Enron Mail

From:thane.twiggs@enron.com
To:doug.gilbert-smith@enron.com, clint.dean@enron.com, smith.day@enron.com,eric.saibi@enron.com, mike.curry@enron.com, martin.lin@enron.com, ron.mcnamara@enron.com, thane.twiggs@enron.com, jean.ryall@enron.com, michelle.parks@enron.com, christi.nicolay@e
Subject:ERCOT Ancillary Services Methodology
Cc:
Bcc:
Date:Wed, 11 Apr 2001 05:21:00 -0700 (PDT)

There are several items worth noting regarding the ERCOT's methodology:

Regulation Reserve Requirements (RGRS). ERCOT has determined that 600 MW o=
f=20
Reg up and down will be adequate for 95% of the hours during the year, if=
=20
historic patterns hold and if balancing energy is deployed properly. Durin=
g=20
what ERCOT considers to be "high stress" periods, they will increase their=
=20
normal RGRS requirement by a multiple of 2-3. The initial start-up of the=
=20
single control area will be considered "high stress" and ERCOT will purcha=
se=20
2-3 what is necessary to cover the inexperience of the operators. This wil=
l=20
be the practice until ERCOT is comfortable with the single control area (or=
=20
until market participants complain about the high cost of A/S). The high=
=20
stress option will remain available for the first year of operations.
Non-Spinning Reserve Requirements (NSRS). ERCOT proposes to a methodology =
of=20
purchasing NSRS only when projected risk of insufficiency is higher than=20
normal, or large amounts of spinning reserve are not projected to be=20
available online based on resource plans.. This boils down to where the=20
temperature is projected to be greater than 92 degrees, less than 32 degree=
s=20
Fahrenheit or uncertain and when spinning reserves less than 4600 MW are=20
projected. Here is the process:
1. Review the weather forecast for the next day and see if it differs=20
significantly from the current day.
2. If the next day forecast is =01&similar=018 to the current day forecas=
t, and=20
the current day forecast high temperature is <92, and the current day lo=
w=20
temperature is greater than 32 degrees, and the current day generation plan=
=20
shows <4600 MW of spinning reserve online all day long, and the current=
=20
month is not April, May, or October, THEN no NSRS is considered to be=20
required all day for the next day.
3. Else: Purchase NSRS using the following:
? If the current month is April, May or October, then purchase NSRS in=20
amounts equal to the largest unit online for the hours projected within=
=20
80% of peak hour.
? If today=01,s and tomorrow=01,s ERCOT high temperature is projected abo=
ve 92=20
degrees, then purchase NSRS in amounts equal to the largest unit online=
=20
for the hours projected warmer than 92 degrees.
? If tomorrow=01,s low temperature forecast is projected below 30 degrees=
,=20
then purchase NSRS in amounts equal to the largest unit online for the=
=20
projected morning load pickup hours and hours projected within 80% of peak=
=20
hour.
Purchase amounts of NSRS equal to the largest unit online for hours in=
=20
which the Day Ahead operator estimates spinning reserves online will dro=
p=20
lower than 4600 MW.
Replacement Reserve Requirements (RPRS). The requirement will be set at th=
e=20
amount of RPRS required to resolve supply inadequacy, CSC, and OC (local)=
=20
congestion simultaneously. There will be procurement of RPRS if the resour=
ce=20
plans indicate capacity inadequacy based on the QSE scheduled load with th=
e=20
ERCOT projected load. If the ERCOT projected load is greater than the QSE=
=20
scheduled load and capacity available in the resource plan does not cover t=
he=20
difference, then there is a capacity inadequacy problem. If the CSC flows=
=20
based on the QSE schedules are greater than the limits, then the CSC proble=
ms=20
are recorded. Then a transmission contingency analysis will be run to=20
identify OC constraints. If the flows are greater than the limits, the OC=
=20
flow values are recorded. When there are insufficient RPRS bids for ERCOT =
to=20
resolve its reliability and security concerns, ERCOT may choose to request=
=20
OOM capacity or to use RMR units. ERCOT will use the scheduling pricing=20
dispatch (SPD) to determine which OOM and RMR units should be selected and=
=20
when to discontinue OOM/RMR service.
Balancing Energy Requirement. ERCOT's goal for balancing energy is (1) to=
=20
use BES so that regulation service in either direction is not depleted, (2)=
=20
to minimize net energy in regulation, and (3) to provide frequency control=
=20
when frequency is high, especially during minimum load intervals. ERCOT wi=
ll=20
use a two-step approach to calculate balancing energy service needs. Step=
=20
one will be to clear the balancing energy service market resolving=20
load-generation balances and Zonal congestion (local congestion is ignored)=
. =20
Step two is to determine the balance energy service needs to resolve local=
=20
congestion as well as generation-load balance and zonal congestion. The=
=20
desired result of step two is to minimize the cost of local congestion whic=
h=20
will be an uplift to the market.
Balancing Energy Down Bid Percentage Requirement. This will be used for=20
congestion management and frequency control (to correct for high frequency)=
. =20
ERCOT will evaluate the export amount of each congestion management zone an=
d=20
transmission transfer capability between CM Zones. If the export amount is=
=20
greater than the calculated transfer capability of a CM Zone, then the=20
difference between these two values is the potential congested MW, or the=
=20
total MW of DES Down bids needed for clearing Zonal Congestion. Also=20
sufficient down bid percentage requirement will be determined by ERCOT. =20
Market rules dictate that by 0600 of the day ahead QSEs will be notified of=
=20
this percentage requirement for BES down bids by Congestion Zone.
Responsive Reserve Requirement (RRS). The RRS requirement is set at 2300 M=
W=20
for all hours under normal conditions. Interruptible responsive reserve=20
cannot exceed 25% of the QSE total requirement.=20

For the initial start-up period of the market, ERCOT will have the tendency=
=20
to over buy ancillary services while the are "adjusting" to the single=20
control area.


Thane Thomas Twiggs
Enron Corp
1400 Smith Street
Houston, Texas 77002

713-853-3199 Voice
713-408-4463 Mobile
713-646-8272 Fax
877-968-8967 Digital Pager or 8779688967@skytel.com
----- Forwarded by Thane Twiggs/ENRON_DEVELOPMENT on 04/10/2001 04:59 PM --=
---

=09Thane Twiggs
=0904/10/2001 03:42 PM
=09=09=20
=09=09 To: Doug Gilbert-Smith/Corp/Enron@ENRON, Clint Dean/Corp/Enron@Enron=
, Smith=20
L Day/HOU/ECT@ECT, Eric Saibi/Corp/Enron@ENRON, Mike Curry/Enron@EnronXGate=
,=20
Martin Lin/Contractor/Enron Communications@Enron Communications, Ron=20
McNamara/NA/Enron@Enron, Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,=
=20
Jean Ryall/NA/Enron@ENRON, Michelle Parks/Enron@EnronXGate, Christi L=20
Nicolay/HOU/ECT@ECT
=09=09 cc:=20
=09=09 Subject: ERCOT Ancillary Services Methodology

The attached file was large so I will provide the link to the ERCOT website=
. =20
If you cannot down load and would like a hard copy, let me know.=20

http://www.ercot.com/currents.htm -- It is under Ancillary Services=20
Methodologies.

Thane Thomas Twiggs
Enron Corp
1400 Smith Street
Houston, Texas 77002

713-853-3199 Voice
713-408-4463 Mobile
713-646-8272 Fax
877-968-8967 Digital Pager or 8779688967@skytel.com
----- Forwarded by Thane Twiggs/ENRON_DEVELOPMENT on 04/10/2001 03:38 PM --=
---

=09Thane Twiggs
=0904/10/2001 03:04 PM
=09=09=20
=09=09 To: Doug Gilbert-Smith/Corp/Enron@ENRON, Clint Dean/Corp/Enron@Enron=
, Smith=20
L Day/HOU/ECT@ECT, Eric Saibi/Corp/Enron@ENRON, Mike Curry/Enron@EnronXGate=
,=20
Martin Lin/Contractor/Enron Communications@Enron Communications, Ron=20
McNamara/NA/Enron@Enron, Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,=
=20
Jean Ryall/NA/Enron@ENRON, Michelle Parks/Enron@EnronXGate, Christi L=20
Nicolay/HOU/ECT@ECT
=09=09 cc:=20
=09=09 Subject: ERCOT Ancillary Services Methodology

Attached is the proposed ERCOT ISO methodology for determining A/S=20
Purchases. The methodologies will be presented to the ERCOT Board for=20
approval April 17, 2001.




Thane Thomas Twiggs
Enron Corp
1400 Smith Street
Houston, Texas 77002

713-853-3199 Voice
713-408-4463 Mobile
713-646-8272 Fax
877-968-8967 Digital Pager or 8779688967@skytel.com