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NPRR #322 · Revision Request

NPRR322  Real-Time PTP Option Modeling

Approved Urgent sponsor Luminant Energy Company LLC posted 2011-02-10 ercot.com
ReasonPTP Options that are taken to Real-Time rather than being settled in the DAM are causing DAM congestion to be exaggerated compared to actual congestion occurring in Real-Time. The cause for this exaggeration is that since the PTP Options are options rather than obligations, the counter-flow effects of some of the PTP Options are not being considered in the DAM model but, in fact, actually occur in Real-Time. This exaggeration of congestion from DAM to Real-Time causes a divergence of pricing between the two.
Created2011-03-24
Approved2011-06-21
Sections Affected
2.13.2.54.34.4.54.4.5.14.4.5.24.4.64.4.6.14.4.6.24.4.104.5.14.5.34.6.36.6.107.9.1.37.9.1.67.9.2.17.9.2.27.9.2.37.9.3.17.9.3.37.9.3.49.5.39.19.1
Summary
This Nodal Protocol Revision Request (NPRR) provides that all Point-to-Point (PTP) Options will be settled in the Day-Ahead Market (DAM), unless DAM fails to execute. If a Non-Opt-In Entity (NOIE) purchases a PTP Obligation in the DAM and owns a PTP Option for the same source and sink pair, and the MWs of the PTP Obligation are not more than the MWs of the PTP Option, then the PTP Obligation will settle in Real-Time as only the positive difference between the sink and source Settlement Point Prices, much like a PTP Option. This NPRR also includes a requirement that NOIEs shape the PTP Options going to Real-Time according to their Load forecast and adds a new type of Congestion Revenue Right (CRR) to handle the treatment of PTP Obligations that are treated as PTP Options for Settlement purposes.
Timeline