NOTICE DATE:  May 20, 2016
NOTICE TYPE:  M-B052016 NPRR
SHORT DESCRIPTION:  Implementation Details of NPRR617, NPRR700 and VCMRR008, NPRR742
INTENDED AUDIENCE:  ERCOT Market Participants
DAY AFFECTED:  June 21-23, 2016
LONG DESCRIPTION:  ERCOT will be implementing Nodal Protocol Revision Request (NPRR) 617, Energy Offer Flexibility, NPRR700, Utilizing Actual Fuel Costs in Startup Offer Caps, Verifiable Cost Revision Request (VCMRR) 008, Alignment with NPRR700, Utilizing Actual Fuel Cost in Startup Offer Caps and NPRR742, CRR Balancing Account Invoice Data Cuts, between June 21-23, 2016.
NPRR617 will allow the Qualified Scheduling Entity (QSE) to submit Startup and Minimum Energy Offers up to 200% above the Resource's costs, which will be used by the Day-Ahead Market (DAM) only. The ability to submit Startup and Minimum Energy Offers up to 200% of the Resource's costs will be implemented on June 20, 2016. Upon implementation, valid offers received will be considered by DAM starting with the DAM for Operating Day Wednesday, June 22. The Reliability Unit Commitment (RUC) processes will use Startup and Minimum Energy Offers capped at the maximum of generic or verifiable minimum energy and Startup Costs.
NPRR700 and VCMRR008 adjust the calculation of the verifiable Startup Costs by incorporating actual fuel costs into the offer caps used by the DAM and RUC processes and DAM Make-Whole Payment calculation.
NPRR742 adds the prior month account fund balance CRRBAFBBAL as a new determinant to represent CRRBAF (m-1). This new bill determinant will be available with the June 2016 CRR Balancing Invoice that will be posted on July 07, 2016.


Settlement calculation revisions for verifiable costs from NPRR700 and VCMRR008:
Verifiable cost will calculate a new output bill determinant that will be used as in input to DAVERISU:
DAFCRSq, r, s = RAFCRS q, r, s * (1 + VOXR q, r)
If ERCOT has approved verifiable costs for the Resource, the verifiable Startup Costs used in the DAM Make-Whole Payment calculation is determined as follows:
DAVERISU q, r, p, s = DAFCRS q, r, s * [(GASPERSU q, r, s * FIP) + (OILPERSU q, r, s * FOP) + (SFPERSU q, r, s * SFP)] + VOMS q, r, s



Settlement calculation revisions for DAM from NPRR617:
4.6.2.3.1   Day-Ahead Make-Whole Payment
(7)       The Day-Ahead Make-Whole Guaranteed Costs are calculated for each eligible DAM-Committed Generation Resource (including RMR Units) as follows:
For non-Combined Cycle Trains,
DAMGCOST q, p, r   =          Min(DASUO q, p, r , DASUCAP q, p, r) + [cid:image001.png@01D1B2A4.34749010] (Min(DAMEO q, p, r, h, DAMECAP p,q, r,h) * DALSL q, p, r, h) + [cid:image001.png@01D1B2A4.34749010] (DAAIEC q, p, r, h * (DAESR q, p, r, h - DALSL q, p, r, h))
For a Resource which is not an AGR,
If ERCOT has approved verifiable Startup Costs and minimum-energy costs for the Resource,
  Then,               DASUCAP p,q, r =   verifiable Startup Costs q, r, s
                           DAMECAP p,q,r,h = verifiable minimum-energy costs q, r, i
  Otherwise,      DASUCAP p,q, r =  Resource Category Startup Offer Generic Cap (RCGSC)
                           DAMECAP p,q, r, h = Resource Category Minimum-Energy Generic Cap (RCGMEC)

For an AGR,
DAMGCOST q, p, r  =           DASUPR q, p, r + [cid:image001.png@01D1B2A4.34749010] (Min(DAMEOq, p, r, h , DAMECAP p,q, r,h)* DALSL q, p, r, h)
                                 + [cid:image001.png@01D1B2A4.34749010] (DAAIEC q, p, r, h * (DAESR q, p, r, h - DALSL q, p, r, h))
Where:
DASUPR q, p, r           =         Min(DASUO q, p, r, DASUCAP q, p, r)
If ERCOT has approved verifiable Startup Costs
Then:
DASUCAP q, p, r        =       Maxc(AGRRATIO q, p, r ) * verifiable Startup Costs q, r
Where:
AGRRATIO q, p, r      =         AGRMAXON q, p, r / AGRTOT q, p, r
Otherwise:
DASUCAP q, p, r       =        Maxc(AGGRATIO q,p,r) * RCGSC

For Combined Cycle Trains,
            DAMGCOST q, p, r  =          Min (DASUO q, p, r , DASUCAPq, p, r) + [cid:image005.png@01D1B2A4.34749010] (Min(DAMEO q, p, r, h , DAMECAP q, p, r,h)* DALSL q, p, r, h)
                                             + (Max (0, Min (DASUO afterCCGR , DASUCAPafterCCGR) -
                                             Min (DASUO beforeCCGR , DASUCAPbeforeCCGR))
                                             + [cid:image005.png@01D1B2A4.34749010] (DAAIEC q, p, r, h * (DAESR q, p, r, h - DALSL q, p, r, h))

Settlement calculation revisions for Reliability Unit Commitment (RUC) from NPRR617:
5.7.1.1      RUC Guarantee & 5.7.3 Payment When ERCOT Decommits a QSE-Committed Resource
If the QSE submitted a validated Three-Part Supply Offer,
            Then,              SUPRq,r,s        =          Min (SUOq,r,s, SUCAP q,r,s)
            Otherwise,     SUPRq,r,s        =          SUCAPq,r,s


5.7.1.1         RUC Guarantee, 5.7.1.4 Revenue Less Cost During QSE Clawback Intervals & 5.7.3 Payment When ERCOT Decommits a QSE-Committed Resource
If the QSE submitted a validated Three-Part Supply Offer,
            Then,              MEPRq,r,i        =          Min (MEOq,r,i, MECAP q,r,i)
            Otherwise,     MEPRq,r,i        =          MECAPq,r,i
If ERCOT has approved verifiable Startup Costs and minimum-energy costs for the Resource,
            Then,              MECAPq,r,i     =          verifiable minimum-energy costs q, r, i
            Otherwise,     MECAP q, r, i   =          RCGMEC i


Settlement calculation revisions for CRR Balancing Account from NPRR742:

7.9.3.4         Monthly Refunds to Short-Paid CRR Owners

(1)       On a monthly basis, a refund may be paid to the CRR Owners that have a shortfall charge for any Operating Hour in a month.  The refund to each CRR Owner for a given month is calculated as follows:

If CRRBACRTOT + CRRFEETOT < CRRSAMTTOT :

CRRRAMT o                        =          (-1) * Min (CRRBACRTOT + CRRFEETOT + CRRBAFA m, CRRSAMTTOT) * CRRSAMTRS o

Where:

CRRBAFA m                         =          Min(CRRBAFBBAL, CRRSAMTTOT - (CRRBACRTOT + CRRFEETOT))

Otherwise:

CRRRAMT o                = (-1) * Min (CRRBACRTOT + CRRFEETOT, CRRSAMTTOT) * CRRSAMTRS o

Where:

CRRBACRTOT        =    [cid:image009.png@01D1B2A4.34749010] CRRBACR h

CRRFEETOT           =    [cid:image013.png@01D1B2A4.34749010] [cid:image015.png@01D1B2A4.34749010]  (OPTAFAMT crrh, a)
If (CRRSAMTTOT = 0)
CRRSAMTRS o  =          0

Otherwise:
CRRSAMTRS o =          CRRSAMTOTOT o / CRRSAMTTOT

CRRSAMTTOT             =           [cid:image017.png@01D1B2A4.34749010] CRRSAMTOTOT o

CRRSAMTOTOT o      =      [cid:image009.png@01D1B2A4.34749010] DACRRSAMT o, h

7.9.3.5         CRR Balancing Account Closure

(1)       After the calculation of refunds described in Section 7.9.3.4, Monthly Refunds to Short-Paid CRR Owners, any CRR Balancing Account and CRR Auction PTP Option Award Charge Total in excess of the refunds described in Section 7.9.3.4 will first be used to fund the CRR Balancing Account Fund if the prior month's CRR Balancing Account Fund Balance is less than the CRR Balancing Account Fund Cap.  Any surplus that remains from the CRR Balancing Account and CRR Auction PTP Option Award Charge Total above the CRR Balancing Account Fund cap is paid to the QSEs representing Load Serving Entities (LSEs) based on a monthly Load Ratio Share (LRS).  The monthly LRS is the 15-minute LRS calculated for the peak-Load Settlement Interval during the month.  The CRR Balancing Account Fund Cap is $10 million.

(2)       The credit to each QSE representing LSEs for a given month is calculated as follows:

LACRRAMT q    =          (-1) * Max ((CRRBACRTOT + CRRFEETOT + CRRRAMTTOT) - (FUNDCAP- CRRBAFBBAL), 0) * MLRS q

Where:

CRRRAMTTOT     =                [cid:image017.png@01D1B2A4.34749010] CRRRAMT o


7.9.3.6         Rolling CRR Balancing Account Fund
(1)       ERCOT shall establish a rolling CRR Balancing Account Fund (CRRBAF) as follows:

(a)       The CRRBAF shall be funded beginning in the first month after implementation and every month that the CRR Balancing Account credit exceeds monthly CRR shortfalls.

(b)       The CRRBAF calculated for a month shall not exceed the CRR Balancing Account Fund Cap.

(c)        The CRRBAF shall refund to LSEs any surplus above the fund cap.

(d)       In the event that a resettlement of the CRR Balancing Account is required, the CRRBAF for the resettlement will be calculated using the CRRBAF at the end of the previous month from the date of the resettlement invoice.

(e)       The end of the month CRRBAF is calculated as follows:
            If CRRBACRTOT + CRRFEETOT < CRRSAMTTOT:

CRRBAF m        =          CRRBAFBBAL - CRRBAFA m
Otherwise if CRRBACRTOT + CRRFEETOT > CRRSAMTTOT and CRRBAF < FUNDCAP:

CRRBAF m                =       CRRBAFBBAL + (CRRBACRTOT + CRRFEETOT - CRRSAMTTOT) + LACRRAMTTOT



New Settlement Bill Determinants:


Bill Determinant

Short Description

Extract

Extract Table


RTPERFIPME

Real-Time Percentage of FIP for Startup and Minimum-Energy as submitted in 3PT Supply Offer

RTM CODE

MKTINPUTHEADER
MKTINPUTINTERVAL


RTPERFOPME

Real-Time Percentage of FOP for Startup and Minimum-Energy as submitted in 3PT Supply Offer

RTM CODE

MKTINPUTHEADER
MKTINPUTINTERVAL


DAPERFIPME

Day-Ahead Percentage of FIP for Startup and Minimum-Energy as submitted in 3PT Supply Offer

DAM CODE

MKTINPUTHEADER
MKTINPUTINTERVAL


DAPERFOPME

Day-Ahead Percentage of FOP for Startup and Minimum-Energy as submitted in 3PT Supply Offer

DAM CODE

MKTINPUTHEADER
MKTINPUTINTERVAL


DAFCRS

Day-Ahead Actual Fuel Consumption Rate per Start


SID

SID_VERIFIABLECOSTS











DAMEPR

Day-Ahead Minimum Energy Price

DAM CODE

PREPROCESSHEADER
PREPROCESSINTERVAL


DAVERIME

Day-Ahead Verifiable Minimum Energy Cost

DAM CODE

PREPROCESSHEADER
PREPROCESSINTERVAL


DAMECAP

Day-Ahead Verifiable Minimum Energy Cap

DAM CODE

PREPROCESSHEADER
PREPROCESSINTERVAL


CRRBAFBBAL

CRR Balancing Account Fund Beginning Balance

CRR Balancing Account Extract

CRROUTPUTHEADER_BA_PUBLIC
CRROUTPUTSCALAR_BA_PUBLIC







ACTION REQUIRED:  Implement changes to shadow Settlement systems for NPRR617, NPRR700, VCMRR008 and NPRR742.
ADDITIONAL INFORMATION:  Pursuant to Nodal Protocol Section 21.6, Nodal Protocol Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.
NPRR617<http://www.ercot.com/mktrules/issues/NPRR617> and associated documents can be found on the ERCOT website.
NPRR700<http://www.ercot.com/mktrules/issues/NPRR700> and associated documents can be found on the ERCOT website.
VCMRR008<http://www.ercot.com/mktrules/issues/VCMRR008> and associated documents can be found on the ERCOT website.
NPRR742<http://www.ercot.com/mktrules/issues/NPRR742> and associated documents can be found on the ERCOT website.
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 email at [log in to unmask]<mailto:[log in to unmask]>.
If you are receiving email from an ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.




mm