard Move-Ins

– Standard move ins need to be received 2 business days prior to the requested date. TDSP needs to receive by 5pm or the order is considered received the next business day.

– CRs may need to review their batch times

– CRs may need to review their call center scripts to ensure that customer expectations are set appropriately

Tim

e re

ceiv

ed b

y E

RC

OT

To

tal

Mo

ve-i

ns

Rec

eive

d

Ou

t b

y 5p

m

No

t o

ut

by

5pm

% D

id n

ot

Get

Ou

t

12 a.m. 150 150 - 0% 1 a.m. 130 130 - 0% 2 a.m. 159 159 - 0% 3 a.m. 102 102 - 0% 4 a.m. 100 100 - 0% 5 a.m. 100 100 - 0% 6 a.m. 808 808 - 0% 7 a.m. 5,020 5,020 - 0% 8 a.m. 6,494 6,494 - 0% 9 a.m. 4,916 4,916 - 0% 10 a.m. 7,272 7,271 1 0% 11 a.m. 7,139 7,138 1 0% 12 p.m. 11,000 10,490 510 5% 1 p.m. 11,633 9,497 2,136 18% 2 p.m. 8,898 3,659 5,239 59% 3 p.m. 8,176 566 7,610 93% 4 p.m. 10,281 440 9,841 96%

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• Move-outs

–85% are submitted 2 or more days ahead–These are Move Outs, Move Out to CSA – does not include force off–Move Outs need to be received 2 business days prior to the requested date. TDSP needs to receive by 5pm or the order is considered received the next business day.

Transaction Submitted CountPercent of

Total

Submitted 3 or More Days Ahead 32,911 71%Submitted 2 Days Ahead 6,674 14%Submitted for Next Day 1,407 3%Submitted for Same Day 4,684 10%Backdated 1 Day 440 1%Backdated 2 or More Days 246

Total Move Out Transactions 46,362

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Findings from Analysis – Off Cycle Switches

Switches with a Special Switch Date

-

200

400

600

800

1,000

1,200

Days submitted ahead

Nu

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of

Tra

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ERCOT does not believe the analysis supports the timing changes for the following:

Off-cycle Switches •Market behavior of sending >15 days from date requested – changing the timing does not change the result for the end use customer•Protocol language for First Available Switch Date (FASD)

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Excerpt from Protocol 15.1.1

The FASD for a Switch Request where notification has not been waived is calculated as follows:

FASD = EPD + 3BD (Mailing to notify Customer of the pending Switch Request)+ 7CD (Customer Rescission Period)+ 3BD (Processing time to allow for potential cancellation by Customer)

In the event that Customer notification has been waived, the CR will indicate such a waiver in the 814_01 transaction. For additional information concerning which Customer class and /or events would qualify for a waiver of Customer notification, CRs should refer to the PUCT rules.

The FASD is calculated as follows for a waiver of notification:FASD = EPD + 3BD (Processing time)

Where:EPD = ERCOT Processed DateBD = Business Day (Does not include TDSP holidays.)CD = Calendar Day

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Findings from Analysis – Off Cycle Drop to AREP


Off-cycle Drop to AREP•Market behavior of sending at least 8 days from date requested – changing the timing does not change the result for the end use customer•Protocol language for First Available Switch Date (FASD)

Drop to AREP Days Submitted Prior to Scheduled

0

50

100

150

200

250

300

8 10 12 14 16 18 20 22 24 27 29 31 33 35 37 39

Days

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f T

ran

sact

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s

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Findings from Analysis – Off Cycle Drop to AREP


Off-cycle Drop to AREP

•Protocol language for First Available Switch Date (FASD) – excerpt from 15.1.2.1

The FASD for a Drop to AREP Request is calculated starting with the date that ERCOT processes the 814_10 sent by the CR. The FASD is calculated as follows:

FASD = EPD + 6BD (Processing time)

Where:EPD = ERCOT Processed DateBD = Business Day (Does not include TDSP holidays.)

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• Level 3 Transactions: Including transaction pairs relating to historical usage transactions and 814_20 changes (i.e. maintains), which should be processed within 4 Retail Business Hours

• Findings by ERCOT support alternative to changing transaction timing for:

– 814_20 changes (i.e. maintains)• ERCOT recommends near term approach – changing transaction flow process

for 814_20s (Two SIRs to be in Feb 2007 release)– Automate the 814_20s throttling capabilities within current

processing pipe (all 814s) – Building a separate processing pipe for 814_20/814_21 processing

• ERCOT requests the market to review the production results from the near-term before adding system changes to PR60008 for the 814_20s

• Findings indicate that ERCOT already meets the 4 hour turn for historical usage (867_02).

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• Level 4 Transactions: Including pairs relating to On-cycle

Switches, On-cycle Drops, 814_26 Ad Hoc Usage Request,

Establishing/Deleting CSA within 1 Retail Business Day.

– Does not change current protocol timing. – No analysis requested by Market.– ERCOT will recommend adding additional transactions to this

category based upon the analysis shared with the market.

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Collaborative Analysis Recommendations

Recommendations:

1. TX SET 3.0 – priority Move ins w/in 2 hours – in progress

2. Ask ERCOT to move forward with near-term recommendations for 814_20 processing changes to be implemented prior to PR60008.

Automate the 814_20s throttling capabilities within current processing pipe (all 814s)

Building a separate processing pipe for 814_20/814_21 processing

3. Re-rank and initiate project PR60008 (remainder of grey box)– Intent of PR60008 is to implement remainder of grey box changes to

address timing of transactions – Intent of PR60008 also to include changes from a PRR that ERCOT will

draft for prioritization of all transactions (as set by analysis from this group) and recommend moving off-cycle switches and drops to AREP to level 4 transactions (not everyone participating agreed)

– Once re-ranked, ERCOT would provide IA and CBA for system changes (using information from collaborative analysis)

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Collaborative Analysis Closure

• PRR 672

– Phase 1 – already underway for TX SET 3.0

– Phase 2 & 3 – Collaborative Analysis / Future system release (PR60008 – Terms & Conditions)

• This report back to RMS at Nov 06 Meeting• RMS to report to TAC in Dec 06• TAC to report to BOD in Jan 07

– Near term – ERCOT to begin work on near term recommendations

– Long term – Market make decision to reprioritize PR60008 for 2007 Project list

• Market may file PRR on CR / TDSP timing changes that are needed

• ERCOT will draft PRR for prioritization of all transactions (as set by

analysis from this group) and recommend moving off-cycle switches

and drops to AREP to level 4 transactions

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Collaborative Analysis Closure

814_20 processing - Until near-term recommendations are

implemented – ERCOT encourages TDSPs to continue to

communicate to ERCOT any large volumes of 814_20s to be

managed through current market processes (bundles and

manual intervention by ERCOT and TDSPs).

Long Term analysis continues at TX SET

This concludes the Collaboration effort for PRR672. Thank you

for your support.

role of account management at ercot prr 672 collaborative analysis presentation to rms november 8,...

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