temperature dependant discount factor ros august 16, 2007

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Temperature Dependant Discount Factor ROS August 16, 2007

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Temperature Dependant Discount Factor ROS August 16, 2007. Proposal. Utilize Weather Zone temperatures to determine the Discount Factor Increase the accuracy of the Discount Factor by considering Actual Hourly Temperatures by weather zone. - PowerPoint PPT Presentation

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Page 1: Temperature Dependant Discount Factor ROS August 16, 2007

Temperature Dependant Discount Factor

ROSAugust 16, 2007

Page 2: Temperature Dependant Discount Factor ROS August 16, 2007

2

August, 2007

• Utilize Weather Zone temperatures to determine the Discount Factor

– Increase the accuracy of the Discount Factor by considering Actual Hourly Temperatures by weather zone.

– Resulting in a more accurate representation of reserves on the system.

• Reserve Discount Factor (RDF)

– A representation of the average amount of system wide capability that, for whatever reason, is historically undeliverable during periods of high system demand. The RDF will be verified by ERCOT and then approved by the ROS.

Proposal

Page 3: Temperature Dependant Discount Factor ROS August 16, 2007

3

August, 2007

NORTH_CEAST

SOUTHERN

COASTSOUTH_C

WESTFARWEST

NORTH

Page 4: Temperature Dependant Discount Factor ROS August 16, 2007

4

August, 2007

Approach

• Vary the discount factor applied to each unit based on weather zone and actual temperature in the weather zone. The discount will vary between 4% and 7%.– Zonal temperature ≥ 95 degrees Fahrenheit = 7% discount– Zonal temperature ≥ 85 & < 95 degrees Fahrenheit = 5% discount– Zonal temperature <85 degrees Fahrenheit = 4% discount

• The temperature boundary parameters could be re-configured based on ERCOT operational experience

Page 5: Temperature Dependant Discount Factor ROS August 16, 2007

5

August, 2007

EECP 06-18-2007 COMPARISION OF TEMP ADJ RRS AND ADJ RRS

0

500

1,000

1,500

2,000

2,500

1800

2000

2200

2400

2600

2800

3000

3200

13:35 14:45 15:55 17:05 18:15 19:25

REMAINING BALANCING ENERGY MW

ADJ RRS

UBES REMAINING MWADJ RRS

Adj RRS with TDF

ALERT

EECP STEP 1

COAST EAST FARWEST NORTH NORTH_CENTRAL SOUTH_CENTRAL SOUTHERN WEST

91.6OF 87.5OF 103.5OF 81.5OF 90.75OF 90.0OF 93.2OF 90.8OF

Page 6: Temperature Dependant Discount Factor ROS August 16, 2007

6

August, 2007

ALERT 06-27-2007 COMPARISION OF TEMP ADJ RRS AND ADJ RRS

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1800

2000

2200

2400

2600

2800

3000

3200

3400

3600

3800

12:05 13:15 14:25 15:35 16:45 17:55

REMAINING BALANCING ENERGY MW

ADJ RRS

UBES REMAINING MWADJ RRS

Adj RRS with TDF

ALERT

COAST EAST FARWEST NORTH NORTH_CENTRAL SOUTH_CENTRAL SOUTHERN WEST

89.6OF 86.5OF 87OF 83OF 82.5OF 86.5OF 89.8OF 81OF

Page 7: Temperature Dependant Discount Factor ROS August 16, 2007

7

August, 2007

ALERT 07-03-2007 COMPARISION OF TEMP ADJ RRS AND ADJ RRS

0

500

1,000

1,500

2,000

2,500

3,000

1800

2000

2200

2400

2600

2800

3000

3200

3400

3600

12:05 13:15 14:25 15:35

REMAINING BALANCING ENERGY MW

ADJ RRS

UBES REMAINING MWADJ RRS

Adj RRS with TDF

ALERT

EECP STEP 1

COAST EAST FARWEST NORTH NORTH_CENTRAL SOUTH_CENTRAL SOUTHERN WEST

83.7OF 81.5OF 91.0OF 83.0OF 82.75OF 81.5OF 83.2OF 79.4OF

Page 8: Temperature Dependant Discount Factor ROS August 16, 2007

8

August, 2007

ALERT 07-28-2007 COMPARISION OF TEMP ADJ RRS AND ADJ RRS

0

500

1,000

1,500

2,000

2,500

3,000

1800

2000

2200

2400

2600

2800

3000

3200

3400

12:05 13:15 14:25 15:35 16:45 17:55

REMAINING BALANCING ENERGY MW

ADJ RRS

UBES REMAINING MWADJ RRS

Adj RRS with TDF

ALERT

COAST EAST FARWEST NORTH NORTH_CENTRAL SOUTH_CENTRAL SOUTHERN WEST

87.9OF 81.5OF 83.5OF 89.5OF 87.25OF 86.0OF 87.0OF 84.6OF

Page 9: Temperature Dependant Discount Factor ROS August 16, 2007

9

August, 2007

EECP 08-01-2007 COMPARISION OF TEMP ADJ RRS AND ADJ RRS

0

500

1,000

1,500

2,000

2,500

3,000

1800

1900

2000

2100

2200

2300

2400

2500

2600

2700

2800

2900

3000

3100

3200

3300

3400

3500

3600

3700

3800

3900

4000

4100

4200

12:05 13:15 14:25 15:35 16:45 17:55

REMAINING BALANCING ENERGY MW

ADJ RRS

UBES REMAINING MWADJ RRS

Adj RRS with TDF

ALERT

COAST EAST FARWEST NORTH NORTH_CENTRAL SOUTH_CENTRAL SOUTHERN WEST

90.8OF 81.5OF 90OF 81.5OF 93.5OF 90.5OF 92.4OF 89.4OF

Page 10: Temperature Dependant Discount Factor ROS August 16, 2007

10

August, 2007

ADVISORY 08-06-2007 COMPARISION OF TEMP ADJ RRS AND ADJ RRS

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1800

2300

2800

3300

3800

4300

12:05 13:15 14:25 15:35 16:45 17:55

REMAINING BALANCING ENERGY MW

ADJ RRS

UBES REMAINING MWADJ RRS

Adj RRS with TDF

ALERT

COAST EAST FARWEST NORTH NORTH_CENTRAL SOUTH_CENTRAL SOUTHERN WEST

93.5OF 91.5OF 97OF 93.5OF 95.75OF 92.0OF 93.2OF 93.2OF

Page 11: Temperature Dependant Discount Factor ROS August 16, 2007

11

August, 2007

Conclusion

• Recommend using a temperature dependant Reserve Discount Factor – Higher temperatures will have more severe impacts on unit limits– History has indicated the need for a discount to be applied to

Reserves– Dynamically adjusting the discount factor based on temperatures,

should result in a more accurate reflection of actual system reserves