ERCOT Emergency Load Response

1
ERCOT Emergency Load Response

• A Consumers Perspective
• Alice Jackson
• Occidental Energy Ventures Corp

2
Questions Asked and Answered

• Does ERCOT need more capacity to ensure
  reliability?
• Did the April 17th, 2006 incident bring to light
  the black swan of shoulder months?
• Do we need to evaluate and take action to prevent
  a reoccurrence?

3
Proposal

• Sharpen the tools in the toolbox prior to adding
  another item to the mix.
• RRS NSRS Linked Bids
• LaaR entry into RPRS
• If another tool is necessary, promptly utilize
  excess LaaR.
• Market based solution
• Loads are already qualified and tested
• Minimal changes to systems should be necessary

4
Proposal Part II in Detail

• ERCOT issues a monthly notice of EILP quantity
  necessary for reliability.
• Bidding for EILP provision commences similar to
  the other daily Ancillary Services.
• Participants would be any provider that has the
  necessary equipment to interrupt in 10 minutes
  (including unarmed LaaR) that are willing to
  commit to the EILP program for the month.
• EILP pricing is determined by its own clearing
  price.

5
Continued

• A LaaR that participates as an EILP provider
  would disarm their UFR so that they would remain
  online for the manual call requirement.
• Clawback for non-performance.
• Deployment of the EILP participants would take
  place as a last resort prior to rolling black
  outs.

6
Benefits

• EILP will only be procured monthly when it is
  necessary, thus overall cost to the market should
  be reduced.
• Can be started quickly because qualification,
  testing, and evaluation processes are already in
  place and active in the market.
• The excess of 650 MW of LaaR can be fully
  utilized, in addition to other load resources
  that can respond in 10 minutes but do not have
  UFR.
• The market is not locked into a long-term
  agreement with any specific provider.