SCR #747 · Revision Request
SCR747 Removal of Price Administration for Zonal Congestion
ReasonThe Price Administration is a set of procedures and formulae ERCOT uses to calculate Market Clearing Prices for Energy (MCPEs) when SPD cannot solve constraint violations. Price Administration is post-processing of solutions generated by SPD and occurs as described in Market Bulletin #20. MCPEs set by Price Administration often do not correctly indicate scarcity or oversupply of energy in Congestion Management Zones since the differences in prices between zones do not always indicate which zones have too much or too little Balancing Energy. By eliminating CSC violation as one of the triggers this change to the SPD would result in a decrease in the number of intervals where Price Administration is triggered thus leading to more accurate zonal prices.
Created2005-12-13
Approved2005-12-13
Summary
Eliminate violation on Commercially Significant Constraints (CSCs) as a trigger for Price Administration in the Real Time Balancing Market Clearing Engine (also known as Scheduling, Pricing and Dispatching (SPD)). Instead of triggering Price Administration when a CSC is violated, SPD should allow the Shadow Price to be equal to the Penalty Factor for OC1 congestion, currently $2,500.
Action Log 1 milestones
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Dec 13
BOARDApproved
Documents 6
| Name | Type | Posted | Classification |
|---|---|---|---|
| 747SCR-03 ERCOT IA 101205 | doc | Nov 9 '05 | Committee Report |
| 747SCR-04 CBA 102105 | xls | Nov 9 '05 | Staff Report |
| 747SCR-05 TAC Rec Report 110305 | doc | Nov 8 '05 | Committee Report |
| 747SCR-06 BOD Action Report 121305 | doc | Dec 16 '05 | Committee Report |
| Removal of Price Administration for Zonal Congestion | doc | Aug 1 '05 | Revision Request |
| WMS Rec | doc | Sep 22 '05 | Committee Report |
Meetings That Took It Up 5
| Date | Meeting | Committee | Status |
|---|---|---|---|
| Oct 18 '06 | WMS Meeting | WMS | Concluded |
| Aug 16 '06 | WMS Meeting | WMS | Concluded |
| Dec 13 '05 | Board of Directors Meeting | BOARD | Concluded |
| Nov 3 '05 | TAC Meeting | TAC | Concluded |
| Sep 21 '05 | WMS Meeting | WMS | Concluded |