Mitigated Offer Evaluation for RUC Resources Discussion
Explore the evaluation of mitigated offers for RUC resources, including current offers, potential issues, real cost per MWh, proposed changes, and key questions raised. Dive into the complexities of market-based offers, pricing implications, and resource commitment in the energy sector.
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Presentation Transcript
Evaluating Mitigated Offer for Evaluating Mitigated Offer for RUC Resources RUC Resources July WMWG discussion
SCED offer for RUC SCED offer for RUC Current offer for step 1 $1500/MWh Current offer for step 2 min (step 1 offer, max(step1 LMP, Mitigated offer cap)) if mitigated Current mitigated offer cap Max [ Generic Incremental fuel price * max( FIP, weighted avg exceptional fuel cost) , (Incremental heat rate* FIP + O&M)* capacity factory multiplier ]
SCED offer for RUC SCED offer for RUC - - Issues Issues RUC offers could replace market based offers and if so could cause price suppression due to the out of market commitment Prices don t reflect the real cost of RUCing the resource. Cost of commitment includes startup + min energy if RUC committed min energy if QSE commitment is extended by RUC
Real Cost per MWh Real Cost per MWh Energy obtained LSL MWs (avg RUC dispatch) * RUC commitment hours Cost: Cost of producing energy + cost of commitment Cost per MWh is ratio of Cost of producing energy + cost of commitment Total energy obtained Change to MOC Current MOC + (cost of commitment/total energy obtained) Current MOC represents cost of energy produced/MW
Proposal Proposal For all hour which are not RUC Buy-Back Hours of RUC-committed Resources, ERCOT shall change the MOC of the RUC-committed Resource to be used in SCED to greater of a) 25 multiplied by FIP b) MOC per 4.4.9.4.1(1) plus I. Max (Resource Category Generic Startup Cost, verifiable Startup Cost, Startup Offer) / (LSL * number of RUC committed hours) II. Max (Resource Category Generic Minimum-Energy Cost, verifiable Minimum- Energy Cost, Minimum-Energy Offer) MOC at the Midpoint of the Dispatch Range (I) above is set to zero if RUC commitment is just extending the QSE committed hours
