11

WMS Report TO TACWMS Report TO TAC

January 2007January 2007

22

In BriefIn Brief

Two Working Group ReportsTwo Working Group Reports Two Task Force ReportsTwo Task Force Reports One PRR proposal (PRR701)One PRR proposal (PRR701) Protocol Discussion by the IMMProtocol Discussion by the IMM Retired two Task Forces and created Retired two Task Forces and created

oneone Discussed Emergency Interruptible loadDiscussed Emergency Interruptible load

33

Working Group ReportsWorking Group ReportsCMWGCMWG

Third Quarter report on congestionThird Quarter report on congestion Review of CSC flow control by Review of CSC flow control by

operationsoperations

Update on Competitive Constraint Update on Competitive Constraint determination due in Januarydetermination due in January

44

Working Group ReportsWorking Group ReportsDSWGDSWG

Progress report on goalsProgress report on goals Status of the PUC work on Demand Status of the PUC work on Demand

SideSide Issues of LaaR participation in RRSIssues of LaaR participation in RRS

55

PRR 701PRR 701Enabling of Stranded Enabling of Stranded

Capacity During AlertsCapacity During Alerts

Concept surfaced during EILP Concept surfaced during EILP discussions.discussions.

Not responsive to TAC & PUC requestNot responsive to TAC & PUC request WMS supported it on its own meritWMS supported it on its own merit Comments filed in supportComments filed in support In the PRS process nowIn the PRS process now

66

ERCOT Staff PresentationsERCOT Staff Presentations

IMM lead discussion on potential IMM lead discussion on potential market confussion regarding sections market confussion regarding sections 6.4.2(5) RPRS and 6.5.10(10) OOMC6.4.2(5) RPRS and 6.5.10(10) OOMC

77

Task Force ReportsTask Force Reports

Emergency Interruptible Load Emergency Interruptible Load Task Force (EILTF)Task Force (EILTF)

88

EILTF BackgroundEILTF Background

Sept. 15 – ERCOT proposes Emergency Sept. 15 – ERCOT proposes Emergency Interruptible Load programInterruptible Load program

Oct. 6 – TAC charges WMS to develop EIL Oct. 6 – TAC charges WMS to develop EIL PRRPRR

Oct. 18 – WMS creates EILTF to develop Oct. 18 – WMS creates EILTF to develop EIL product as a new Ancillary ServiceEIL product as a new Ancillary Service

Oct. 31-Nov. 27 – EILTF or its subgroups Oct. 31-Nov. 27 – EILTF or its subgroups (app. 40 participants) meet 10 times to (app. 40 participants) meet 10 times to develop draft PRRs creating EILSdevelop draft PRRs creating EILS

99

WMS Discussion and ActionWMS Discussion and Action

EILTF presented 4 draft PRRsEILTF presented 4 draft PRRs Options A and B – capacity modelsOptions A and B – capacity models Options C and D – energy modelsOptions C and D – energy models

Other issues discussedOther issues discussed Tradeoff between low cost and effective Tradeoff between low cost and effective

participationparticipation Tradeoff between high participation and Tradeoff between high participation and

ease of administrationease of administration Need for EILS vs. other approachesNeed for EILS vs. other approaches

1010

WMS Discussion and ActionWMS Discussion and Action

Motion to focus on energy-only Motion to focus on energy-only designdesign Motion carried – 75.6% in favorMotion carried – 75.6% in favor

Motion to file Option DMotion to file Option D Motion carried – 86.3% in favorMotion carried – 86.3% in favor

WMS directed EILTF to file PRR 703, WMS directed EILTF to file PRR 703, but did not endorse PRR 703.but did not endorse PRR 703.

1111

PRR 703PRR 703 EILS created as new EECP Step 3EILS created as new EECP Step 3

Loads volunteer to interrupt during Loads volunteer to interrupt during emergency conditions for an offer priceemergency conditions for an offer price

EILS deployed after LaaRs but before firm EILS deployed after LaaRs but before firm load sheddingload shedding

Last EILS offer cleared sets MCPE for both Last EILS offer cleared sets MCPE for both loads and resourcesloads and resources

EILS offers subject to system HCAPEILS offers subject to system HCAP EILS dispatched via hotline call to QSEsEILS dispatched via hotline call to QSEs

1212

PRR 703PRR 703

Qualification / PerformanceQualification / Performance Must be able to communicate one-Must be able to communicate one-

minute usage data to ERCOTminute usage data to ERCOT Must be able to reduce load within 10 Must be able to reduce load within 10

minutes to 95% of the offered amount minutes to 95% of the offered amount struck by ERCOTstruck by ERCOT

Must have IDR metersMust have IDR meters Offers in 1MW increments onlyOffers in 1MW increments only

1313

PRR 703PRR 703

Qualification / PerformanceQualification / Performance Must be able to communicate one-Must be able to communicate one-

minute usage data to ERCOTminute usage data to ERCOT Must be able to reduce load within 10 Must be able to reduce load within 10

minutes to 95% of the offered amount minutes to 95% of the offered amount struck by ERCOTstruck by ERCOT

Must have IDR metersMust have IDR meters Offers in 1MW increments onlyOffers in 1MW increments only

1414

PRR 703PRR 703

ImplementationImplementation EILTF envisions largely manual EILTF envisions largely manual

implementation process to accommodate implementation process to accommodate ERCOT’s requested April 1 effective dateERCOT’s requested April 1 effective date

EILS stack can be composed on EILS stack can be composed on spreadsheetspreadsheet

MCPE can be manually set following EILS MCPE can be manually set following EILS deploymentdeployment

EILS deployment is by phone callEILS deployment is by phone call

1515

Other PRRsOther PRRs

PRR 702 filed by supporters of capacity-PRR 702 filed by supporters of capacity-model design developed in EILTF but model design developed in EILTF but rejected by WMSrejected by WMS

ERCOT PRR to be filed soonERCOT PRR to be filed soon ERCOT expressed concern whether ERCOT expressed concern whether

stakeholders will approve either EILS optionstakeholders will approve either EILS option ERCOT expressed concern whether either ERCOT expressed concern whether either

EILS option can be implemented by April 1.EILS option can be implemented by April 1.

1616

ERCOT EILS PRRERCOT EILS PRR

EILS procured by ERCOT in 4-month EILS procured by ERCOT in 4-month increments (2-month initial period)increments (2-month initial period)

Provides capacity paymentProvides capacity payment Paid as bid, no clearing pricePaid as bid, no clearing price Propose cap of $X/yr for total EILS costPropose cap of $X/yr for total EILS cost Some load flexibility to schedule Some load flexibility to schedule

unavailabilityunavailability

1717

Jan. 18 PRS PreviewJan. 18 PRS Preview

PRR 701PRR 701 Alternative/supplement to EILS?Alternative/supplement to EILS?

PRR 702PRR 702 Capacity modelCapacity model

PRR 703PRR 703 WMS-endorsed energy only modelWMS-endorsed energy only model

ERCOT PRRERCOT PRR Bilateral contract capacity payment modelBilateral contract capacity payment model