CG PC Real Time Price 5.3

Settlements and Billing

Configuration Guide: Real Time Price

Pre-calculation

Version 5.2a5.3

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 Codes Effective Dates

1.Purpose of Document

The purpose of this document is to capture the business and functional requirements for the MRTU SaMC Real-Time Price Pre-calculation.

2.Introduction

2.1Background

With the implementation of MRTU, the current radial zonal model will be replaced with Full Network Model and Locational Marginal Price (LMP) model, which will also eliminate the use of Zones for the Settlement of Energy transactions. Locational Marginal Prices will be used in principle to settle Energy transactions. Price Locations and Aggregated Price Locations are defined on collections of network nodes. A LMP will be calculated for each Price Location and each Aggregated Price Location.

The Real-Time Market (RTM) is a market for trading Energy and Ancillary Services in Real Time. The bid submission for a given Trading Hour in the RTM is allowed after the Day Ahead Market result publication for the corresponding Trading Day and up to 75 minutes before the start of that Trading Hour. The Real-Time Market processes optimize Energy and Ancillary Services Bids with an objective of satisfying Real-Time Energy needs, mitigating Congestion, allowing resources providing Regulation service to return to preferred operating point within their regulating ranges and allowing recovery of Operating Reserves utilized in Real Time operation.

The Real-Time Economic Dispatch (RTED) is responsible for dispatching Imbalance Energy and Ancillary Services at regular intervals. RTED runs automatically every 5 min, at the middle of each 5-min interval. In addition RTED can be executed manually in Manual or Contingency Dispatch modes. Instructed Imbalance Energy (IIE) is calculated usually the next trading day.

The CAISO calculates and accounts for Imbalance Energy for each Dispatch Interval and settles Imbalance Energy for each Settlement Interval for each resource within the CAISO Control Area and all System Resources Dispatched in Real-Time.

Imbalance Energy consists of following:

• IIE - instructed imbalance energy
• FMM Instructed Imbalance Energy Settlement (CC 6460)
• RTDReal Time Instructed Imbalance Energy Settlement (CC 6470)and HASP Energy, Congestion, Loss Pre-Dispatched Settlement (CC 6051)
• UIE – Real Time Uninstructed Imbalance Energy Settlement (CC 6475)
• UFE – Real Time Unaccounted for Energy Settlement (CC 6474)

To the extent that the sum of the Settlement Amounts for IIE, UIE, and UFE does not equal zero, the CAISO will assess Charges or make Payments in Real Time Imbalance Energy Offset (CC 6477) for the resulting differences to all Scheduling Coordinators based on a pro rata share of their Measured Demand for the relevant Settlement Interval.

In the Real-Time Market, the negative and positive Congestion Charges associated with a valid post-Day-Ahead TOR and ETC schedule change (including changes submitted to the Hour-Ahead Scheduling Process and changes submitted closer to Real-Time where allowed by the contract) will be reversed in CC 6788 RTM Congestion Credit Settlement on the standard Real-Time 10-minute interval basis. Because Congestion charges are implicitly collected by the CAISO in the Real-Time settlement and there are no holders of rights to receive Real-Time Congestion revenues under the MRTU design, all charges for Real-Time Congestion will be accumulated in a special and separate neutrality account to be distributed back to non-ETC Control Area metered Demand and exports on a per-MWh basis in Real Time Congestion Offset (CC 6774).

This Pre-calculation Configuration Guide defines various real-time energy prices that are used in settlement of Instructed Imbalance Energy (IIE), Uninstructed Imbalance Energy (UIE), Uninstructed Deviation Penalty (UDP), Unaccounted For Energy (UFE), and RT Congestion Offset.

2.2Description

This Pre-calculation calculates the following Real-Time Market settlement prices:

• Settlement Interval Resource-Specific Real-Time LMP and MCC
• Settlement Interval Real Time MSS Priceand

Settlement Interval Real Time MSS MCC, for Net Settlement

• Settlement Interval Penalty Location Real-Time LMP
• Settlement Interval UDC Real -Time LMP and MCC
• Hourly Real Time Pnode LMP
• Settlement Interval Real Time Pnode MCC
• Hourly Real Time UFE LMP and MCC
• Hourly Real- Time Market LAP Price, and SMEC, MCC, and MCL
• Settlement Interval Real Time LAP MCC
• MSS Penalty Settlement Interval Real Time LMP
• FMM Interval MSS Price and FMM Interval MSS MCC for Net Settlement Interval Real-Time LAP Price for non-MSS and MSS

When the sign convention of the Instructed Imbalance Energy (IIE) quantity of the two Dispatch Intervals have the same sign or one of the Dispatch Interval IIE is equal to zero, the Settlement Interval Resource-Specific Real-Time LMP and Settlement Interval Resource-Specific Real-Time MCC shall be calculated for each resource for each Settlement Interval that a Resource has an Instructed Imbalance Energy quantity as the specific-IIE weighted average of the individual Dispatch Intervals LMPs and MCCs, respectively. The specific-IIE includes all the IIE, except the Residual Imbalance Energy, Energy from HASP Intertie Schedules, and Energy from Black Start and Voltage Support. If there is no Instructed Imbalance Energy for a Settlement Interval or the sign convention of the Instructed Imbalance Energy of the two Dispatch Intervals is different than Settlement Interval Resource-Specific Real-Time LMP and Settlement Interval Resource-Specific Real-Time MCC shall be calculated as the simple average of the individual Dispatch Intervals LMPs and MCCs, respectively. The Settlement Interval Resource-Specific Real-Time LMP is used in Real Time Instructed Imbalance Energy Settlement, CC 6470. The Settlement Interval Resource Real-Time MCC is used in RT congestion revenue component calculation in CC 6774.

The Settlement Interval Penalty Location Real-Time LMP shall be calculated for each UDP Location ID as the Settlement Interval Optimal IIE weighted average of the individual Dispatch Intervals LMPs. If there is no Optimal IIE for a Settlement Interval, then the Settlement Interval Penalty Location Real-Time LMP shall be calculated as the simple average of the individual Dispatch Intervals LMPs. The Settlement Interval Penalty Location Real-Time LMP is used in the calculation of Positive Uninstructed Deviation Penalty Settlement Amounts in CC 4480 and Negative Uninstructed Deviation Penalty Settlement Amounts in CC4470.

The UDC Settlement Interval Real-Time LMP shall be calculated as the simple average of the UDC Dispatch Interval Real-Time LMP, which is a weighted average of the Dispatch Interval Real-Time LMP of the Pnodes contained in the associated UDC where the weights are the hourly RT LDFs. The Settlement Interval UDC Real-Time LMP is used in the calculation of UFE settlement amount in CC 6474.

The UDC Settlement Interval Real-Time MCC shall be calculated as the simple average of the Dispatch Interval Real-Time UDC Marginal Cost of Congestion (MCC), which is calculated as thea weighted average of the Dispatch Interval Real-Time MCC of the Pnodes contained in the associated UDC where the weights are the hourly RT LDFs. The UDC Settlement Interval Real-Time MCC is used in RT congestion revenue component calculation in CC 6774.

The Hourly Real-Time LMP shall be calculated as the simple average of the Dispatch Interval RTD Pnode LMPs of the applicable trading hour. The Hourly Real-Time LMP is used to calculate the Load Uninstructed Imbalance Energy Neutrality Settlement Amount in CC 6475.

The Hourly UFE UDC LMP shall be calculated as the average of Hourly RTM LAP LMP Price of the Aggregated Pricing Nodes associated with a specific UDC. The Hourly UFE UDC LMP shall be used in the settlement of Unaccounted for Energy in CC 6474.

The Hourly UFE UDC MCC shall be calculated as the average of Hourly RTM LAP MCC Price of the Aggregated Pricing Nodes associated with a specific UDC. The Hourly UFE UDC MCC shall be used to account for Unaccounted for Energy in the Real Time Congestion Offset in CC 6774.

The Hourly Real-–Time LAP LMP Price shall be calculated as the sum of the weighted average Hourly Real-Time LAP SMEC Price, Hourly Real-Time LAP MCC Price, and Hourly Real-Time LAP MCL Price within the specific Default or Custom LAP of the applicable trading hour. The Hourly Real-Time LAP LMP Price is used in the settlement of Demand Imbalance Energy.

The Hourly Real-Time LAP SMEC Price shall be calculated as the weighted average of the four FMM Interval LAP SMEC Prices, the twelve RTD Interval LAP SMEC Prices, the deviation of the 15-minute CAISO Forecast of CAISO Demand from the CAISO Demand Scheduled in Day Ahead Market, and the deviation of the five-minute CAISO Forecast of CAISO Demand from the 15-minute CAISO Forecast of CAISO Demand within a specific Default or Custom LAP of the applicable trading hour.

The Hourly Real-Time LAP MCC Price shall be calculated as the weighted average of the four FMM Interval LAP MCC Prices, the twelve RTD Interval LAP MCC Prices, the deviation of the 15-minute CAISO Forecast of CAISO Demand from the CAISO Demand Scheduled in Day Ahead Market, and the deviation of the five-minute CAISO Forecast of CAISO Demand from the 15-minute CAISO Forecast of CAISO Demand within the specific Default or Custom LAP of the applicable trading hour. The Hourly Real-Time LAP MCC Price is used in RT congestion revenue component calculation in CC 6774.

The Hourly Real-Time LAP MCL Price shall be calculated as the weighted average of the four FMM Interval LAP MCL Prices, the twelve RTD Interval LAP MCL Prices, the deviation of the 15-minute CAISO Forecast of CAISO Demand from the CAISO Demand Scheduled in Day Ahead Market, and the deviation of the five-minute CAISO Forecast of CAISO Demand from the 15-minute CAISO Forecast of CAISO Demand within the specific Default or Custom LAP of the applicable trading hour.

simple average of the Dispatch Interval LMPs within the specific Default or Custom LAP of the applicable trading hour. The Hourly Real–Time LAP price will apply to Demand, for the settlement of Imbalance energy.

The Hourly Real–Time LAP MCC price shall be calculated as the simple average of the Dispatch Interval MCCs within the specific Default or Custom LAP for the applicable trading hour. The Hourly Real–Time MCC is used in RT congestion revenue component calculation in CC 6774.

The Settlement Interval Real–Time LAP MCC price shall be calculated as the simple average of the Dispatch Interval LAP MCCs within the specific Default or Custom LAP. The Settlement Interval Real–Time MCC is used in RT congestion revenue component calculation in CC 6774.

The Settlement Interval Real-Time MSS Price shall be calculated for those MSS Operators that have elected net settlement. If the MSS internal metered Demand exceeds the MSS internal metered Generation, the Real-Time Settlement Interval MSS Price is the Hourly Real-Time Real-Time LAP Pprice for the MSS LAP. However, if MSS internal metered Generation exceeds MSS internal metered Demand, the Settlement Interval Real Time MSS Price is the simple average of the Dispatch Interval Net Generation MSS Price, which is a weighted average of the Dispatch Interval Real-Time LMPsfor all applicable PNodes within the relevant MSS; where the weighting factors are the Metered Energy of all Generation at the corresponding PNodes.

The Settlement Interval Real-Time MSS MCC shall be calculated for those MSS Operators that have elected net settlement. If the MSS internal metered Demand exceeds the MSS internal metered Generation, the Real-Time Settlement Interval MSS MCC Price is Hourly Real-Time LAP MCC Price the Real-Time LAP MCC for the MSS LAP. However, if MSS internal metered Generation exceeds MSS internal metered Demand, the Real-Time Settlement Interval MSS MCC Prices is the simple average of the weighted average of the Real-Time LMPs for all applicable PNodes within the relevant MSS; where the weighting factors for computing the weighted average are the Metered Energy of all Generation at the corresponding PNodes

When the sign convention of the Instructed Imbalance Energy (IIE) quantity of the two Dispatch Intervals have the same sign or one of the Dispatch Interval IIE is equal to zero, tThe MSS Penalty Settlement Interval Real-Time LMP shall be calculated for each MSS resource that has elected gross or net settlement and load following. The MSS Penalty Settlement Interval Real-Time LMP shall be calculated for each Settlement Interval that a Resource has an Instructed Imbalance Energy quantity as the specific-IIE simpleweighted average of the individual Dispatch Intervals LMPs. The specific-IIE includes all the IIE, except the Residual Imbalance Energy, Energy from HASP Intertie Schedules, and Energy from Black Start and Voltage Support. If there is no Instructed Imbalance Energy for a Settlement Interval or the sign convention of the Instructed Imbalance Energy of the two Dispatch Intervals is different then MSS Penalty Settlement Interval Real-Time LMP shall be calculated as the simple average of the individual Dispatch Intervals LMPs. The MSS Penalty Settlement Interval Real-Time LMP is used in the calculation of CC1407 MSS Positive Deviation Penalty.

The Settlement Interval Real–Time LAP prices shall be calculated as the simple average of the Dispatch Interval LAP LMPs within the specific Default or Custom LAP. . The Settlement Interval Real–Time LAP price is used in the calculation of CC 2407 MSS Negative Deviation Penalty.

The Normalized Day Ahead Load Distribution Factor (LDF) will be calculated for each LAP based on System wide Day Ahead Load Distribution Factors. The Normalized Real Time Load Distribution Factor will be calculated for each LAP based on System wide Real Time Load Distribution Factors. These LDFs will be utilized in calculating the Neutrality Adjustment Amounts for Charge Code 6475 and Charge Code 6774.

The FMM Interval MSS Price shall be calculated for those MSS Operators that have elected net settlement. If the MSS internal metered Demand exceeds the MSS internal metered Generation, the FMM Interval MSS Price is the Hourly Real-Time Market LAP Price for the MSS LAP. However, if MSS internal metered Generation exceeds MSS internal metered Demand, the FMM Interval MSS Price is the simple average of the FMM Interval Net Generation MSS Price, which is a weighted average of the FMM Interval Real-Time LMPs for all applicable PNodes within the relevant MSS; where the weighting factors are the Metered Energy of all Generation at the corresponding PNodes.

The FMM Interval MSS MCC Price shall be calculated for those MSS Operators that have elected net settlement. If the MSS internal metered Demand exceeds the MSS internal metered Generation, the FMM Interval MSS MCC Price is the Hourly Real-Time Market LAP MCC Price for the MSS LAP. However, if MSS internal metered Generation exceeds MSS internal metered Demand, the FMM Interval MSS MCC Price is the simple average of the FMM Interval Net Generation MSS MCC Price, which is a weighted average of the FMM Interval Real-Time MCC LMPs for all applicable PNodes within the relevant MSS; where the weighting factors are the Metered Energy of all Generation at the corresponding PNodes.

3.Charge Code Requirements

3.1Business Rules

• Generating Units
• MSS Operator that elect Gross settlement
• Dynamic System Resources
• Curtailable Demand

• Pumping Load (Psuedo Generator)