APX ERCOT Market Update - December 2011

APX MarketSuite^® Enhancements from 2011

Throughout 2011, APX clients have received regular enhancements to the APX MarketSuite application. Below is a list of the enhancements made throughout 2011 for the ERCOT region. Look for continued enhancements to come in 2012.

Bid/Offer Scheduling Application: The APX MarketSuite® was enhanced to allow clients to enter multiple Virtual Bids/Offers at the same location or multiple PTP Obligation Bids between the same two locations. Once entered, the Bid Names can be viewed in the Checkout Application. Please note that ERCOT requires Bid Names for these products and the APX MarketSuite enforces this requirement. The application was also updated to support Multi-Hour block bidding functionality through the Bid/Offer UI as well as the API. Market Offerings that can be bid as a multi-hour block are: OnUpAS (REGUP-RRS-ONNS), Offline Non-Spin, Virtual Bids and Offers, and PTP Obligation Bids.

Checkout Application Updated Hourly Status Indicator: The Scheduling status indicator within the APX MarketSuite Checkout Application was enhanced to reflect only the most severe status within the applicable hour.

New Status Color (Blue): New blue status color was added to the APX MarketSuite. The new blue color means advisory and allows clients to more easily identify bids and/or offers that were awarded by the ISO with modifications or trades that have not been matched by the counter-party.

Notification Monitor Audible Alarms: The ERCOT Notification Monitor has been enhanced to allow clients to turn on an audible alarm when ASObligations, AwardedAS, and ASDeployment notifications are received.

Inclusion of ISO Price Corrections: Enhanced the Checkout Application and ISO Prices report to include ERCOT price corrections.

ISO Market Volumes Report: Modified to include A/S obligations, self arranged A/S, A/S self provision, output schedules and source/sink self schedules.

ISO Meter vs Schedule and ISO Dispatched Energy Reports: Added a new selection criterion of "Price Source" (with the options of MIS and SCADA) and a new column in the Data Pane for IRR Curtailment flag.

ISO Statement Reports (Monthly by Day and Daily Interval by Day): These reports were enhanced by adding in a "Source Group" parameter. This allows users to view their ISO Statements, Estimates, or Shadow information from the same report. This is a great new feature that allows clients, who subscribe to the APX Estimate and Shadow Settlement Service*, to access all their data from one report.

Meter Data Report: This report allows users to view and download meter data from SCADA and MIS by resource location which is particularly helpful for non-modeled generation. This report is especially valuable for clients that want to programmatically pull resource level meter data and load it into their system.

Settlement Comparison Application*: Added a new Determinant View whereby all determinants with differences for a given Market Participant/Trade Date/Version combination can be viewed at the same time.

Settlement by Trade or Publish Date Report: This new report allows user to select and compare multiple statement versions (Initial, Recalcs) by trade date and view data by Publish Date (i.e. what APX has harvested from the ISO or calculated in the last 1,2,3,4 or 5 business days). By selecting multiple versions, users can view/download both DA and RT amounts and compare versions of statements over time.

Settlement Verification Control Report: New report for clients that subscribe to the APX Estimate and Shadow Settlement Service*. This new report provides a comparison of APX shadow amounts to ISO statement amounts across a client's market participant IDs using a Calculated Since Date. This report is an excellent tool for determining what Market Participants/Dates/Statement versions should be analyzed further using the Settlement Comparison Application to identify disputes with ERCOT.

ERCOT estimate/shadow calculations and Alternative Data: Made changes to alternative data used in ERCOT estimate and shadow calculations as a result of ERCOT related changes to determinants such as TELHSLFLAG and SHORTSCEDFLAG used in the BPDAMT charge type. Also made changes to fine tune SCADA alternative data used in the estimation and shadow of RTEIAMT, BPDAMT and RUCCSAMT.

* If you are interested in learning more about APX Estimate and Shadow Settlement Services, please contact Moises Melgoza at mmelgoza@apx.com or (408) 517-2154.

Update on NERC Security Initatives

Listed below are the latest updates/changes on NERC Critical Cyber Asset Reliability and Compliance issues.

CIP V4: The main change in CIP V4 is the creation of the Bright-Line criteria for determining what would be considered a Critical Cyber Asset and removing the current subjective Risk Assessment method. CIP V4 is considered a stop gap between the current CIP V3 and the new CIP v5 standards just released for review. There is lobbying occurring to have FERC reject CIP V4 and remain on CIP V3 until CIP V5 is approved to avoid the multiple compliance changes between V3, V4 and V5. However if FERC approves CIP V4 possible implementation dates would be either October 2012 or January 2013.

CIP V5: Was posted for industry review on November 7, 2011. This version is expected to satisfy all of the FERC directives in Order 706 which was issued in 2008. CIP V5 continues the work started in CIP V4 with the Bright-Line criteria for Critical Cyber Asset identification and created two (2) new standard documents that are expansions of several current CIP V3 items. Per the current implementation schedule CIP V5 should go into effect January 2015.

FERC Culture of Compliance: This is a concept outlined at FERC that simply indicates that Registered Entities that have internal compliance programs which continually review their processes, find deficiencies with their processes and data as it related to the reliability of the BES and corrects those deficiencies will be under consideration for a reduction in any penalty amounts assessed against them. The concept is now showing up in NERC presentations related to Reliability and CIP audits and can be found in released Notice of Penalty (NOP) rulings. The goal is to get Registered Entities to develop robust compliance programs and continually review and improve the program elements without the fear of significant penalties.

Compliance Enforcement Initiative: NERC submitted to FERC at the end of September 2011, an initiative to change the current Compliance Enforcement and Monitoring Program (CEMP), which is titled the "Compliance Enforcement Initiative." The main goal of the initiative is for registered entities to continually review their internal processes for deficiencies, record those deficiencies and track the correction of the deficiencies. NERC uses the term "Find, Fix, and Track" (FFT) within the FERC submission and in documents released explaining the new program. As part of the program NERC is requiring Registered Entities to self-report the deficiencies and based on the severity of the deficiencies to BES and an RE's compliance history the self-report could be placed on a separate report to FERC and avoid penalties.

FERC has not yet ruled on the acceptance of the NERC submission.

EOP-004 and CIP-001 Merge: NERC has released for industry comment EOP-004-X (Disturbance Reporting), which will replace EOP-004-X and CIP-001-1. The new EOP-004-X outlines when and how disturbances that effect or could affect the BES should be reported to NERC. The concept of Sabotage has been removed with a more practical approach as it relates to the impact of the disturbance to the BES.

Pending ERCOT NPRRs That Require APX Changes

• ERCOT NPRR316 - This Nodal Protocol Revision Request (NPRR) allows Qualified Scheduling Entities (QSEs) to enter a negative value for a Self-Arranged Ancillary Service Quantity.
  
  This NPRR allows QSEs to have ERCOT procure on their behalf Ancillary Services in the Day-Ahead Market (DAM).  This NPRR will be implemented on December 9th, 2011, and APX will include this functionality in its December release.
  
• ERCOT NPRR379 - ThisNPRR is designed to improve the operational value of EILS and clarifies a number of performance criteria by providing dispatch instructions electronically. This electronic instruction will be sent in conjunction with the traditional verbal dispatch instruction, but it improves the dispatch of EILS by expanding the Dispatch Instruction to include an XML message. This enhancement would make EILS dispatch consistent with LaaR's and helps remove any potential ambiguity about dispatch status.
  
  The implementation of this NPRR impacts the ERCOT Market Management System, as well as the Market Information System. NPRR379 has been approved by the Board of Directors on September 20, 2011. http://www.ercot.com/mktrules/issues/nprr/376-400/379/index
  
• ERCOT NPRR423 - This Nodal Protocol Revision Request (NPRR) includes Intermittent Renewable Resources (IRRs) in the voltage requirement and clarifies the reactive requirement to be the same as Wind-powered Generation Resources (WGRs). This NPRR also proposes that switchable static Volt-Ampere reactive (VAr) devices can be Supervisory Control and Data Acquisition (SCADA) controlled if approved by ERCOT.
  
  This NPRR will clarify the Reactive Power requirement for solar power plants.  Paragraph (8) of Section 3.15 allows Generation Entities to submit ERCOT-specific proposals to meet the Reactive Power requirements. NPRR 423 will next be reviewed by the Protocol Revision Subcommittee.
  http://www.ercot.com/committees/board/tac/prs/index
  
• ERCOT NPRR424 - This Nodal Protocol Revision Request (NPRR) defines the reactive capability testing requirement for Intermittent Renewable Resources (IRRs).
  
  This NPRR proposes new parameters for IRR lagging and leading tests.  IRR lagging tests are to be conducted when the IRR is generating at or above 60% of its seasonal High Sustained Limit (HSL).  Conducting lagging tests at this level will allow IRRs a more reasonable opportunity to complete lagging tests. NPRR 424 will next be reviewed by the Protocol Revision Subcommittee.
  http://www.ercot.com/committees/board/tac/prs/index
  
• ERCOT NPRR425 - This Nodal Protocol Revision Request (NPRR) provides that Wind-powered Generation Resources (WGRs) meeting registration requirements will be evaluated for Generation Resource Energy Deployment Performance (GREDP) and Base Point Deviation as groups of WGRs rather than individual WGRs.
  
  This NPRR provides that Wind-powered Generation Resources  meeting registration requirements will be evaluated for Generation Resource Energy Deployment Performance and Base Point Deviation as groups of WGRs rather than individual WGRs. NPRR 425 will next be reviewed by the Protocol Revision Subcommittee.
  http://www.ercot.com/committees/board/tac/prs/index

ERCOT NPRRs Implemented by APX in 2011

• NPRR282 provides ERCOT's Security-Constrained Economic Dispatch (SCED) the ability to generate a new Base Point for a unit that is currently at base load. SCED used a static ramp rate found in the Resource Parameters database that did not accurately reflect the dynamic ramp rate that the unit can deliver. In order to implement this NPRR, ERCOT requested that all generators provide 4 dynamic ramp rates via ICCP.
  
  APX diligently worked with ERCOT to submit the new required ramp rates to ERCOT on behalf of its clients using data from the existing RARF. This also provided generators enough time to create these dynamic ramp rates in their systems.
  
• NPRR285 provides a new curtailment flag sent by ERCOT to the Qualified Scheduling Entity (QSE) for each Resource indicating SCED has dispatched a Generation Resource below the High Dispatch Limit (HDL) used by SCED; however, NPRR285 only requires IRR Generation Resources to take this flag into consideration.  This PRR also changed the Base Point Deviation Charge calculation for over- and under-generation by:
• Modifying the Base Point Deviation Charge for all Intermittent Renewable Resources (IRRs) whereby the charge type does not apply for the interval when the IRR was not curtailed for all SCEDs within the 15-minute settlement interval.
• Adding two new pricing factors, PR1 and PR2, to the Base Point Deviation Charge to add a floor price for the charge.  When the generator OVER generates, the price used is the maximum of $20 or the RTSPP.  When the generator UNDER generates, the price used is the minimum of -$20 or the RTSPP.
• APX removed the existing APX calculated curtailment flag from SCADA and replaced it with the ERCOT issued curtailment flag.  APX also updated the Base Point Deviation charge code in the APX MarketSuite^® to ensure that the estimate and shadow calculations are accurate.
  
• NPRR391 shortens the posting timeline for the Real-Time Initial Statement by one Business Day, and shortens cash clearing for the Settlement Invoices in which it will be included by one Bank Business Day. This NPRR also eliminates the option of making payments using Automated Clearing House (ACH) funds.  The first operating day affected by this new timeline will be December 1, 2011.
  
  ERCOT partially implemented changes for this NPRR to shorten the RTM Settlement and Payment timeline. APX in turn made the necessary Operation Monitoring changes to ensure the statements were being harvested and processed in the APX MarketSuite as expected.
  
  

Announcements

APX SCADA Upgrade

APX successfully completed an upgrade to the SCADA application on November 2, 2011. Highlights of SCADA application upgrade include:

• User Interface (UI) with a Windows-like look & feel.  This updated UI provides a modern appearance and allows customers to customize the appearance of the screen and provide additional features, such as allowing users to create widgets and re-size certain items on the screen.
• NERC CIP compliance related to accounts and password handling.
• Expand the RTU / DCS interface capabilities through upgrades in protocol support.
• Improved administrative capabilities that will allow faster response to customer requests with better reporting tools.

For More Information on any of the items above;

Contact your Account Manager Moises Melgoza (408.517.2129) or Cris Gallegos (408.517.2154) for more information. For APX MarketSuite^® support please contact our APX Operations Group at ercot-helpdesk@apx.comor (888.896.8640)