NOTICE DATE:  May 30, 2012

NOTICE TYPE:  W-A053012-01 Settlements

SHORT DESCRIPTION:  Results of the ERS procurement for the June – September 2012 Standard Contract Term

INTENDED AUDIENCE:  QSE settlement personnel

DAYS AFFECTED:  June 1 – September 30, 2012

LONG DESCRIPTION:  Public Utility Commission (PUC) Substantive Rule 25.507(g) requires ERCOT to report publicly the number of Emergency Reserve Service (ERS) MW procured per Time Period, the number of Resources providing the service and the projected total cost of the service prior to the start of the Standard Contract Term.

The results of the procurement of ERS for the Standard Contract Term of June 1, 2012, to September 30, 2012, are as follows:

Business Hours 1

HE 0900 through 1300, Monday thru Friday except ERCOT Holidays; 420 hours

MW Procured or Self Arranged

513.075

Number of ERS Resources

306 (includes 101 aggregations)

Projected cost

$1,875,527.71

Average cost per MW per hour

$8.70

 

Business Hours 2

HE 1400 through 1600, Monday thru Friday except ERCOT Holidays; 252 hours

MW Procured or Self Arranged

364.9

Number of ERS Resources

178 (includes 58 aggregations)

Projected cost

$888,777.58

Average cost per MW per hour

$9.67

 

Business Hours 3

HE 1700 through 2000, Monday thru Friday except ERCOT Holidays; 336 hours

MW Procured or Self Arranged

357

Number of ERS Resources

166 (includes 52 aggregations)

Projected cost

$1,196,272.76

Average cost per MW per hour

$9.97

 

Non-Business Hours

All other hours; 1,920 hours

MW Procured or Self Arranged

452

Number of ERS Resources

276 (includes 88 aggregations)

Projected cost

$7,661,142.67

Average cost per MW per hour

$8.83

 

Self-Provided capacity is included in the above tables, valued at the weighted average price per Time Period. Total maximum projected cost of ERS for this Standard Contract Term, including projected credits for ERS Self-Provision, is $11,621,720.72. All numbers are subject to negative adjustment based on ERS Resources’ availability and performance factors, which are calculated after the end of the Standard Contract Term.

Pursuant to Nodal Protocols Section 6.5.9.4.2(2)(a)(iii), ERCOT has the authority to establish two deployment groups of ERS Resources if the capacity procured exceeds 500 MW in an ERS Time Period. Although the Business Hours 1 procured capacity of 513 MW for this cycle meets this criterion, ERCOT has elected not to create separate groups during this Contract Term, based on the fact that the threshold was met in only one Time Period and the capacity procured exceeds the threshold by only a small amount.

CONTACT:  If you have specific questions about the ERS program, please send an email to [log in to unmask]. If you have any other 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 email at [log in to unmask].

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