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Reliability Deployment Task Force (RDTF Meeting) December 20 th 2011

Reliability Deployment Task Force (RDTF Meeting) December 20 th 2011. Updates. Status Update: Resource Adequacy Increase RRS by 500 MWs and Decrease NSRS by 500 MWs Offer Floor for RUC Commitments for Capacity Insufficiency Impact of New Power Balance Penalty Curve on PNM.

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Reliability Deployment Task Force (RDTF Meeting) December 20 th 2011

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  1. Reliability Deployment Task Force (RDTF Meeting) December 20th 2011

  2. Updates • Status Update: Resource Adequacy • Increase RRS by 500 MWs and Decrease NSRS by 500 MWs • Offer Floor for RUC Commitments for Capacity Insufficiency • Impact of New Power Balance Penalty Curve on PNM

  3. Status Update: Resource Adequacy

  4. Status Update: Resource Adequacy

  5. Updates • Status Update: Resource Adequacy • Increase RRS by 500 MWs and Decrease NSRS by 500 MWs • Offer Floor for RUC Commitments for Capacity Insufficiency • Impact of New Power Balance Penalty Curve on PNM

  6. Increase RRS by 500 MWs and Decrease NSRS by 500 MWs • ERCOT has a draft version of the ERCOT Methodologies for Determining Ancillary Service Requirements document • The proposed changes are: • The minimum RRS requirement will change from 2300 MW to 2800 MW and will no longer be tied to the forecasted Reserve Discount Factor • The NSRS calculation: Base NSRS Req. = 95th Percentile of Net-Load Forecast Error – Avg. Reg. Up Req. becomes Base NSRS Req. = 95th Percentile of Net-Load Forecast Error – Avg. Reg. Up Req.– 500MW of RRS • The cap for NSRS will decrease from 2000 MW to 1500 MW • The floor of 1375 MW across peak hours (7-22) will still be applied

  7. Updates • Status Update: Resource Adequacy • Increase RRS by 500 MWs and Decrease NSRS by 500 MWs • Offer Floor for RUC Commitments for Capacity Insufficiency • Impact of New Power Balance Penalty Curve on PNM

  8. NPRR 6.4.3.1 Energy Offer Curve for RUC-Committed Resources • (1) Prior to the end of the Adjustment Period for an Operating Hour during which a Generation Resource has been committed by ERCOT as part of a Reliability Unit Commitment (RUC) process, the QSE shall ensure that an Energy Offer Curve that prices all energy from LSL to HSL at or above $XXX/MWh for the Operating Hours in the RUC commitment period, has been submitted and accepted by ERCOT. • (2) If the QSE receives a RUC Dispatch Instruction from ERCOT for its Generation Resource during the Operating Period that includes a RUC-Committed Hour, then the QSE shall be exempt from the submission timeline requirement specified in paragraph (1) above and shall instead submit the required Energy Offer Curve as soon as reasonably practicable after receipt of the RUC Dispatch Instruction. • (3) The requirement in paragraph (1) above is not applicable for Weekly Reliability Unit Commitment (WRUC)-instructed hours during which the Resource was Day-Ahead Market (DAM)-committed or QSE self-committed.

  9. RUC Committed Resources Dispatched for Capacity (12/01/2010 to 10/31/2011) 8640 Effective RUC Unit Hours • 1787 hrs (20.7%) were dispatched above LSL for capacity (LMP<=System Lambda and BP>=LSL+2) • 1560 hrs(18.1%) with prices below $100 • 71 hrs(0.8%) with prices between $100 and $200 • 33 hrs(0.38%) with prices between $200 and $300 • 16 hrs(0.19%) with prices between $300 and $400 • 8 hrs (0.09%) with prices between $400 and $500 • 38hrs (0.4%) with prices between $500 and $3000 • 61hrs (0.7%) with prices greater than or equal to $3000 ‘Effective RUC Unit Hours’ considers multiple units committed for the same hour as different unit hours while ‘Effective RUC hours’ considers it as single hour.

  10. RUC Committed Resources Dispatched for Capacity (12/01/2010 to 10/31/2011) • 8640 Effective RUC Unit Hours • LMP<=System Lambda+2 and BP>=LSL+2 to determine dispatch for capacity • 2107 hrs (24.4%) were dispatched above LSL for capacity • 2008 hrs (23.2%) with prices below $500 • 38 hrs (0.4%) with prices between $500 and $3000 • 61 hrs (0.7%) with prices greater than or equal to $3000

  11. RUC Committed Resources (12/01/2010 to 10/31/2011)

  12. RUC Committed Resources (12/01/2010 to 10/31/2011)

  13. 0 to LSL Energy from ONRUC • 8640 Effective RUC Unit Hours • Average ONRUC LSL is 82 MW , BP is 99.6 MW, HSL is 207 MW • 5741 hrs (66.4%) are at or below LSL (BP-LSL<2MW) • Average ONRUC LSL is 85MW • 2899 intervals (33.6%) are above LSL for transmission or capacity • Average ONRUC LSL is 75.5MW • 3071 Effective Hours with at least one resource on ONRUC status • Average system total ONRUC capacity • LSL is 230.5 MW; • HSL is 581.8MW; • BP is 279.9MW Effective RUC Unit Hours’ is SCED duration, summed up to hour level, for each RUC committed resource when it was online. ‘Effective RUC Unit Hours’ considers multiple units committed for the same hour as different unit hours while ‘Effective RUC hours’ considers it as single hour.

  14. Updates • Status Update: Resource Adequacy • Increase RRS by 500 MWs and Decrease NSRS by 500 MWs • Offer Floor for RUC Commitments for Capacity Insufficiency • Impact of New Power Balance Penalty Curve on PNM

  15. Impact of New Power Balance Penalty Curve on PNM

  16. Impact of New Power Balance Penalty Curve on PNM • Original CPS Proposal (Submitted to RTDF) : Same as existing curve between 1-10 MW and 30-75. Penalty cost higher between 10-30 and above 75 MW under-generation. • New CPS Proposal (Submitted to PUCT) : Same as existing curve between 1-10 MW. Lower penalty between 10-75 MW, while finishing higher for 75 MW and up. • IMM Proposal : Same as existing curve except for after 50 MW under-generation, the penalty increase from existing $3001/MWh to $4000/MWh • All at $3001 • PNM addition is calculated as the sum of time weighted difference between new penalty and old penalty for each level of Power Balance violation. For the first 3 cases, the assumption is that Power Balance Violation amount is not changing when the curve changed. For the last one since the new penalty is above SWCAP, all offers will be used before violating Power Balance and hence only intervals were the rampable room in SCED offered below SWCAP is less than Power Balance violation were considered. i.e. the effect of increase in prices when the rampable room in SCED offered below SWCAP is greater than Power Balance violation due to clearing more from the offer stack was not considered.

  17. Apendix

  18. RUC Committed Resources (12/01/2010 to 10/31/2011)

  19. RUC Committed Resources (12/01/2010 to 10/31/2011)

  20. RUC Committed Resources (12/01/2010 to 10/31/2011)

  21. RUC Committed Resources (12/01/2010 to 10/31/2011)

  22. RUC Committed Resources

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