BPM - CG CC 741 Quarterly Intermittent Resources Export Energy Process Fee

Settlements & Billing

BPM Configuration Guide:Quarterly Intermittent Resources Export Energy Process Fee

CC 741

Version 5.0

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 SaMC Charge Code in one document.

2.Introduction

2.1Background

The Participating Intermittent Resources Program (PIRP) was implemented on Trading Day 6/2/2004 enabling intermittent resources (wind and other resources with an uncontrollable primary fuel source) to participate in CAISO Markets. PIRP scheduling methodology allows participating intermittent producers to schedule Energy in the HASP/RTM and reduce their exposure to hourly imbalance charges whenever the delivered Energy differs from the scheduled Energy.

The CAISO shall provide each Participating Intermittent Resources (PIR) with independent third party Hour-Ahead forecasts, through AWS True Wind Company. The Scheduling Coordinator representing the PIR must submit HASP/RTM self schedules that are identical, in aggregate, to the Hour-Ahead forecasts. By submitting HASP self schedules which are equal to the forecast, PIRP will net the eligible deviations for the Trading month.

In addition to the Hour-Ahead forecasts, AWS True Wind Company will provide PIRs with Day-Ahead forecasts. The PIR can use these Day-Ahead forecasts either as advisory forecasts, or they can schedule in DAM. However, by forecasting in the DAM, the PIR will be exposed to daily imbalance energy charges.

As long as the Energy schedules are equal to the Energy forecasts for each hour, Participating Intermittent Resources (PIR) are exempt from daily Settlement Interval Uninstructed Imbalance Energy (UIE) charges. Instead, these exempt PIRs are assessed monthly for their net UIE under Charge Code 711 Intermittent Resources Net Deviation Settlement, where an average monthly price is applied to the summation of UIE quantities for each Settlement Interval over a given Trading Month. Based upon the forecasting methodology, PIR net UIE quantities over a month will approach zero (or a very small value). PIRs that did not Schedule in accordance with forecast are not eligible for net UIE settlement in Charge Code 711, and their UIE are settled like all other resources in Charge Code 6475 Real Time Uninstructed Imbalance Energy Settlement. The Participating Intermittent Resource Net Deviation Allocation Charge (Charge Code 721) spreads the difference between the Settlements Amounts that have accrued for PIRs in Real-Time Uninstructed Imbalance Energy Settlement (Charge Code 6475) and Real-Time Excess Cost for Instructed Energy Allocation (Charge Code 6486), and the PIR Net Deviation Settlement Amount calculated in Charge Code 711 to all Business Associates with Net Negative Deviations in the corresponding Trading Month.

Currently, several PIR facilities export a portion of the Energy schedules to serve long-term power purchase agreements or their own Native Load. In accordance with the settlement treatment afforded PIR resources, when this Energy is exported, CAISO Scheduling Coordinators with Net Negative Uninstructed Deviations incur the majority of the Settlement Allocation assigned in the Participating Intermittent Resource Net Deviation Allocation Charge (Charge Code 721) without receiving an equivalent portion of the benefits from the exporting PIR resource. Accordingly, the CAISO has proposed amendments to the tariff intended to mitigate this cost shifting inequity. In accordance the proposed amendments, PIR resources will retain the right export Energy, but will be assessed a Monthly Intermittent Resource Export Energy Settlement (Charge Code 751). The Monthly Intermittent Resource Export Energy Settlement (Charge Code 751) is designed to reimburse CAISO customers for the uplift costs incurred on behalf of the PIR Export Energy. The reimbursement will be allocated to Scheduling Coordinators with Net Negative Deviations proportionately in Monthly Intermittent Resource Export Energy Allocation (Charge Code 752). In addition, the PIR Export Energy resources agree to pay a fee to defray the costs associated with processing the Monthly Intermittent Resource Export Energy Settlement (Charge Code 751) and Monthly Intermittent Resource Export Energy Allocation (Charge Code 752). This fee will be captured in the Quarterly Intermittent Resource Export Energy Process Fee (Charge Code 741).

2.2Description

Charge Code 741 is a PTB Direct Charge where a flat fee to defray processing costs are assessed to all scheduling Coordinators for PIRs that export energy. It is an annual fee that is calculated quarterly.

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

3.6.1The Quarterly PIR Export Energy Process Fee Amount per Business Associate B, Resource r, and Trading Month m.

QuarterlyPIRExportEnergyProcessFeeSettlementAmount Brtm= BAResourcePIRExportProcessFeeQuantity Brtm * CAISOQuarterlyPIRExportProcessFee m

3.6.2Where

CAISOQuarterlyPIRExportProcessFeem = (AnnualPIRExportProcessFee / 4) / CAISOTotalPTBPIRExportProcessFeeQuantity m

3.6.2.1And

CAISOTotalPTBPIRExportProcessFeeQuantity m = BAResourcePIRExportProcessFeeQuantity Brtm

3.6.2.2Where

BAResourcePIRExportProcessFeeQuantity Brtm = PTBPIRExportProcessFeeQuantity BrtJm

3.7Outputs

4.Charge Code Effective Date