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Flashcards in ERCOT Nodal 101 Deck (67)
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1

What percentage of the Texas load does ERCOT represent?

ERCOT Represents 90% of Texas Load

2

What is ERCOT's generation capacity?

77,000 MW

3

How many miles of transmission lines does ERCOT govern?

46,500

4

What are the 3 types of ancillary services?

1. Regulation Reserve
2. Responsive Reserve
3. Non-Spin Reserve

5

What is a QSE?

Qualified Scheduling Entity

6

What is an LSE?

Load Serving Entity

7

What is a TDSP?

Transmission and/or Distribution Service Providers

8

What is a Resource Entity?

owns or controls a generation resource or behaves as a load acting as a resource

9

What are the 3 ERCOT Facilitated Markets

1. Day-Ahead Ancillary Services Market
2. Day-Ahead Energy Market
3. Real-Time Energy Market

10

What is the non-ERCOT Facilitated market known as?

Bilateral Market

11

ERCOT is an energy-only market. What does that mean?

All costs to build generation must be recovered with revenues from energy production and operating reserves.

12

What is an IMRE?

Independent Market Information System Registered Entity

13

What are CRR?

Congestion Revenue Rights

14

What is LMP?

Locational Marginal Pricing

15

Define Locational Marginal Pricing

Pricing: Cost
Marginal : to serve the next increment of Load
Locational: at an Electrical Bus

16

True or False:
The Nodal Market includes losses in LMPs

False.

17

What is Congestion Rent?

The difference between Payment to Resources and Charges to Load

18

What are the 3 types of Settlement Points?

1. Resource Nodes
2. Load Zones
3. Hubs

19

True or False:
In the Day-Ahead Market, LMPs are settled every hour.

True.

20

True or False:
In the Day-Ahead Market, Settlement Point Prices are settled every 15 minutes.

False. In the Day-Ahead Market, Settlement Point prices are settled every hour.

21

What is a Reserve Price Adder?

The economic value of reserves that are available for energy dispatch in Real-Time.

22

True or False:
LMPs and Reserve Price Adders are used
together to form SPPs in Real-Time

True.

23

True or False: LMPs represent the value of reserves ERCOT-wide

False. LMPs are location-specific.

24

True or False:
Reserve Price Adders represent the value of reserves ERCOT-wide

True.

25

In Real-Time Operations, how often are LMPs calculated?

Every 5 minutes.

26

In Real-Time Operations, how often are Reserve Price Adders calculated?

Every 5 minutes.

27

In Real-Time Operations, how often are Settlement Point Prices calculated?

Every 15 minutes

28

True or False:
LMPs and Reserve Price Adders are generated at each SCED cycle, which are possibly more often than 5 minutes

True.

29

What is a Resource Node?

An Electrical Bus where a
Resource’s measured output
is settled

30

True or False:
In the Day-Ahead Market, LMPs are calculated at the Resource Node

True.

31

During Real-Time Operations, the sum of what two calculations make up the Settlement Point Price for a Resource Node?

Time-Weighted Average of
LMPs at the Resource Node
+
Time-Weighted Average of
Reserve Price Adders

32

What is a Load Zone?

A group of Electrical Buses assigned
to the same geographical zone

33

True or False:
Every Electrical Bus with
Load must be assigned to
a Load Zone for
Settlement purposes

True.

34

How are Real-Time Settlement Point Prices calculated for Load Zones?

Load-Weighted and Time-Weighted
Averages of LMPs
in Load Zone
+
Time-Weighted Average of
Reserve Price Adders

35

How are Settlement Point Prices calculated for Load Zones in the Day-Ahead Market?

Load-Weighted Average of
LMPs
in Load Zone

36

What are the 3 types of Load Zones?

1. Competitive
2. Non Opt-in Entity (NOIE(s))
3. DC Tie

37

What are the 4 ERCOT Load Zones?

1. North
2. South
3. West
4. Houston

38

True or False:
NOIEs that don’t establish NOIE
Load Zone are assigned to
Competitive Load Zone

True.

39

True or False:
All NOIEs are required to
establish their own NOIE Load Zones

False. Only some large NOIEs are required to
establish their own NOIE Load Zones

40

True or False:
An NOIE may contain only one NOIE

False.

41

True or False:
All Load must be
assigned to a Load Zone
for Settlement purposes

True.

42

What is a Hub?

Group of 345kV Hub-buses, defined by Protocols

43

How many Hubs in ERCOT? Name them

Six Hubs in ERCOT:
1. North
2. West
3. South
4. Houston

Plus 2 Average Hubs:
5. ERCOT Hub Average
6. ERCOT Bus Average

44

In the Day-Ahead Market, how are Settlement Point Prices for Hubs calculated?

Simple average of LMPs at Hub Buses in each Hub

45

During Real-Time Operations, how are Settlement Point Prices for Hubs calculated?

Simple average of TimeWeighted
Average LMPs at the
Hub Buses in the Hub
+
Time-Weighted Average of
Reserve Price Adders

46

What are the 4 Nodal Market Operations?

1. Congestion Revenue Rights (CRR) Auction
2. Day-Ahead Market
3. Reliability Unit Commitment
4. Real-Time Operations

47

True or False:
A CRR is the right to deliver physical energy.

False.

48

True or False:
Congestion costs are built in
to the Settlement Point prices

True.

49

True or False:
Only ERCOT and TDSPs can own CRRs

False. ERCOT and TDSPs are barred from owning CRRs.

50

What are the Two CRR Financial Instruments?

1. PTP Options - payment only
2. PHP Obligations - payment or charge

51

What are the 3 ways to acquire CRRs?

1. CRR Auction
2. Allocation (Special Case)
3. Bilateral Trades

52

What are the two timeframes in which CRRs are auctioned and allocated?

1. Time-of-Use Blocks
2. One month strips

53

True or False:
PCRRs are allocated to NOIEs and are based on long-term supply contracts.

True.

54

True or False:
PCRRs can only be allocated as Obligations.

False. PCRRs can be allocated as Options or Obligations.

55

PCRRs are allocated at no charge or a percentage of the Auction clearing price

True.

56

What are the 3 CRR Settlement Processes?

1. CRR Auction Settlement
2. CRR Settlement
3. CRR Balancing Account

57

How many business days after CRR Auction, must ERCOT receive payment?

4 Days

58

How many business days after CRR Auction are payments due to CRR Account Holders?

5 Days

59

What time does the ERCOT Day-Ahead Market open?

06:00 AM

60

What time does the ERCOT Day-Ahead Market Clearing Process begin?

10:00 AM

61

What time are ERCOT Day-Ahead Market Results posted?

13:30 PM

62

What are the 3 types of Day-Ahead Market Offers?

1. Three-Part Supply Offer
2. Ancillary Service (AS) Offer
3. Day-Ahead Market Energy-only Offer

63

What are the 3 components of a Three-Part Supply Offer?

1. Startup Offer
2. Minimum Energy Offer
3. Energy Offer Curve

64

True or False:
An Energy Offer Curve must be submitted with Start-up or Minimum Energy Offers

False. Energy Offer Curves can be submitted without
Start-up or Minimum Energy Offers

65

True or False:
A Resource may only offer its services for Energy or Ancillary Services.

False.

66

What are the two types of Day-Ahead Market Bids?

1. Energy Bid
2. PTP Obligation Bid

67

DAM PTP-Obligation Bids are Purchased at ______ Settlement Point Price Spread, and Settled at ______ Settlement Point Price Spread

Day-Ahead Market
Real-Time