Settlements and Billing / Version:5.0
Configuration Guide for: GMC Virtual Bid Submission Charge / Date: 01/31/2011

Settlements and Billing

BPM Configuration Guide:
GMC Virtual Bid Submission Charge

CC 4520

Version 5.0

CAISO, 2018 / Page 1 of 6
Settlements and Billing / Version:5.0
Configuration Guide for: GMC Virtual Bid Submission Charge / Date: 01/31/2011

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

On September 21, 2006, FERC issued an Order directing “…the CAISO to file tariff language for our review for the implementation of convergence bidding within 12 months after the effective date of MRTU Release 1..” FERC recognized that, although convergence bidding was important, implementing it simultaneously with MRTU Release 1 would impede the CAISO’s ability to timely implement MRTU. By implementing Convergence Bidding and other elements of Markets and Performance (“MAP”) in a phased approach following implementation of MRTU, the CAISO should be able to successfully balance the need to timely implement and stabilize the “base” MRTU design while gaining the benefits of adding market efficiencies within a reasonable time after MRTU Go Live.

While the MRTU design provides a complete framework for a nodal-based electricity market that generates Locational Marginal Prices (LMPs), the elements contained within MAP will increase the efficiency and liquidity of the MRTU design by adding bidding tools, creating incentives for increased supply/reduced demand and removing impediments to bidding. These enhancements can be expected to increase participation in the CAISO market, provide more robust competition for supply and demand and, ultimately, may reduce prices paid by end users.

Convergence bidding tends to cause DAM and RTM prices to move closer together, or "converge," thus the termconvergence bidding. The narrowing of price differences between the two markets reduces incentives for under-scheduling Load in the DAM by reducing potential financial benefits for waiting until the RTM. In addition to reducing price disparity convergence bidding also provides greater market transparency by providing bids that are explicit rather than implicit. Additionally, the increased market liquidity from convergence bidding can help mitigate the market power of physical suppliers. Some market participants can use convergence bidding as a risk management tool to hedge the possibility of a generator outage.

A Virtual Bid in convergence bidding is defined to be either a Virtual Demand Bid or Virtual Supply Bid. A Virtual Demand Bid is a Bid submitted in the CAISO Day-Ahead (DA) Market that, if cleared in the Integrated Forward Market (IFM), represents a commitment to purchase Energy at the price determined in the DA Market, and to sell any Virtual Award resulting from the Virtual Bid at the price determined in the Real-Time Market. Likewise, a Virtual Supply Bid is a Bid submitted in the CAISO DA Market that, if cleared in the IFM, represents a commitment to sell Energy at the price determined in the DA Market, and to buy the same quantity back at the price determined in the Real Time Market.

2.2Description

Virtual Bid Submission Charge is the component of Grid Management Charge (GMC) that is assessed to a Scheduling Coordinator (SC) for each Virtual Bid segment it submits that is passed to the IFM. The Virtual Bid Submission Charge is set forth in CAISO Tariff section 11.22.4. The fee shall be configurable, based on FERC approval, and shall be based on a dollar amount per BID SEGMENT. The revenue generated from the Virtual Bid Submission Charge in a given year will offset the GMC Virtual Award Charge for the following year.

3.Charge Code Requirements

3.1Business Rules

Bus Req ID / Business Rule
1.0 / Virtual Bid Submission Charge amount shall be calculated by multiplying the transaction fee for convergence bidding by theVirtual Bid segment submitted per SC.
2.0 / A Convergence Bidding Entity can map to multiple SCIDs that belong to a single SC for submission of VirtualBids.
3.0 / TheVirtual Bid Submission Charge is based on FERC approved GMC rate for Virtual Bid Submission Charge per bid segment.
4.0 / Virtual Bids may refer to Virtual Supply Bid and/or Virtual Demand Bid.
5.0 / Virtual Bid Submission Charge shall be calculated and output on a daily basis and summed to a value for a period processed for invoicing in accordance with the CAISO Payment Calendar.

3.2Predecessor Charge Codes

Charge Code/ Pre-calc Name
< None >

3.3Successor Charge Codes

Charge Code/ Pre-calc Name
< None >

3.4Inputs – External Systems

Row # / Variable Name / Description
1.0 / BAHourlyDAVirtualBidSegSizeQuantity BbA’aj’y’mdh / The input represents the quantity of Energy offered in association with Business Associate B, bid segment b, Aggregated PNode type A’, bid type a, Eligible PNode/Aggregated PNode j’, Node Location Type y’ and Trading Hour h. (MW)
2.0 / GMCVirtualBidSubmissionChargeRatemd / FERC approved GMC rate from settlements standing data based on applicable start and end dates.

3.5Inputs - Predecessor Charge Codes or Pre-calculations

Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration
< None

3.6CAISO Formula

3.6.1BATotalGMCVirtualBidSubmissionChargeAmount Bmd = BAGMCVirtualBidSegSubmissionChargeAmountBbmd

3.6.1.1BAGMCVirtualBidSegSubmissionChargeAmount Bbmd= BAHourlyDAVirtualBidSegSizeQuantityCount BbA’aj’y’mdh * GMCVirtualBidSubmissionChargeRatemd
3.6.1.2Where
IF
BAHourlyDAVirtualBidSegSizeQuantity BbA’aj’y’mdh= 0
THEN
BAHourlyDAVirtualBidSegSizeQuantityCountBbA’aj’y’mdh = 0
ELSE
BAHourlyDAVirtualBidSegSizeQuantityCount BbA’aj’y’mdh= 1

3.7Outputs

Output Req ID / Name / Description
In addition to any outputs listed below, all inputs shall be included as outputs.
1 / BATotalGMCVirtualBidSubmissionChargeAmount Bmd / Total daily GMCVirtualBid Submission Charge amount byBusiness Associate.
2 / BAGMCVirtualBidSegSubmissionChargeAmountBbmd / Total daily GMCVirtualBid Submission Charge amount byBusiness Associate and Bid Segment.
3 / BAHourlyDAVirtualBidSegSizeQuantityCountBbA’aj’y’mdh / Count of hourly Virtual Bid Segment byBusiness Associate, Bid Segment, Aggregated PNode Type, Bid Type, Eligible PNode/Aggregated PNode and Node Location Type.

4.Charge Code Effective Date

Charge Code/
Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
CC 4520GMC Virtual Bid Submission Charge / 5.0 / 02/01/11 / Open / Configuration Impacted
CAISO, 2018 / Page 1 of 6