February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PSERC
ERCOT
Initial Design
nZonal
markets linked by CSCs (4 zones 4 CSCs)
nQSEs submit
balanced bilateral zonal schedules and zonal portfolio balancing energy offers with resource specific
premiums
nAll
schedules accepted. Congestion relieved in two steps
nInterzonal (CSC) congestion relieved with counterflow
from zonal balancing
energy offer stack (INCs and DECs).
nIntrazonal
(OC) congestion relieved (if possible) by dispatching local balancing energy resources (redispatched resources
paid market clearing premiums
if competitive solution exists, otherwise they get OOME payments
nCounterflow
cost initially socialized with two “trigger points”
n CSC congestion
charges and TCRs to be activated 6 months after cumulative counter flow cost reaches $20M over 12
month.
nDirect assignment of OC congestion cost to be initiated 6 moths after cost reaches $20M over 12 month period.