Private Use Network Load Distribution Factors - Mechanics and Challenges

This collection of images and text delves into the intricacies of load distribution factors in private use networks, highlighting issues such as energy flow discrepancies, revenue neutrality impacts, and risk considerations for bidders. Explore how PUN loads interact within the network model and the implications on transmission capacity and pricing dynamics.

• Load Distribution Factors
• Private Use Network
• Energy Flow
• Revenue Neutrality
• Risk Considerations

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Uploaded on Mar 01, 2025 | 0 Views

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Presentation Transcript

1. Private Use Network Load Distribution Factors Steve Reedy Potomac Economics Deputy Director, ERCOT IMM May 3rd, 2017

2. PUN Loads are not included in Load Distribution Factors Load Zone Load PUN Resource Node PUN Load 2

3. Mechanics of the Problem Load zone energy purchased in the Day-Ahead Market does not flow in the network model to PUN Loads Leaves more transmission capacity open near PUN Loads than if properly modeled Energy Only bids/ PTP Obligation bids sinking at PUN resource nodes do not compete with Load Zone flows More can be sold than should be High prices at PUN loads are not factored into appropriate Load Zone prices No revenue to fund payout to EO bids/PTPs sunk at PUN RNs Causes Revenue Neutrality hit 3

4. Not Very Similar to Dead Bus Issue Dead Bus Limited only by Breaker Ratings (9999MW available) Extremely low risk to bidders Volume got very high very quickly Affects Revenue Neutrality PUN Loads Limited by appropriate network ratings Standard risk to bidders Volume not particularly high Affect Revenue Neutrality 4

5. PTP OBL MWs Sunk at Poster Child PUN RN Nodal 5

6. PTP OBL MWs Sunk at Poster Child PUN RN 2017 6