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AS Responsibility Check Defect & Wholesale Market Analysis

This document discusses the AS Responsibility Check defect, which counts cancelled self-arrangement quantities and its impact on the wholesale market analysis. It includes a specific case of a SASM executed to procure additional AS due to failure to provide by two QSEs.

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AS Responsibility Check Defect & Wholesale Market Analysis

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  1. AS Responsibility Check Defect Resmi Surendran Market Analysis Wholesale Market Subcommittee 7/10/2013

  2. AS Responsibility Check Defect AS Responsibility Check • Executed on an hourly basis • Compares COP AS schedule to self-arrangement, trades, and awards to determine if a QSE is deficient in providing AS [4.4.7.4] • Operator sends out deficiency messages to QSEs • QSEs have opportunity to correct deficiencies by updating COPs and trades • Operator will approve “Failure to provide quantities” and may run SASM if deficiencies cannot be corrected • Approved “Failure to provide quantities” are sent to settlements and QSE is charged: • Max(MCPC)m * FQ • FQ = Failure Quantity m = DAM and all SASM markets for that hour

  3. AS Responsibility Check Defect Defect 49079 – AS Resp Check counts cancelled self-arrangements • Only occurs when all of the following conditions exist: • non-zero self-arranged AS quantities were entered • Self-arranged AS was cancelled by Phase 2 validation • QSE did not subsequently re-enter self-arranged AS • DAM reads cancelled self-arranged AS quantities correctly as zero self-arrangement and procures all of the QSE’s AS Obligation. • The AS Responsibility Check is mistakenly counting self-arrangement quantities that have been cancelled • Defect has existed since January 2012 • Defect could result in: • False failure-to-provide quantities • QSE covering false failure quantities via trades or COP • False failure quantities procured through a SASM

  4. AS Responsibility Check Defect SASM 6/22/2013 21:20:47 • SASM executed to procure additional AS for OD 6/23 due to failure to provide by two QSEs: • QSE A REGUP 360MWh (15MWh for 24 hours) • QSE B RRS 96MWh (6MWh for 16 hours) • 124.3 MWh REGUP and 96 MWh of RRS procured Defect timeline • QSE A had entered 15MWh self-arrangement for all hours • 15MWh was over their AS Obligation, so Phase 2 Validation cancelled all self-arrangement. QSE A did not enter new self-arrangement. • DAM procured for QSE A, but Responsibility Check still showed the self-arrangement quantity, which became failure quantity (FQ). • QSE A was charged Max(MCPC)m * FQ • FQ = Failure Quantity m = DAM and all SASM markets for that hour • Re-settlement reversed that charge

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