1. ORDC Settlements Overview Matthew Tozer & Blake Holt ERCOT CSWG 4/21/2014

2. 2 Purpose of Presentation Cover the implementation details for the Settlements of the ORDC Protocols (NPRRs 568, 591 and 598) We will not be giving a training on the purpose or settlement of ORDC Training materials are available on the ERCOT website at the following location: http://www.ercot.com/services/training/course/107#materials With NPRR 591, we attempted to get as much settlements detail as possible into the protocols HOWEVER, since then we’ve had to make some updates that aren’t explicitly covered in the protocols. We will attempt to cover all of those details in this presentation One example is how we apply the “discount factor”

3. 3 Highlights and Overview

4. 4 Overview All data needed for ORDC settlements will be available in existing extracts and extract tables SID (Settlements Input Data Extract) Market Input Interval and Header RTMMODE (Real Time Market Operating Day Extract) Market Input Interval and Header Real Time Market Output Interval and Header RTMCODE (Real Time Consolidated Operating Day Extract) Market Input Interval and Header Real Time Market Output Interval and Header Data Agg Output Interval and Header PRDE (Public Reference Data Extract) Factor *** Two new tables will be introduced into PRDE to support NPRR 555 (loads in SCED) which will also go live on June 1 LOADRESOURCES and DISPATCHTYPE

5. 5 Charge Types NPRR 555 is going live on June 1 with all of the ORDC changes, therefore: We are implementing the protocols in section 6 that state, “[NPRR568: Replace Section 6.7.4 above with the following upon system implementation of NPRR568 and NPRR555:]” There will three new charge types: RTASIAMT - Real-Time Ancillary Service Imbalance Amount RTRUCRSVAMT - Real-Time RUC Ancillary Service Reserve Amount LAASIRNAMT - Load-Allocated Ancillary Service Imbalance Revenue Neutrality Amount per QSE Each of these charge types will have their own line item on the Real Time Market Settlements Statements They will be found in the Ancillary Services section Invoicing will take place through the Settlements Invoice There are NO changes to Day Ahead Market Settlements

6. 6 Who Gets Settled for each Charge Type? RTASIAMT – Real-Time Ancillary Service Imbalance Amount Only QSEs with generation or QSEs with Load Resources will see this charge type on its Settlement Statement RTRUCRSVAMT - Real-Time RUC Ancillary Service Reserve Amount Only QSEs with generation will see this charge type on its Settlement Statement LAASIRNAMT - Load-Allocated Ancillary Service Imbalance Revenue Neutrality Amount per QSE Only QSEs with Load will see this charge type on its Settlement Statement

7. 7 Implementation Details

8. 8 Discount Factor Protocol Definitions for many of the bill determinants used in ORDC settlements state the following but don’t explicitly show a formula: “discounted by the system-wide discount factor” In the early phases of internal ERCOT system requirements development, it was not clear who would apply the discount factor. i.e. would the data flow into the settlements system already discounted, or would settlements apply the discount? Therefore, the specific discount factor calculations weren’t included in the NPRR 591 settlements formula updates The follow slides will detail each instance where ERCOT settlements is applying the discount factor

9. 9 Discount Factor for inputs to RTCLRCAP RTCLRCAP_ = (RTCLRNPF_ – RTCLRLSL_ – RTCLRNS_ ) + RTCLRREG_ Where: RTCLRREG_ = SYS_GEN_DISCFACTOR * RTCLRREGR_ _ _ RTCLRNPF_ = SYS_GEN_DISCFACTOR * RTCLRNPFR_ _ _ RTCLRLSL_ = SYS_GEN_DISCFACTOR * RTCLRLSLR_ _ _ RTCLRNS_ = SYS_GEN_DISCFACTOR * RTCLRNSR_ _ _

10. 10 Discount Factor for inputs to RTOLCAP RTOLCAP_ = (RTOLHSL _ – RTMGQ _ ) + RTCLRCAP _ + RTNCLRRRS_ + RTOFF10_ Where: RTOLHSL _ = SYS_GEN_DISCFACTOR * RTOLHSLR _ _ _ RTMGQ _ = SYS_GEN_DISCFACTOR * RTMG _ _ _ RTNCLRRRS_ = SYS_GEN_DISCFACTOR * RTNCLRRRSR_ _ _

11. 11 Discount Factor for inputs to RTASOLIMB RTASOLIMB_ =RTOLCAP_ – [((SYS_GEN_DISCFACTOR * RTASRESP_ ) * ¼) – RTASOFF_ -RTRUCNBBRESP_ - RTCLRNSRESP_ - RTRMRRESP_ ] Where: RTASOFF_ = SYS_GEN_DISCFACTOR * RTASOFFR_ _ _ AND Where: RUC_ _ _ _ = 1 RTRUCNBBRESP_ = SYS_GEN_DISCFACTOR * RTRUCASA_ _ * ¼ Otherwise: RTRUCNBBRESP_ = 0 RTCLRNSRESP_ = SYS_GEN_DISCFACTOR * ((HNSADJ_ _ _ ) * ¼)) RTRMRRESP_ = SYS_GEN_DISCFACTOR * ((HRRADJ_ _ _ _ _ _ _<SP) * ¼)

12. 12 Discount Factor for inputs RTOFFCAP RTOFFCAP_ = (SYS_GEN_DISCFACTOR * RTCST30HSL_ ) + (SYS_GEN_DISCFACTOR * RTOFFNSHSL_ ) + RTOFF30_ + RTCLRNS_ Where: RTCLRNS_ = SYS_GEN_DISCFACTOR * RTCLRNSR _ _ _

13. 13 Exclusions to RTOLHSL and RTMGQ RTOLHSL _ = SYS_GEN_DISCFACTOR * RTOLHSLR _ _ _ RTMGQ _ = SYS_GEN_DISCFACTOR * RTMG _ _ _ Excluding Resources (i.e. consider interval value=0) that are : Non-WGR Intermittent Renewable Resources (IRR). — Intermittent Renewable Resource= ‘Y’ AND Fuel Type Category <> “WIND” Nuclear Resources. — Fuel Type Category= “NUC” Reliability Must-Run (RMR) Units— Resource contracted per Start and Stop Time (RMR Contract Table). And excluding intervals (i.e. consider interval value=0) which are: Intervals that Resources have a telemetered STARTUP Resource Status. ( STATUSSTARTUP_ _ _ =1) Intervals that Resources have a telemetered SHUTDOWN Resource Status. ( STATUSSHUTDOWN_ _ _ =1) Intervals that Resources have a telemetered ONTEST Resource Status. (STATUSONTEST_ _ _ =1) Intervals that telemetered net real power (TWTG) is less than 95% (TPVLSL_FACTOR as of go-live date) of the Resource’s telemetered Low Sustained Limit (AVGTLSL). ( TPVLSLFLAG_ _ _ = 0) Included in hours that a Resource has been Reliability Unit Commited (RUC) that were NOT bought back. ( RUC_ _ _ _ =1 )

14. 14 TPVLSLFLAG Calculation If: TWTG_ _ _ > 0, Then, If: TWTG_ _ _ >= (TPVLSL_FACTOR * (AVGTLSL_ _ _ * ¼)) Set: TPVLSLFLAG_ _ _ = 1 Otherwise: Set: TPVLSLFLAG_ _ _ = 0

15. 15 Hourly to 15 Minute Data Transformation All input bill determinants to the Real Time AS Imbalance charge type are at a 15 minute settlement interval, except for 3 that are at an hourly interval: HNSADJ HRRADJ HRUADJ The bill determinants that are provided at an hourly level, but be divided by 4 and that value should be scaled into each 15 minute interval in the hour RTCLRNSRESP_ = SYS_GEN_DISCFACTOR * ((HNSADJ_ _ _ ) * ¼)) RTRMRRESP_ = SYS_GEN_DISCFACTOR * ((HRRADJ_ _ _ _ _ _ _<SP) * ¼)

16. 16 Other Details For Combined Cycles, all input data will be provided at the “Train” level, except for: HNSADJ, HRRADJ, HRUADJ (for generators, these are only inputs to RTRMRRESP, which is an adjustment only for RMR Resources) RUC RTRUCASA