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Update: 30-Minute Emergency Response Service (ERS) Pilot Project

Update: 30-Minute Emergency Response Service (ERS) Pilot Project. Mark Patterson, ERCOT Technical Advisory Committee July 2, 2013. Background. ERCOT Board approved 30-Minute ERS Pilot Project in June 2012 to test an ERS product with a 30-minute ramp capability. 30-Minute ERS Features:

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Update: 30-Minute Emergency Response Service (ERS) Pilot Project

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  1. Update: 30-Minute Emergency Response Service (ERS) Pilot Project Mark Patterson, ERCOT Technical Advisory Committee July 2, 2013

  2. Background • ERCOT Board approved 30-Minute ERS Pilot Project in June 2012 to test an ERS product with a 30-minute ramp capability. • 30-Minute ERS Features: • Dispatched as early as EEA Level 1 • Procured via market clearing price mechanism • Fleet-wide testing of Pilot Resources • Maximum of 8 hours of obligation • Only financial consequences for non-compliance; no suspensions • Procured through 4 Contract Periods • July15, 2012 through September 2012 (1st CP) • October 2012 through January 2013 (2nd CP) • February 2013 through May 2013 (3rd CP) • June 2013 through September 2013 (4th CP) ERCOT Public

  3. Growth in Participation • 937 unique sites offered in to 30-Minute ERS • 718 sites with no previous ERS-10 participation • 118 sites with more than12 months since last ERS-10 participation • Some sites that were unable to comply with ramp requirement of standard 10-Minute ERS product have migrated to 30-Minute ERS Pilot. • First ever ERS Residential Aggregations • QSEs have indicated that more sites would be willing to participate if 30-minute product was made permanent. ERCOT Public

  4. Performance and Testing • No EEA events during pilot period to-date • 7 fleet-wide test deployments: • 3 test deployments during 1st Contract Period • 2 test deployments during 2nd Contract Period • 2 test deployments during 3rd Contract Period • Generally, fleet-wide performance exceeds obligation: ERCOT Public

  5. Costs • 30-Minute ERS cost range: $7.80/MW/hr - $16.00/MW/hr • Comparisons to other services (see appendix for more detail): • Non-Spinning Reserve Service • BH1 & NBH ranged from $1.03 - $3.99 • BH2 & BH3 ranged from $2.34 -$21.41 • TDSP Load Management Program • $79.36/MW/hr • applies to BH2 and BH3 during Jun-Sep Contract Period only • Actual Pilot cost (through January 2013) - $2,038,052 • Estimated cost February –May 2013 CP: $1,167,837 • Estimated cost June – September 2013 CP: $2,983,493 ERCOT Public

  6. Next Steps • ERCOT will present updated report to Board of Directors at July 2013 meeting. • Pilot Project will end on September 30, 2013 if Board does not extend. • ERCOT intends to ask Board to extend Pilot by one Contract Period (October 2013 through January 2014) to allow development and discussion of NPRR integrating 30-Minute product. • NPRR could be in place for February through May 2014 ERS Standard Contract Term. ERCOT Public

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