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Settlement Discussion for NOIE DRG = or > 50kW and < 1 MW

Settlement Discussion for NOIE DRG = or > 50kW and < 1 MW. Don Tucker on behalf of the NOIE DRG Settlements Task Force. COPS Charge to the NOIE DRG Settlements Task Force. May 2009

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Settlement Discussion for NOIE DRG = or > 50kW and < 1 MW

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  1. Settlement Discussion for NOIE DRG = or > 50kW and < 1 MW Don Tucker on behalf of the NOIE DRG Settlements Task Force NOIE DRG Settlements TF update to COPS

  2. COPS Charge to the NOIE DRG Settlements Task Force May 2009 Provide a forum for market discussions and bring recommendations to COPS on the Settlement of DRG located behind NOIE metering points with a design capacity of 50kW or greater June 2009 Continue Discussions Provide a list of Pros and Cons for identified options Option 1: Treat as generation Option 2: Treat as NOIE “load inflow” Option 3: Provide TDSP exemption from reporting NOIE DRG Settlements TF update to COPS

  3. Framing the Discussion – Submittal of Data vs Registration Settlement of DRG with a design capacity of 50 kW or more that is located behind NOIE metering points ERCOT Protocols (Zonal & Nodal) Section 10.2.2 require TDSP to report this generation to ERCOT ERCOT Protocols (Zonal) Section 16.5 does not require registration if less than 1 MW ERCOT Protocols (Nodal) Section 16.5 requires the Resource Entity to register each All-Inclusive Resource “The Resource Entity shall register each All-Inclusive Resource with ERCOT through ERCOT registration.” NOIE DRG Settlements TF update to COPS

  4. Framing the Discussion - TDSP Submittal of Data to ERCOT • DRG data submittal to ERCOT not required • DRG with a design capacity less than 50 kW • DRG with a design capacity equal to or greater than 50 kW where energy is not delivered into the distribution grid DRG data submittal to ERCOT not required DRG data submittal to ERCOT required • DRG data submittal to ERCOT required • DRG with a design capacity equal to or greater than 50 kW where energy is delivered into the distribution grid Information on this slide is provided to facilitate discussions on the understanding ERCOT has of Section 10.2.2 requirements for the TDSP submittal of generation values associated with Distributed Renewable Generation located behind NOIE boundary metering points. NOIE DRG Settlements TF update to COPS

  5. Task Force Meeting Attendance on July 14, 2009 NOIE DRG Settlements TF update to COPS

  6. Discussion on Pros and Cons for Identified Options There is not necessarily an agreement between members of the Task Force between the pros and cons. The pros and cons are listed as provided and do not represent a consensus of the Task Force NOIE DRG Settlements TF update to COPS

  7. NOIE DRG = or > 50kW & <1MW – Registered as Generation Pros Consistent with current Nodal Protocols Will result in having registration completed for Nodal Consistent treatment of competitive and non-competitive areas Total uplift charges to the market are not reduced which would require non-NOIE loads to pay for those charges No ERCOT system changes Cons NOIEs can be treated differently than competitive retailers and are in other areas of Protocols and Legislation Requires additional infrastructure for metering support Metering to capture energy delivered to the distribution grid Data translation and reporting to ERCOT NOIE shadow settlements – NOIE must include this generation in the calculations Settlement implications for a NOIE Generation Nodal surcharge URC risk Any and all uplift charges for the additional load based on load ratio shares including additional ancillary service charges Treated as internal generation (same as distributed generation over 1 MW that is located behind NOIE boundary metering points and entering the distribution grid and is registered with ERCOT) etc… Additional registration requirements Requires agreement between NOIE, QSE and Resource Complicates billing for Generation and Transmission Co-ops and River Authorities NOIE DRG Settlements TF update to COPS

  8. NOIE DRG = or > 50kW & <1MW – Treated as “load inflow” Pros Total uplift charges to the market are not reduced which would require non-NOIE loads to pay for those charges This is the method ERCOT has used in lieu of other direction from the market. No ERCOT system changes Cons NOIEs can be treated differently than competitive retailers and are in other areas of Protocols and Legislation Requires additional infrastructure for metering support Metering to capture energy delivered to the distribution grid Data translation and reporting to ERCOT NOIE shadow settlements – NOIE must include this generation in the calculations Settlement implications for a NOIE Any and all uplift charges for the additional load based on load ratio shares including additional ancillary service charges Treated as NOIE load inflow etc… Must register as a NOIE metering point (update NOIE registration form) Complicates billing for Generation and Transmission Co-ops and River Authorities Increases UFE volatility NOIE does not get credit for the generation NOIE DRG Settlements TF update to COPS

  9. NOIE DRG = or > 50kW & <1MW – Exemption from Reporting Pros Consistent with section 16.5 of Zonal Protocols NOIE’s can be treated differently than competitive retailers and are in other areas of Protocols and Legislation Requires no additional infrastructure for metering support No additional registration requirements Settlement implications for a NOIE All uplift charges for the additional load based on load ratio shares including additional ancillary service charges will be reduced No payment for Nodal surcharge etc… Does not complicate billing for Generation and Transmission Co-ops and River Authorities No ERCOT System changes Cons Inconsistent with current Nodal Protocols Inconsistent with Zonal Protocol requirements for using this meter data in settlements Total uplift charges to the market are not reduced which would require non-NOIE loads to pay for those charges NOIE DRG Settlements TF update to COPS

  10. Current Options Discussed by the Task Force Options for Settlement of DRG located behind NOIE metering points with a design capacity of 50kW or greater Possible PRR submission: Exempt registration of DRG between 50 kW and 1 MW Zonal Nodal Raise the exemption limit for reporting DRG to ERCOT Zonal Nodal Select one of the prior “three options” for settlements of the DRG Option 1: Treat as generation Requires registration Option 2: Treat as NOIE “load inflow” Impacts UFE Option 3: Provide TDSP exemption from reporting Reduces NOIE “Total Load” NOIE DRG Settlements TF update to COPS

  11. Current Options Discussed by the Task Force (cont.) Options for Settlement of DRG located behind NOIE metering points with a design capacity of 50kW or greater Proceed with the option to register these units as they complete registration required for the nodal market. Until they are registered as a Resource they will be treated as defined by Option 2: Treat as NOIE “load inflow”. Absent any further direction from the Market, ERCOT should utilize Option 2: Treat as NOIE “load inflow” for DRG meter data submitted by the TDSP for sites not registered as a Resource. NOIE DRG Settlements TF update to COPS

  12. Task Force Requesting Direction from COPS • Options for COPS consideration: • Select one of the options presented. • Modify one of the options presented. • Direct the Task Force to continue discussions. • Other NOIE DRG Settlements TF update to COPS

  13. Questions / Discussions

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