BPM - CG CC 6750 DA Congestion AS Reg Up

Settlements and Billing

BPM Configuration Guide: Day Ahead Congestion - AS Regulation Up Import Settlement

CC 6750

Version 5.01

Table of Contents

1.Purpose of Document

2.Introduction

2.1Background

2.2Description

3.Charge Code Requirements

3.1Business Rules

3.2Predecessor Charge Codes

3.3Successor Charge Codes

3.4Inputs – External Systems

3.5Inputs - Predecessor Charge Codes or Pre-calculations

3.6CAISO Formula

3.7Outputs

4.Charge Code Effective Dates

1.Purpose of Document

The purpose of this document is to capture the requirements and design specification for a SaMC Charge Code in one document.

2.Introduction

2.1Background

Suppliers of awarded Ancillary Services (AS) in the Day Ahead market (DAM) are paid the Ancillary Service Marginal Price (ASMP) for the Day Ahead market at the relevant interties. However, because AS capacity imports and Energy schedules compete for transmission capacity at interties, the suppliers of awarded Day Ahead AS capacity imports are also charged Congestion Costs based on applicable Shadow Prices at binding intertie constraints associated with the resources.

This charge code is part of the family of charge codes for settling Day Ahead AS Congestion costs emanating from the following AS product awards: (1) Regulation Up Import, (2) Regulation Down Import, (3) Spinning Reserve Import, and (4) Non-Spinning Reserve Import.

Per CAISO Tariff Section 11.10.9.1, to the extent an Ancillary Service procured in the IFM from a System Resource becomes undispatchable due to an intertie transmission derate, in rescinding the Ancillary Service capacity payment, the CAISO shall credit back to the Scheduling Coordinator Congestion Charge assessed pursuant to Section 11.10.1.1.1 of the CAISO Tariff, but at the higher of the Day-Ahead and HASP Shadow Prices on the corresponding intertie. The keyword “lower” in the Tariff is replaced here with “higher” to account for the usual sign of the shadow prices - these are usually negative values, and preserve the intent of the FERC order.

The Billable Quantity that will be refunded shall be limited to the Undispatchable Capacity that was due to a transmission derate.

2.2Description

This Charge Code applies to System Resources for awarded Regulation Up import capacity whenever Congestion is present in the import direction over the intertie constraint associated with the resource, on an hourly basis at the resource level. The Settlement Amount is the product of (a) the Award and non-contract eligible QSPMW import capacity of Day-Ahead Regulation Up AS and (b) the negative ofDay-Ahead import direction Shadow Price for the intertie constraint associated with the resource for the Trading Hour. A congestion hedge (or no congestion charges) applies to TOR/ETC contract usage for the portion of QSP which falls under the remaining entitlement capacity of those particular contracts. For the QSP beyond the entitlement, congestion charges shall be applied. Revenues collected from this Charge Code will be used to fund the settlement of CRRs.

A refund of Congestion Charge is embedded in this Charge Code. The refund is limited to the quantity of Undispatchable Capacity due to a transmission derate as per CAISO Tariff Section 11.10.9.1, and shall be assessed at the higher of the Day-Ahead and HASP Shadow Prices for Import of AS Regulation Up for the relevant Trading Hour, assuming usual negative shadow prices.

3.Charge Code Requirements

3.1Business Rules

3.2Predecessor Charge Codes

3.3Successor Charge Codes

3.4Inputs – External Systems

3.5Inputs - Predecessor Charge Codes or Pre-calculations

3.6CAISO Formula

3.6.1DA Congestion Regulation Up amount for Business Associate B, Resource r, and Trading Hour h:

DACongestionRegUpAmount BrtF’S’h=

(DACongestionRegUpAwardChargeAmount BrtF’S’h

+ DACongestionRegUpQSPChargeAmount BrtF’S’h

+ DARegUpUndispatchableCapacityRefundAmt BrtF’S’h )

3.6.1.1Where DACongestionRegUpAwardChargeAmount BrtF’S’h=

(-1) * DARegUpAward BrtF’S’a’h * DAImportShadowPrice a’h

Where Resource Type t = ITIE

Note: This filter is redundant as the quantity input is already filtered in AS Pre-calculation.

3.6.1.2Where DACongestionRegUpQSPChargeAmount BrtF’S’h=

(-1) * DARegUpNonContractEligibleQSPBrtF’S’a’h* DAImportShadowPrice a’h

3.6.1.3Where DARegUpUndispatchableCapacityRefundAmt BrtF’S’h =

(DARegUpUndispatchableCapacityQty BrtF’S’a’h *

max(DAImportShadowPrice a’h, HourlyAverageRTImportShadowPrice a’h))

3.6.1.4And Where DARegUpUndispatchableCapacityQty BrtF’S’a’h =

Min{(DARegUpAward BrtF’S’a’h + DARegUpNonContractEligibleQSPBrtF’S’a’h),

[(BAHourlyNoPayRegUpBid_DAImportCongQuantityBrtF’S’a’h + BAHourlyNoPayRegUpQSP_DAImportCongQuantityBrtF’S’a’h)* DAtoHASP_OTCReductionFlag a’h]}

3.6.1.5And Where BAHourlyNoPayRegUpBid_DAImportCongQuantity BrtF’S’a’h =

NoPayRegUpBidQty BrtuT’I’M’VL’W’R’F’S’a’hi

Where Resource Type t = ITIE

3.6.1.6And Where BAHourlyNoPayRegUpQSP_DAImportCongQuantity BrtF’S’a’h =

NoPayRegUpQSP BrtF’S’a’dhi

Where Resource Type t = ITIE

3.6.2DA AS Regulation Up Congestion Charge per Business Associate B and Trading Hour h:

BAHourlyDACongestionRegUpAmount Bh=

DACongestionRegUpAmount BrtF’S’h

Note: This is provided as part of reporting structure and is not configured as an individual charge type. This is shown as a reporting BD in the BD matrix file.

3.6.3The CAISO total DA congestion revenue from RegUp for Trading Hour h:

CAISOHourlyTotalDACongestionRegUpAmount h=

BAHourlyDACongestionRegUpAmount Bh

Note: This is provided as part of reporting structure and is not configured as an individual charge type. This is shown as a reporting BD in the BD matrix file.

3.7Outputs

4.Charge Code Effective Dates