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Commercial Operations Sub-Committee Update to TAC

Commercial Operations Sub-Committee Update to TAC. March 8, 2007. COPS Working Group & Task Force Leadership. PWG - Chair: Ernie Podraza (Reliant Energy) - Vice-Chair: Brad Boles (Cirro Energy) CCWG - Chair: Chuck Moore (Direct Energy) - Vice Chair: Judy Brisco (BP Energy) SDAWG:

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Commercial Operations Sub-Committee Update to TAC

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  1. Commercial OperationsSub-Committee Update to TAC March 8, 2007

  2. COPS Working Group & Task Force Leadership • PWG - Chair: Ernie Podraza (Reliant Energy) - Vice-Chair: Brad Boles (Cirro Energy) • CCWG - Chair: Chuck Moore (Direct Energy) - Vice Chair: Judy Brisco (BP Energy) • SDAWG: - Chair: Eric Goff (Constellation) - Vice Chair: Tim Wood (First Choice Power) • DAM Invoicing (CWG/COPS) Task Force: - Michelle Trenary (Tenaska) representing COPS

  3. Highlights of February 13th Meeting CCWG • Monitoring implementation of SCR 748, Website Enhancements for ERCOT Outage Notifications, • Reviewing COPS Market Guide Section 4, “Unplanned Outage Communication Process”, and • Continuing to develop the Commercial Operations Market Guide - Focus on Nodal Impacts

  4. Highlights of February 13th Meeting SDAWG • Reviewing settlement dispute process and preparing draft PRR and NPRR to simplify the dispute process. • Responded to TPTF request to review and clarify language which relates to distribution loss factors (NPRR-037). • Review and submit comments on TPTF documents that impact settlement and reporting.

  5. Highlights of February 13th Meeting PWG • Reviewed 2007 Goals, called attention to schedules and completion dates. • Reviewed New Oil & Gas Profile Segment (BUSOGFLT) and recommended to COPS approval of LPGRR017 for TAC and Board consideration. • Noted Revision of Holidays Tab in Profile Model Spreadsheets and recommended that COPS vote for a status of URGENCY for LPGRR019.

  6. Request for Approval (Vote) • Request TAC Approval – LPGRR017 Implementation plan and Impact Analysis can be viewed at the following links: • LPGRR017 http://www.ercot.com/mktrules/issues/lpgrr/000-024/017/keydocs/017LPGRR-02a_PWG_Recommendation_Rep.xls http://www.ercot.com/mktrules/issues/logrr/000-024/017/keydocs/017LPGR-02_PWG_Recommendation_report_122006.doc • ERCOT Impact Analysis http://www.ercot.com/mktrules/issues/lpgrr/000-024/017/keydocs/017LPGRR-03_Impact_Analysis_011907.doc

  7. Request for Approval (Vote) • Request TAC Approval - LPGRR019 Revision of Holidays Tab in Profile Model Spreadsheets as Approved by COPS vote for a status of URGENCY to meet implementation timelines.

  8. Small Resettlements A Proposal to Reduce Impact on ERCOT and Market Participants

  9. PUCT Notice of Violation (“NOV”) When the PUCT determines that a market participant has violated a protocol, procedure or rule, they generally assess a fine and order restitution to the market. Restitution is usually accomplished through resettlement. When Dollar amounts are small, the costs outweigh the benefits. Such costs are ultimately born by Texas consumers.

  10. ERCOT Must Resettle the Operating Day(s) Calculate revenues/costs by QSE Process payments and/or invoices QSEs Must Shadow Settle to ensure accuracy Allocate funds to entities that they represent Process payments and/or invoices When Resettlement is Ordered

  11. Proposed Alternative Working with PUCT, ERCOT, and Market Participants, COPS proposes: • When market wide resettlement for “NOV” is estimated to be less than $ 50,000 • PUCT staff consider recommending to the Commission that restitution be paid by violator directly to ERCOT • ERCOT use funds to reduce future Short Pay Uplifts

  12. Questions ?

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