1 Welcome to Load Participation Orientation Elev MenWomen Phones Info Presentation and other Load Participation information will be posted at:

1

Welcome to

Load Participation Orientation

Elev

Men Women

Ph

on

es

Info

Presentation and other Load Participation information will be posted at:www.ERCOT.comMarket Participants & StakeholdersLoad Participation

2

LaaRs & BULsLoads acting as Resource

Balancing Up Loads

Understanding

&

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4

MarketOverview

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Control AreaControl Area

Old World - Before Retail Deregulation

Utilities

Customers

Customer Service

Control Area

Regulated Function

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New World - After Deregulation

Transmission

Customers & maybe Resources

Generators

Load ServingEntity

QSE

Distribution

TransmissionOperator

Regulated Function

TDSP

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Bilateral Market - Coordination of Resources

Customers & maybe Resources

Generators

Load ServingEntity

QSE

Regulated Function

Contracts are confidentialPrices are not visible

Load

About 90%-95% of Texas Energy Transfer Arranged this way.

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What about the other 5% - 10%?

Supported through Ancillary Services

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Pre-arranged operating reserves — the ability to call for additional energy to be made available on the system, on varying levels of short notice.

Insurance in case a generating unit goes down, load is higher than anticipated, or other problem emerges.

Ancillary Services (“AS”)

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1200 Adjustmen

0600 1800 0000Day Ahead Adjustment Operating

Period

2300 Adjustment Period









0800 Adjustment Perio

0900 Adjustment Per

1000 Adjustment P

1100 Adjustment

1300 Adjustm

Provide Forecasts

Receive Balanced Schedules

Receive Bids for Ancillary Services

Evaluate Submittals

Resolve

Clear

OP

OP

OPOP

OP

OPOP

March 24, 3002 March 25, 2003

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Operating Hour

O p e r a t i n g P e r i o d

Hour Ahead

4 Settlement Intervals per Operating Hour

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Time

Pow

er i n

Meg

awat

ts (

MW

)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

ERCOT Forecast LoadScheduled GenerationActual Load

Load vs GenerationThe need for Balance

131 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23


11 12


Pow

er i n

Kil

owat

t s (

KW

)

Time

14

Time 11 12

Pow

er i n

Kil

owat

t s (

KW

)

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RESULT:curtail load increase generationchange system frequency

Up Regulation Service

Up Balancing Service

Down Balancing Service

DownRegulationService



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Response time is critical in determining which AS a resource can qualify for.

30 minutes 10 minutesImmediate

Non-SpinReplacement

Balancing

Responsive

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QSE

Most AS can be self-arranged.

QSE has an obligation for AS supply based on “Load Ratio Share”

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If not self-arranged, AS will be purchased by ERCOT


In the AS markets, a QSE can bid in any resources (generation or loads) that aren't already committed.

This creates an Ancillary Services Market.

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Is there money to be made by users of Electricity?

User of electricity = load

$$ Money may be paid $$for a Load reduction on the system –

pending contract & qualification conditions

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What is a Resource?

A resource is a $upplier of electricityIn the past this was considered an Electric Generating Unit such as:• Coal Fired Power Plant• Gas (Combustion) Turbine Generator• Nuclear Power Plant• Hydro Power, etc….

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What is a Resource?

Electric Generating units create electricity, apply that energy to the Electric Grid, on demand, and are paid $

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What is a Load acting as a Resource?

A resource is a $upplier of electricity - Generator or Load

Loads (users of electricity) may reduce or stop their draw of power (curtail), and thus apply unused energy, to the Electric Grid, on demand, for a price $

In this a Load acts as a Resource (LaaR)

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Terminology

Capacity

Energy

Telemetry

Protocols

Resource Plan

Operating Guides

The ability to make energy available on demand

Electricity available for use

Real-time system information used for grid operations, not settlements

Rules that govern the Electric Market and System Operations

Specific guidelines grid operations

QSE submittal to ERCOT on available resources for planning and operations

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Payment InformationPo

wer

i n M

egaw

atts

(M

W)

Time 1 2 3 4 5 6 7 8 9 101112131415161718192021222324

Load Profiling

ESIID

SettlementsQSEs

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Loads acting as Resource (LaaRs)

Balancing Up Loads(BULs)

LaaRs & BULs

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LaaRs are scheduled in the resource plan similar to generators

LaaRs are telemetered to ERCOT and a component of the QSE’s frequency management program

LaaRs are bid in and are awarded in the day ahead capacity market (capacity payment)

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LaaRs are deployed during the operating day as needed (energy payment)

Presently 35% of ERCOT Responsive Reserve can be met with Loads qualified for RRS

~570MW of Loads qualified for RRS

~91 MW of Loads qualified for NSRS

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Response time determines category of Ancillary Service provided

30 minutes 10 minutesImmediate

Non-SpinReplacementBalancing

Responsive

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LaaR Qualification Categories

Responsive Reserve Service Loads– Loads on underfrequency relay (UFR):

can be interrupted instantaneously and can be manually interrupted within 10 minutes

Balancing Energy Service Loads – Loads that can be interrupted within 10

minutes

Non-Spin Reserve Service Loads – Loads that can be interrupted within 30

minutes

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Loads Qualified for RRS

Responsive Reserve Service,

Non-Spinning Reserve Service,

Replacement Reserve Service, and

Balancing Energy Service

LaaR Services that may be Provided

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Loads Qualified for BES

Up Balancing Energy Service,

Non-Spinning Reserve Service, and

Replacement Reserve Service


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Loads Qualified for NSRS

Non-Spinning Reserve Service


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LaaR - BUL

LaaRs may participate in the AS Capacity market, BULs do not

LaaRs are contracted for reliability - subject to OOMBULs, though taken from the Balancing bid stack, participate for economic reasons - not subject to OOM

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LaaR - BUL

will be paid a capacity payment if struck in the capacity market, and

receive an energy payment if they are deployed and respond

LaaRs

BULs BULs will not be considered in the

capacity market, but if responsive to BES award will

receive a capacity & energy payment

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Markets Loads May Play in if Qualified

Reg Up/Dn

ResponsiveNon-SpnReplacemntUp BalDown BalOOM

GenAGC

RRS BES NSRBULL a a R s

SERVICE Resp MKT

XXXXXXX

X

XX

X

X XX

Imediat Cap

X

X

X

X

10 min

30 min

10 min

10 min

ASAP

Cap

Cap

Cap

Ener

Ener

X

10 min

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Balancing Up Loads (BULs)

BUL service will require new Qualification, Annual Capacity Testing and QSE Control, and Performance Measurements Separate Bid curves

than LaaRs & Gens

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Timeline for BULs:Deployment May 31, 2003

Balancing Up Loads (BULs)

Block size limited to 50 MW or less

BULs are not telemetered to ERCOT

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Load OptionsLoad Type Resource or Service

that can be Provided

Requirements

Load Acting as a Resource (LaaR)

Various ERCOT Ancillary Services (AS)

TelemetryIDR meter (minimum) EPS meter (optional)Qualification

Qualified Balancing Up Load (BUL)

Balancing-Up Load (associated with the Balancing Energy Market only)

IDR meter (minimum) EPS meter (optional)Qualification

Voluntary Load Response

Curtailment or reduction in response to Market Price or other factors

Metering and/or curtailment technology defined in REP contract

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Qualified Scheduling Entity (QSE)

E R

C O

T

Transmission/Distribution Service Providers (TDSPs)

Co

nsu

mer/C

usto

mer

ResourcePower

Marketer(Optional)

Aggregator(Optional)

LoadServing

Entity (LSE)

Public Utility Commission of Texas (PUCT)

Non-Opt In Entities (NOIEs)

Regulated Organizations

Non-Regulated Organizations

Power Flow

Key Information Flow

Documents

1 Welcome to Load Participation Orientation Elev MenWomen Phones Info Presentation and other Load Participation information will be posted at: