1. RPRS March 23, 2006 Presented by ERCOT Art Deller Bill Kettlewell
Market Support Services
March 30, 2005

2. RPRS Overview of RPRS Operations Settlements
How and Why does ERCOT use it?
How does a QSE bid it?
How does a QSE deploy it?
Settlements
How does a QSE get paid?
How does the Market get charged?
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

3. RPRS Overview of RPRS Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

4. Definition
Capacity procured from Resources otherwise unavailable to ERCOT in the hours ERCOT requests RPRS.
Includes:
Generation Resources Off-line.
Generation Resources expected to be Off-line in the requested hours
LaaRs that are On-line and available time of procurement *
* LaaRs will not be able to participate initially upon initiation of the RPRS functionality.
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section 6.5.6

5. Definition Two Components Market Solution Out of Merit Capacity – OOMC
Based on RPRS bids
Also can use Generic Cost
Out of Merit Capacity – OOMC
Capacity selected due to place, or absence, from the bid stack
LaaRs not availble for OOMC
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section and

6. Definition
Purpose:
Purchase Capacity in order to make Energy available to solve the following system issues:
Capacity Insufficiency
Zonal Congestion
Local Congestion
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section and

7. Definition Operational Assumptions
Units expected to come on-line in selected hours, to LSL.
Capacity considered on-line for Local and Zonal Congestion requirements
Energy from procured units is placed in the Balancing Energy Service bid stack
Quantity >= HSL (HOL) – LSL (LOL)
Section and 6.7.5

8. Why do we need RPRS? RPRS Generation Forecast Available Load Online
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

9. Payment to Providers
Providers of RPRS are paid for three distinct types of service:
Capacity Insufficiency
Zonal Congestion
Local Congestion
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section and

10. Payment to Providers
Units selected for Capacity Insufficiency or Zonal Replacement are paid:
the higher of their bid or,
the highest MCPC for all RPRS procured during the procurement processes.
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section and

11. Payment to Providers Units selected for Local Replacement are paid:
Resource Category Generic Startup Cost for starting
Resource Category Minimum Energy Cost minus MCPE for operating at the LSL.
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section and

12. Payment from Market
Payment from the Market is collected through the following charges:
Under Scheduled Capacity Charge
RPRS Zonal Congestion Charge
RPRS Uplift Charge
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section

13. Payment from Market Under Scheduled Capacity Charge
Costs for Capacity Insufficiency are directly assigned to the QSE whose schedules show insufficient capacity scheduled compared to Adjusted Metered Load. This can also result from Mismatches.
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section

14. Payment from Market RPRS Zonal Congestion Charge
RPRS Zonal Congestion costs will be directly allocated to QSEs whose schedules have an impact on a congested Commercially Significant Constraint
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section

15. Payment from Market RPRS Uplift Charge
The total payments for Zonal, Local and Capacity Insufficiency RPRS are netted with;
the direct assigned costs for Zonal RPRS plus direct assigned Congestion impact and TCR Payments
The difference is uplifted at Load Ratio Share to all QSEs.
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section

16. RPRS Overview of RPRS Operations How and Why does ERCOT use it?
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

17. Why
Correct total Capacity Insufficiency, Zonal Congestion and Local Congestion
Based on scheduled resources and load forecasts
Procure Capacity in appropriate locations to provide for system security
To ensure operational security
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section 6.4.2

18. How
Provide capacity from which energy would be available to solve the following system security violations:
System Capacity insufficiency
Using any RPRS bid (or Generic for units with no bids)
Zonal Congestion
Using RPRS bids by Zone in Merit Order (or Generic for units with no bids)
Local Congestion
Using Resource Category Generic Cost
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section

19. RPRS Inputs Inputs Resource Plans (at time of procurement)
HSL
LSL
Load Forecast
QSE Schedules (at time of procurement)
MCPC – Market Clearing Price for Capacity - The highest price associated with a Congestion Zone for a Settlement Interval for Ancillary Service capacity awarded in each Ancillary Services capacity procurement run by ERCOT. There will be a separate Market Clearing Price for Capacity for each Ancillary Services capacity market. (Protocols 2)
Adjustment Period- The Adjustment Period for any given Operating Hour is the time period following the close of the Day-Ahead market and extending up to each Operating Period. (Protocols 2)
Timeline from ERCOT Protocols 4.1.1
Section

20. RPRS Outputs Output Unit specific deployment for RPRS
Optimized for entire 24 Hr period
Section

21. RPRS Overview of RPRS Operations How and Why does ERCOT use it?
How does a QSE bid it?
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

22. RPRS Bid Bidding Requirements Resource Parameters Time Constraints
Designation of specific Resource
Amount of Capacity
Time Constraints
Startup Time (Resource Plan)
Minimum Run Time (Registration)
Minimum Down Time (Registration)
Hours the bid is effective (Bid)
Expiration time of bid (Bid)
Costs
Start-up - $/MW (< $1,000/MW)
Operating - $/MW/Hr (<$1,000/MWh)
Balancing Energy Bid Point in $/MWh
Section

23. RPRS Bid Balancing Energy Bid Point in $/MWh
Max price that balancing energy bids will be entered for the capacity accepted in the RPRS market.
Section

24. ERCOT Participant interface: XML v 4.o, Sec 3.4
RPRS Bid Example
<?xml version=”1.0”>
<!DOCTYPE Bids SYSTEM “bids.dtd”>
<Bids>
<ReplacementBid>
<DAY> </DAY>
<FIRSTHOUR>1300</FIRSTHOUR>
<LASTHOUR>1800</LASTHOUR>
<CAPACITY>100</CAPACITY>
<RSRC_ID>GT-1</RSRC_ID>
<RSRC_TY>GEN</RSRC_TY>
<CMZONE>A</CMZONE>
<STARTUP_PRICE>30.00</STARTUP_PRICE>
<PERHOUR_PRICE>50.00</PERHOUR_PRICE>
<EXPIRATION_DATE> </EXPIRATION_DATE>
<EXPIRATION_TIME>1100</EXPIRATION_TIME>
<BES_BIDPOINT>9.99</BES_BIDPOINT>
</ReplacementBid>
</Bids>
MCPC – Market Clearing Price for Capacity - The highest price associated with a Congestion Zone for a Settlement Interval for Ancillary Service capacity awarded in each Ancillary Services capacity procurement run by ERCOT. There will be a separate Market Clearing Price for Capacity for each Ancillary Services capacity market. (Protocols 2)
Adjustment Period- The Adjustment Period for any given Operating Hour is the time period following the close of the Day-Ahead market and extending up to each Operating Period. (Protocols 2)
Timeline from ERCOT Protocols 4.1.1
ERCOT Participant interface: XML v 4.o, Sec 3.4

25. Requirements RPRS Requirements
Resources must provide telemetered output signal, including breaker status
Minimum amount is 1 MW
Resources must meet additional technical requirements (Protocol Section 6.10)
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section 6.5.6

26. Requirements RPRS Requirements cont.
Only one RPRS bid from any Resource
Selected Resource must be able to respond in the hours selected
QSEs supplying RPRS must comply with Balanced Schedule
Bids in accordance with Section 4
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section 6.5.6

27. Requirements RPRS Requirements cont. QSEs may not self-arrange RPRS
Eligible Resources with no bids can still be selected
Bid price set by generic cost times an adjustment factor
If selected, deployed and paid as an OOMC deployment
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Section 6.5.6

28. RPRS Overview of RPRS Operations How and Why does ERCOT use it?
How does a QSE bid it?
How does a QSE deploy it?
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

29. Day-Ahead Procurement
RPRS procured at 1800, based on:
ERCOT’s 1100 Load forecast
1100 Day-ahead schedules (unless modified by 1300 in accordance with )
Bids submitted by 1600
Resource Plans
ERCOT notify accepted RPRS bids by 1800
* Insufficient RPRS bids addressed with OOMC
Section

30. Adjustment Period Procurement
RPRS procured during Adjustment Period based on:
RPRS Bids (can be modified after 1800)
Resource Plans
ERCOT next day Load Forecast
Section and 4.5.6

31. Objective of RPRS Engine
The goal of the RPRS Clearing Engine is 24 Hour Optimization to minimize total cost, based on:
Resource Category Generic Cost
Capacity price
Operation Price
Resource Shift Factors
And also respect;
Lead time
Minimum Up time
Minimum Down time
For the whole Operating Day while meeting security constraints for each hour.
Section and

32. RPRS Three Step Clearing Process Local Congestion first
Zonal Congestion & System Balance simultaneously
Operator optional intervention
MCPC Calculation
Marginal cost for insufficiency determines MCPC
Marginal cost to solve CSC determines Shadow Price for Capacity for CSC Congestion
MCPC – Market Clearing Price for Capacity - The highest price associated with a Congestion Zone for a Settlement Interval for Ancillary Service capacity awarded in each Ancillary Services capacity procurement run by ERCOT. There will be a separate Market Clearing Price for Capacity for each Ancillary Services capacity market. (Protocols 2)
Adjustment Period- The Adjustment Period for any given Operating Hour is the time period following the close of the Day-Ahead market and extending up to each Operating Period. (Protocols 2)
Timeline from ERCOT Protocols 4.1.1
Section

33. RPRS Notification Example
<?xml version=”1.0”?>
<!DOCTYPE Notifications SYSTEM “notes.dtd”>
<Notifications>
<RepBidSelected>
<DAY> </DAY>
<STRIKEHOUR>1200</STRIKEHOUR>
<FIRSTHOUR>1100</FIRSTHOUR>
<LASTHOUR>1800</LASTHOUR>
<RSRC_ID>GT-1</RSRC_ID>
<RSRC_TY>GEN</RSRC_TY>
<BIDMW>100</BIDMW>
<STRIKEMW>100</STRIKEMW>
<STARTUP_PRICE>25.00</STARTUP_PRICE>
<PERHOUR_PRICE>10.00</PERHOUR_PRICE>
<LEADTIME>30</LEADTIME>
<STARTHOUR>1200</STARTHOUR>
<STOPHOUR>1600</STOPHOUR>
<CONGESTION>F</CONGESTION>
</RepBidSelected>
</Notifications>
MCPC – Market Clearing Price for Capacity - The highest price associated with a Congestion Zone for a Settlement Interval for Ancillary Service capacity awarded in each Ancillary Services capacity procurement run by ERCOT. There will be a separate Market Clearing Price for Capacity for each Ancillary Services capacity market. (Protocols 2)
Adjustment Period- The Adjustment Period for any given Operating Hour is the time period following the close of the Day-Ahead market and extending up to each Operating Period. (Protocols 2)
Timeline from ERCOT Protocols 4.1.1
ERCOT Participant interface: XML v 4.o, Sec 5.12

34. RPRS Which Resources are Eligible for RPRS?
Local Congestion – any generation resource offline and available will be eligible.
Zonal Congestion, Capacity – any offline and available generator or online, available, and active LaaR* resource with a RPRS bid.
RMR units may be used to offset RPRS, if economical.
* LaaRs will not be able to participate initially upon initiation of the RPRS functionality.
Section

35. RPRS What does the QSE do when RPRS is Procured from the QSE?
Updates their Resource Plan accordingly
Adds Capacity from RPRS resource into Balancing Bids
Brings specified resource online for specified hours at LSL
Incorporate LSL into Energy Schedules. Options include:
Reducing output of other Resources
Selling additional BES
Using Relaxed Balanced Schedules
RPRS is not an instructed deviation
Section 6.4.2

36. RPRS Overview of RPRS Operations Settlements
How and Why does ERCOT use it?
How does a QSE bid it?
How does a QSE deploy it?
Settlements
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

37. RPRS Settlement Inputs to Settlements:
RPRS Procured (Type and Quantity)
MCPC and Shadow Prices
Bids
Schedules
Resource Plans
Generic Cost
Adjusted Metered Load

38. RPRS Settlement Process: Pay Providers: Capacity Insufficiency
Zonal Congestion
Local Congestion
Collect from Users:
Under Scheduled QSEs
Zonal Congestion
Uplift to Market

39. RPRS Overview of RPRS Operations Settlements
How and Why does ERCOT use it?
How does a QSE bid it?
How does a QSE deploy it?
Settlements
How does a QSE get paid?
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

40. Payment
If a unit was selected for Local Congestion, how does the QSE get paid?

41. Decide if deployment was Local, Zonal or System Balance
Local Award
Determine Awarded Amount
Determine Hours
Of Award
Determine Startup and
Operating Payment

42. RPRS Local Replacement Reserve (LCFLAG = 1) Steps
LRPQ – Awarded amount
LRPHR – Number of hours awarded
LPS – Start up payment
LPO – Operation price

43. RPRS LRPQ – Local Replacement Quantity Hour 5 (Intervals 17 – 20):
Hours
Hr03
Hr04
Hr05
Hr06
Hr07
Hr08
Hr09
Hr10
Hr11
Hr12
Hr13
Hr14
LCFLAG 2 1
Interval
Int17
Int18
Int19
Int20
Int21
Int22
Int23
Int24
Int25
Int26
Int27
Int28
Hour
4:15
4:30
4:45
5:00
5:15
5:30
5:45
6:00
6:15
6:30
6:45
7:00
HSL
141
145
151
155
160
165
170
161
LRPQ
148
153
Hour 5 (Intervals 17 – 20):
LRPQ = ( ) / 4 = 148
(Used to calculate RCGSC)

44. RPRS LRPHR – number of hours instructed LRPHR = 3 Hours Hr03 Hr04 Hr05
LRPQ
148
165
153
LRPHR 3
LRPHR = 3

45. RPRS LPS – Local RPRS start up payment
Determine if “Hot” or “Cold” start (Combined Cycle only)
Hot = Less than 5 hours from shut down to start up
Cold = 5 hours or more from shut down to start up.
Section

46. RPRS LPO – Local RPRS Operating payment
Unit will get paid for what it generated, up to it’s LSL.
Section

47. RPRS LSL < GSITETOT 120 GSITETOT 100 Low Sustainable Limit 30MWh

48. RPRS LSL > GSITETOT 120 Low Sustainable Limit 100 GSITETOT 30MWh

49. RPRS LPCRPAMT – Local Procured Capacity Replacement Amount
Section

50. Local Replacement Payment
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Local Replacement
Section

51. Payment
If a unit was selected for Capacity Insufficiency or Zonal Replacement, how does the QSE get paid?

52. Decide if deployment was Local, Zonal or System Balance
System Balance Award
Determine Awarded Amount
Determine Hours
Of Award
Apply RPRS Bids

53. RPRS Zonal Replacement Reserve (LCFLAG = 0) Steps
ZRPQ – Awarded amount
ZRPHR – Number of hours awarded
Apply Bids

54. RPRS ZRPQ – Zonal Replacement Quantity
Hours
Hr03
Hr04
Hr05
Hr06
Hr07
Hr08
Hr09
Hr10
Hr11
Hr12
Hr13
Hr14
LCFLAG 2 1
Interval
Int29
Int30
Int31
Int32
Int33
Int34
Int35
Int36
Int37
Int38
Int39
Int40
7:15
7:30
7:45
8:00
8:15
8:30
8:45
9:00
9:15
9:30
9:45
10:00
HSL
143
144
146
147
157
161
156
154
158
155
ZRPQ
145
RPRSMW = (Min of Procured MW and HSL at Procurement)
Hour 8 (Intervals 29 – 32):
ZRPQ = MIN[156,( )/ 4] = 145

55. RPRS ZRPHR – number of hours instructed ZRPHR = 3 Hours Hr03 Hr04 Hr05
ZRPQ
145
156
ZRPHR 3
ZRPHR = 3

56. RPRS ZPCRPAMT – Zonal Procured Capacity Replacement Amount
Section

57. Decide if deployment was Local, Zonal or System Balance
System Balance Award
Local Award
Determine Awarded Amount
Determine Awarded Amount
Determine Hours
Of Award
Determine Hours
Of Award
Determine Startup and
Operating Payment
Apply RPRS Bids

58. Capacity Insufficiency
Zonal Replacement and Cap. Insufficiency Payment
Zonal Replacement
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Capacity Insufficiency
Local Replacement
Section

59. RPRS Overview of RPRS Operations Settlements
How and Why does ERCOT use it?
How does a QSE bid it?
How does a QSE deploy it?
Settlements
How does a QSE get paid?
How does the Market get charged?
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)

60. RPRS Under Scheduled Charge
A QSE can be directly assigned RPRS charges if they:
under-schedule their load
have mismatches where they are receiving more than the supplying party has scheduled
scheduled ERCOT as a resource
Section

61. RPRS Under Scheduled Charge
Steps:
Use maximum MCPC for any RPRS Market for the Operating day
Find the Maximum difference between the QSEs Adjusted Metered Load and Scheduled Load for any interval in which there was an RPRS Market
Add the amount of the Maximum Mis-Matched quantity for any Interval with an RPRS Market
Section

62. RPRS Under Scheduled Charge
Example: Direct assigned RPRS costs, two RPRS Markets
MCPCRP = $55
Day-Ahead
Adjustment Period
MCPCRP = $45

63. RPRS Under Scheduled Charge
Day-Ahead
Scheduled
Scheduled
Actual
Actual
Actual
Scheduled
20 MW
Adjustment Period
Actual
Scheduled
Actual
Scheduled
Actual
Scheduled

64. RPRS Under Scheduled Charge
QSE B
QSE A
Resource
Obligation
Resource
Obligation
100 B
100 A
110 B
110 A
Day-Ahead
Mismatch quantity – 10MW
QSE B
QSE A
Resource
Obligation
Resource
Obligation
Adjustment Period
100 B
100 A
100 B
100 A
No Mismatch

65. RPRS Under Scheduled Charge
Maximum MCPC = $55
Maximum Under Scheduled amount = 20MW
Maximum Mismatch amount = 10MW

66. RPRS Under Scheduled Charge
$55 * (20MW + 10MW) = $1,650

67. RPRS Under Scheduled Charge0,
MaxM(AMLi1zq-CLi1zq)
USRPizq= MaxM(MCPCRPizq) * Max MaxM(AMLi2zq-CLi2zq) MMQizq MaxM(AMLi3zq-CLi3zq)
MaxM(AMLi4zq-CLi4zq)
Variables
US = RPRS Under Scheduled Charge
AML = Adjusted Meter Load
CL = Current Scheduled Load
MCPC = Market Clearing Price for Capacity
MMQ = Mismatched Amount
Subscripts
M = Market
i = Interval
z = Congestion Management Zone
q = QSE
RP = Replacement Reserve
Section

68. RPRS Under Scheduled Charge0,
MaxM(MMSMi1zqaqb)
MMQizq = Σ Max MaxM(MMSMi2zqaqb) MaxM(MMSMi3zqaqb)
MaxM(MMSMi4zqaqb)
Subscripts
M = Market
i = Interval
z = Congestion Management Zone
qa = Buying QSE
qb = Selling QSE
Variables
MMQ = Mismatched Quantity
MMS = Mismatched Schedule Quantity
Section

69. RPRS Under Scheduled Charge0,
MMSMi1zqaqb = Max QSSATORPi1z - QOSBTORPi1z
Subscripts
M = Market
I = Interval
Z Congestion Management Zone
TORP = Time of Replacement
Variables
MMS = Mismatched Schedule Quantity
QSSA = QSE Supply Schedule for Buying QSE
QOSB = QSE Obligation Schedule for Supplying QSE
Section

70. Under Scheduled Charge Capacity Insufficiency
RPRS Under Scheduled Charge
Zonal Replacement
Under Scheduled Charge
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Capacity Insufficiency
Local Replacement
Section

71. RPRS Zonal Congestion Charge
Criteria:
If a QSE’s schedule has an impact on a CSC, and:
ERCOT has procured Zonal RPRS, then:
The QSE can be charged for Congestion Impact.
Multiply the CSC Shadow Price for Capacity by the QSE CSC Impact per interval.
During post-interim period, Replacement Reserve Service CSC cost is charged directly to QSEs for the CSC impact.
RPRS CSC charge is a hourly charge type. However, both the generation and load data are 15 minute interval data. In this calculation, we take the worst impact of all 4 interval in that hour and the worst impact of schedule impact and actual impact.
Scheduled impact is based on the schedule at the time of RPRS procurement, not based on the final schedule. In one hourly interval, there are probably more than one time of RPRS procurement.
TCR is a hedge bought by QSE to reduce there CSC charge. TCR means transmission congestion right.

72. RPRS Zonal Congestion Charge
Example:
West
North
Res = 548MW
Net = 408MW
Load = 140MW
South

73. CSC Zonal Average Weighted Shift Factors
RPRS Zonal Congestion Charge
Shift Factors
CSC Zonal Average Weighted Shift Factors
CM Zone names
Average Weighted Shift Factor
West to North
South to North
South to West
West2003
North2003
South2003

74. RPRS Zonal Congestion Charge
Calculate the Impact for a Zone
Impact = Net Zonal Schedule * Shift Factor
South Zone Schedule impacts the South to North constraint as follows:
Impact = (Resource – Obligation) * SFSN
= (548 MW – 140MW) *
= MW

75. RPRS Zonal Congestion Charge
Now the Congestion Charge for a particular CSC is simply a quantity times a price:
Congestion Charge = (Max of Impact) * Shadow Price for Capacity
= (205.33MW)($100/MW)
= $

76. RPRS Zonal Congestion Charge
CSCRPhq = SPCCSCh* MAX (0, ICSChq))
ICSChq = MAX [0,MAX [Σ ((QSSTOPiqz – QOSTOPiqz) * SFzcsc)z ]n]
Subscripts
i = Interval
h = Hour being calculated
n = Number of time RPRS is procured
TOP = Time of Replacement
q = QSE
z = Congestion Management Zone
Variables
CSC = Commercially Significant Constraint
I =Scheduled MW Impact
QSS = QSE Supply Schedule
QOS = QSE Obligation Schedule
SF = Shift Factor
SPC = Shadow Price for Capacity
During post-interim period, Replacement Reserve Service CSC cost is charged directly to QSEs for the CSC impact.
RPRS CSC charge is a hourly charge type. However, both the generation and load data are 15 minute interval data. In this calculation, we take the worst impact of all 4 interval in that hour and the worst impact of schedule impact and actual impact.
Scheduled impact is based on the schedule at the time of RPRS procurement, not based on the final schedule. In one hourly interval, there are probably more than one time of RPRS procurement.
TCR is a hedge bought by QSE to reduce there CSC charge. TCR means transmission congestion right.
Section

77. Zonal Congestion Impact Under Scheduled Charge Capacity Insufficiency
RPRS Zonal Congestion Charge
Zonal Congestion Impact
Zonal Replacement
Under Scheduled Charge
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Capacity Insufficiency
Local Replacement
Section

78. TCR Payment
TCR Holders are paid the Shadow Price for Capacity times the number of TCRs held on the active constraint:
TCRPAY = Number of TCRs Held * Shadow Price Capacity

79. TCRPAY TCRPAYRP = -1 * [ Σ (TCRCSC) * SPCSC ]CSC Subscripts Variables
RP = Replacement Reserve
CSC = Commercially Significant Constraint
Variables
TRCRPAY = TCR Payment per Hour
TCR = Total Number of TCRs owned
SP = RPRS Capacity Shadow Price
Section

80. Zonal Congestion Impact Under Scheduled Charge Capacity Insufficiency
TCRPAY
Zonal Congestion Impact
Zonal Replacement
≠ 0
TCRPAY
Under Scheduled Charge
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Capacity Insufficiency
Local Replacement
Section

81. RPRS Uplift Charge RPRS Uplift Charge =
Payments to Capacity and Zonal Replacement +
Payments to Local Replacement +
Payments to TCR Holders +
Collection from Under Scheduled Capacity +
Collection from RPRS Congestion Impact
Multiplied by each QSE’s Load Ratio Share
Uplift is to ensure revenue neutrality of congestion management capacity market .
This is a hourly charge type, so LRS is hourly load ratio share.
Section

82. RPRS Uplift Charge
UCRP = -1 * [ Σ ( PCRP + LPCRP ) + Σ (USRP) + TCRPAYRP + Σ CSCRP ]* LRS
Variables
UC = RPRS Uplift Charge
PC = Cost of Capacity for Zonal Congestion and Capacity Insufficiency
LPC = Cost of RPRS for Local Congestion
US = RPRS Under Scheduled Charge
TRCRPAY = TCR Payment per Hour
CSC = RPRS CSC Impact Capacity Charge
LRS = Load Ratio Share
Subscripts
RP = Replacement Reserve
Uplift is to ensure revenue neutrality of congestion management capacity market .
This is a hourly charge type, so LRS is hourly load ratio share.
Section

83. Zonal Congestion Impact Under Scheduled Charge Capacity Insufficiency
RPRS Uplift Charge
Zonal Congestion Impact
Zonal Replacement
RPRS
Uplift
Charge
TCRPAY
Under Scheduled Charge
Ancillary Services
Those services, described in Section 6, necessary to support the transmission of energy from Resources to Loads while maintaining reliable operation of transmission provider’s transmission systems in accordance with Good Utility Practice. (Protocols 2)
Replacement Reserve Service - A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement. (Protocols 2)
Capacity Insufficiency
Local Replacement
Section

84. Questions

85. New Determinants LCFLAG LPO LPS Hourly cut 0 = awarded Zonal RPRS
1 = awarded Local RPRS
2 = No award
Local Replacement
LPO
Determined in settlements with RCGMEC, MCPER, GSITETOT and LSL
LPS
Determined in Settlements with RCGSC, LRPHR

86. New Determinants cont. LRPADJ LRPHR LRPQ Hourly cut
Adjustment to Local RPRS Payment (LPCRPAMT)
LRPHR
Number of hours a unit is continuously procured for Local RPRS
LRPQ
MW quantity of Local RPRS awarded. Determined in Settlement using LCFLAG and HSL

87. New Determinants cont. RPRSMW ZRPHRBP ZRPADJ
Zonal and Capacity Insufficiency
RPRSMW
Hourly cut
Minimum of average hourly HSL (at the time of procurement) or MW awarded from RPRS bid
ZRPHRBP
Hourly bid price for RPRS ($/MW)
Only used in Zonal RPRS
ZRPADJ
Adjustment to Zonal RPRS Payment (ZPCRPAMT)

88. New Determinants cont. ZRPHR ZRPSUBP ZRPQ Hourly cut
Number of hours a unit is continuously procured for Zonal RPRS
ZRPSUBP
Hourly start up bid price ($/MW)
Only used in Zonal RPRS
ZRPQ
MW quantity of Zonal RPRS awarded. Determined in Settlement using LCFLAG and HSL

89. PRRs
413 – Optimization for the Whole Operating Day in RPRS Procurement Process
491 – Clarification to PRR413 RPRS Market
594 – Replacement Reserve Service Payment Formulas
604 – Replacement Reserve Service Bid Cap
613 – Replacement Reserve Under Scheduled Capacity Delineation
614 – Balancing Bids for replacement Capacity
Clarifying RPRS Scheduling Language

90. Protocol Sections 4.4.11 - Ancillary Services Bid Submittal
– ERCOT Receipt of Replacement Reserve Service Bids
4.5.6 – ERCOT Notice of Need to Procure RPRS Resources
6.1.6 – Replacement Reserve Service
6.3.1 – ERCOT Responsibilities
6.4.1 – Determination of ERCOT Control Area Requirements
6.5.6 – Replacement Reserve Service
6.5.9 – Reliability Must-Run Service

91. Protocol Sections 6.5.9 – Reliability Must-Run Service
– Specific Procurement Process Requirements for Replacement Reserve Service in the Adjustment Period
6.7.5 – Deployment of Replacement Reserve Service
6.7.8 – Deployment of RMR Service
– Payments for Ancillary Service Capacity
– Zonal or System Wide Replacement Reserve Service Capacity Payment to QSE
– Local Congestion Replacement Reserve Payment to QSE When a Market Solution Exists
– Capacity and Minimum Energy Payments

92. Protocol Sections…cont.
– Settlement for RPRS
– Replacement Reserve Under Scheduled Capacity
– Replacement Reserve Uplift Charge
– Replacement Reserve and OOMC Performance Criteria
– Replacement Reserve Service Zonal Congestion Charge
7.4.2 – Resolution of Local Congestion
7.5.5 – TCR Settlement