ERCOT Analysis of Day-Ahead Market Price Floor Impacts
Learn about ERCOT's analysis of the impacts of the Day-Ahead Market price floor implemented in 2013, including instances of the market naturally setting a price floor and the transactions affected by the floor. Explore the findings related to the number of days, intervals, and settlement points impacted by the price floors and the total impact on stakeholders.
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Presentation Transcript
Day-Ahead Market (DAM) Price Floor Alfredo Moreno WMWG August 17, 2020
Background NPRR385, Negative Price Floor (-$251/MWh) was implemented September 25, 2013. WMWG requested ERCOT analyze the DAM results to ascertain the impacts since the floor was put into place. 2 PUBLIC
WMWG Request 1 Request 1: ERCOT review when DAM has cleared below-$249 (We want to understand if the Market is naturally setting a floor itself). ERCOT found one instance where the Market naturally set a floor on Feb 21, 2020. DELIVERY_DATE DELIVERY_HOUR STL_POINT LMP QTY_BOUGHT QTY_SOLD 2/21/2020 6BARROW_ALL -249.84 4 0 3 PUBLIC
WMWG Request 2 Request 2: Present to stakeholders any instances when the price floor was applied in the DAM in order to make the decision on how to remedy the situation including: Total impact drivers Frequency Total MWs involved An idea of magnitude of trades involved 4 PUBLIC
WMWG Request 2 ERCOT found the following # of days, intervals, and settlement points were impacted by the price floors: OPERATING_DATE 7/18/2016 Floor Capped SPPs Count 3/14/2019 20 Settlement Points 10/27/2019 8 Operating Days 2/21/2020 182 Intervals (energized) 2/26/2020 2/27/2020 3/4/2020 3/25/2020 5 PUBLIC
WMWG Request 2 ERCOT found the following transactions on those points for those days: Settlement Point 7/18/2016 Bought 3/14/2019 Bought 10/27/2019 Bought Sold Bought Sold Bought Sold Bought Sold Bought Sold Bought Sold 4 0 64 0 22 0 2/21/2020 2/26/2020 2/27/2020 3/4/2020 3/25/2020 Total Total QTY_SOLD QTY_BOUGHT Sold Sold BARROW_ALL CFLATS_UNIT DC2SES_ALL FERGCC_CC1 FERGCC_GT1_1 FERGCC_GT2_3 FERGCC_ST1_5 FPPYD_FPP_G1 FPPYD_FPP_G2 FPPYD_FPP_G3 SPNC_SPNCE_4 SPNC_SPNCE_5 WHCCS_CC1 WHCCS_CT1_ST WHCCS_CT2 WHCCS2_4 WHCCS2_5_6 WHCCS2_CC2 WIR_WIRTZ_G1 WIR_WIRTZ_G2 Grand Total Note: Impact < 0.55% of Total MWhs for that Operating Day 105 0 431 1 604 22 312.4 1 0 312.4 16.5 16.5 1011 0 1011 2 0 4.4 0 2 0 0 0 0 0 0 0 4.4 0 0 0 4881.9 4855.3 3437.1 0 0 0 4881.9 4855.3 3437.1 84.8 0 0 84.8 0 0 0 0 0 3 3 0 0 0 0 4 0 0 0 0 0 4 10653.3 0 0 0 0 90 90 10653.3 0 0 0 0 13 0 0 0 13 0 0 13174.3 316.4 10759.8 41.4 1011 4 0 64 0 105 0 431 1 87.8 0 1049.6 24946.1 6 PUBLIC
WMWG Request 3 Request 3: Present to stakeholders any information stakeholders should have in order to make the decision on how to remedy the situation including : Trends or conditions that can cause this to happen more frequently in 2020: The main contributor came from congestion on 6100__F, this constraint was also binding in RT. RT analysis shows 6100__F became active consistently and met irresolvable status multiple times. This congestion can be attributed to load growth in West Texas combined with limited thermal and renewable generation in the area. Outages and topology shifts could cause prices to drop to a magnitude of hitting the price floor. 7 PUBLIC
WMWG Request 4 Request 4: Present to stakeholders any information stakeholders should have in order to make the decision on how to remedy the situation including : Any other information ERCOT finds that is pertinent. ERCOT filed a Market Notice on July 30, 2020 explaining the interaction between the price floor, NPRR833 and NPRR827. 8 PUBLIC
PTP impacts resulting from Price Floor DELIVERY_DATE DELIVERY_HOUR PARTICIPANT_NAME BID_ID BLOCK_ID SOURCE LMP LMP SINK AWARDED_QTY AWARDED_PRC PTPSETTLEMENTPRICE NOT_TO_EXCEED_PRICE 3/14/2019 8QSESW2 1592102 0TEN_CT1_STG 88.13 -251DC2SES_ALL 4.2 -500 -339.13 -500 3/14/2019 7QSESW2 1592102 0TEN_CT1_STG 101.77 -251DC2SES_ALL 2.5 -500 -352.77 -500 3/25/2020 17QJACIN MPOHDPOH 0RN_DEC_GSU1 -207.51 -251SPNC_SPNCE_4 2.2 -156.41 -43.49 -75.02 NPRR827 was effective during OD 3/14/2020 OD 3/25/2020 was erroneously set to 0 MW 9 PUBLIC
PTP impacts resulting from Price Floor DAM Impacts March 25, 2020 Source: RN_DEC_GSU1 (-$207.51) Sink: SPNC_SPNCE_4 (-$251.00) Had this not been zeroed out payment from DAM would have been (- $251 - -$207.51) * 2.2MW = -$95.68 Negative means the QSE would be paid this amount This payment not being made increases congestion rent available for CRR payments for the hour. Balancing Account Impacts Because the PTP was zeroed out the Balancing account balance was $95.68 higher, an extra $95.68 was allocated to load for the month of March. Real-Time Impacts Payment in Real-Time would have been (-1) * (.3375 ) * 2.2 = -0.74 Negative means QSE would be paid this amount Because the QSE was not paid this amount RENA charges were reduced by $0.74 for 3/25. 10 PUBLIC
Questions??? 11 PUBLIC
