NOTICE DATE:  August 20, 2009
NOTICE TYPE:  M-B082009-01 Operations
SHORT DESCRIPTION:  Real-Time Market Clearing related to Out Of Merit Energy (OOME) Reliability Tool Project
INTENDED AUDIENCE:  QSEs with Generation Resources
DAY AFFECTED:  September 3, 2009
LONG DESCRIPTION:  Currently, when a unit is issued Category 2 or Category 3 Out-of-Merit Balancing Energy instruction (OOME), the Low Sustainable Limit (LSL) and High Sustainable Limit (HSL) are set to the Instructed Output Level (IOL) respectively. This will change when ERCOT implements enhancements to the OOME Reliability Tool on September 3, 2009.
When implemented, remaining capacity down on a unit with an OOME Down (CAT 2) instruction would be available for additional portfolio Down Balancing Energy award for that interval. The same unit will not be considered in determining portfolio Up Balancing Energy Service awards. HSL would be set to IOL and the LSL would be left as is, thus showing available Down Balancing on the unit.
Likewise, remaining capacity up on a unit with an OOME Up (CAT 3) instruction would be available for additional portfolio Up Balancing Energy award. The same unit will not be considered in determining portfolio Down Balancing Energy Service awards for that interval. LSL would be set to IOL and the HSL would be left as is, thus showing available Up Balancing on the unit.
An example of how this would work is as follows:
Keep in mind that the methodology proposed below is the way it is currently done for Market Management System (MMS) generated local balancing deployments (LBES). This enhancement to the OOME Reliability Tool will provide the operator the means to issue global OOME instructions; for example, issuing OOME instructions to 15 units with 1000 MW of balancing available. Currently if ERCOT instructs OOME to all these units by 300 MW, the remaining 700 MW of balancing is locked out for further consideration of portfolio Balancing Energy awards. This enhancement will keep that 700 MW of balancing in play.
For example, a QSE with a single unit portfolio has the Resource running at 25 MW with an HSL of 100 MW.
The remaining 75 MWs are bid into the balancing market with the following price curve:
0 MW at $10
25 MW at $20
50 MW at $30
75 MW at $40
The unit receives a Category 3 OOME instruction to be at or above 50 MW.
With this CAT 3 instruction, 50 MW of up balancing is available from this unit. The system will consider the first 50 MW on your price curve as opposed to the last 50 MW on your price curve. This means that if ERCOT needed all of your available Balancing Energy, then 50 MW would be cleared at $30.
In other words, the top 25 MW of your price curve is unavailable due to the OOME deployment.
This will work the same way for down balancing.
ADDITIONAL INFORMATION:  The enhancement to the OOME Reliability Tool will be implemented on September 3, 2009.
CONTACT:  If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via e-mail at [log in to unmask]<mailto:[log in to unmask]>.
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