Message-ID: <3432952.1075852396147.JavaMail.evans@thyme> Date: Wed, 8 Aug 2001 08:00:38 -0700 (PDT) From: m..forney@enron.com To: peter.maheu@enron.com Subject: RE: ERCOT SETTLEMENTS Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Forney, John M. X-To: Maheu, Peter X-cc: X-bcc: Gilbert-smith, Doug X-Folder: \JFORNEY (Non-Privileged)\Forney, John M.\Sent Items X-Origin: FORNEY-J X-FileName: JFORNEY (Non-Privileged).pst Here you go: There is no banking mechanism. If A&B are net long, they receive the balancing energy price for all of their mw's. If C & D are short, then their short position is covered by the Ercot ISO; C & D are charged the balancing energy price plus replacement reserve /mw. If the money, at the end of the day, is insufficient to pay A&B, then this full cost will be allocated on a load share ratio basis. This charge will be allocated under the UFE (unaccounted for energy) charge type. If C & D serve load, then they will share the expense of paying for the balancing energy price to A & B. A & B escapes this expense allocation, as they do not serve load. JForney -----Original Message----- From: Maheu, Peter Sent: Wednesday, August 08, 2001 8:28 AM To: Forney, John M. Subject: Re: ERCOT SETTLEMENTS ---------------------- Forwarded by Peter Maheu/HOU/EES on 08/08/2001 08:27 AM --------------------------- Peter Maheu 07/30/2001 12:55 PM To: John M Forney/ENRON@enronXgate @ ENRON cc: Kenneth Farrar/HOU/EES@EES, Gary Galow/HOU/EES@EES Subject: Re: ERCOT SETTLEMENTS << OLE Object: StdOleLink >> Example assumptions: Market consists entirely of 4 QSEs who have the following schedule-actual variances in a particular hour; A=+50MW; B=+50MW; C=-25MW & D=-25MW. Market energy price is $100/MWH. Since money paid by C & D is insufficient to fully reimburse A & B (5000+5000-2500-2500=5000), what happens in the settlement? Do A & B get proportionally less than they otherwise would have gotten? Or, is there a banking mechanism that builds up in hours where there are overages and is drawn down in hours where there are shortages (such as example above)?