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S&B Protocol Clarifications

This document seeks clarification and guidance on the settlement treatment of Quick Start Generation Resources (QSGR) within ERCOT protocols. It involves reviewing the value of 'q' for QSGR settlement and the decommitment of a Resource requested by a Qualified Scheduling Entity (QSE) from the Day-Ahead Market (DAM). Key points include the annual review of 'q' by the TAC, its market notification, and the process for decommitment that impacts Day-Ahead Make-Whole Payments. Stakeholder feedback on these protocols is requested.

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S&B Protocol Clarifications

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  1. S&B Protocol Clarifications ERCOT Mandy Bauld WMS

  2. Agenda • Seeking guidance regarding review of the value of q for QSGR settlement • Seeking clarification regarding settlement treatment of a QSE-requested decommitment of a DAM committed interval

  3. Value of q for QSGR Settlement • Refer to Protocol Section 3.8.3Quick Start Generation Resources • Paragraph (8) • If a QSGR comes On-Line as a result of a Base Point less than its COP LSL, the energy produced during the first q consecutive Settlement Intervals beginning with the Settlement Interval in which the QSGR comes On-Line shall be considered for additional compensation pursuant to Section 6.6.9, Emergency Operations Settlement, and using SCED Base Points in place of the Emergency Base Points. The value of q shall be reviewed at least annually by TAC. The value of q shall be provided to the market via Market Notice within three Business Days after a TAC approval of a change in value, and the new value shall be effective on the first day of the next month. Following a SCED QSGR deployment, the QSGR is expected to follow the SCED Base Points. • Note • The value q is currently set to 2, as specified in the “PRS Decision” description within NPRR 272 • Questions • Does the value of q need to be reviewed by WMS/QMWG before TAC? • Should TAC review the value of q for an effective date of 1/1/2012?

  4. QSE-Requested Decommitment of a DAM Commitment • Refer to Protocol Section 6.4.6 QSE-Requested Decommitment of Resources • and Changes to Ancillary Service Resource Responsibility of Resources • (4) In the Adjustment Period, a QSE may request to decommit a Resource for any interval that is not a RUC-Committed Interval by indicating a change in unit status in the QSE’s COP. • (5) A Resource cannot be decommitted for just a portion of a Day-Ahead Market (DAM)-Committed Interval, which is a one-hour interval. If a Resource that is decommitted for a DAM-Committed Interval, that one-hour DAM-Committed Interval is excluded from the calculation of any Day-Ahead Make-Whole Payment for that Resource. • Note: • Currently ERCOT detects this “decommit” by looking at the COP for each DAM-committed Resource. If this is detected ERCOT manually removes the DAM-committed interval prior to executing DAM settlements to ensure that the hour is excluded from the DAM Make-Whole Payment calculation. • The DAM Make-Whole Payment eligibility process provides a similar type of evaluation. If the resource does not come online for the DAM committed interval, it will not receive an energy payment. Even if the DAM-committed interval is not removed (as is currently required) there is a reducing effect on the overall payment for the DAM commitment. • ERCOT questions the necessity of the 6.4.6 (5) requirement and manual process to exclude the interval and would like feedback from WMS (and/or QMWG) before proceeding with an NPRR to remove it.

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