verifiable cost working group (vcwg) update
DESCRIPTION
Verifiable Cost Working Group (VCWG) Update. Presentation to the ERCOT Wholesale Market Subcommittee January 20, 2010. VCWG – Chair Elections Chair – Heddie Lookadoo Vice Chair – Ian Davis Options for Filing Verifiable Costs File Verifiable Costs . - PowerPoint PPT PresentationTRANSCRIPT
Verifiable Cost Verifiable Cost Working Group (VCWG) Working Group (VCWG)
UpdateUpdate
Presentation to the ERCOT Wholesale Market Subcommittee
January 20, 2010
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VCWG SummaryVCWG Summary
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1. VCWG – Chair Elections a) Chair – Heddie Lookadoob) Vice Chair – Ian Davis
2. Options for Filing Verifiable Costsa) File Verifiable Costs .
1. Once VC are accepted they may not elect for Standard O & M Costs with the exception of those entities that have filed VC prior to implementation of this concept.
b) File with election of Standard O & M Costs by Technology.
1. Standard O & M per Startup by Technology - $ per Start
2. Standard O & M for Energy - $/MWH3. Will have to provide Actual fuel flows, Heat Rate
Curves , emissions rates, ect.c) VCWG is continuing to review data to come up with a
standard O & M in $/Start and $/MWH.
VCWG SummaryVCWG Summary
3. Proxy Heat Rate a) VCWG feels that the current use of daily average of
pricing to determine heat rate is sufficient till data can be collected on RUC instructions after Nodal Implementation.
b) Suggest that a review of commitments in DRUC and HRUC after the first 3 months of Nodal to determine if the Proxy heat rate should be changed from daily average.
4. NPRR Language for allowing disputes for FOP (Vote)a) NPRR language allows for recovery between FOP and
Actual cost.b) Documentation must reflect purchase of replacement
fuel oil with in 7 business days of fuel burn.
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VCWG SummaryVCWG Summary
5. Proxy Offer Curvea) The proxy Energy Offer Curve used to calculate the
RTAIEC (Real Time Average Incremental Energy Cost) will result in a negative average cost for energy.
b) AIEC in the RUC formula is designed to allow the Resource to retain the cost incurred to generate above LSL.
c) A negative cost will increase the Revenue deducted from the RUC Guarantee.
d) Increasing the Revenue would result in lowering the Make Whole payment and possibly subjecting the QSE to a Clawback Charge
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TWOS Proxy Offer Curve ExampleTWOS Proxy Offer Curve Example
MW Price (per MWh)
160 2250
81 2249.99
80 -$249.99
15 -$250.00
•Inputs
•Outcome
•For Interval 14•TWOS=80 MWs •HSL= 160 MW•LSL=15 MW
•For that Operation day•SWCAP=2250
•RTMG for that interval•RTMG=24•RTMG*4=96MW Price (per MWh)
HSL SWCAP
Output Schedule MW plus 1 MW
SWCAP minus $0.01
Output Schedule MW -$249.99
LSL -$250.00
Proxy Offer Curve and Negative AIECAREA - Proxy Offer Curve and Negative AIECAREA - REVISEDREVISED
$ 2249.99$ 2250
-$ 249.99
RTAIECAREA_<Q>_<R>_<SP> part3
15mw 80mw 81mw 160mw
EOCPRCAP_<Q>_<R>_<SP>
RTMG
EOCQTYCAP_<Q>_<R>_<SP>
LSLHSL
TWOSTWOS+
1mw
Price
QTY
-$ 250
Proxy Offer Curve
RTAIECAREA_<Q>_<R>_<SP> part1
RTAIECAREA_<Q>_<R>_<SP> part2
•Results•RTAIEC = -$183
VCWG SummaryVCWG Summary
6. RMR – Startup Offers in DAMa) Startup offers only have a Fuel Adjustment with no O &
M.b) Could result in lower costs than similar units.c) LMPS would not reflect the true cost of RMR units
struck in the DAM.d) Contract price not represented in offer.e) ERCOT will be taking to NATF.
7. Next meeting will be Wednesday February 10, 2010.
?’s
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