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EILP Proposal

EILP Proposal. A Consumer’s Thoughts Alice Jackson Occidental Energy Ventures Corp. Overview. PUC agreed another tool is promptly necessary to ensure ERCOT reliability (Open Meeting – Oct. 13 th ). A market based solution would offer the flexibility necessary to minimize market costs.

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EILP Proposal

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  1. EILP Proposal A Consumer’s Thoughts Alice Jackson Occidental Energy Ventures Corp

  2. Overview • PUC agreed another tool is promptly necessary to ensure ERCOT reliability (Open Meeting – Oct. 13th). • A market based solution would offer the flexibility necessary to minimize market costs. • It is key to utilize the excess LaaR being prorated for EILP in addition to other capable market participants.

  3. Who can participate? • Qualifications & Testing • Any load (or aggregated loads) with a response amount greater than or equal to 1 MW may participate • IDR Meter is required so that availability and response can be measured • Participants will be expected to demonstrate capabilities through testing (a successful event response could replace a test) • Participants must disarm any installed UFR so that they remain online for the manual call requirement even if a frequency event occurs

  4. How is EILP purchased? • Procurement • ERCOT issues a monthly notice of EILP quantity necessary for reliability ten business days prior to month start • Bidding for EILP provision commences similar to the other daily Ancillary Services seven business days prior to month start • EILP pricing is determined by its own clearing price • Alternative Procurement • If determined necessary by ERCOT the purchase period could be seasonal or annual instead of monthly

  5. Who will participate? • Participants • Any IDR metered load that can respond within 10 minutes to a manual call with a minimum of 1 MW • Commercial • Manufacturing facilities • Steel Mills • Existing LaaRs that are willing to commit to the EILP program for the procurement period

  6. Deployment • Performance • Deployment: Within 10 minutes of request by ERCOT to EILP participant’s QSE. • Simplest for ERCOT • Consistent with present market design • Alternative Deployment: Within 10 minutes of request by ERCOT directly to participant. • If felt necessary by ERCOT can be done • Not consistent with design, a lot more administratively burdensome on ERCOT • Deployment of the EILP participants would take place as a last resort prior to rolling black outs • Clawback for non-performance • For repeated non-performance the participant would be banned from the program

  7. Benefits • EILP will only be procured monthly when/as necessary, thus overall cost to the market should be reduced. • Market based clearing price should reduce costs versus an administratively set price. • Can be started quickly because qualification, testing, deployment and evaluation processes are already in place and active in the market. • Large pool of potential suppliers.

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