recommended threshold eci for sced competitive constraint test n.
Skip this Video
Loading SlideShow in 5 Seconds..
Recommended Threshold ECI for SCED Competitive Constraint Test PowerPoint Presentation
Download Presentation
Recommended Threshold ECI for SCED Competitive Constraint Test

Loading in 2 Seconds...

  share
play fullscreen
1 / 6
Download Presentation

Recommended Threshold ECI for SCED Competitive Constraint Test - PowerPoint PPT Presentation

chastity-everett
74 Views
Download Presentation

Recommended Threshold ECI for SCED Competitive Constraint Test

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Recommended Threshold ECI for SCED Competitive Constraint Test April 12, 2013

  2. The Constraint Competitiveness Test (CCT) • Attempts to implement the CCT logic have not been successful since the market opened. • Because of the difficulties with the CCT, prior to nodal the 2010 zonal CSCs and CREs were deemed competitive by default. Indeed, the Board passed a motion in Sept. 2012 to “restore the zonal 2010 designated CSCs and CREs as the 2013 Competitive Constraints; and directed TAC to study and develop alternatives to improve the Constraints Competitiveness Tests” • NPRR520 is the result of the Board motion and appears to be a good step forward. • Now the question is what are the proper values for the variables in NPRR520, particularly the ECI threshold.

  3. What is the Proper Value for the ECI Threshold Value? • There is no “bright line” for the proper ECI threshold value because the market has always deemed the CSCs and CREs as competitive, everything else was deemed non-competitive. • Even if the historical CCT language had been implemented, there are different values for the import side ECI, depending on the tenor of the test. • Long-Term CCT – ECI of 2,000 or less is competitive • Monthly CCT - ECI of 2,500 or less is competitive • Daily CCT - ECI of 2,500 or less is competitive • The data provided recently by ERCOT, plus the market’s history of solving CSCs and CREs competitively, indicates an ECI of 2,500 should be the initial value for NPRR520.

  4. North – Houston CSC as a Benchmark • North to Houston has been a CSC (i.e., competitive constraint) since 2004. • Almost $200M of congestion on North to Houston in the zonal market. • NPRR 520 methodology shows an ECI of 2,369 for North to Houston. • North to Houston CSC is a good benchmark for the ECI threshold evaluation. • 2,500 is recommended as the proper ECI threshold value.

  5. West – North CSC as a Benchmark • West to North has been a CSC since Zonal Market open in 2002. • $137M of congestion on West to North in the zonal market. • NPRR 520 methodology shows an ECI of 2,187 for North to Houston. • West to North CSC is a good benchmark for the ECI threshold evaluation.

  6. Additional Examples