16 Tex. Admin. Code § 25.381 - Capacity Auctions
(a) Applicability.
This section applies to all affiliated power generation companies (PGCs) as
defined in this section in Texas. This section does not apply to electric
utilities subject to the Public Utility Regulatory Act (PURA) §39.102(c)
until the end of the utility's rate freeze. It is recognized that certain
commission orders issued during 2001 have effectively delayed competition in
the service territories of Southwestern Electric Power Company (SWEPCO) and
Entergy Gulf States, Inc. (EGSI). This section shall apply to auctions
conducted after 2001 by SWEPCO and/or EGSI only when competition is implemented
in their respective service territories.
(b) Purpose. The purpose of this section is
to promote competitiveness in the wholesale market through increased
availability of generation and increased liquidity by requiring electric
utilities and their affiliated PGCs to sell at auction entitlements to at least
15% of the affiliated PGC's Texas jurisdictional installed generation capacity,
describing the form of products required to be auctioned, prescribing the
auction process, and prescribing a true- up procedure, in accordance with PURA
§39.262(d)(2).
(c)
Definitions. The following words and terms, when used in this section, shall
have the following meanings, unless the context indicates otherwise:
(1) Affiliated power generation company
(PGC)--Any affiliated power generation company that is unbundled from the
electric utility in accordance with PURA §39.051.
(2) Assigned units--The PGC-specific
generating units that form the block of capacity from which an entitlement is
sold.
(3) Auction start date--The
date on which an auction begins.
(4) Business day--Any day on which the
affiliated PGC's corporate offices are open for business and that is not a
banking holiday.
(5) Capacity
auction product--One of the following: "baseload", "gas-intermediate",
"gas-cyclic", or "gas-peaking". Each capacity auction product is further
described in subsections (f) and (g) of this section.
(6) Close of business--5:00 p.m., central
prevailing time.
(7) Congestion
zone--An area of the transmission network that is bounded by commercially
significant transmission constraints or otherwise identified as a zone that is
subject to transmission constraints, as defined by an independent
organization.
(8) Credit rating--A
credit rating on an entity's senior unsecured debt, the entity's corporate
credit rating, or the entity's issuer rating.
(9) Daily gas price--The index posting for
the date of flow in the Financial Times energy publication "Gas Daily" under
the heading "Daily Price Survey" for East-Houston- Katy, Houston Ship Channel.
For EGSI gas entitlements in the eastern congestion zone, the daily gas price
will utilize the "Gas Daily" index posting for Henry Hub. For EGSI gas
entitlements in the western congestion zone, the daily gas price will be an
average of the "Gas Daily" index posting for East-Houston-Katy, Houston Ship
Channel.
(10) Day-ahead--The day
preceding the operating day.
(11)
Entitlement or capacity entitlement--The right to purchase and receive, under
the applicable capacity auction master agreement, a block of 25 megawatts (MW)
of electrical capacity and energy from the assigned units for a specific
capacity auction product for one calendar month.
(12) Forced outage--An unplanned component
failure or other condition that requires the unit be removed from service
before the end of the next weekend.
(13) Holder--A person or entity that has
acquired ownership of an entitlement under the terms of the applicable capacity
auction Master Agreement.
(14)
Installed generation capacity--All potentially marketable electric generation
capacity owned by an affiliated PGC, including the capacity of:
(A) Generating facilities that are connected
with a transmission or distribution system;
(B) Generating facilities used to generate
electricity for consumption by the person owning or controlling the facility;
and
(C) Generating facilities that
will be connected with a transmission or distribution system and operating
within 12 months.
(15)
Master Agreement or Agreement--The applicable Capacity Auction EEI/NEMA Master
Power Purchase & Sale Agreement.
(16) Starts--Direction by the holder of an
entitlement to dispatch a previously idle entitlement.
(17) Texas jurisdictional installed
generation capacity--The amount of an affiliated PGC's installed generation
capacity properly allocable to the Texas jurisdiction. Such allocation shall be
calculated pursuant to an existing commission-approved allocation study, or
other such commission-approved methodology, and may be adjusted as approved by
the commission to reflect the effects of divestiture or the installation of new
generation facilities.
(d) General requirements. Subject to the
qualifications for auction entitlements and the auction process described in
subsections (e) and (h) of this section, each affiliated PGC subject to this
section shall sell at auction capacity entitlements equal to at least 15% of
the affiliated PGC's Texas jurisdictional installed generation capacity.
Divestiture of a portion of an affiliated PGC's Texas jurisdictional installed
generation capacity will be counted toward satisfaction of the affiliated PGC's
capacity auction requirement only if the divestiture is made pursuant to a
commission order in a business combination proceeding pursuant to PURA
§14.101, and after the transfer of the assets and operations to a third
party.
(e) Product types and
characteristics.
(1) Available entitlements
and amounts. The following products, defined separately in subsection (f) of
this section for Electric Reliability Council of Texas, Inc. (ERCOT) and in
subsection (g) of this section for non-ERCOT areas, shall be auctioned as
capacity entitlements under subsection (d) of this section. Upon showing of
good cause by the affiliated PGC and approval by the commission, an affiliated
PGC may propose to auction entitlements different from those described in this
section, including unit-specific capacity. Each affiliated PGC shall auction an
amount of each applicable product in proportion to the amount of Texas
jurisdictional installed generating capacity on the affiliated PGC's system
that are the respective type of generating units. An affiliated PGC that owns
generation in multiple congestion zones shall auction entitlements for delivery
in each congestion zone. The amount of each product auctioned in each zone
shall be in proportion to the amount of the respective type of generating units
located in that zone, but the total shall not be less than 15% of the
affiliated PGC's Texas jurisdictional installed generation capacity. The
available entitlements for the months of March, April, May, October, and
November of each year may be reduced in proportion to the average annual
planned outage rate for the group of generating units associated with each type
of entitlement. Entitlements shall be for system capacity.
(2) Forced outages. For any given congestion
zone:
(A) For all entitlements except those
described in subparagraph (B) of this paragraph, if all units providing
capacity to an entitlement product experience a forced outage or an emergency
condition prevents or restricts the ability of an affiliated PGC to dispatch a
particular entitlement product, the entitlements of that product may be reduced
in proportion to the percentage reduction in capacity of the units assigned to
that entitlement; provided that such reductions in availability of any single
entitlement do not exceed 2.0% of the total monthly energy available from the
entitlement.
(B) For entitlements
that are supported by two or fewer generating units, if one or more of the
units providing capacity to an entitlement product experiences a forced outage
or an emergency condition that prevents or restricts the ability of an
affiliated PGC to dispatch a particular entitlement product, the entitlements
of that product may be reduced in proportion to the percentage reduction in
capacity of the units assigned to that entitlement; provided that such
reductions in availability of any single entitlement do not exceed the most
recent three-year rolling average of the forced outage rate for the unit(s)
supporting the entitlement. The three-year rolling average of the forced outage
rate applicable to entitlements under this subparagraph shall be included in
the notice of capacity available for auction, under subsection
(h)(2)(B)(ii)(II) of this section.
(C) Notification of any such reductions will
take place as soon as possible, but in any event, at least one hour prior to
the hour-ahead scheduling period applicable to when the reduction is to take
place.
(3) Planned
outage. The total MW reduction for planned outages is determined by calculating
the average MW of monthly planned outage for the generating plants associated
with a product over the previous three calendar years, multiplied by 12. The
resulting planned outage hours are then rounded down to the nearest whole
entitlement (25 MW block). These "outage entitlements" can then be removed from
any of the five specified outage months (March, April, May, October, and
November) in any combination.
(4)
Generation units offered. If an affiliated PGC changes the assignment of a
power generation unit to one of the four available product entitlements
(baseload, gas- intermediate, gas-cyclic, or gas-peaking), then the affiliated
PGC shall file with the commission the proposed changes in its assignment of
each of its power generation units to one of the four available product
entitlements and the resulting amount of each type of entitlement to be
auctioned. As part of this filing, the affiliated PGC shall provide planned
outage histories for the years 1998, 1999, and 2000 for each generating unit to
be used to calculate the average annual planned outage rate for each group of
generating units. Interested parties shall have 30 days in which to provide
comments on the affiliated PGC's proposed changed assignments. If no comments
are received, the affiliated PGC's proposed assignment shall be deemed
appropriate. If any party objects to the affiliated PGC's proposed assignments,
then the commission shall determine the appropriate assignment considering the
manner in which the affiliated PGC expects to use such generation
units.
(5) Obligations of
affiliated PGC. The affiliated PGC shall dispatch entitlements only as directed
by the holder of the entitlement in accordance with the applicable product
description. The affiliated PGC may not refuse to dispatch the entitlement and
may not curtail the dispatch of an entitlement unless expressly authorized by
this section or by the applicable Master Agreement, or unless directed to do so
by the independent organization in order to alleviate a system emergency. The
affiliated PGC shall specify in its notice provided pursuant to subsection
(h)(2)(B) of this section the point on the transmission system where energy
from each entitlement is delivered to the entitlement holder.
(6) Entitlement holder receives no possessory
interest or obligations.
(A) No possessory
interest. The entitlements sold at auction shall include no possessory interest
in the unit or units from which the power is produced.
(B) No possessory obligations. The
entitlements sold at auction shall include no obligation of a possessory owner
of an interest in the unit or units from which the power is produced.
(C) Scheduling. The entitlement holder shall
have the right to designate the dispatch of the entitlement, subject to other
provisions of this subsection and the scheduling limitations provided for in
the applicable Agreement.
(7) Credit requirements.
(A) Standards. Entities submitting bids and
all entitlement holders shall satisfy one of the following credit standards:
(i) The entity holds an investment grade
credit rating (BBB- or Baa3 from Standard and Poor's or Moody's respectively or
an equivalent);
(ii) The entity
provides an escrowed deposit equal to the capacity price for the shorter of the
duration of the entitlement or three months plus the amount that would be paid
to exercise the entitlement for the shorter of the duration of the entitlement
or three months at the assumed dispatch provided in either subsection
(h)(6)(A)(iii) or subsection (h)(6)(C)(vi) of this section;
(iii) The entity provides a letter of credit
or surety bond equal to the capacity price for the shorter of the duration of
the entitlement or three months plus the amount that would be paid to exercise
the entitlement for the shorter of the duration of the entitlement or
three-months at the assumed dispatch provided in either subsection
(h)(6)(A)(iii) or subsection (h)(6)(C)(vi) of this section, irrevocable for the
duration of the entitlement;
(iv)
The entity provides a guaranty from another entity with an investment grade
credit rating; or
(v) The entity
makes other suitable arrangements with the affiliated PGC, provided that the
affiliated PGC makes such arrangements available on a non-discriminatory
basis.
(B) Unsecured
credit. To be eligible for unsecured credit, entities submitting bids shall
satisfy the criteria in either clause (i), (ii), or (iii) of this subparagraph,
with the amount of unsecured credit to be provided to such entities to be
determined as follows:
(i) For bidders with
an investment grade credit rating. The amount of credit available to a bidder
relying on an investment grade credit rating of itself or its guarantor will be
determined according to procedures set out below. If the bidding entity or its
guarantor has an investment grade credit rating and minimum equity of $100
million, the amount of credit available will be determined using the lesser of
$125 million, or the applicable percentage of the bidder's stockholder equity
set out in the following table, except that the amount of credit will be
reduced to the extent appropriate to take into account any outstanding
commitments that a bidder has for existing capacity auction entitlements.
(ii) If
the bidder is a municipality or cooperative not publicly rated. If the bidder
is a municipality or electric cooperative that is not publicly rated but has a
minimum equity (patronage capital) of $25 million, a minimum
times-interest-earned ratio (TIER) of 1.05, a minimum debt service coverage
(DSC) ratio of 1.00, and a minimum equity- to-assets ratio of 0.15, then the
amount of credit will be the lesser of $125 million or 5.0% of the bidder's
unencumbered assets, except that the amount of credit will be reduced to the
extent appropriate to take into account any outstanding commitments that a
bidder has for existing capacity auction entitlements.
(iii) If the bidder is a privately-held
entity not publicly rated. If the bidder is a privately-held entity that is not
publicly rated, but has a minimum equity of $100 million, a minimum tangible
net worth of $100 million, a minimum current ratio of 1.0, a maximum debt-to-
capital ratio of 0.60, and a minimum ratio of earnings before interest, taxes,
depreciation, and amortization (EBITDA) to interest and current maturities of
long term debt (CMLTD) of 2.0, then the amount of credit will be the lesser of
$125 million or 1.80% of the bidder's stockholder equity, except that the
amount of credit will be reduced to the extent appropriate to take into account
any outstanding commitments that a bidder has for existing capacity auction
entitlements.
(C) All
cash and other instruments used as credit security shall be unencumbered by
pledges for collateral.
(D) If a
bidder or entitlement holder chooses to use a surety bond to satisfy its credit
requirements, then the form of such surety bond will be negotiated in good
faith between the bidder or entitlement holder and the affiliated PGC and
reasonably acceptable by an issuer of surety bonds.
(E) In the event the holder of the
entitlement initially relied on its investment grade credit rating but
subsequently loses it during the entitlement period, the holder of the
entitlement shall provide alternative financial evidence within three business
days.
(F) The holder of the
entitlement shall notify the affiliated PGC of any material changes that impact
its compliance with the financial requirements it relied on in meeting the
credit standards in this section.
(G) In the event the holder or seller of the
entitlement fails to meet or continue to meet its security requirement, or an
Event of Default results in the termination of the Agreement, the entitlement
shall revert to the affiliated PGC and shall be auctioned in the next auction
for which notice can be provided of the sale of the entitlement pursuant to
subsection (h)(2)(B) of this section.
(H) If an entitlement holder's
creditworthiness or financial security materially and adversely changes after
the auction is completed, as a result of an event specified in the Agreement,
the affiliated PGC shall provide the entitlement holder with written notice
requesting additional credit support or performance assurance in a commercially
reasonable manner, as set forth in the Agreement. The seller's credit
requirements shall clearly identify objective criteria that would trigger a
request for additional security and the methods and time frame in which an
entitlement holder must satisfy such a request. The affiliated PGC may suspend
delivery of any capacity or energy for which the affiliated PGC has not already
received payment until the performance assurance is received, in accordance
with the Agreement.
(I) If at any
time after the auction is completed, there shall occur a downgrade event with
respect to the credit standing of the seller, then the entitlement holder may
require the seller to provide a credit assurance in an amount determined by the
entitlement holder in a commercially reasonable manner. In the event the seller
fails to provide a commercially reasonable performance assurance or guarantee
within three business days of the receipt of notice, then an event of default
shall be deemed to have occurred, and the entitlement holder will be entitled
to suspend performance under the Agreement and withhold payments for energy not
yet delivered, and may ultimately terminate the Agreement after the suspension
period as prescribed in the Agreement.
(f) Product descriptions for capacity
auctions in ERCOT. The provisions in this subsection apply to capacity auctions
in ERCOT. Subsection (g) of this section contains provisions applicable to
capacity auctions in non-ERCOT areas.
(1)
Definitions.
(A) The following words and
terms, when used in this subsection shall have the following meanings, unless
the context indicates otherwise.
(i)
Balancing energy service down deployed--The number of megawatt- hours (MWh) of
balancing energy service down deployed by ERCOT from an entitlement.
(ii) Balancing energy service up
deployed--The number of MWh of balancing energy service up deployed by ERCOT
from an entitlement.
(iii) Daily
capacity commitment--The amount of capacity scheduled by an entitlement holder
that an affiliated PGC must make available from an entitlement for the
provision of energy or permitted ancillary services for an operating day from
an entitlement.
(iv) Day-ahead
schedule--A schedule submitted by an entitlement holder to an affiliated PGC of
the entitlement holder's scheduled usage of the entitlement for the following
operating day.
(v) Default
qualifying scheduling entity (QSE)--The QSE that is designated by the
entitlement holder to ERCOT as its default QSE.
(vi) Energy scheduled--The final schedule for
energy, for each settlement interval, that an entitlement holder submits to an
affiliated PGC, subject to the limits on timing and amounts of schedules
contained in the capacity auction product descriptions.
(vii) Energy deployed down--The sum of
regulation energy down energy deployed and balancing energy service down energy
deployed.
(viii) Energy deployed
up--The sum of regulation energy up energy deployed, responsive energy
deployed, non-spinning energy deployed, and balancing energy service up energy
deployed.
(ix) Grouped
entitlements--All of the entitlements from an affiliated PGC that an
entitlement holder holds for a particular entitlement month.
(x) Grouped ancillary services--The amount of
each type of ancillary service available from each entitlement grouped by:
(I) Type of ancillary service;
(II) Type of capacity auction product;
and
(III) Congestion zone for those
ancillary services that are, or may be, dispatched by congestion
zone.
(xi) Hour-ahead
schedule--A schedule other than a day-ahead schedule submitted by an
entitlement holder to an affiliated PGC no later than one hour before the end
of an adjustment period of the entitlement holder's scheduled use of the
entitlement for the operating hour corresponding to that adjustment
period.
(xii) Non-spinning energy
deployed--Energy deployed by ERCOT from the non-spinning reserve service as
determined under the procedures in paragraph (2)(B) of this
subsection.
(xiii)
Product--Electric capacity, energy, capacity auction products or other
product(s) related thereto as specified in a transaction by reference to a
product listed in the Agreement or as otherwise specified by the parties in a
transaction.
(xiv) Regulation
energy down deployed--Energy deployed down by ERCOT from the regulation energy
service as determined under the procedures of paragraph (2)(B) of this
subsection.
(xv) Regulation energy
up deployed--Energy deployed up by ERCOT from the regulation service as
determined under the procedures of paragraph (2)(B) of this
subsection.
(xvi) Responsive energy
deployed--Energy deployed by ERCOT from the responsive reserve service as
determined under the procedures of paragraph (2)(B) of this
subsection.
(xvii) Two-day-ahead
schedule--A schedule submitted by the entitlement holder to the affiliated PGC
of the entitlement holder's scheduled usage of the entitlement for the
operating day two days in the future.
(B) The following terms have the respective
meanings given to them in the ERCOT protocols as amended from time to time:
(i) Ancillary services;
(ii) Balancing energy service;
(iii) Congestion zone;
(iv) Non-spinning reserve service;
(v) Operating day;
(vi) Operating hour;
(vii) Regulation service;
(viii) Responsive reserve service;
(ix) Settlement interval; and
(x) Zonal market clearing price.
(2) General provisions.
(A) Responsibility transfers.
(i) The entitlement holder may not use an
entitlement for the provision of balancing energy service until a
responsibility transfer (RT) between the entitlement holder's QSE and the
affiliated PGC's QSE is established and operated in accordance with the ERCOT
protocols for the deployment of balancing energy service. The entitlement
holder shall establish a separate RT with the affiliated PGC for each
congestion zone from which the entitlement holder desires to provide balancing
energy service.
(ii) When ERCOT has
developed the details and specifications of RTs between QSEs, including without
limitation, mechanics, settlement, and communication, then, at the request of
the entitlement holder, the parties shall negotiate in good faith to transfer
responsibility between their respective QSEs to:
(I) Allow the entitlement holder to provide
balancing energy service from the entitlement; and
(II) Allocate the cost of establishing that
capability.
(iii) The
entitlement holder's QSE shall act as the controller of RTs used for balancing
energy service from an entitlement. The entitlement holder's QSE shall use RTs
to provide instructions regarding balancing energy service to the affiliated
PGC's QSE. These instructions shall comply with all the limitations in the
applicable capacity auction product description.
(iv) Both the entitlement holder's QSE and
the affiliated PGC's QSE shall enter an inter-QSE trade in accordance with the
ERCOT protocols to represent an RT before any operating hour in which the
entitlement holder deploys balancing energy service from an
entitlement.
(v) The affiliated
PGC's QSE is only responsible for complying with RTs sent by the entitlement
holder's QSE and is not responsible for ERCOT instructions sent to the
entitlement holder.
(vi) The
affiliated PGC and the entitlement holder shall rely upon any integration of
the RT over each settlement interval performed by ERCOT. If ERCOT does not
perform that integration, then the integration shall be performed in a manner
mutually agreed to by both parties.
(vii) The entitlement holder is deemed not to
have provided any balancing energy service from an entitlement if the
affiliated PGC loses or does not receive the balancing energy service signal
from ERCOT. The affiliated PGC will promptly notify the entitlement holder if
it does not receive or loses the balancing energy service signal from
ERCOT.
(B) Deployment of
energy from ancillary services. Subject to the limitations and conditions set
out in this subsection, and except when the affiliated PGC is excused from
hierarchical dispatch by ERCOT of ancillary services under clause (i) or (v) of
this subparagraph, ERCOT shall be deemed to have dispatched ancillary services
from the entitlements in the entitlement group in a hierarchical order
according to the requirements of this subsection. Otherwise, ancillary services
shall be dispatched for each entitlement in an entitlement group independently.
(i) Notice of grouped entitlements. Not later
than five days before the beginning of an entitlement month, the entitlement
holder shall notify the affiliated PGC of all entitlements from the affiliated
PGC that are held by the entitlement holder for that entitlement month. The
list shall contain sufficient detail for the affiliated PGC to identify the
entitlements held by the entitlement holder for that month, including without
limitation any unique entitlement number assigned by the affiliated PGC to the
entitlement and listed on the letter confirmation for the entitlement. If the
affiliated PGC does not timely receive this notice, then the affiliated PGC is
excused from its obligation to dispatch ancillary services on a hierarchical
basis under this section.
(ii)
Amount of ancillary services scheduled from entitlements.
(I) The affiliated PGC shall track the amount
of each ancillary service for each operating hour and the amount of each
ancillary service scheduled by the entitlement holder for each operating hour,
both for individual entitlements and for each grouped entitlement.
(II) For ancillary services other than the
balancing energy service, which is determined by an RT, the amount of ancillary
service scheduled from each entitlement and for each grouped entitlement for an
operating hour is the amount stated in the final timely schedule submitted by
the entitlement holder to the affiliated PGC for that operating hour for each
entitlement or the entitlement group.
(iii) Deployed ancillary services.
(I) For balancing energy service, the amount
of energy that ERCOT is deemed to have deployed is determined by the
integration described in subparagraph (A) of this paragraph.
(II) For all ancillary services other than
balancing energy service, the affiliated PGC shall track the deployment of
ancillary services from the entitlement group by each grouped ancillary service
for each hour in the entitlement month, except for hours in which the
affiliated PGC is excused from dispatching ancillary services on a hierarchical
basis under clause (i) or (v) of this subparagraph. The total amount of each
grouped ancillary service deployed in an hour shall be calculated by the
product of:
(-a-) The ratio of the amount of
the grouped ancillary service scheduled by the entitlement holder from its
grouped entitlements to the total amount of that specific ancillary service
scheduled from resources in the affiliated PGC's QSE;
(-b-) The amount of energy deployed out of
that grouped ancillary service in a particular congestion zone or in ERCOT as a
whole, whichever is applicable.
(III) For all ancillary services other than
balancing energy service, the amount of each ancillary service that ERCOT is
deemed to have deployed from each entitlement, for hours in which the
affiliated PGC is excused from dispatching ancillary services on a hierarchical
basis under clause (i) or (v) of this subparagraph, shall be calculated by the
product of:
(-a-) The ratio of the amount of
that ancillary service scheduled by the entitlement holder from the entitlement
to the total amount of that specific ancillary service scheduled from resources
in the affiliated PGC's QSE;
(-b-)
The amount of energy deployed by ERCOT out of that ancillary service in a
particular congestion zone or in ERCOT as a whole, whichever is
applicable.
(iv) Hierarchical deployment of grouped
ancillary services.
(I) For determination of
the contract price for each entitlement in a grouped entitlement, ERCOT is
deemed to have first deployed grouped ancillary services that are deployed by
congestion zone pursuant to subclause (III) of this clause with the amount for
each entitlement spread proportionally among the entitlement holder's
entitlements of that type in that congestion zone.
(II) After deploying grouped ancillary
services by congestion zone pursuant to subclause (I) of this clause, ERCOT is
deemed to have deployed the remainder of each grouped ancillary service
pursuant to subclause (III) of this clause, with the amount for each type of
entitlement spread proportionally among the entitlement holder's entitlements
of that type in ERCOT.
(III)
Deployed energy shall be assigned to the entitlement holder's entitlements that
scheduled those ancillary services on a hierarchical basis as follows:
(-a-) For incremental deployments:
(-1-) First: Baseload entitlements, with the
highest priority given to the Baseload entitlements with the lowest energy
price;
(-2-) Second:
Gas-intermediate entitlements;
(-3-) Third: Gas-cyclic entitlements;
and
(-4-) Fourth: Gas-peaking
entitlements.
(-b-) For
decremental deployments:
(-1-) First:
Gas-peaking entitlements;
(-2-)
Second: Gas-cyclic entitlements;
(-3-) Third: Gas-intermediate entitlements;
and
(-4-) Fourth: Baseload
entitlements, with the highest priority given to the Baseload entitlements with
the highest energy price.
(v) Exception to dispatching on hierarchical
basis. The affiliated PGC is not required to dispatch ancillary services from
the entitlement group on a hierarchical basis if the affiliated PGC does not
have the information necessary to dispatch ancillary services from the
entitlement group in a hierarchical fashion. Necessary information includes,
but is not limited to, the signal from ERCOT deploying balancing energy service
or the signal from ERCOT deploying other ancillary
services.
(3)
Baseload product.
(A) Baseload scheduling.
(i) Schedule types. The entitlement holder
shall submit a day-ahead schedule for the entitlement. The entitlement holder
shall submit a two-day-ahead schedule for the entitlement if notified to do so
by ERCOT.
(ii) Timing of
scheduling. All of the times for scheduling referred to in this subparagraph
are based on the times in the ERCOT protocols. If the times in the ERCOT
protocols are changed, then the times in this subparagraph will be considered
to have changed to equitably accommodate the changes in the ERCOT protocols.
(I) The entitlement holder shall submit
day-ahead or two-day-ahead schedules for the entitlement to the affiliated PGC
no later than 8:00 a.m. The entitlement holder shall submit hour- ahead
schedules for ancillary services from the entitlement to the affiliated PGC no
later than one hour before the deadline for the affiliated PGC's QSE to submit
hour-ahead schedules to ERCOT.
(II)
On days that ERCOT allows QSEs to change their day-ahead or two-day-ahead
schedules to ERCOT by 1:00 p.m. for congestion or capacity insufficiency, the
entitlement holder may submit a revised day-ahead or two-day-ahead schedule for
energy from the entitlement to the affiliated PGC no later than noon.
(III) The entitlement holder may submit to
the affiliated PGC a revised day-ahead or two-day-ahead schedule for the non-
spinning reserve ancillary services from the entitlement no later than 1:45
p.m. The entitlement holder cannot change the amount of energy scheduled in a
revised schedule for the non-spinning reserve ancillary services.
(IV) No hour-ahead schedules are permitted
for energy from baseload entitlements. Hour-ahead schedules are permitted for
ancillary services from baseload entitlements.
(iii) Schedule content. Each schedule shall
specify, for each settlement interval, the MW of energy scheduled to be
delivered to the entitlement holder from the entitlement and the MW of each
permitted ancillary service to be scheduled from the entitlement, subject to
the scheduling limits in clause (iv) of this subparagraph.
(iv) Scheduling limits.
(I) Minimum energy. The entitlement holder
may not schedule energy at less than 20 MW from the entitlement at any time
during the month.
(II) Ancillary
services. The entitlement holder may use a baseload entitlement to provide
responsive reserve service at a level of one MW, and non-spinning reserve
service, up to a combined total of three MW. The baseload entitlement may not
be used for any other ancillary service. Non- spinning reserve service may be
provided from the entitlement in 30 minutes, and responsive reserve service may
be provided from the entitlement in ten minutes.
(III) Maximum changes. Subject to the minimum
energy rate specified in subclause (I) of this clause, the rate at which the
entitlement holder schedules energy in each hour generally cannot change more
than plus or minus two MW. The following additional restrictions apply.
(-a-) If the entitlement holder schedules or
reserves any ancillary services in an hour, then the level of energy scheduled
shall be the same in each settlement interval of the hour.
(-b-) The maximum change in ancillary
services scheduled from the first settlement interval in one hour to the first
settlement interval of the next hour is plus or minus three MW.
(-c-) The maximum change in energy scheduled
from the first settlement interval in one hour to the first settlement interval
in the next hour is plus or minus two MW.
(-d-) The maximum change in energy scheduled
from one settlement interval to the next is plus or minus one MW.
(IV) Starts. The entitlement
holder shall schedule energy from a baseload entitlement for every settlement
interval and may not direct any starts of the entitlement.
(V) Default schedule. If the entitlement
holder does not submit a timely day-ahead or two-day ahead schedule, as
applicable, then the schedule for the applicable operating day is deemed to be
20 MW of energy and zero MW of ancillary services to be delivered to the
entitlement holder's designated default QSE in every settlement interval of the
applicable operating day.
(B) Contract price for baseload. The items
included in the contract price between the entitlement holder and the
affiliated PGC for the entitlement shall include:
(i) Capacity payment. The capacity payment
from the entitlement holder to the affiliated PGC is the capacity price in
dollars per MW specified in the letter confirmation for the entitlement times
25 MW.
(ii) Energy payment. The
fuel cost owed to the affiliated PGC by the entitlement holder for the
dispatched baseload power will be the average cost of coal, lignite, and
nuclear fuel (in dollars per MWh), as applicable to the appropriate congestion
zone in which the underlying generation units are located, based on the
affiliated PGC's final excess cost over market (ECOM) model as determined
pursuant to PURA §39.201. Affiliated PGCs of the electric utilities
without an ECOM determination in their proceeding conducted pursuant to PURA
§39.201 shall propose, for commission review, an average cost of fuel in a
similar manner. The energy payment from the entitlement holder to the
affiliated PGC is the fuel cost in dollars per MWh for the entitlement times
the greater of:
(I) The sum of the total
energy scheduled from the entitlement during the entitlement month plus energy
deployed up from the entitlement during the entitlement month; or
(II) An amount of MWh equal to 20 MW times
the number of hours in the entitlement month.
(iii) Ancillary services payment. For
baseload entitlements, the ancillary services payment to be paid by the
entitlement holder to the affiliated PGC is zero.
(iv) Energy deployed up reimbursement
payment. For energy deployed up, for all settlement intervals in the
entitlement month, the affiliated PGC shall pay the entitlement holder the sum
of the zonal market clearing price of energy (MCPE) in dollars per MWh paid by
ERCOT for that settlement interval times the energy deployed up in that
settlement interval.
(v) Energy
deployed down reimbursement payment. For energy deployed down for all
settlement intervals in the entitlement month, the entitlement holder shall pay
the affiliated PGC the sum of the MCPE in dollars per MWh paid to ERCOT for
that settlement interval times the energy deployed down in that settlement
interval.
(C) Timing of
payment of contract price. The entitlement holder shall pay the affiliated PGC
the capacity payment portion of the contract price not less than five days
before the beginning of the entitlement month or 20 days after receiving an
invoice for the capacity payment from the affiliated PGC, whichever is later.
The entitlement holder shall pay the remainder of the contract price to the
affiliated PGC after receiving an invoice for that amount in accordance with
the other terms of the applicable Agreement. If the affiliated PGC owes the
entitlement holder any net amount under the contract price calculation, it will
pay that amount to the entitlement holder in accordance with the other terms of
the Agreement.
(4)
Gas-intermediate product.
(A)
Gas-intermediate scheduling.
(i) Schedule
types. The entitlement holder shall submit a day-ahead schedule for the
entitlement and may submit hour-ahead schedules. The entitlement holder shall
submit a two-day-ahead schedule for the entitlement if notified to do so by
ERCOT.
(ii) Timing of scheduling.
All of the times for scheduling referred to in this subparagraph are based on
the times in the ERCOT protocols. If the times in the ERCOT protocols are
changed, then the times in this subparagraph will be considered to have changed
to equitably accommodate the changes in the ERCOT protocols.
(I) The entitlement holder shall submit
day-ahead or two-day-ahead schedules for the entitlement to the affiliated PGC
no later than 8:00 a.m. The daily capacity commitment is determined for a
gas-intermediate entitlement by the 8:00 a.m. schedule. The entitlement holder
shall submit hour- ahead schedules for ancillary services for the entitlement
to the affiliated PGC no later than one hour before the deadline for the
affiliated PGC's QSE to submit hour-ahead schedules to ERCOT.
(II) The entitlement holder may submit to the
affiliated PGC a revised day-ahead or two-day-ahead schedule for energy from
the entitlement no later than 10:00 a.m., subject to the limit on maximum
energy in clause (iv)(I)(-b-) of this subparagraph.
(III) On days that ERCOT allows QSEs to
change their day-ahead or two-day-ahead schedules to ERCOT by 1:00 p.m. for
congestion or capacity insufficiency, the entitlement holder may submit a
revised day-ahead or two-day-ahead schedule for energy from the entitlement to
the affiliated PGC no later than noon, subject to the limit on maximum energy
in clause (iv)(I)(-b-) of this subparagraph.
(IV) The entitlement holder may submit to the
affiliated PGC a revised day-ahead or two-day-ahead schedule for ancillary
services from the entitlement no later than 1:45 p.m. The entitlement holder
cannot change the amount of energy scheduled in a revised schedule for
ancillary services.
(V) No
hour-ahead schedules are permitted for energy from gas- intermediate
entitlements. Hour-ahead schedules are permitted for ancillary services from
gas-intermediate entitlements.
(iii) Schedule content. Each schedule shall
specify:
(I) For each settlement interval,
the MW of energy scheduled to be delivered to the entitlement holder from the
entitlement; and
(II) For each
hour, the MW scheduled to be reserved for the entitlement holder's use of each
ancillary service from the entitlement. The entitlement holder shall include
any MW bid (but not pricing) for the balancing energy up and balancing energy
down ancillary services on the schedule.
(iv) Scheduling limits.
(I) Total. Generally, the rate at which
energy is scheduled cannot change more than plus or minus six MW and the rate
at which ancillary services is reserved or scheduled by the entitlement holder
in each hour cannot change more than plus or minus six MW. The restrictions in
items (-a-) and (-b-) of this subclause apply.
(-a-) Minimum energy. The entitlement holder
may not schedule energy at less than eight MW from the entitlement at any time
during the month, unless the entitlement holder has elected the
gas-intermediate Start Option, in which case the entitlement holder may reduce
energy below eight MW as specified in subclause (IV)(-a-) of this
clause.
(-b-) Maximum energy. The
entitlement holder may not schedule energy at any level greater than the daily
capacity commitment in any settlement interval.
(II) Maximum changes. Subject to the
limitations specified in subclause (I) of this clause:
(-a-) Generally, the rate at which energy is
scheduled by the entitlement holder in each hour cannot change more than plus
or minus six MW and the rate at which ancillary services are scheduled or
reserved by the entitlement holder in each hour cannot change more than plus or
minus six MW. The restrictions in items (-b-) and (-c-) apply.
(-b-) Energy. Subject to the maximum change
specified in item (-a-) of this subclause:
(-1-) The maximum change in energy scheduled
from the first settlement interval in one hour to the first settlement interval
of the next hour is plus or minus six MW.
(-2-) Subject to the limitation in subitem
(-1-) of this item, the maximum change in energy scheduled from one settlement
interval to the next is plus or minus two MW.
(-c-) Ancillary services. Subject to the
maximum change specified in item (-a-) of this subclause, the maximum change in
ancillary services scheduled from the first settlement interval in one hour to
the first settlement interval of the next hour is plus or minus six
MW.
(III) Ancillary
services. Subject to the limitations in subclauses (I) and (II) of this clause:
(-a-) The total MW of non-spinning reserve
service, regulation service up, regulation service down, responsive reserve
service, and balancing energy service up and balancing energy service down from
the entitlement in one hour shall not exceed ten MW;
(-b-) Subject to the limitations in item
(-a-) of this subclause, the total MW of regulation service up, regulation
service down, responsive reserve service, and bids for balancing energy service
up and balancing energy service down from the entitlement in one hour shall not
exceed:
(-1-) Four MW if the entitlement
holder schedules any two-MW changes in the levels of energy within the
hour;
(-2-) Five MW if the
entitlement holder schedules any one-MW, but not two-MW changes in the levels
of energy within the hour; or
(-3-)
Six MW if the entitlement holder does not schedule any changes in the levels of
energy within the hour.
(-c-) In addition to the limitations in items
(-a-) and (-b-) of this subclause, the total MW of non-spinning reserve
service, regulation service up, responsive reserve service, and balancing
energy service up from the entitlement in a settlement interval shall not
exceed an amount of MW equal to the daily capacity commitment for the
settlement interval minus the energy scheduled for that settlement
interval.
(-d-) In addition to the
limitations in items (-a-), (-b-), and (-c-) of this subclause, the total MW of
regulation service down and balancing energy service down from the entitlement
in a settlement interval shall not exceed an amount of MW equal to the energy
scheduled for that settlement interval minus eight MW.
(-e-) In addition to the limitations in items
(-a-), (-b-), and (-c-) of this subclause, if the energy schedule is at zero as
permitted under subclause (IV)(-a-) of this clause, then the entitlement holder
may not schedule any ancillary services from the gas-intermediate
entitlement.
(-f-) Non-spinning
reserve service may be provided from the entitlement in 30 minutes, and other
permitted ancillary services may be provided from the entitlement in ten
minutes.
(IV) Starts,
minimum off time, and minimum run time.
(-a-)
The entitlement holder may reduce the energy schedule from the gas-intermediate
entitlement to zero MW two times during the entitlement month.
(-b-) Once the energy schedule is reduced to
zero, it shall remain at zero for not less than 48 hours.
(-c-) If the entitlement holder increases the
energy schedule from zero, then energy shall be scheduled at a minimum of eight
MW, and the energy schedule may not be reduced to zero again for at least 72
hours after the energy schedule increased from zero.
(v) Default schedule. If the
entitlement holder does not submit a timely day-ahead or two-day ahead
schedule, as applicable, then the schedule, for the applicable operating day is
deemed to be, in every settlement interval of the applicable operating day,
eight MW for the daily capacity commitment, eight MW of energy to be delivered
to the entitlement holder's designated default QSE, and zero MW of ancillary
services, and that deemed schedule may not be changed in any hour-ahead
schedule. However, if the entitlement holder has used up its allowable starts
for the entitlement month, then the schedule for the applicable operating day
is deemed to be, in every settlement interval of the applicable operating day,
zero MW for the daily capacity commitment.
(B) Gas-intermediate ancillary services.
Subject to the scheduling limits in subparagraph (A) of this paragraph, the
entitlement holder may use the entitlement in any one hour for one or more of
these ancillary services: regulation service up, regulation service down,
responsive reserve service, non-spinning reserve service, balancing energy
service up, and balancing energy service down. When ERCOT requires mandatory
balancing energy down bids, then the affiliated PGC shall so notify the
entitlement holder, and the entitlement holder shall then submit a balancing
energy down bid to ERCOT in the same percentage that ERCOT requires of the
affiliated PGC, subject to the MW limits for gas-intermediate in the applicable
Schedule CA of the applicable Agreement.
(C) Contract price for gas-intermediate. The
items included in the contract price between the entitlement holder and the
affiliated PGC for the entitlement shall include:
(i) Capacity payment. The capacity payment
from the entitlement holder to the affiliated PGC is the capacity price in
dollars per MW specified in the letter confirmation for the entitlement times
25 MW.
(ii) Energy payment.
(I) The energy payment from the entitlement
holder to the affiliated PGC for each settlement interval in the entitlement
month, is the sum of the minimum energy payment and the excess energy payment.
(-a-) The minimum energy payment is the
product of the number of hours in the entitlement month at which the energy
level is not zero as permitted under subparagraph (A)(iv)(IV)(-a-) of this
paragraph, times eight MWh, times the minimum fuel price.
(-b-) The excess energy payment for each
settlement interval is the excess fuel price defined in subclause (II)(-b-) of
this clause, times (energy scheduled minus two MWh plus energy deployed up
minus energy deployed down).
(II) Fuel price.
(-a-) The minimum fuel price is a heat rate
equal to 9.9 Million British Thermal Units (MMBtu) per MWh times the daily gas
price.
(-b-) The excess fuel price
is a heat rate equal to 9.9 MMBtu per MWh times the daily gas price.
(iii) Ancillary
services payment.
(I) The ancillary services
cost adjustment payment to be paid by the entitlement holder to the affiliated
PGC is the ancillary services cost defined in subclause (II) of this clause
times the difference, for each settlement interval of the entitlement, between
the daily capacity commitment and energy scheduled.
(II) The ancillary services cost is a heat
rate adjustment equal to 1.015 MMBtu per MW times the daily gas
price.
(iv) Energy
deployed up reimbursement payment. For energy deployed up for all settlement
intervals in the entitlement month, the affiliated PGC shall pay the
entitlement holder the MCPE in dollars per MWh paid by ERCOT for a settlement
interval times the energy deployed up in a settlement interval.
(v) Energy deployed down reimbursement
payment. For energy deployed down for all settlement intervals in the
entitlement month, the entitlement holder shall pay the affiliated PGC the MCPE
in dollars per MWh paid to ERCOT for a settlement interval times the energy
deployed down in a settlement interval.
(D) Timing of payment of contract price. The
entitlement holder shall pay the affiliated PGC the capacity payment portion of
the contract price not less than five days before the beginning of the
entitlement month or 20 days after receiving an invoice for the capacity
payment from the affiliated PGC, whichever is later. The entitlement holder
shall pay the remainder of the contract price after receiving an invoice for
that amount in accordance with the Agreement. If the affiliated PGC owes the
entitlement holder any net amount under the contract price calculation, it will
pay that amount to the entitlement holder in accordance with the
Agreement.
(5)
Gas-cyclic.
(A) Gas-cyclic scheduling.
(i) Schedule types. The entitlement holder
shall submit a day-ahead schedule for the entitlement and may submit hour-ahead
schedules for both energy and ancillary services. The entitlement holder shall
submit a two-day-ahead schedule for the entitlement if notified to do so by
ERCOT.
(ii) Timing of scheduling.
All of the times for scheduling referred to in this subparagraph are based on
the times in the ERCOT protocols. If the times in the ERCOT protocols are
changed, then the times in this subparagraph will be considered to have changed
to equitably accommodate the changes in the ERCOT protocols.
(I) The entitlement holder shall submit
day-ahead or two-day-ahead schedules for the entitlement to the affiliated PGC
no later than 8:00 a.m. The daily capacity commitment is determined for a
gas-cyclic entitlement by the 8:00 a.m. schedule, unless the entitlement holder
notifies the affiliated PGC, in the schedule, that it is exercising its option
to set the daily capacity commitment in the last schedule submitted before the
gas-cyclic start deadline defined in subclause (V) of this clause. The
entitlement holder shall submit hour-ahead schedules for the entitlement to the
affiliated PGC no later than one hour before the deadline for the affiliated
PGC's QSE to submit hour-ahead schedules to ERCOT.
(II) The entitlement holder may submit to the
affiliated PGC a revised day-ahead or two-day-ahead schedule for energy from
the entitlement no later than 10:00 a.m.
(III) On days that ERCOT allows QSEs to
change their day-ahead or two-day ahead schedules to ERCOT by 1:00 p.m. for
congestion or capacity insufficiency, the entitlement holder may submit a
revised day-ahead or two-day-ahead schedule for energy from the entitlement to
the affiliated PGC no later than noon.
(IV) The entitlement holder may submit to the
affiliated PGC a revised day-ahead or two-day-ahead schedule for ancillary
services from the entitlement no later than 1:45 p.m.
(V) The gas-cyclic start deadline for
declaring the daily capacity commitment for each settlement interval in an
operating hour is 14 hours before the end of the adjustment period for that
operating hour.
(iii)
Schedule content. Each schedule shall specify:
(I) For each settlement interval, the MW of
energy scheduled to be delivered to the entitlement holder from the
entitlement; and
(II) For each
hour, the MW scheduled to be reserved for the entitlement holder's use of each
ancillary service from the entitlement. The entitlement holder shall include
any MW bid (but not pricing) for the balancing energy up and balancing energy
down ancillary services on the schedule.
(iv) Scheduling limits.
(I) Total. Generally, the rate at which
energy is scheduled cannot change more than plus or minus six MW and the rate
at which ancillary services is reserved or scheduled by the entitlement holder
in each hour cannot change more than plus or minus six MW. The restrictions in
items (-a-) and (-b-) of this subclause apply.
(-a-) Minimum energy. The entitlement holder
may not schedule energy at any level between zero MW and five MW from the
entitlement at any time during the month.
(-b-) Maximum energy. The entitlement holder
may not schedule energy at any level greater than the daily capacity commitment
in any settlement interval after the entitlement holder designates its daily
capacity commitment.
(II) Maximum changes. Subject to the limits
specified in subclause (I) of this clause:
(-a-) The maximum change in the rate at which
energy is scheduled from the first settlement interval in one hour to the first
settlement interval in the next hour is plus or minus six MW;
(-b-) Subject to the limitation in item (-a-)
of this subclause, the maximum change in the rate at which energy is scheduled
from one settlement interval to the next is plus or minus two MW; and
(-c-) Subject to the limitation specified in
item (-a-) of this subclause, the maximum change in ancillary services
scheduled from the first settlement interval in one hour to the first
settlement interval of the next hour is plus or minus six MW.
(III) Ancillary services. Subject
to the limitations in subclauses (I) and (II) of this clause:
(-a-) The total MW of non-spinning reserve
service, regulation service up, regulation service down, responsive reserve
service, and balancing energy service up and balancing energy service down from
the entitlement in one hour shall not exceed ten MW;
(-b-) Subject to the limitations in item
(-a-) of this subclause, the total MW of regulation service up, regulation
service down, responsive reserve service, and bids for balancing energy service
up and balancing energy service down from the entitlement in one hour shall not
exceed:
(-1-) Four MW if the entitlement
holder schedules any two-MW changes in the levels of energy within the
hour;
(-2-) Five MW if the
entitlement holder schedules any one-MW, but not two-MW changes in the levels
of energy within the hour; or
(-3-)
Six MW if the entitlement holder does not schedule any changes in the levels of
energy within the hour.
(-c-) In addition to the limitations in items
(-a-) and (-b-) of this subclause, the total MW of non-spinning reserve
service, regulation service up, responsive reserve service, and balancing
energy service up from the entitlement in a settlement interval shall not
exceed an amount of MW equal to the daily capacity commitment for the
settlement interval minus the energy scheduled for that settlement
interval.
(-d-) In addition to the
limitations in items (-a-), (-b-), and (-c-) of this subclause, the total MW of
regulation service down and balancing energy service down from the entitlement
in a settlement interval shall not exceed an amount of MW equal to the energy
scheduled for that settlement interval minus five MW.
(-e-) Non-spinning reserve service may be
provided from the entitlement in 30 minutes, and other permitted ancillary
services may be provided from the entitlement in ten minutes.
(IV) Starts. Subject to the limits
specified in subclause (I) - (III) of this clause, the entitlement holder may
not direct more than 20 starts during the month of the entitlement, and the
entitlement holder may not direct more than one start per day. A start occurs
every time a schedule increases the MW of energy from zero MW. Once 20 starts
have occurred during the entitlement, the energy scheduled by the entitlement
holder may not be lower than a rate of five MW unless that level is lowered to
zero MW, at which time the level may not be raised above zero MW for the
remainder of the entitlement.
(v) Default schedule. If the entitlement
holder does not submit a timely day-ahead or two-day ahead schedule, as
applicable, then the schedule for the applicable operating day is deemed to be,
in every settlement interval of the applicable operating day, zero MW for the
daily capacity commitment, zero MW of energy, and zero MW of ancillary
services. This deemed schedule may not be changed in any hour-ahead
schedule.
(B) Gas-cyclic
ancillary services. Subject to the scheduling limits in subparagraph (A) of
this paragraph, the entitlement holder may use the entitlement in any one hour
for one or more of these ancillary services: regulation service up, regulation
service down, responsive reserve service, non-spinning reserve service,
balancing energy service up, and balancing energy service down. When ERCOT
requires mandatory balancing energy service down bids, then the affiliated PGC
shall so notify the entitlement holder, and the entitlement holder shall then
submit a balancing energy service down bid in the same percentage that ERCOT
requires of the affiliated PGC, subject to the MW limits for gas-cyclic in this
paragraph.
(C) Contract price for
gas-cyclic. The items to be included in the contract price between the
entitlement holder and the affiliated PGC for the entitlement shall include:
(i) Capacity payment. The capacity payment
from the entitlement holder to the affiliated PGC is the capacity price in
dollars per MW specified in the letter confirmation for the entitlement times
25 MW.
(ii) Energy payment.
(I) The energy payment for each settlement
interval from the entitlement holder to the affiliated PGC is the fuel price
defined in subclause (II) of this clause times (energy scheduled plus energy
deployed up minus energy deployed down.)
(II) Fuel price.
(-a-) The fuel price, for the portion of the
daily capacity commitment that is designated by the entitlement holder by 8:00
a.m. in the day-ahead or two-day- ahead schedule, is a heat rate equal to
12.100 MMBtu per MWh times the daily gas price.
(-b-) The fuel price, for the portion of the
daily capacity commitment that is not released or committed at 8:00 a.m., but
is committed before the gas-cyclic start deadline, is a heat rate equal to
12.100 MMBtu per MWh times (the sum of the daily gas price plus $
.25.)
(iii)
Ancillary services payment.
(I) The ancillary
services payment to be paid by the entitlement holder to the affiliated PGC is
the product of the ancillary services cost defined in subclause (II) of this
clause times the difference, for each settlement interval of the entitlement,
between the daily capacity commitment and energy scheduled.
(II) The ancillary services cost is a heat
rate adjustment equal to 1.622 MMBtu per MW times the daily gas
price.
(iv) Energy
deployed up reimbursement payment. For energy deployed up, for all settlement
intervals in the entitlement month, the affiliated PGC shall pay the
entitlement holder the MCPE in dollars per MWh paid by ERCOT for a settlement
interval times the energy deployed up in a settlement interval.
(v) Energy deployed down reimbursement
payment. For energy deployed down for all settlement intervals in the
entitlement month, the entitlement holder shall pay the affiliated PGC the MCPE
in dollars per MWh paid to ERCOT for a settlement interval times the energy
deployed down in a settlement interval.
(D) Timing of payment of contract price. The
entitlement holder shall pay the affiliated PGC the capacity payment portion of
the contract price not less than five days before the beginning of the
entitlement month or 20 days after receiving an invoice for the capacity
payment from the affiliated PGC, whichever is later. The entitlement holder
shall pay the remainder of the contract price after receiving an invoice for
that amount in accordance with the other terms of the Agreement. If the
affiliated PGC owes the entitlement holder any net amount under the contract
price calculation, it will pay that amount to the entitlement holder in
accordance with the other terms of the Agreement.
(6) Gas-peaking.
(A) Gas-peaking scheduling.
(i) Schedule types. The entitlement holder
shall submit a day-ahead schedule for the entitlement and may submit hour-ahead
schedules. The entitlement holder shall submit a two-day-ahead schedule for the
entitlement if notified to do so by ERCOT.
(ii) Timing of scheduling. All of the times
for scheduling referred to in this subparagraph are based on the times in the
ERCOT protocols. If the times in the ERCOT protocols are changed, then the
times in this subparagraph will be considered to have changed to equitably
accommodate the changes in the ERCOT protocols.
(I) The entitlement holder shall submit
day-ahead or two-day-ahead schedules for the entitlement to the affiliated PGC
no later than 8:00 a.m. The daily capacity commitment is determined for a
gas-peaking entitlement by the 8:00 a.m. schedule, unless the entitlement
holder notifies the affiliated PGC, in the schedule, that it is exercising its
option to set the daily capacity commitment in the last schedule submitted
before the gas-peaking start deadline defined in subclause (V) of this clause.
The entitlement holder shall submit hour-ahead schedules for the entitlement to
the affiliated PGC no later than one hour before the deadline for the
affiliated PGC's QSE to submit hour-ahead schedules to ERCOT.
(II) The entitlement holder may submit to the
affiliated PGC a revised day-ahead or two-day-ahead schedule for energy from
the entitlement no later than 10:00 a.m.
(III) On days that ERCOT allows QSEs to
change their day-ahead or two-day ahead schedules to ERCOT by 1:00 p.m. for
congestion or capacity insufficiency, the entitlement holder may submit a
revised day-ahead or two-day-ahead schedule for energy from the entitlement to
the affiliated PGC no later than noon.
(IV) The entitlement holder may submit to the
affiliated PGC a revised day-ahead or two-day-ahead schedule for the non-
spinning reserve service from the entitlement no later than 1:45 p.m.
(V) The gas-peaking start deadline for
declaring the daily capacity commitment for each settlement interval in an
operating hour is one hour before the end of the adjustment period for that
operating hour.
(iii)
Schedule content. Each schedule shall specify:
(I) For each settlement interval, the MW of
energy scheduled to be delivered to the entitlement holder from the
entitlement; and
(II) For each
hour, the MW scheduled to be reserved for the entitlement holder's use of the
non-spinning reserve service from the entitlement.
(iv) Scheduling limits.
(I) Total.
(-a-) The rate at which energy is scheduled
or ancillary services reserved or scheduled by the entitlement holder in each
settlement interval during an hour shall be either zero MW or 25 MW and cannot
change during the hour.
(-b-)
Subject to the requirement of item (-a-) of this subclause, if the entitlement
holder schedules any energy from the entitlement in an hour, the rate at which
energy is scheduled shall continue uninterrupted at a level of 25 MW for not
less than four hours.
(-c-) Subject
to the requirements of items (-a-) and (-b-) of this subclause, when the
entitlement holder decreases a schedule for energy to zero MW from the
entitlement in an hour, the rate at which energy is scheduled or at which
ancillary services is scheduled or reserved shall continue uninterrupted at a
level of zero MW for not less than two hours.
(II) Starts. The number of starts of the
entitlement is not limited.
(v) Default schedule. If the entitlement
holder does not submit a timely day-ahead or two-day ahead schedule, as
applicable, then the schedule, for the applicable operating day is deemed to
be, in every settlement interval of the applicable operating day, zero MW for
the daily capacity commitment, zero MW of energy, and zero MW of the
non-spinning reserve service. This deemed schedule may not be changed in any
revised day-ahead or two-day ahead schedule, or in any hour-ahead
schedule.
(B)
Gas-peaking ancillary services. The entitlement holder may not use the
entitlement for any ancillary service except the non-spinning reserve
service.
(C) Contract price for
gas-peaking. The items to be included in the contract price between the
entitlement holder and the affiliated PGC for the entitlement shall include:
(i) Capacity payment. The capacity payment
from the entitlement holder to the affiliated PGC is the capacity price in
dollars per MW specified in the letter confirmation for the entitlement times
25 MW.
(ii) Energy payment.
(I) The energy payment for each settlement
interval, from the entitlement holder to the affiliated PGC is the fuel price
defined in subclause (II) of this clause times (energy scheduled plus
non-spinning energy deployed plus non- spinning energy instructed
deviation.)
(II) Fuel price.
(-a-) The fuel price, for operating days for
which the entitlement holder designated its daily capacity commitment by 8:00
a.m. in the day-ahead or two- day ahead schedule, is a heat rate equal to
14.100 MMBtu per MWh times the daily gas price.
(-b-) The fuel price, for operating days for
which the entitlement holder exercises its option to designate its daily
capacity commitment after 8:00 a.m. and before the gas-peaking start deadline,
is a heat rate equal to 14.100 MMBtu per MWh times the sum of the daily gas
price plus $ .25.
(iii) Ancillary services payment. The
ancillary services payment to be paid by the entitlement holder to the
affiliated PGC is the product of $1.00 per MW times the total number of MW of
non-spinning reserve service scheduled during each hour of the entitlement
month.
(iv) Ancillary services
reimbursement payment. The ancillary services reimbursement payment from the
affiliated PGC to the entitlement holder is the sum of the MCPE for energy in
dollars per MWh paid by ERCOT for each MWh of non-spinning energy deployed and
the price that ERCOT pays for uninstructed deviations for each MWh of
non-spinning energy uninstructed deviation.
(D) Timing of payment of contract price. The
entitlement holder shall pay the affiliated PGC the capacity payment portion of
the contract price not less than five days before the beginning of the
entitlement month or 20 days after receiving an invoice for the capacity
payment from the affiliated PGC, whichever is later. The entitlement holder
shall pay the remainder of the contract price after receiving an invoice for
that amount in accordance with the other terms of the Agreement. If the
affiliated PGC owes the entitlement holder any net amount under the contract
price calculation, it will pay that amount to the entitlement holder in
accordance with the other terms of the Agreement.
(g) Product descriptions for
capacity in non-ERCOT areas. The provisions in this subsection apply to
capacity auctions in non-ERCOT areas. Subsection (f) of this section contains
provisions applicable to capacity auctions in ERCOT.
(1) Definitions. The following words and
terms when used in this subsection shall have the following meanings unless the
context indicates otherwise:
(A) Daily
capacity commitment--The amount of capacity scheduled by the entitlement holder
that a seller shall make available for the provision of energy from an
entitlement.
(B) Day ahead
schedule--A schedule submitted by the entitlement holder to a seller of the
entitlement holder's scheduled usage of the entitlement for the following
operating day.
(C) Energy
scheduled--For each settlement interval, the final schedule for energy that the
entitlement holder submits to a seller, subject to the limits on timing and
amounts of schedules contained in this subsection.
(D) Grouped entitlements--All of the
entitlements from a seller that the entitlement holder holds for a particular
entitlement month.
(E) Hour-ahead
schedule--A schedule other than a day-ahead schedule submitted by the
entitlement holder to a seller of the entitlement holder's scheduled usage of
the entitlement for the following operating hour.
(2) Baseload product.
(A) Description. For each baseload capacity
entitlement, the scheduled power shall be provided to the entitlement holder
during the month of the entitlement seven days per week and 24 hours per day,
in accordance with the scheduling requirements and limitations provided in
subparagraph (E) of this paragraph.
(B) Block size. Each baseload capacity
entitlement shall be 25 MW in size.
(C) Fuel price. The fuel cost owed to the
affiliated PGC by the entitlement holder for the dispatched baseload power will
be the average cost of coal, lignite, and nuclear fuel, in dollars per MWh,
based on the company's final ECOM model as determined in the proceeding
pursuant to PURA §39.201 as projected for the relevant time period.
Electric utilities without an ECOM determination in their proceeding conducted
pursuant to PURA §39.201 shall propose for commission review an average
cost of fuel in a similar manner.
(D) Starts per month. The entitlement holder
of a baseload capacity entitlement shall take power from the entitlement seven
days per week and 24 hours per day and is therefore not permitted to direct the
affiliated PGC to make any starts of baseload capacity entitlements.
(E) Baseload scheduling.
(i) Schedule types. The entitlement holder
shall submit a day-ahead schedule for the entitlement.
(ii) Timing of scheduling.
(I) The entitlement holder shall submit
day-ahead schedules for the entitlement to the seller no later than 8:00 a.m.
The daily capacity commitment is determined for a baseload entitlement by the
8:00 a.m. schedule.
(II) The
entitlement holder may submit to the seller a revised day- ahead schedule for
energy from the entitlement no later than noon, subject to the limit on maximum
energy in clause (iv)(II) of this subparagraph.
(III) No hour-ahead schedules are permitted
for energy from baseload entitlements.
(iii) Schedule content. Each schedule shall
specify, for each scheduling interval, subject to the scheduling limits in
clause (iv) of this subparagraph, the energy scheduled to be delivered to the
entitlement holder from the entitlement.
(iv) Scheduling limits.
(I) Minimum energy. The entitlement holder
may not schedule energy at less than 20 MW from the entitlement at any time
during the month.
(II) Maximum
energy. The entitlement holder may not schedule energy at any level greater
than the daily capacity commitment in any scheduling interval.
(III) Maximum changes. Subject to the minimum
energy rate specified in subclause (I) of this clause:
(-a-) Total. Generally, the rate at which
energy is scheduled by the entitlement holder in each hour cannot change more
than plus or minus two MW.
(-b-)
Energy. Subject to the maximum change specified in item (-a-) of this
subclause, the maximum change in energy scheduled from one scheduling interval
to the next scheduling interval cannot exceed plus or minus two MW.
(v) Default schedule.
If the entitlement holder does not submit a timely day-ahead schedule, as
applicable, then the schedule for the applicable operating day shall be deemed
to be, in every settlement interval of the applicable operating day, a total of
20 MW for the daily capacity commitment.
(F) Contract price for baseload. The items to
be included in the contract price between the entitlement holder and the
affiliated PGC for the entitlement shall include:
(i) Capacity payment. The capacity payment
from the entitlement holder to the affiliated PGC is the capacity price in
dollars per MW specified in the letter confirmation for the entitlement times
25 MW.
(ii) Energy payment. The
fuel price is as specified on the letter confirmation for the entitlement. The
energy payment from the entitlement holder to the affiliated PGC is the fuel
price in dollars per MWh specified in the letter confirmation for the
entitlement times the greater of:
(I) The
total energy scheduled from the entitlement during the entitlement month;
or
(II) An amount of MWh equal to
20 MW times the number of hours in the entitlement month.
(G) Timing of payment of contract
price. The entitlement holder shall pay the affiliated PGC the capacity payment
portion of the contract price not less than five days before the beginning of
the entitlement month or 20 days after receiving an invoice for the capacity
payment from the affiliated PGC, whichever is later. The entitlement holder
shall pay the remainder of the contract price to the affiliated PGC after
receiving an invoice for that amount in accordance with the other terms of the
Agreement. If the affiliated PGC owes the entitlement holder any net amount
under the contract price calculation, it will pay that amount to the
entitlement holder in accordance with the other terms of the
Agreement.
(3)
Gas-intermediate product.
(A) Description.
For each gas-intermediate capacity entitlement, not less than 30% of the
entitlement shall be provided to the entitlement holder at any time when any of
the entitlement is being scheduled by the entitlement holder, with the
remainder of the block scheduled as day-ahead shaped power in accordance with
the scheduling requirements and limitations provided in subparagraph (E) of
this paragraph.
(B) Block size.
Each gas-intermediate capacity entitlement shall be 25 MW in size.
(C) Fuel price.
(i) Except as specified otherwise in clause
(ii) of this subparagraph, the fuel cost owed to the affiliated PGC by the
entitlement holder for the gas-intermediate capacity dispatched will be 10.850
MMBtu per MWh heat rate times the minimum MWh that shall be taken for
gas-intermediate capacity as required in subparagraph (A) of this paragraph
times the first-of-the-month index posted in the publication "Inside FERC" for
the Houston Ship Channel for the month of the entitlement. For power dispatched
above the minimum MWh required, the additional fuel price owed to the
affiliated PGC will be 10.850 MMBtu per MWh times the MWh of gas-intermediate
power dispatched pursuant to the entitlement above the minimum requirement
times the daily gas price.
(ii)
EGSI.
(I) For EGSI gas-intermediate capacity
in the eastern congestion zone, the fuel cost owed to its affiliated PGC by the
capacity entitlement holder for the gas-intermediate capacity dispatched will
be 10.850 MMBtu per MWh heat rate times the minimum MWh that shall be taken for
gas- intermediate capacity as required in subparagraph (A) of this paragraph
times the first-of-the-month index posted in the publication "Inside FERC" for
Henry Hub for the month of the entitlement. For power dispatched above the
minimum MWh required, the additional fuel price owed to the affiliated PGC will
be 10.850 MMBtu per MWh times the MWh of gas-intermediate power dispatched
pursuant to the entitlement above the minimum requirement times the Henry Hub
daily gas price.
(II) For EGSI
gas-intermediate capacity in the western congestion zone, the fuel cost owed to
its affiliated PGC by the capacity entitlement holder for the gas-intermediate
capacity dispatched will be 10.850 MMBtu per MWh heat rate times the minimum
MWh that shall be taken for gas- intermediate capacity as required in
subparagraph (A) of this paragraph times the average of the first-of-the-month
index posted in the publication "Inside FERC" for Henry Hub for the month of
the entitlement and the first-of-the- month index posted in the publication
"Inside FERC" for the Houston Ship Channel for the month of the entitlement.
For power dispatched above the minimum MWh required, the additional fuel price
owed to the affiliated PGC will be 10.850 MMBtu per MWh times the MWh of gas-
intermediate power dispatched pursuant to the entitlement above the minimum
requirement times the average of the Henry Hub daily gas price and the Houston
Ship Channel daily gas price.
(D) Starts per month. The entitlement holder
of gas-intermediate capacity shall take a minimum of 30% of the power from the
entitlement in each interval and is therefore not permitted to direct the
affiliated PGC to make any starts of gas intermediate capacity
entitlements.
(E) Gas-intermediate
scheduling.
(i) Schedule types. The
entitlement holder shall submit a day-ahead schedule for the
entitlement.
(ii) Timing of
scheduling.
(I) The entitlement holder shall
submit day-ahead schedules for the entitlement to the seller no later than 8:00
a.m. The daily capacity commitment is determined for a gas-intermediate
entitlement by the 8:00 a.m. schedule.
(II) The entitlement holder may submit to
seller a revised day- ahead schedule for energy from the entitlement no later
than noon, subject to the limit on maximum energy in clause (iv)(II) of this
subparagraph.
(III) No hour-ahead
schedules are permitted for energy from gas- intermediate
entitlements.
(iii)
Schedule content. Each schedule shall specify, for each scheduling interval,
the energy scheduled to be delivered to the entitlement holder from the
entitlement.
(iv) Scheduling
limits.
(I) Minimum energy. The entitlement
holder may not schedule energy at less than eight MW from the entitlement at
any time during the month.
(II)
Maximum energy. The entitlement holder may not schedule energy at a level
greater than the daily capacity commitment in any scheduling
interval.
(III) Maximum changes.
Subject to the minimum energy rate specified in subclause (I) of this clause
and the maximum energy rate specified in subclause (II) of this clause, the
energy scheduled by the entitlement holder in each hour cannot change more than
plus or minus six MW.
(v) Default schedule. If the entitlement
holder does not submit a timely day-ahead schedule, as applicable, then the
schedule for the applicable operating day shall be deemed to be, in every
settlement interval of the applicable operating day, a total of eight MW for
the daily capacity commitment. This deemed schedule may not be changed in any
hour-ahead schedule.
(F)
Contract price for gas-intermediate. The items to be included in the contract
price between the entitlement holder and the affiliated PGC for the entitlement
shall include:
(i) Capacity payment. The
capacity payment from the entitlement holder to the affiliated PGC is the
capacity price in dollars per MW specified in the letter confirmation for the
entitlement times 25 MW.
(ii)
Energy payment.
(I) The energy payment from
the entitlement holder to the affiliated PGC is the sum, for each settlement
interval in the entitlement month, of the minimum energy payment and the excess
energy payment.
(-a-) The minimum energy
payment is the product of eight MWh times the minimum fuel price.
(-b-) The excess energy payment is the
product, for each settlement interval, of the excess fuel price defined in
subclause (II)(-b-) of this clause times energy scheduled.
(II) Fuel price.
(-a-) The minimum fuel price is the product
of a heat rate equal to 10.850 MMBtu per MWh times the daily gas
price.
(-b-) The excess fuel price
is the product of a heat rate equal to 10.850 MMBtu per MWh times the daily gas
price.
(G) Timing of payment of contract price. The
entitlement holder shall pay the affiliated PGC the capacity payment portion of
the contract price not less than five days before the beginning of the
entitlement month or 20 days after receiving an invoice for the capacity
payment from the affiliated PGC, whichever is later. The entitlement holder
shall pay the remainder of the contract price after receiving an invoice for
that amount in accordance with the terms of the Agreement. If the affiliated
PGC owes the entitlement holder any net amount under the contract price
calculation, it will pay that amount to the entitlement holder in accordance
with the terms of the Agreement.
(4) Gas-cyclic product.
(A) Description. The gas-cyclic entitlement
shall be flexible day-ahead shaped power.
(B) Block size. Each gas-cyclic capacity
entitlement shall be 25 MW in size.
(C) Fuel price.
(i) Except as specified otherwise in clause
(ii) of this subparagraph, the fuel price owed to the affiliated PGC by the
capacity entitlement holder for gas-cyclic capacity dispatched will be 12.100
MMBtu per MWh times the MWh of the gas-cyclic power dispatched under the
entitlement times the daily gas price.
(ii) EGSI.
(I) For EGSI gas-cyclic capacity in the
eastern congestion zone, the fuel cost owed to its affiliated PGC by the
capacity entitlement holder for the gas-cyclic capacity dispatched will be
12.100 MMBtu per MWh times the MWh of gas- cyclic power dispatched under the
entitlement times the Henry Hub daily gas price.
(II) For EGSI gas-cyclic capacity in the
western congestion zone, the fuel cost owed to its affiliated PGC by the
capacity entitlement holder for the gas-cyclic capacity dispatched will be
12.100 MMBtu per MWh times the MWh of gas- cyclic power dispatched under the
entitlement times the average of the Henry Hub daily gas price and the Houston
Ship Channel daily gas price.
(D) Starts per month and associated costs.
The entitlement holder of gas-cyclic capacity shall be entitled to direct the
selling affiliated PGC to make up to the amount of starts per month of each
entitlement of gas-cyclic capacity allowed pursuant to subparagraph (E)(v) of
this paragraph.
(E) Gas-cyclic
scheduling.
(i) Schedule types. The
entitlement holder shall submit a day-ahead schedule for the
entitlement.
(ii) Timing of
scheduling.
(I) The entitlement holder shall
submit day-ahead schedules for the entitlement to seller no later than 8:00
a.m. The daily capacity commitment is determined for a gas-cyclic entitlement
by the 8:00 a.m. schedule, unless the entitlement holder notifies seller, in
the schedule, that it is exercising its option to set the daily capacity
commitment in the last schedule submitted before the gas-cyclic start deadline
pursuant to subclause (IV) of this clause.
(II) The entitlement holder may submit to
seller a revised day- ahead schedule for energy from the entitlement no later
than noon, subject to the limit on maximum energy in clause (iv)(II) of this
subparagraph.
(III) No hour-ahead
schedules are permitted for energy from gas- cyclic entitlements.
(IV) The gas-cyclic start deadline for
declaring the daily capacity commitment for each settlement interval in an
operating hour is 15 hours before the start of the operating hour.
(iii) Schedule content. Each
schedule shall specify, for each scheduling interval, the energy scheduled to
be delivered to the entitlement holder from the entitlement.
(iv) Scheduling limits.
(I) Minimum energy. The entitlement holder
may not schedule energy at any level between zero MW and five MW from the
entitlement at any time during the month.
(II) Maximum energy. The entitlement holder
may not schedule energy at any level greater than the daily capacity commitment
in any scheduling interval.
(III)
Maximum changes. Subject to the minimum energy rate specified in subclause (I)
of this clause and the maximum energy rate specified in subclause (II) of this
clause, the energy scheduled by the entitlement holder in each hour cannot
change more than plus or minus six MW.
(v) Starts. The entitlement holder shall not
direct more than 20 starts during the month of the entitlement, and the
entitlement holder shall not direct more than one start per day. A start occurs
every time a schedule increases the MW of energy from zero MW. Once the maximum
number of starts have occurred during the entitlement, the energy scheduled by
the entitlement holder may not be lower than a rate of five MW unless that
level is lowered to zero MW, at which time the level may not be raised above
zero MW for the remainder of the month.
(vi) Default schedule. If the entitlement
holder does not submit a timely day-ahead schedule as applicable, then the
schedule for the applicable operating day is deemed to be, in every settlement
interval of the applicable operating day, zero MW for the daily capacity
commitment and zero MW of energy. This deemed schedule may not be
changed.
(F) Contract
price for gas-cyclic. The items to be included in the contract price between
the entitlement holder and the affiliated PGC for the entitlement shall
include:
(i) Capacity payment. The capacity
payment from the entitlement holder to the affiliated PGC is the capacity price
in dollars per MW specified in the letter confirmation for the entitlement
times 25 MW.
(ii) Energy payment.
(I) The energy payment for each settlement
interval from the entitlement holder to the affiliated PGC is the product, of
the fuel price defined in subclause (II) of this clause times energy
scheduled.
(II) Fuel price.
(-a-) The fuel price, for the portion of the
daily capacity commitment that is designated by the entitlement holder by 8:00
a.m. in the day-ahead schedule, is the product of a heat rate equal to 12.100
MMBtu per MWh times the daily gas price.
(-b-) The fuel price for the portion of the
daily capacity commitment that is not released or committed at 8:00 a.m., but
committed before the gas-cyclic start deadline, is the product of a heat rate
equal to 12.100 MMBtu per MWh times (the sum of the daily gas price plus $
0.25.)
(G) Timing of payment of contract price. The
entitlement holder shall pay the affiliated PGC the capacity payment portion of
the contract price not less than five days before the beginning of the
entitlement month or 20 days after receiving an invoice for the capacity
payment from the affiliated PGC, whichever is later. The entitlement holder
shall pay the remainder of the contract price after receiving an invoice for
that amount in accordance with the terms of the Agreement. If the affiliated
PGC owes the entitlement holder any net amount under the contract price
calculation, it will pay that amount to the entitlement holder in accordance
with the terms of the Agreement.
(5) Gas-peaking product.
(A) Description. The gas-peaking entitlement
shall be intra-day power.
(B) Block
size. Each gas-peaking capacity entitlement shall be 25 MW in size.
(C) Fuel price.
(i) Except as specified in clause (ii) of
this subparagraph, the fuel price owed to the affiliated PGC by the entitlement
holder for gas- peaking capacity dispatched will be 14.100 MMBtu per MWh times
the MWh of the gas-peaking power dispatched under the entitlement times the
daily gas price.
(ii) EGSI.
(I) For EGSI gas-peaking capacity in the
eastern congestion zone, the fuel cost owed to its affiliated PGC by the
capacity entitlement holder for the gas-peaking capacity dispatched will be
14.100 MMBtu per MWh times the MWh of gas- peaking power dispatched under the
entitlement times the Henry Hub daily gas price.
(II) For EGSI gas-peaking capacity in the
western congestion zone, the fuel cost owed to its affiliated PGC by the
capacity entitlement holder for the gas-peaking capacity dispatched will be
14.100 MMBtu per MWh times the MWh of gas- peaking power dispatched under the
entitlement times the average of the Henry Hub daily gas price and the Houston
Ship Channel daily gas price.
(D) Starts per month and associated costs.
The entitlement holder of gas-peaking capacity shall be entitled to direct the
selling affiliated PGC to make unlimited starts per month of each entitlement
of gas-peaking capacity.
(E)
Gas-peaking scheduling.
(i) Schedule types.
The entitlement holder shall submit a day-ahead schedule for the entitlement
and may submit hour-ahead schedules.
(ii) Timing of scheduling.
(I) The entitlement holder shall submit
day-ahead schedules for the entitlement to the seller no later than 8:00 a.m.
The daily capacity commitment is determined for a gas-peaking entitlement by
the 8:00 a.m. schedule, unless the entitlement holder notifies the seller, in
the schedule, that it is exercising its option to set the daily capacity
commitment in the last schedule submitted before the gas-peaking start deadline
defined in subclause (III) of this clause. The entitlement holder shall submit
hour-ahead schedules for the entitlement to the seller no later than one hour
before the start of the operating hour.
(II) The entitlement holder may submit to the
seller a revised day- ahead schedule for energy from the entitlement no later
than noon.
(III) The gas-peaking
start deadline for declaring the daily capacity commitment for each operating
hour is two hours before the beginning of the operating hour.
(iii) Schedule content. Each
schedule shall specify, for each scheduling interval, the energy scheduled to
be delivered to the entitlement holder from the entitlement.
(iv) Scheduling limits.
(I) The rate at which energy is scheduled by
the entitlement holder in each scheduling interval during one hour shall be
either zero MW or 25 MW and cannot change during the hour.
(II) Subject to the requirement of subclause
(I) of this clause, if the entitlement holder schedules any energy from the
entitlement in one hour, the rate at which energy is scheduled shall continue
uninterrupted at a level of 25 MW for not less than four hours.
(III) Subject to the requirements of
subclause (I) and (II) of this clause, when the entitlement holder decreases a
schedule for energy to zero MW from the entitlement in one hour, the energy
scheduled shall continue uninterrupted at a level of zero MW for not less than
two hours.
(v) Default
Schedule. If the entitlement holder does not submit a timely day-ahead schedule
then the schedule for the applicable operating day shall be deemed to be, in
every settlement interval of the applicable operating day, zero MW for the
daily capacity commitment and zero MW of energy. This deemed schedule may not
be changed in any revised day-ahead schedule, or in any hour- ahead
schedule.
(F) Contract
price for gas-peaking. The items to be included in the contract price between
the entitlement holder and the affiliated PGC for the entitlement shall
include:
(i) Capacity payment. The capacity
payment from the entitlement holder to the affiliated PGC is the capacity price
in dollars per MW specified in the letter confirmation for the entitlement
times 25 MW.
(ii) Energy payment.
(I) The energy payment for each settlement
interval from the entitlement holder to the affiliated PGC is the product of
the fuel price defined in subclause (II) of this clause times energy
scheduled.
(II) Fuel price.
(-a-) The fuel price, for operating days for
which the entitlement holder designated its daily capacity commitment by 8:00
a.m. in the day-ahead schedule, is the product of a heat rate equal to 14.100
MMBtu per MWh times the daily gas price.
(-b-) The fuel price, for operating days for
which the entitlement holder exercised its option to designate its daily
capacity commitment after 8:00 a.m. and before the gas-peaking start deadline,
is the product of a heat rate equal to 14.100 MMBtu per MWh times (the sum of
the daily gas price plus $ .25).
(G) Timing of payment of contract price. The
entitlement holder shall pay the affiliated PGC the capacity payment portion of
the contract price not less than five days before the beginning of the
entitlement month or 20 days after receiving an invoice for the capacity
payment from the affiliated PGC, whichever is later. The entitlement holder
shall pay the remainder of the contract price after receiving an invoice for
that amount in accordance with the terms of the Agreement. If the affiliated
PGC owes the entitlement holder any net amount under the contract price
calculation, it will pay that amount to the entitlement holder in accordance
with the terms of the Agreement.
(6) Scheduling discrepancies. If the
entitlement holder submits a schedule to seller for an entitlement that
violates any of the scheduling requirements for that capacity auction product
type, the schedule shall be deemed a non-conforming schedule for a scheduled
hour. The schedule for that non-conforming scheduled hour shall then be deemed
to be the same as the schedule for the nearest preceding hour for which the
schedule was not a non-conforming schedule. The seller shall promptly notify
the entitlement holder of a non-conforming schedule.
(7) Ancillary services. Until such time that
all ancillary services issues are addressed and resolved within the context of
a Federal Energy Regulatory Commission (FERC) approved regional transmission
organization, entitlements will include rights only to energy and capacity as
described in this subsection and specifically exclude any ancillary services
rights. Such exclusion is consistent with subsection (e)(1) of this section,
which allows products other than those described in this subsection to be
offered with good cause. In the interim, the affiliated PGC shall provide the
required ancillary services to eligible customers at the current FERC- approved
rates.
(h) Auction
process.
(1) Timing issues.
(A) Frequency of auctions.
(i) Auction dates. Capacity auctions shall
begin on March 10, July 10, September 10, and November 10 of each year. If the
date for an auction start falls on a weekend or banking holiday, then that
auction shall begin on the first business day after the weekend or banking
holiday.
(ii) Simultaneous
auctions. Auctions for a product will be held simultaneously by all affiliated
PGCs of entitlements within the respective North American Electric Reliability
Council (NERC) regions in Texas. For example, ERCOT and non-ERCOT auctions can
be held at different times and dates.
(iii) Termination of the capacity auction
process. The obligation of an affiliated PGC to auction entitlements shall
continue until the earlier of 60 months after the date customer choice is
introduced or the date the commission determines that 40% or more of the
electric power consumed by residential and small commercial customers within
the affiliated transmission and distribution utility's certificated service
area before the onset of customer choice is provided by nonaffiliated retail
electric providers. The determination of the 40% threshold shall be as
prescribed by the commission's rule relating to the price to beat.
(B) Auction conclusion.
(i) Receipt of bids. In order for an
affiliated PGC that is auctioning capacity to consider a bid, the bid must be
received by that affiliated PGC by close of the round for which the bid is to
be submitted.
(ii) Concluding each
individual auction. The affiliated PGC shall provide notice of the winning
bid(s) to auction participants and the commission by the close of business on
the first day after the auction closes that is not a weekend or banking
holiday.
(iii) Confidentiality and
posting of bids. The affiliated PGC shall designate non-marketing personnel to
evaluate the bids, and persons reviewing the bids shall not disclose the bids
to any person engaged in marketing activities for the affiliated PGC or use any
competitively sensitive information received in the bidding process. Upon
announcement of the winning bids, the affiliated PGC shall provide the
commission and all auction participants information on the quantity of each
product requested by bidders during each round of an auction, but shall not
divulge the identity of any particular bidders. Upon specific request by the
commission, and under standard protective order procedures, the utility shall
provide the identity of the bidders to the commission.
(iv) The affiliated PGC shall be deemed to
have met the 15% requirement if it offered products in a product category (for
example, gas- intermediate) and successfully sold, at least, all of the
entitlements offered in one particular month, in that product category. If
there is no month in which all of the products in a product category are sold,
the affiliated PGC shall comply with the provisions of paragraph (7)(C) of this
subsection.
(2) Auction administration.
(A) Each auction shall be administered by the
affiliated PGC selling the entitlement. An affiliated PGC or group of
affiliated PGCs may retain the services of a qualified third-party to perform
the auction administration functions.
(B) Notice of capacity available for auction.
(i) Method of notice. At least 60 days before
each auction start date, each affiliated PGC offering capacity entitlements at
auction shall file with the commission notice of the pending auction. Within 20
days of the filing of the notice, interested parties may provide comments on
the affiliated PGC's proposed notice. If no comments are received, the
affiliated PGC's proposed notice shall be deemed appropriate. If any party
objects to the affiliated PGC's proposed notice, then the commission shall
administratively approve, reject, or approve the notice with modifications.
With respect to the September 10, 2003 auction:
(I) Affiliated PGC's shall include a
reference to Project Number 27826, Rulemaking Proceeding to Require
Another Set of Two-Year Strips Under the Capacity Auction Rule,
§25.381, in their 60-day notice with a statement that the
products to be auctioned in the September 2003 auction will not be fully known
until after the commission finalizes Project Number 27826; and
(II) Within five days after the rule
amendment in Project Number 27826 becomes effective, affiliated PGC's shall
revise their notice, with sufficient explanation, to accurately reflect the
products to be auctioned.
(ii) Contents of notice.
(I) The auction notice shall include the
auction start date, the date and time by which bids must be received for the
first round, and the types, quantity (number of blocks), congestion zone, and
term of each entitlement available in that auction. The notice shall also
include the following range of bid increments for each product type to be used
to adjust the price of entitlements between rounds of the auction:
(-a-) Baseload - $ .05 to $ .75;
(-b-) Gas-intermediate - $ .02 to $
.30;
(-c-) Gas-cyclic - $ .02 to $
.30;
(-d-) Gas-peaking - $ .02 to $
.30.
(II) The affiliated
PGC shall also specify which power generation units will be used to meet the
entitlement for each type of entitlement to be auctioned. If baseload
entitlements are being auctioned, the utility shall also specify the fuel cost
prescribed in subsections (f)(3)(B)(ii) and (g)(2)(F)(ii) of this section at
the time of the auction. If an entitlement to be auctioned is subject to the
forced outage provision in subsection (e)(2)(B) of this section, then the
notice must include the applicable three-year rolling average of the forced
outage rate.
(iii) The
affiliated PGCs shall publish their respective notices and application forms on
their web sites no later than 45 calendar days before the start of each
auction. Each entity that intends to bid in an affiliated PGC's auction shall
complete the forms, which include the first page of the cover sheet to the
Agreement, and submit them to the affiliated PGC at least 20 business days
before the auction starts, to allow enough time for evaluation and approval of
credit. Potential bidders may submit the required documents after that time,
but at the risk of not having credit and document approval in time for them to
participate in the auction.
(iv)
Credit approval for entities bidding on capacity auction products in ERCOT or
in non-ERCOT areas of Texas will be performed pursuant to subsection (e)(7) of
this section.
(v) The affiliated
PGC shall notify an approved bidder of its available credit and send the
approved bidder a completed capacity auction- specific version of the
applicable Agreement, executed by the affiliated PGC, within ten business days
after the bidder has submitted the required information. The approved bidder
should attempt to execute and return the executed Agreement to the affiliated
PGC no later than five business days before the auction starts. The executed
Agreement shall be received by the affiliated PGC no later than two business
days before the auction starts. The affiliated PGC shall provide a password or
passwords to the approved bidder to allow access to the auction web site and to
allow it to bid no later than one business day before the auction starts. An
approved bidder may not request or receive additional credit after the auction
starts.
(vi) Specific information
on how to place bids and navigate the auction sites will be provided by the
affiliated PGCs to their qualified bidders prior to the beginning of the
capacity auction.
(3) Term of auctioned capacity.
(A) Initial auction. For the initial auction
in September 2001, each entitlement was one month in duration, with:
(i) Approximately 20% of the entitlements
auctioned as two one-year strips with the strips auctioned jointly (the 12
months of 2002 and 2003),
(ii)
Approximately 30% of the entitlements as one-year strips (the 12 months of
2002), and
(iii) Approximately 20%
of the entitlements as discrete months for each of the 12 months of 2002
(January through December of 2002)
(iv) Approximately 30% of the entitlements as
discrete months for the first four months of 2002 (January through April of
2002).
(v) Reductions in the
amounts of entitlements available during the months of March, April, May,
October, and November of each calendar year shall be accounted for in the
entitlements offered as discrete months.
(B) Schedule of subsequent auctions.
(i) The auction in March of a year will
auction approximately 30% of the entitlements as the discrete months of May
through August of that year.
(ii)
The auction in July of a year will auction approximately 30% of the
entitlements as the discrete months of September through December of that
year.
(iii) The auction in
September of a year will auction:
(I)
Approximately 50% of the entitlements as the one-year strips for the next year;
and
(II) Approximately 20% of the
entitlements as discrete months for each of the 12 calendar months of the next
year.
(iv) The auction
in November of a year will auction approximately 30% of the entitlements as the
discrete months of January through April of the next year.
(v) Reductions in the amounts of entitlements
available during the months of March, April, May, October, and November of each
calendar year shall be accounted for in the entitlements offered as discrete
months.
(vi) The commission will
periodically evaluate the need to sell one-year and two-year strips and make
appropriate adjustments to the terms of the auctions.
(C) Modification of term. If the auction is
for a one-year or two-year strip term and the affiliated retail electric
provider (REP) expects to reach the 40% load loss threshold in paragraph
(1)(A)(iii) of this subsection, the affiliated PGC may request a shorter term
strip by providing evidence of the loss of customer load. Similarly, prior to
an auction for the next four available months, an affiliated PGC may request to
not auction months in which it projects reaching the 40% threshold. Such
filings shall be made 90 days before the auction start date. An affiliated PGC
that will satisfy its auction requirements through divestiture, as described in
subsection (d) of this section may petition the commission to set an
appropriate term for entitlements. The affiliated PGC may not adjust the amount
or length of an entitlement to be auctioned except as authorized by the
commission.
(4) Quantity
to be auctioned.
(A) Block size and number of
blocks. The block size of the auctioned capacity entitlement is 25 MW. The
affiliated PGC shall divide the amount determined for each product referenced
in subsection (e)(1) of this section by 25 to determine the number of blocks of
each type to be auctioned.
(B)
Divisibility. If the amount to be auctioned for an affiliated PGC for a
particular product is not evenly divisible by 25, any remainder shall be added
to the product most highly valued in the immediately preceding auction for
products of the same duration and shall increase by one the number of
entitlements of that product.
(C)
Total amount. The sum of the blocks of capacity auctioned shall total no less
than 15% of the affiliated PGC's Texas jurisdictional installed generation
capacity.
(5) Bidders.
For each auction, potential bidders shall pre-qualify by demonstrating
compliance with the credit requirements in subsection (e)(7) of this section in
advance of submission of a bid.
(6)
Bidding procedures. For purposes of this section, the term "set of
entitlements" shall refer to all of a seller's products of the same type and
period. For example, a quantity of baseload products sold as a one-year strip
for 2002 would be a set of baseload-annual 2002 entitlements, while a quantity
of baseload products sold as the discrete month of July 2002 would be a set of
baseload-July 2002 entitlements.
(A) Method
of auction for affiliated PGCs within ERCOT. Each auction shall be a
simultaneous, multiple round, auction that includes procedures that allow
switching by bidders between affiliated PGCs and product types.
(i) Auction duration. Once a product auction
commences it will continue through each business day until that auction
concludes.
(ii) Round duration.
Each auction's first round will begin promptly at 8:00 a.m. and each round will
last for 30 minutes with 30 minutes between rounds. For example, the first
round of bidding will start at 8:00 a.m. and end at 8:30 a.m., the second round
will start at 9:00 a.m. and end at 9:30 a.m., etc. No round may start later
than 4:00 p.m. All times are in central prevailing time.
(iii) Credit calculation. An entitlement
bidder's credit limit shall be adjusted during the auction based on the value
of the entitlements bid upon, and will be determined by using an assumed fuel
price stated by the entitlement seller, and the capacity price for the lesser
of three months or the duration of the entitlement plus the amount that would
be paid to exercise the entitlement for the lesser of three months or the
duration of the entitlement at the assumed dispatch for each product as
follows:
(B) Mechanism for auction for affiliated PGCs
within ERCOT. Each affiliated PGC shall conduct the auction over the Internet
on a secure web page and shall assign a password and bidder's number to each
entity that has satisfied the credit requirements in this section.
(C) Method of auction for affiliated PGCs in
non-ERCOT areas. Each auction shall be a simultaneous, multiple round, open bid
auction.
(i) First round. For the first round
of the auction, the affiliated PGC will post the opening bid price determined
in accordance with paragraph (7) of this subsection for each set of
entitlements available for purchase at the auction. Each bidder will specify
the number of entitlements it wishes to purchase of each set of entitlements at
the opening bid price(s). If the total demand for a set of entitlements is less
than the available quantity of the set of entitlements, the price for each of
the entitlements in the set will be the opening bid price and each bidder in
the round will receive all of the entitlements in the set they demanded. Any
remaining entitlements of the set will be held for future auction as noticed by
the affiliated PGC in accordance with its notice given pursuant to paragraph
(7) of this subsection.
(ii)
Subsequent rounds. If the total demand for a set of entitlements in any round
is more than or equal to the available quantity, the affiliated PGC will adjust
the price upward within the range for each specific product type as noticed
according to paragraph (2)(B)(ii)(I) of this subsection. Bidders shall then
submit bids for the quantities they wish to purchase of each set of
entitlements at the new price. Subsequent rounds shall continue until demand is
less than supply for each set of entitlements. The auction then closes and the
market clearing price for each set of entitlements is set at the last price for
which demand equaled or exceeded supply. Bidders shall then be awarded the
entitlements they demanded in the final round, plus a pro-rata share of any
entitlements they demanded in the next to last round as described in clause
(iii) of this paragraph.
(iii)
Pro-rata entitlement allocation. The pro-rata allocation of entitlements will
be implemented by determining a bid differential between the next-to-last round
bid and the number of awarded entitlements based on the last round and awarding
the remaining entitlement to the bidder with the largest differential. The
awarded entitlement will then be subtracted from that bidder's differential and
the process will iterate until all entitlements have been awarded. In the event
that the differential between two or more bidders is the same, the tie will be
broken based on the timestamp of each bidder's last bid submitted in the
next-to-last round. For example, 14 baseload one-year strip entitlements are
available and bidders A, B, C, and D are bidding. In the last round, demand was
only 11 entitlements and bidder D did not bid.
(iv)
Auction duration. Once a product auction commences it will continue through
each business day until that auction concludes.
(v) Round duration. Each auction's first
round will begin promptly at 8:00 a.m. and each round will last for 30 minutes
with 30 minutes between rounds. For example, the first round of bidding will
start at 8:00 a.m. and end at 8:30 a.m., the second round will start at 9:00
a.m. and end at 9:30 a.m., etc. No round may start later than 4:00 p.m. All
times are in central prevailing time.
(vi) Credit calculation. An entitlement
holder's credit limit shall be adjusted during the auction based on the value
of the entitlements awarded to the holder, which will be determined by using an
assumed fuel price stated by the entitlement seller, and the capacity price for
the lesser of three months or the duration of the entitlement plus the amount
that would be paid to exercise the entitlement for the lesser of three months
or the duration of the entitlement at the assumed dispatch for each product as
follows:
(D) Activity rules for affiliated PGCs in
non-ERCOT areas.
(i) A bidder must bid in the
first round for a particular entitlement to participate in subsequent
rounds.
(ii) A bidder may not bid a
greater quantity than it bid in a previous round for a particular
entitlement.
(E)
Mechanism for auction for affiliated PGCs in non-ERCOT areas. Each affiliated
PGC shall conduct the auction over the Internet on a secure web page and shall
assign a password and bidder's number to each entity that has satisfied the
credit requirements in this section.
(7) Establishment of opening bid price.
(A) If an affiliated PGC intends to change
the minimum opening bid prices that would otherwise be applicable under
subparagraph (B) of this paragraph, it shall file with the commission, not less
than 90 days before the auction start date on which the change is proposed to
be applicable, a methodology for determining an opening bid price for each type
of entitlement, if needed, based on the affiliated PGC's expected variable cost
of operation, but excluding any return on equity. The opening price may not
include any cost included in the fuel price to be paid by entitlement holders,
nor any cost being recovered by its affiliated transmission and distribution
utility through non-bypassable delivery charges, but may recover variable costs
not included in the fuel prices, such as fuel service costs and start up fees.
Parties shall have 30 days after filing to challenge the methodology. If no
challenges are received, the affiliated PGC's proposed methodology shall be
deemed appropriate. If any party objects to the affiliated PGC's proposed
methodology, then the commission shall determine the appropriate
methodology.
(B) Minimum opening
bids for entitlements shall be the same as the minimum opening bids used in the
most recent auction that included those entitlements, except that sellers with
plants that have been affected by congestion zone changes since the most recent
auction may use minimum opening bids that are different than the minimum
opening bids in the most recent auction, provided that the seller maintains the
same weighted- average, by MW, of the most recent auction's minimum bids, for
all of its plants of the same product type in all congestion zones, to compute
the new minimum opening bids for each product type. Nothing in this
subparagraph shall prevent the commission from ordering a different methodology
for a seller, if the seller proves that good cause exists for the
change.
(C) In the notice provided
pursuant to paragraph (2)(B)(i) of this subsection, the affiliated PGC may make
available an opening bid price calculated pursuant to the commission-approved
methodology for each type of entitlement to be offered for sale at auction. The
affiliated PGC shall not be obligated to accept any bid for a product less than
the opening bid price, but shall notify the commission that the opening bid
price was not met. The affiliated PGC shall be deemed to have met the 15%
requirement if it offered products in a product category (for example,
gas-intermediate) and successfully sold, at least, all of the entitlements
offered in one particular month, in that product category. If there is an
auction where there is no month in which all of the entitlements of a
particular product are sold, then the affiliated PGC shall, in its notice
pursuant to paragraph (2)(B)(i) of this subsection, make a proposal to the
commission in order to comply with the 15% requirement. The affiliated PGC's
proposal may include revisions to the product category, product price, or offer
alternative products for auction.
(8) Results of the auction. The results of
the auction shall be simultaneously announced to all bidders by posting on the
affiliated PGC's auction web site with posting of the market clearing price for
each set of entitlements.
(i) Resale of entitlement.
(1) Compliance with provisions. An
entitlement may be assigned, sold or transferred by the entitlement holder only
by following the provisions of this section. Any purported assignment, sale, or
transfer of an entitlement that does not follow the provisions of this section
is void and ineffective against the affiliated PGC.
(2) Eligible entities. An entitlement holder
may assign, sell, or transfer an entitlement to any person or entity other than
an affiliated REP, but the entitlement holder may dispatch the output of the
entitlement to an affiliated REP.
(3) Obligations. An entitlement that is
assigned, sold, or transferred under this section remains subject to the
provisions of the Agreement under which it originated, and the assignee of that
entitlement succeeds to all of the rights and obligations of the assignor with
respect to that entitlement.
(4)
Liability. Neither the assignor nor any previous entitlement holder that has
remained liable for payments due to the affiliated PGC in connection with the
entitlement as a result of a previous assignment, sale, or transfer is released
from liability to the affiliated PGC for payments due in connection with the
entitlement unless:
(A) At least 14 days
before the effective date of the assignment, sale, or transfer, assignee has
provided security to the affiliated PGC that is equal to or greater than the
security originally given to the affiliated PGC for the entitlement;
and
(B) At least ten days before
the effective date of the assignment, sale, or transfer, the affiliated PGC has
notified both assignor and assignee in writing that the security has been
approved and accepted by the affiliated PGC.
(5) Requests to approve security. The
affiliated PGC shall respond to written requests to approve security to be
offered by a prospective assignee within 14 days after receipt of that request.
Approval shall not be unreasonably withheld.
(6) Effective date. No assignment, transfer,
or sale of the entitlement by a party is binding on the non-assigning party
until the non-assigning party receives written notice of the assignment, sale,
or transfer and a copy of the executed assignment, sale, or transfer document,
and the assignment, sale, or transfer is not effective unless such notice is
received at least three days before the beginning of the entitlement
month.
(j) True-up
process.
(1) Process. For 2002 and 2003, the
affiliated PGC shall reconcile, and either credit or bill to the transmission
and distribution utility, any difference between the price of power obtained
through the capacity auctions under this section and the power cost projections
that were employed for the same time period in the ECOM model to estimate
stranded costs for the affiliated PGC in the PURA §39.201
proceeding.
(2) PGCs without
stranded costs. An affiliated PGC that does not have stranded costs described
by PURA §39.254 is not required to comply with paragraph (1) of this
subsection.
(3) Any order by the
commission that finally resolves an affiliated PGC's stranded costs, prior to
true-up, supersedes this subsection.
(k) True-up process for electric utilities
with divestiture. If an affiliated PGC meets its capacity auction requirements
through a divestiture as allowed by subsection (d) of this section, the
proceeds of the divestiture shall be used for purposes of the true-up
calculation.
(l) Modification of
auction procedures or products. Upon a finding by the commission that the
auction procedures or products require modification to better value the
products or to better suit the needs of the competitive market, the commission
may, by order, modify the procedures or products detailed in this
section.
(m) Contract terms.
(1) Standard agreement. Parties shall utilize
the Agreement in the form prepared by the Edison Electric Institute (Version
2.1). The Cover Sheet to the Agreement shall provide for credit terms that are
based upon objective credit standards determined by the commission. There may
be different versions of the Agreement applicable to sales of capacity auction
products in different regions in Texas. For example, ERCOT and the non-ERCOT
areas may have different versions of the Agreement.
(2) Applicability. The terms and conditions
set forth in any Agreement apply only to the entitlements obtained in the
capacity auctions under this section.
(3) Electronic scheduling. The Agreement
shall require that, if the affiliated PGC provides an electronic scheduling
interface for the dispatch of entitlements, then the entitlement holder shall
schedule the dispatch of its entitlements using that electronic
interface.
(4) Scheduling
discrepancies. If an entitlement holder submits a non-conforming schedule to
the affiliated PGC for an entitlement that violates any of the scheduling
requirements for that capacity auction product type for a scheduled hour, then
the schedule for that hour is deemed to be the same as the schedule for the
hour most closely preceding that scheduled hour that was not a non- conforming
schedule. The affiliated PGC shall promptly notify the entitlement holder of a
non-conforming schedule. However, the requirements of this paragraph are
subject to the default scheduling requirements for baseload and gas-
intermediate products delineated in subsections (f)(3)(A)(iv)(V) and
(f)(4)(A)(v) of this section for ERCOT areas, and subsections (g)(2)(E)(v) and
(g)(3)(E)(v) of this section for non-ERCOT areas.
(5) Alternative dispute resolution.
Alternative dispute resolution shall be a condition precedent to any right of
any legal action regarding a dispute arising under, or in connection with, the
standard agreement adopted by the commission. The parties may mutually agree to
dispute resolution procedures. If the parties are unable to agree upon such
procedures within five days after such dispute arises, the parties shall use
the alternative dispute resolution procedures contained in the ERCOT
protocols.
(6) Seller's failure to
fulfill obligation. If an entitlement holder is assessed for imbalanced
schedules, failure to procure ancillary services, or any other charges from
ERCOT due to the failure of the affiliated PGC to fulfill the auctioned
obligation, the affiliated PGC shall be responsible for these costs incurred by
the entitlement holder.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.