settlements 301 - ercot.com · 4 this course is designed to provide key information to anyone who...

ERCOT Market Education

Settlements 301

2

This presentation provides a general overview of the Texas

Nodal Market and is not intended to be a substitute for the

ERCOT Protocols, as amended from time to time. If any

conflict exists between this presentation and the ERCOT

Protocols, the ERCOT Protocols shall control in all respects.

For more information, please visit:

http://www.ercot.com/mktrules/nprotocols/

Legal Disclaimers and Admonitions

Protocol Disclaimer

http://www.ercot.com/mktrules/nprotocols/

3

Housekeeping

• Restrooms

• Refreshments

• Attendance sheet

• Questions

Please silence smart phones

& other electronics

4

This course is designed to provide key information to anyone

who needs to understand financial settlements in the ERCOT

Wholesale Market.

Course Audience

This includes:

• Market Participants and ERCOT

staff who will be directly involved

in Congestion Revenue Rights,

Day-Ahead, and Real-Time

Settlements and Invoicing

• All Market Participants who are

part of the settlement process

5

Course Topics

CRR Auction

Revenue

Distribution

Charges & Payments for CRRs

6

Course Topics

DAM

Participation in DAM

• Energy

• AS

• PTP Obligations

DAM Commitment

• Make-Whole

Settlement of CRRs purchased in the Auction

CRR Auction

Revenue

Distribution


7

Course Topics

DAM


• Energy

• AS

• PTP Obligations

DAM Commitment

• Make-Whole


CRR Auction

Revenue

Distribution


CRR Balancing

Account

Reconcile CRR

Short payments

8

Course Topics

DAM


• Energy

• AS

• PTP Obligations

DAM Commitment

• Make-Whole


CRR Auction

Revenue

Distribution


CRR Balancing

Account

Reconcile CRR

Short payments

RUC

Commitment

• Make-Whole

• Clawback

Decommitment

9

Course Topics

DAM


• Energy

• AS

• PTP Obligations

DAM Commitment

• Make-Whole


CRR Auction

Revenue

Distribution


RUC

Commitment

• Make-Whole

• Clawback

Decommitment

Real-Time

Real-Time Activities

• Imbalances

• Base Point Deviations

• Other odds & ends

Settlement of PTP Obligations purchased in the DAM

Real Time Ancillary Service Settlements

Revenue Neutrality

CRR Balancing

Account

Reconcile CRR

Short payments

10

Course Topics

Statements & Invoicing

CRR Balancing

Account Real-Time

RUCDAM

CRR

Auction

11

• Review Operational Concepts

• Define operational impact to settlements

• Settlement Examples

• Payments

• Charges

• Revenue Neutrality

−Direct Assignment

−Obligation

−Load Allocation

Classroom Approach

12

Cast of Characters

The Settlements Story

13

• Name

• Company for which you work

• Market Entity

• QSE

• TSP

• ERCOT

• Resources

• Other

• Experience in the industry or experience with Settlements

Please let us know your:

Introductions

14

As a class, we will:

• See two definitions on the screen for a Nodal Settlements

term

• Choose which statement is true

Terminology – Something old; Something new

Activity: Market Settlement Terminology

LMP

UFE

AML

LRS

SPP

DAM

CRR

PTP

AMT

RUC

15

Locational Marginal Pricing (LMP):


The marginal cost of relieving one MW of congestion on a

Transmission constraint N

The offer-based marginal cost of serving the next

increment of Load at an Electrical BusTrue?

?

16

Settlement Point Price:


A price calculated for a Settlement Point for each

Settlement Interval using Shadow Prices N

A price calculated for a Settlement Point for each

Settlement Interval using LMPsTrue?

?

17

Settlement Intervals:


15 minutes:

• Day-Ahead Market

Hourly:

• Real-Time

• Congestion Revenue Rights N

15 minutes:

• Real-Time

Hourly:

• Congestion Revenue Rights

• Day-Ahead MarketTrue?

?

18

Charge Type:


A line item on an ERCOT Settlement Statement True

A choice a customer must make when paying their bill

(i.e. Visa, MasterCard, etc.) N?

?

19

Billing Determinant:


A variable used in Settlements to calculate a Charge Type True

A flag that determines the Statement on which a Charge

Type Appears N?

?

20

Adjusted Metered Load:


Load usage data that has been adjusted for the difference

between scheduled load and actual load. N

Load usage data that has been adjusted for

Transmission Losses, Distribution Losses, and

Unaccounted for Energy (UFE)

True?

?

21

Metering and Data Aggregation


Meter Data

Load Serving Entity (LSE)

Qualified Scheduling Entity (QSE)

Distribution Losses

Transmission Losses

Adjusted Metered Load (QSE)

Unaccounted For Energy (UFE)

22

Load Ratio Share:


The ratio of an Entity’s Adjusted Metered Load to total

ERCOT Adjusted Metered Load for an intervalTrue

The ratio of an Entity’s Adjusted Metered Load to

Adjusted Metered Generation for an interval N?

?

23

Module Conclusion

DAM


• Energy

• AS

• PTP Obligations

DAM Commitment

• Make-Whole


CRR Auction

Revenue

Distribution


RUC

Commitment

• Make-Whole

• Clawback

Decommitment

Real-Time

Real-Time Activities

• Imbalances

• Base Point Deviations

• Other odds & ends

Settlement of PTP Obligations purchased in the DAM

Real Time Ancillary Service Settlements

Revenue Neutrality

CRR Balancing

Account

Reconcile CRR

Short payments

settlements 301 - ercot.com · 4 this course is designed to provide key information to anyone who...

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