1. SGR issues associated with ICCP

2. 2 ICCP handbook update12-03-2007 Split Generation Resources Split Generation Resources are modeled separately by each QSE Offers are separate to Market Systems Market Systems and LFC are designed to dispatch them separately The Master QSE will send ERCOT the Master QSE data which is physical unit information- This will be used in SE and will also help when conflicting info is provided by individual SGR QSEs. Each Joint Owner will provide its QSE with data for it to send to ERCOT Each QSE will receive Market Instructions for their SGR The physical Resource must at some point be supplied the instructions for all SGR deployments QSEs must have a mechanism for sending these deployments to the Physical Resource

3. 3 ICCP handbook update12-03-2007 Split Generation Resources BPs and Updated Desired Basepoints are Resource specific. Regulation, Reserve deployments are sent to Resources over ICCP on a QSE level How will the SGR deployments be provided to the Physical Resource in aggregate so the physical Resource can respond to ERCOT instructions? Some QSEs suggest the Master QSE be sent Updated Desired Basepoints for the SGRs so that the Master QSE can send the physical Resource the net instructions. As SCED will use the AS Schedule adjustments to dispatch the additional capacity on SGRs if needed the Updated Desired Basepoint approach will work for this problem. How should the Regulation signals be sent? Since the participation factor is sent by the QSE and LFC deploys the Regulation signal on a QSE level. ERCOT is not calculating a Resource specific Regulation signal.

4. 4 ICCP handbook update12-03-2007 Points From QSEs

5. 5 ICCP handbook update12-03-2007 Points to QSEs for specific Resources Resource Specific signals from ERCOT to SGRs

6. 6 ICCP handbook update12-03-2007 ERCOT VALUES to AVAILABLE QSEs ERCOT signal to QSEs

7. 7 ICCP handbook update12-03-2007 Split Generation Resource option 1 (Currently supported)

8. 8 ICCP handbook update12-03-2007 Pros and Cons Pros –This approach will handle both Basepoint changes and Regulation deployments. Cons –This approach would require programming the plant RTU to accept signals from each QSE.

9. 9 ICCP handbook update12-03-2007 Split Generation Resource option 2 (Currently supported)

10. 10 ICCP handbook update12-03-2007 Pros and Cons Pro –This approach will handle both Basepoint changes and Regulation deployments. Cons –This approach would require QSEs to set up ICCP connections between each QSE with the Master QSE. –This approach may involve some delay in signals from ERCOT to the QSE and the Master QSE as a signal would be daisy chained to the Master QSE. –The Master QSE would be provided Market Instructions for the SGR QSEs in addition to its own instructions.

11. 11 ICCP handbook update12-03-2007 Split Generation Resource option 3 (Not Currently supported)

12. 12 ICCP handbook update12-03-2007 Pros and Cons Pro –This approach will limit hardware and programming to supplying duplicate information to the Master QSE. Cons –This approach could require programming the ERCOT system to develop a method to calculate and transfer Regulation signals for each SGR to the Master QSE.

13. 13 ICCP handbook update12-03-2007 Outstanding issue: –The Master QSE would be provided Market Instructions for the SGR QSEs in addition to its own instructions. Recommendation: –Revise Protocol to clarify Section 10.3.2.1.5 to explicitly allow UDBP to be sent.

14. 14 ICCP handbook update12-03-2007 Summary of SGR communication issues Currently ERCOT is designing to send each SGR signal to its QSE only. Option-1 and 2 is what ERCOT is currently supporting since it does not require any changes to the ERCOT EMS. Before any change would be supported a discussion of the concerns would need to be reviewed with MPs on how to solve SGR communication issues. Recommend the SGR owners come to ERCOT with a request so that ERCOT would know the extent of changes that we would need to build to.