PowerWorld Simulator User

1
PowerWorld SimulatorUsers Group Meeting
June 23, 2005 Jim Galvin
2
The Definitions of ERCOT

• A geographical area (region) defined by
  electrical facilities and customers
• Regional Reliability Council within NERC (one of
  10)
• Independent System Operator (grid operator) one
  of 9 in U.S. and Canada with multiple roles
• Responsible for grid operations and reliability
• Administrator of the wholesale power market
  (deregulated 1996)
• Administrator of the retail electric market
  (restructured 2002)
• Supervising entity for transmission planning
• Administrator of the Renewable Energy Credit
  program for the State of Texas (2002)
• A term frequently used to describe the
  collaborative stakeholder process developing
  protocols guides
• ERCOT is a nonprofit 501(c)(6) membership
  corporation

3
The Texas Electric Grid

• ERCOT grid covers 75 of Texas and serves 85 of
  Texas load
• Assets are owned by transmission providers and
  generators, including municipal utilities and
  cooperatives
• ERCOT Region is 1 of 3 North American grid
  interconnections
• Grid interconnections based on Alternating
  Current (AC) -- electricity flows on path of
  least resistance
• ERCOT Connections to other grids limited to
  Direct Current (DC) ties, which allow control
  over flow of electricity
• Non-ERCOT parts of Texas
• Panhandle
• El Paso area
• 2 areas of East Texas

4
ERCOT Mission

• Create value for Texas consumers through electric
  grid reliability, market efficiency and fairness
• For the benefit of Texas consumers, we will
• Ensure a reliable and efficient electric system
• Provide open and fair access to electric
  transmission services and the competitive
  electricity market
• Enable robust and efficient, wholesale and retail
  electricity markets

5
ERCOTs Role

• Since July 31, 2001
• Maintain system frequency
• Ensure all facilities are operated within
  reliability limits
• Administer Ancillary Services
• January 1, 2002
• Retail competition begins, customers in
  competitive areas are able to choose their
  electric provider

6
ERCOT Market Model

• Zonal portfolio scheduling and bidding
• 5 wholesale pricing nodes (congestion zones)
• 6 CSCs for inter-zonal congestion management

7
ERCOT Congestion Management

• Zonal Congestion
• Congestion across zones (CSC)
• Managed with Portfolio Balancing Energy
  deployments by zone

• Local Congestion
• Congestion other than CSC
• Managed with local Balancing Energy deployments
  by Resource

8
ERCOT Econometric Peak Forecast
1.83 Avg. Growth
9
Retail Activity
Transactions Summary
since June 1, 2001 through April 29, 2005
Transaction Type
Switches
1,817,722


Move - Ins
6,435,202


Move Out
3,708,250


CSA
1,102,293


Drop to POLR
301,296


Total
13,364,763




Compared to
Last Month
364,729



10
Market Redesign - TNT

• PUCT adopted 25.501 on August 21, 2003
• Consider microeconomic principles
• Promote economic efficiency
• Support wholesale and retail competition
• Support reliability of electric service
• Reflect physical realities of the ERCOT system
• Implement by October 1, 2006

11
Market Redesign

• Opportunities for analytical tools
• Assist in analyzing the competitiveness and
  non-competitiveness of the market
• Assist in analyzing market trends
• Assist in market monitoring
• Market Simulation and Market Training

12
Conclusion

• All competitive markets are in a state of
  continuous improvement and evolution
• All evolving markets need robust tools that are
  flexible and assist users in their goal to
  achieve market efficiencies.