Fundamentals of Shadow Pricing by yru20746

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									Module 2: Fundamentals of the Texas
           Nodal Market
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 Course Agenda




               April 26, 2007 - DRAFT                                              Slide 2                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 Module Objectives



 Upon completion of this module, learners
 will be able to:

   • Identify the high level processes of the
     Texas Nodal Market.
   • Describe the high level changes between the current Zonal Market
     and the future Nodal Market as introduced in Nodal 101: The Basics.
   • Identify the processes that impact all aspects of the Texas Nodal
     Market.
           – Modeling
           – Outage Coordination




               April 26, 2007 - DRAFT                                              Slide 3                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW - The New Market Structure




               April 26, 2007 - DRAFT                                              Slide 4                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Registration & Compliance




               April 26, 2007 - DRAFT                                              Slide 5                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Confidentiality




                                                        Confidentiality, applies to
                                                     Protected Information disclosed
                                                    by a Market Participant to ERCOT
                                                    or the Wholesale Electric Market
                                                    Monitor or by ERCOT to a Market
                                                        Participant or the WEMM.




               April 26, 2007 - DRAFT                                              Slide 6                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Confidentiality (continued)



                                             Protected Information




                                     In some cases, there is an expiration
                                       of confidentiality; after a specified
                                     amount of time the information is no
                                                longer protected.

                                                                                                        Not Protected Information

                                           All Receiving Parties must have
                                           procedures in place to protect the
                                           confidentiality of information



               April 26, 2007 - DRAFT                                              Slide 7                                          Basic Training Program
   Course      Fundamentals of the    Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period     Abnormal Operating    Putting it All Together
Introduction      Nodal Market                              Analysis & RUC                                                            Conditions



 NODAL MARKET OVERVIEW – “Other Binding Documents”

                                     “Other Binding Documents” may be developed by:
                                      • The ERCOT Board
                                      • Technical Advisory Committee (TAC)
                                      • Other ERCOT subcommittees authorized by the Board
                                        or TAC (“ERCOT’s Committees”)                                                                                   Texas
                                      • ERCOT staff                                                                                                      SET


                                                                                                                                                          ERCOT
                                                                                                                                             Texas
                                                                                                                                             Market      Operating
                                                                                                                                            Test Plan     Guides
                                                                                                                                ERCOT
                                                                                                                                Retail
                                                                                                                                                     Power
                                                                                                                                Market
                                                                                                                                                     System
                                     Developed to provide:                                                                      Guide     ERCOT
                                                                                                                                           Credit-
                                                                                                                                                    Planning

                                      • Polices
                                                                                                                                                     Charter
                                                                                                                                         worthiness
                                                                                                                                                      and
                                                                                                                                         Standards
                                      • Guidelines
                                                                                   ERCOT                                                            Process
                                                                                  Settlement
                                      • Procedures                                 Metering
                                                                                  Operating
                                      • Forms                                      Guides

                                      • Applications
                                     for the implementation of and operation under, the Nodal
                                     Protocols and to comply with applicable rules, laws, and orders
                                     of a Governmental Authority.



               April 26, 2007 - DRAFT                                               Slide 8                                              Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Registration

                                                                                              Sign Standard
                                                                                               Form Market
                                                                                                Participant
                                                                  RMR                           Agreement                      Black Start
                                                                Agreement                                                      Agreement


                                                                            Applicable Registration Application


                                                           Qualified                          Transmission                        CRR Account
                                                        Scheduling Entity                    Service Provider                       Holder
                                                            (QSE)                                 (TSP)




                                                                            Resource Entity                    Load Serving
                                                                                (RE)                            Entity (LSE)




               April 26, 2007 - DRAFT                                              Slide 9                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – QSEs Representing Resources

                                                                                              Sign Standard
                                                                                               Form Market
                                                                                                Participant
                                                                  RMR                           Agreement                      Black Start
                                                                Agreement                                                      Agreement


                                                                            Applicable Registration Application


                                                           Qualified                          Transmission                        CRR Account
                                                        Scheduling Entity                    Service Provider                       Holder
                                                            (QSE)                                 (TSP)




                                                                            Resource Entity                    Load Serving
                                                                                (RE)                            Entity (LSE)




               April 26, 2007 - DRAFT                                             Slide 10                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Credit Requirements

                                                                                              Sign Standard
                                                                                               Form Market
                                                                                                Participant
                                                                  RMR                           Agreement                      Black Start
                                                                Agreement                                                      Agreement


                                                                            Applicable Registration Application


                                                           Qualified                          Transmission                        CRR Account
                                                        Scheduling Entity                    Service Provider                       Holder
                                                            (QSE)                                 (TSP)




                                                                            Resource Entity                    Load Serving
                                                                                (RE)                            Entity (LSE)




               April 26, 2007 - DRAFT                                             Slide 11                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market    Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                              Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Compliance



                                                         ERCOT
                                                          Nodal
                                                        Protocols

                                                                             Performance Monitoring and
                                                                            Compliance describes how the
                                                                           performance of QSEs, TSPs, and
                                                                           ERCOT are measured against the
                                                                           requirements of Nodal Protocols.


                                         Summaries of the compliance of each TSP and QSE
                                          and of ERCOT will be made available to all Market
                                                           Participants.




               April 26, 2007 - DRAFT                                              Slide 12                                          Basic Training Program
   Course      Fundamentals of the    Day-Ahead Market    Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                               Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Compliance – QSEs & QSEs
 Representing Resources

                                                           Each QSE will meet, and is responsible for
                                                         ensuring that each Resource it represents will
                                                         meet, the performance measures as described
                                                         in the Nodal Protocols and Operating Guides.



                                        Each QSE and its
                                      Resources that provide
                                      Ancillary Service must
                                                                                                                             Each Resource not
                                         additionally meet
                                                                                                                            providing Responsive
                                      performance measures
                                                                                                                             Reserve must meet
                                     and will be monitored for
                                                                                                                              specific governor
                                     capacity availability and
                                                                                                                           response criteria when
                                       energy deployments.
                                                                                                                                 it is On-Line


               April 26, 2007 - DRAFT                                               Slide 13                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Compliance - TSPs


                                                               ERCOT will develop a TAC-
                                                                approved TSP Monitoring
                                                              Program to be included in the
                                                               Operating Guides for TSPs.



                                                The metrics must include elements of :

                                              • Transmission System Planning
                                              • Transmission System Operations
                                              • Transmission System Maintenance




               April 26, 2007 - DRAFT                                             Slide 14                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Compliance - ERCOT




                                                           ERCOT will be monitored for their
                                                           performance in relation to:
                                                              • Coordinating the wholesale electric
                                                                market transactions
                                                              • System-wide transmission planning
                                                              • Network reliability functions in the
                                                                ERCOT Region




               April 26, 2007 - DRAFT                                             Slide 15                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Non - Compliance

                                     Non-Compliance is reported to:                                                                                        Non-
                                                                                                                                                         Compliance




                                      • Technical Advisory Committee (TAC)
                                      • ERCOT Board
                                      • Public Utility Commission of Texas (PUCT)
                                      • NERC Board


                                                         Posted on:
                                                            • MIS Secure Area

                                     Possible Repercussions:
                                      • Corrective Action Plan
                                      • Revocation of Ancillary Service (AS) qualifications (non-
                                        performance of AS)




               April 26, 2007 - DRAFT                                             Slide 16                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Operation System Planning




               April 26, 2007 - DRAFT                                             Slide 17                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning –
 Network Operations Model




               April 26, 2007 - DRAFT                                             Slide 18                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market     Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                               Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning –
 Annual Planning Model
                                                            October 15th -
                                                              Release




                                                        September 1 -
                                                          Updates




               April 26, 2007 - DRAFT                                               Slide 19                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning –
 CRR Network Model




               April 26, 2007 - DRAFT                                             Slide 20                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning
 (Continued)

                                          Modeling - Roles
                                           • TSPs
                                                   – Changes in Transmission Grid
                                            • QSEs
                                                   – Changes in Resources
                                          Modeling – What
                                                                                                                               Graphic Place
                                           • Electrical Busses                                                                    Holder
                                           • Transmission Lines
                                           • Circuit Breakers
                                           • Transformers
                                           • Disconnects
                                           • Reactive Devices
                                           • Protection & Control Schemes
                                           • SCADA


               April 26, 2007 - DRAFT                                             Slide 21                                          Basic Training Program
   Course      Fundamentals of the    Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                              Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning
 (Continued)
                                     Network Operations Model Change Request (NOMCR)
                                     • Created using a GUI or may upload a CIM/XML file
                                     • Submitted by TSPs and QSEs
                                                                                 Operations Model Timeline




               April 26, 2007 - DRAFT                                              Slide 22                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning –
 Outage Coordination




                                                                                               “Outage Coordination” is the
                                                                                              management of Transmission
                                                                                             Facilities Outages and Resource
                                                                                             Outages in the ERCOT System




               April 26, 2007 - DRAFT                                             Slide 23                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning –
 Outage Coordination - ERCOT




                                                                                   ERCOT will coordinate and use reasonable
                                                                                        efforts, consistent with Good Utility
                                                                                     Practice, to accept, approve or reject all
                                                                                    Outage schedules for maintenance, repair,
                                                                                      and construction of both Transmission
                                                                                    Facilities and Resources within the ERCOT
                                                                                                       System




               April 26, 2007 - DRAFT                                             Slide 24                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning –
 Outage Coordination - Transmission




                                                                                              Each TSP provides to ERCOT a
                                                                                               Planned Outage or Maintenance
                                                                                                  Outage plan in an ERCOT-
                                                                                                provided format for the next 12
                                                                                                   months updated monthly




               April 26, 2007 - DRAFT                                             Slide 25                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning –
 Outage Coordination - Generation




                                                                                        Each Resource Entity shall provide to
                                                                                           ERCOT a Planned Outage and
                                                                                           Maintenance Outage plan in an
                                                                                        ERCOT-provided format for the next 12
                                                                                              months updated monthly




               April 26, 2007 - DRAFT                                             Slide 26                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Operation System Planning –
 Resource Adequacy

                                                              On a rolling 12-month basis:

                                                                       ERCOT calculates projected available Weekly
                                                                       Resource capacity in the ERCOT Region during peak
                                                                       Load hours of each week
                                                                         • Uses submitted Resources Planned Outages

                                              ERCOT develops weekly peak Demand forecasts by Load Zone
                                                • May consult with Market Participants

                                              ERCOT analyzes system adequacy by comparing the weekly
                                              projected available Resource capacity and the weekly Demand
                                              forecasts

                                              ERCOT creates a schedule of aggregated Resources with the MW
                                              of outages each day for:
                                                • Next 14 days and
                                                • Each week for remainder of next 12 months


               April 26, 2007 - DRAFT                                             Slide 27                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – CRR Auction




               April 26, 2007 - DRAFT                                             Slide 28                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – CRR Auction (continued)

                                                   A CRR is a financial instrument that may be
                                                   used as a hedge against congestion costs.




               April 26, 2007 - DRAFT                                             Slide 29                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Day-Ahead Operations




               April 26, 2007 - DRAFT                                             Slide 30                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market    Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                              Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Day-Ahead Operations
 (continued)

                                                    Day-Ahead Market Features
                                                        • Financially binding
                                                        • Co-Optimization
                                                        • Voluntary participation (except RMRs)




               April 26, 2007 - DRAFT                                              Slide 31                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Day-Ahead Operations
 (continued)

                                     Day-Ahead Reliability Unit Commitment (DRUC)
                                     Fundamentals
                                     • Ensures reliability
                                     • One instance of RUC
                                     • Executed daily upon
                                       completion of the Day-Ahead
                                       Market




               April 26, 2007 - DRAFT                                             Slide 32                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Adjustment Period




               April 26, 2007 - DRAFT                                             Slide 33                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Adjustment Period (continued)


                                     Submit and / or Update:
                                        • Offers
                                        • Trades
                                        • Schedules

                                     QSE Request:
                                        • Resource Decommitments



                                                            Supplemental Ancillary Services Market
                                                            (SASM)
                                                               • Executed when AS capacity is insufficient.




               April 26, 2007 - DRAFT                                             Slide 34                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Hour-Ahead




               April 26, 2007 - DRAFT                                             Slide 35                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Hour-Ahead (continued)

                                          Hourly Reliability Unit Commitment (HRUC)
                                            • Ensures reliability
                                            • One instance of RUC
                                            • Executed at least hourly with emphasis on next 24 hours




               April 26, 2007 - DRAFT                                             Slide 36                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Real-Time Operations




               April 26, 2007 - DRAFT                                             Slide 37                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Real-Time Operations –
 Dispatch

                                                         Resource Specific Dispatch




                                          Security Constrained Economic Dispatch (SCED)
                                          Calculates:
                                            • Locational Marginal Pricing
                                            • Shadow Prices
                                            • Resource-specific Base Points


               April 26, 2007 - DRAFT                                             Slide 38                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Real-Time Operations –
 Ancillary Services Capacity Monitor


                                           Ancillary Services Capacity Monitor
                                             • Updates every 10 seconds
                                             • Monitors the AS capacity in Real-Time
                                             • Summaries provided via ICCP and MIS Secure Area




               April 26, 2007 - DRAFT                                             Slide 39                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions


 NODAL MARKET OVERVIEW – Real-Time Operations –
 Resource Parameters

                                       ERCOT initially collects all Resource Parameters from
                                         QSEs at the time the Resources are registered.



                                     Some Resource Parameters can be updated as often as
                                     necessary:
                                      • Generation Resources
                                         – Normal and emergency ramp rates
                                         – High and Low Reasonability Limits
                                      • Load Resources
                                         – Min and Max interruption time
                                         – Min restoration time
                                      • Controllable Load Resources
                                         – Normal and emergency ramp rates
                                         – Maximum deployment time

               April 26, 2007 - DRAFT                                             Slide 40                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW - Settlements




               April 26, 2007 - DRAFT                                             Slide 41                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – Settlements (continued)

                                                                                Settlement Points

                                                            Resource Nodes

                                                                                                                                      Load Zones




                                                                                Hubs




                                                                                                                       LMPs are used to calculate
                                                                                                                       Settlement Point Prices


               April 26, 2007 - DRAFT                                             Slide 42                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW - MIS




               April 26, 2007 - DRAFT                                             Slide 43                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 NODAL MARKET OVERVIEW – MIS (continued)


                                                 Access to the Market Information System (MIS)




               April 26, 2007 - DRAFT                                             Slide 44                                          Basic Training Program
   Course      Fundamentals of the    Day-Ahead Market      Transmission Security     The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                                 Analysis & RUC                                                            Conditions



 NODAL MARKET OVERVIEW – MIS (continued)

                                      Pricing information posted to MIS (sample):
                                     LMP Relative Marginal Costs
                                     Last Updated: 02/13/2007 13:10:51 CST



                                                      LMP




                                                                                                                       Shows the differences
                                                                                                                       between LMPs by noting
                                              Today                                           -$5 to +$5
                                                                                                                       in the orange area where
                                                                    Hr End   Select
                                              DAM – for today                                                          LMPs that are higher
                                              DAM – for tomorrow
                                                                                                                       than the average of all
                                                                                                                       LMPs and blue LMP for
                                                                                                                       LMPs that are lower than
                                                                                                                       the average


               April 26, 2007 - DRAFT                                                   Slide 45                                          Basic Training Program
   Course      Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction      Nodal Market                             Analysis & RUC                                                          Conditions



 Texas Nodal Market Activity – Match Game


                                                                  Can you match the correct answer?

                                                        1. The facilitator will ask a question about
                                                           information introduced in the previous
                                                           module.
                                                        2. Everyone, panel and students will write
                                                           down on an index card what they think is
                                                           the correct answer.
                                                        3. Afterwards we will see who matched the
                                                           panel and who matched the correct
                                                           answer.




               April 26, 2007 - DRAFT                                             Slide 46                                          Basic Training Program
   Course         Fundamentals of the   Day-Ahead Market   Transmission Security   The Adjustment Period   The Operating Period   Abnormal Operating   Putting it All Together
Introduction         Nodal Market                             Analysis & RUC                                                          Conditions



 Module Summary


              Nodal processes and their purposes

              High level changes from Zonal to Nodal

              Information QSEs and TSPs need to submit to ERCOT prior to
               participating in the Nodal Market

                                                           Fundamentals of the Nodal
                                                                   Market


                                                                            Day-Ahead
                                                                               Market




                  April 26, 2007 - DRAFT                                             Slide 47                                          Basic Training Program

								
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