Supplemental Ancillary Service Market (SASM) Ancillary Services (AS) Offers Update

ERCOT Market Analysis

QSE Managers Working Group10/7/2013

SASM AS Offers10/7/2013 2

SASM Background

• SASM is executed at 0900 each day– NPRR 397 (Approved 4/17/2012) allows

entities the ability to “buy back” their responsibilities from the market closer to Real-Time

– Based on the data analyzed, market participants are utilizing this ability

• Reconfiguration SASMs will be cancelled if there are insufficient AS Offers to cover the total requested amount

SASM AS Offers10/7/2013 3

Observations• When a SASM is executed, the requirement per hour is typically < 50 MW

• Some SASMs in February, March, and April with 0 MW awards

SASM Clearing History – 2013 Data from Last Meeting

SASM ID AS TYPE # HoursAS Procurement

HoursReq Qty (MWh)

Award Qty (MWh)

Insufficiency SASM ID

AS TYPE # Hours AS Procurement Hours

Req Qty (MWh)

Award Qty (MWh) Insufficiency

1/9/2013 7:04 REGDN 4 1/9 15-17,24 46.7 46.2 0.5 2/8/2013 10:28 REGDN 9 2/8 14-22 891.8 781.6 110.2

1/13/2013 2:45 NSPIN 7 1/13 6-12 709 708 1 2/8/2013 10:28 REGUP 9 2/8 14-22 1199.7 918.8 280.9

1/15/2013 13:23 REGDN 6 1/15 18-23 600 183 417 2/8/2013 10:28 RRS 9 2/8 14-22 1416 0 1416

1/15/2013 13:23 REGUP 7 1/15 17-23 842 187.6 654.4 2/10/2013 23:30 REGDN 10 2/11 4-7,15,16,19,22-24 92.3 66.2 26.1

1/15/2013 13:23 RRS 2 1/15 17,18 324 6.9 317.1 2/10/2013 23:30 REGUP 1 2/11 5 5.2 5.2 0

1/28/2013 18:14 RRS 3 1/28 22-24 140.4 140.4 0 2/19/2013 15:21 RRS 6 2/19 19-24 103.2 100.7 2.5

1/29/2013 2:35 REGDN 3 1/29 7-8,12 78.6 78.6 0 2/19/2013 22:29 RRS 23 2/20 2-24 365.6 317.4 48.2

1/29/2013 2:35 RRS 6 1/29 7-12 225.8 225.8 0 3/12/2013 18:45 REGDN 6 3/13 1-6 150 0 150

1/29/2013 13:28 REGDN 4 1/29 19,22-24 104.8 104.8 0 3/12/2013 18:45 REGUP 6 3/13 1-6 60 0 60

1/29/2013 13:28 RRS 7 1/29 17-23 280 280 0 3/25/2013 14:22 REGDN 2 3/25 19-20 52.4 0 52.4

1/30/2013 0:35 REGDN 7 1/30 13-17,23,24 148 148 0 4/15/2013 11:23 REGDN 9 4/15 15,16,18-24 306.7 0 271.7

1/30/2013 0:35 REGUP 1 1/30 7 17.4 17.4 0 5/6/2013 23:30 REGDN 7 5/7 7-13 35 35 0

1/30/2013 0:35 RRS 2 1/30 7,18 32.1 32.1 0 5/6/2013 23:30 RRS 3 5/7 3-5 120 120.1 -0.1

1/30/2013 22:34 REGDN 7 1/31 2-8 80.9 80.9 0 5/25/2013 3:26 RRS 1 5/25 7 97 55.4 41.6

1/31/2013 2:25 REGDN 4 1/31 12,13,16,17 36.2 36.2 0 5/25/2013 22:26 RRS 12 5/26 2-13 431.3 430.6 0.7

1/31/2013 2:25 RRS 1 1/31 18 46.7 46.7 0 6/22/2013 21:20 REGUP 24 6/23 1-24 360 124.3 235.7

6/22/2013 21:20 RRS 16 6/23 7-24 96 96 0

SASM AS Offers10/7/2013 4

Observations

• When a SASM is executed, the requirement per hour is typically < 50 MW

• No SASMs with 0 MW awards, but still many with insufficiency– At this time ERCOT recognizes that insufficiencies exist, and ERCOT will consider

using RUC to resolve these insufficiencies.

– If stakeholders would like to modify this approach, please provide suggestions.

SASM Clearing History – Data Since Last QMWG Meeting

SASM ID AS TYPE # HoursAS Procurement

HoursReq Qty (MWh)

Award Qty (MWh) Insufficiency

6/30/2013 14:39 RRS 2 6/30 23,24 40 27.5 12.5

6/30/2013 21:19 RRS 13 7/1 1-12,23 260 45.5 214.5

7/23/2013 13:09 REGUP 1 7/23 17 30 30 0

7/23/2013 13:09 RRS 1 7/23 17 30 30 0

7/23/2013 14:26 REGUP 1 7/23 18 30 6.5 23.5

7/23/2013 14:26 RRS 1 7/23 18 30 30 0

8/2/2013 22:20 REGUP 2 8/3 2,6 84 13 71

8/2/2013 22:20 RRS 3 8/3 3-5 126 54.3 71.7

SASM AS Offers10/7/2013 5

SASM AS Offers – Sample Operating Day

* OD = Operating Day

• 24 Hours of SASM offers for one operating day

SASM AS Offers10/7/2013 6

SASM AS Offers – Sample for Hour 1800

DAM DAM Awards

Expiring AS Offers

Adjustment Period

* DAM = Day Ahead Market

• Offers for one hour (e.g. 1800) changes over time beginning in Day Ahead

SASM AS Offers10/7/2013 7

SASM AS Offers – February to September 2013

SASM AS Offers10/7/2013 8

Observations• Most AS Offers expire or are canceled by the start of the Adjustment Period

• Very low quantities of AS Offers for Regulation Up/Down

Charge for Failure to Provide AS Requirements

• Max(MCPC)m * FQ

– MCPC = Market Clearing Prices for Capacity

– FQ = Failure Quantity

– m = Day Ahead Market (DAM) and all SASM markets for that hour

• Charge applies regardless of SASM execution or SASM award quantity

SASM AS Offers Conclusions

SASM AS Offers10/7/2013 9

QUESTIONS / COMMENTS???