BPM - CG CC 7056 Flexible Ramp Cost Allocation

Settlements & Billing

BPM Configuration Guide: Flexible Ramp Cost Allocation

CC 7056

Version5.3

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 Date

1.Purpose of Document

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

2.Introduction

2.1Background

A flexible ramping constraint applies as part of the market optimization for the real-time processes. This constraint addresses certain reliability and operational issues observed in the ISO’s operation of the grid.

In accordance with the CAISOTariff, resources that resolve the flexible ramping constraint are to be compensated in Settlements at the Flexible Ramping Constraint Derived Price. The Flexible Ramping Constraint Derived Price is equal to the lesser of:

1) $800/MWh; or

2) the greater of: a) zero, or b) Real-Time Spinning Reserve Ancillary Service Marginal Price; or c) the Flexible Ramping Constraint Shadow Price minus seventy-five percent of the maximum of zero or the simple average Real-Time System Marginal Energy Cost for each of the three five-minute RTD intervals in the applicable fifteen-minute FMM interval.

The Flexible Ramping Constraint Shadow Price is the reduction of the total Energy and Ancillary Services procurement cost associated with a marginal change at each constraint for the individual Balancing Authority Areas (BAA) in the EIM Area and applicable groupings of those areas in which the constraint is enforced, which will be equal to zero (0) if the Flexible Ramping Constraint is not binding.

The CAISO will determine the Flexible Ramping Constraint costs for each constraint as the product of:

1)the resource-specific total Flexible Ramping Constraint costs, calculated as the total compensation, net of rescinded amounts; and

2)the ratio of the Flexible Ramping Constraint Shadow Price to the total Flexible Ramping Constraint Shadow Price

For each constraint and each BAA in the EIM Area, the CAISO will determine the Flexible Ramping Constraint costs attributable to that BAA for which the applicable constraint(s) were binding in the applicable interval, based on the ratio of the BAA’s requirement to its contribution to the individual constraint or group of constraints to which that BAA contributes, and determine each BAA’s apportionment of Flexible Ramping Constraint costs as the summation of the BAA’s amounts.

The costs associated with such compensation, as netted by BAA, are allocated to the CAISO BAA as twenty-five percent of daily gross negative supply deviations and seventy-five percent of hourly measured demand, which consists of metered load and exports. At the end of each month, the costs allocated to daily gross negative supply deviations will be reversed and re-allocated to monthly gross negative supply deviations. The associated costs for individual EIM BAAs are allocated to the EIM Entity Scheduling Coordinator(s).

2.2Description

In this Charge Code (CC) 7056 Flexible Ramp Cost Allocation, the costs from CC 7050 Flexible Ramp Up Capacity Payment,net of the rescission payment from CC 7024 Flexible Ramp Up No Pay Capacity Charge,are apportioned to the Balancing Authority Area (BAA) based on the ratio of the proportion of the shadow price contribution of each constraint or group of constraints resolved by a resource to the total shadow price across all constraints, and by the ratio of a BAA’s Flexible Ramp requirement to its total contribution toward relieving a Flexible Ramp Constraint or constraint group. The total output costs for the CAISO BAA are allocated seventy-five percent to hourly resource-level Measured Demand without exemption to the demand quantities, and twenty-five percent to daily gross negative supply deviation.The total output costs for the EIM BAA are allocated to the EIM Entity Scheduling Coordinator.

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

3.6.1BADailyResourceFlexRampCostAllocationAmount

BADailyResourceFlexRampCostAllocationAmount BrtF’S’md = BADailyResourceFlexRampSupplyCostAllocationAmount BrtF’S’md+ BADailyResourceFlexRampDemandCostAllocationAmount BrtF’S’md

3.6.2BADailyResourceFlexRampSupplyCostAllocationAmount

BADailyResourceFlexRampSupplyCostAllocationAmount BrtF’S’md = BADailyResourceGrossNegativeSupplyQuantity BrtF’S’md * CAISODailyFlexRampSupplyAllocationPrice md

3.6.3CAISODailyFlexRampSupplyAllocationPrice

CAISODailyFlexRampSupplyAllocationPrice md = CAISODailyNetFlexRampUpSupplyCosts md /CAISODailyGrossNegativeSupplyQuantity md

3.6.4BADailyResourceFlexRampDemandCostAllocationAmount

BADailyResourceFlexRampDemandCostAllocationAmount BrtF’S’md = BAHourlyResourceFlexRampDemandCostAllocationAmount BrtF’S’mdh

3.6.5BAHourlyResourceFlexRampDemandCostAllocationAmount

BAHourlyResourceFlexRampDemandCostAllocationAmount BrtF’S’mdh=

((-1)*BAHourlyResourceMeasuredDemandQuantity BrtF’S’mdh * CAISOHourlyFlexRampDemandCostAllocationPrice mdh)

3.6.6CAISOHourlyFlexRampDemandCostAllocationPrice

IF

CAISOTotalHourlyMeasuredDemandControlAreaQty mdh <= (-0.001)

THEN

CAISOHourlyFlexRampDemandCostAllocationPricemdh = (CAISOHourlyNetFlexRampUpDemandCosts mdh/ (ABS(CAISOHourlyMeasuredDemandQuantity mdh)) )

ELSE

CAISOHourlyFlexRampDemandCostAllocationPrice mdh= 0

3.6.7CAISOHourlyMeasuredDemandQuantity

CAISOHourlyMeasuredDemandQuantity mdh = BAHourlyResourceMeasuredDemandQuantity BrtF’S’mdh

3.6.8BAHourlyResourceMeasuredDemandQuantity

BAHourlyResourceMeasuredDemandQuantity BrtF’S’mdh = SettlementIntervalMeteredEnergy BrtuT’I’Q’M’F’S’mdhcif

Where Resource Type (t) = ‘LOAD’ or ‘ETIE’

And Where Balancing Authority Area (Q’) = ‘CISO’

3.6.9CAISODailyGrossNegativeSupplyQuantity

CAISODailyGrossNegativeSupplyQuantity md = BADailyResourceGrossNegativeSupplyQuantity BrtF’S’md

3.6.10BADailyResourceGrossNegativeSupplyQuantity

BADailyResourceGrossNegativeSupplyQuantity BrtF’S’md= BAHourlyResourceGrossNegativeSupplyQuantity BrtF’S’mdh

3.6.11BAHourlyResourceGrossNegativeSupplyQuantity

BAHourlyResourceGrossNegativeSupplyQuantity BrtF’S’mdh = BASettlementIntervalResourceGrossNegativeSupplyQuantity BrtF’S’mdhcif

3.6.12BASettlementIntervalResourceGrossNegativeSupplyQuantity

BASettlementIntervalResourceGrossNegativeSupplyQuantity BrtF’S’mdhcif= BASettlementIntervalCAISOBAAResourceNegativeUIEQuantity BrtF’S’mdhcif + BASettlementIntervalResourceNegativeOAQuantity BrtF’S’mdhcif

3.6.13BASettlementIntervalCAISOBAAResourceNegativeUIEQuantity

BASettlementIntervalCAISOBAAResourceNegativeUIEQuantity BrtF’S’mdhcif = ABS (Min (0, SettlementIntervalRealTimeUIE BrtuT’I’Q’M’F’S’mdhcif))

Where Resource type (t) = GEN or ITIE

And Where Balancing Authority Area (Q’) = ‘CISO’

3.6.14BASettlementIntervalResourceNegativeOAQuantity

BASettlementIntervalResourceNegativeOAQuantity BrtF’S’mdhcif= ABS (Min (0,( SettlementIntervalOAEnergyBrtuT’I’Q’M’F’S’mdhcif)

Where Resource Type (t) = ‘ITIE’

And Where Balancing Authority Area (Q’) = ‘CISO’

3.6.15CAISOHourlyNetFlexRampUpDemandCosts

CAISOHourlyNetFlexRampUpDemandCosts mdh = (.75) * CAISOHourlyNetFlexRampUpCosts mdh

3.6.16CAISODailyNetFlexRampUpSupplyCosts

CAISODailyNetFlexRampUpSupplyCosts md = CAISOHourlyNetFlexRampUpSupplyCosts mdh

3.6.17CAISOHourlyNetFlexRampUpSupplyCosts

CAISOHourlyNetFlexRampUpSupplyCosts mdh = (.25) * CAISOHourlyNetFlexRampUpCosts mdh

3.6.18CAISOHourlyNetFlexRampUpCosts

CAISOHourlyNetFlexRampUpCosts mdh =

CAISOFMMIntervalFlexRampUpTotalCost mdhc

3.6.19CAISOFMMIntervalFlexRampUpTotalCost

CAISOFMMIntervalFlexRampUpTotalCost mdhc = BAAFMMIntervalFlexRampUpTotalCost Q’mdhc

Where Balancing Authority Area (Q’) = ‘CISO’

3.6.20EIMEntitySCDailyFlexRampUpTotalCostAllocAmount

EIMEntitySCDailyFlexRampUpTotalCostAllocAmount Bmd = EIMEntityFMMIntervalFlexRampUpTotalCost Q’mdhc * EIMEntitySCFlag BQ’

3.6.21EIMEntityFMMIntervalFlexRampUpTotalCost

EIMEntityFMMIntervalFlexRampUpTotalCost Q’mdhc = BAAFMMIntervalFlexRampUpTotalCost Q’mdhc

Where Balancing Authority Area (Q’) > ‘CISO’

3.6.22BAAFMMIntervalFlexRampUpTotalCost

BAAFMMIntervalFlexRampUpTotalCost Q’mdhc = BAABAFMMIntervalResFlexRampUpAllocAmount BrtQ’mdhc

3.6.23BAABAFMMIntervalResFlexRampUpAllocAmount

BAABAFMMIntervalResFlexRampUpAllocAmount BrtQ’mdhc = BAFMMIntervalNetFlexRampUpCostsBrtmdhc * BAABAFMMIntervalResourceFlexRampUpConstraintRatio BrtQ’mdhc

3.6.24BAABAFMMIntervalResourceFlexRampUpConstraintRatio

If BAResourceFlexRampUpShadowPrice Brtmdhc = 0

Then BAABAFMMIntervalResourceFlexRampUpConstraintRatio BrtQ’mdhc =

(BAABAFMMIntervalResourceFlexRampUpConstraintPrice BrtQ’mdhc+1)/ (BAResourceFlexRampUpShadowPrice Brtmdhc+1)

Else

BAABAFMMIntervalResourceFlexRampUpConstraintRatio BrtQ’mdhc = BAABAFMMIntervalResourceFlexRampUpConstraintPrice BrtQ’mdhc/BAResourceFlexRampUpShadowPrice Brtmdhc

Implementation Note: When the BAResourceFlexRampUpShadowPrice = 0, then the output of this equation shall be limited to resources which have a non-zero BA15MResourceSPINPrice.The equation takes into account the number of BAAs whose constraints can be resolved by a Flexible Ramping Up award to derive a proportion as a basis for allocation.

3.6.25BAFMMIntervalNetFlexRampUpCosts

BAFMMIntervalNetFlexRampUpCosts Brtmdhc = (-1) *

(BA15MResourceFlexRampUpCapacityPayment BrtF’S’mdhc+BAFMMIntervalResourceFlexibleRampUpNoPayCapacity BrtF’S’mdhc)

3.6.26BACISODailyFlexRampCostAllocationAmount

BACISODailyFlexRampCostAllocationAmount Bmd = BADailyResourceFlexRampCostAllocationAmount BrtF’S’md

3.6.27BATotalDailyFlexRampCostAllocationAmount

BATotalDailyFlexRampCostAllocationAmount Bmd =BACISODailyFlexRampCostAllocationAmount Bmd + EIMEntitySCDailyFlexRampUpTotalCostAllocAmount Bmd

3.6.28EIMAreaDailylTotalFlexRampCostAllocationAmount

EIMAreaDailyTotalFlexRampCostAllocationAmountmd=

BATotalDailyFlexRampCostAllocationAmountBmd

Implementation Note: This is provided as part of reporting structure and is not configured as an individual charge type.

3.7Outputs

4.Charge Code Effective Date