Settlements & Billing / Version: 5.810
Configuration Guide for: RTM Net Amount / Date: 0406/013/1309

Settlements & Billing

BPM Configuration Guide:RTM Net Amount

Pre-calculation

Version 5.081

CAISO, 2018 / Page 1 of 62
Settlements & Billing / Version: 5.810
Configuration Guide for: RTM Net Amount / Date: 0406/013/1309

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

3.7Output

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 RTM Net Amount Pre-calculation is associated with settlement charge groups as follows:

Charge Code / Charge Group / Parent Charge Group
RTM Net Amt Pre-calculation / Bid Cost Recovery Pre-Calc / Pre-calculation

Bid Cost Recovery (BCR) is the process by which the CAISO ensures SCs are able to recover Start Up Costs (SUC), Minimum Load Costs (MLC), and Bid Costs. In order to be eligible to recover SUC and MLC, a generator, Pumping Load, Pumped-Storage Hydro Units, or Resource-Specific System Resource must be committed by the CAISO. Bid Cost Recovery for Energy and Ancillary Services Bids (A/S) apply to Generating Units, Pumping Load, Pumped-Storage Hydro Units, and resource-specific System Resources scheduled or dispatched by CAISO regardless of whether the resource was committed by CAISO, or was self committed.

For purposes of determining BCR eligibility, CAISO uses a concept called Commitment Period. A Commitment Period consists of the consecutive time periods within a Trading Day when a resource is on-line, synchronized to the grid, and available for dispatch. A Commitment Period is comprised of two distinct sub-types --- Self-Commitment Period and CAISO Commitment Period. The portion of a Commitment Period where a resource submits Energy self-schedule or A/S self provision is called a Self-Commitment Period. A Self-Commitment Period may include time periods when a resource is not operating pursuant of an Energy self-schedule or A/S self-provision, but must be as a result of an Energy Self-Schedule or A/S self-provision on due to ramping constraints, minimum up time, or minimum down time. Resources are not eligible for BCR of SUC and MLC during Self-Commitment Periods, but are eligible for BCR of awarded Energy and A/S. The portion of a Commitment Period that is not a Self-Commitment Period is called CAISO Commitment Period. Resources are eligible to receive BCR for SUC, MLC, awarded Energy and A/S during a CAISO Commitment Period.

SUC and MLC for each market and resource are determined in Pre-calculation IFM/RUC/RTM Start-up and Minimum Load Eligibility then used as inputs to calculate a resource’s net difference between costs and revenues in separate Pre-calculations by market --- IFM Net Amount, RUC Net Amount, and RTM Net Amount. If the difference between the total costs and the market revenues is positive in the relevant market, then the net amount represents a Shortfall. If the difference is negative in the relevant market, the net amount represents a Surplus. For each resource, the IFM, RUC, and RTM Shortfalls and Surpluses are then netted over all hours of a Trading Day. As a result, surpluses from any of the CAISO Markets offset any shortfalls from the other markets over the entire Trading Day. If the net Trading Day amount is positive (a Shortfall), then the resource receives a BCR Uplift Payment equal to the net Trading Day amount under CC 6620 Bid Cost Recovery Settlement.

For MSS entities that have elected gross settlement, the Energy settlement is the same as other Scheduling Coordinators. For MSS entities that have elected net settlement, for both IFM and RTM the settlement MWh quantity is based on the net of Generation and Demand (scheduled quantities in the Day-Ahead Schedule by the IFM and measured quantities for RTM) within the MSS. Therefore, the settlement quantity is proposed to be done on MSS-level basis. Net load from MSS operators that have elected net settlement will be settled at the MSS LAP price and net-Generation from such MSS operators will be settled at the weighted average LMPs over all PNodes within the MSS with Generation schedules for IFM and measured Generation for RTM as weighting factors.

This Pre-calc computes the RTM costs (including SUC, MLC, and Bid Costs), the RTM revenues, and the difference between the RTM Costs and the RTM revenues for each resource.

2.2Description

RTM Net Amount Pre-calculation will perform the calculations necessary to implement the business rules identified in the Business Rules section below.For each Settlement Interval, this Pre-calculation will generate the RTM costs, RTM revenue, and the RTM Net Amount as the net difference between RTM costs and RTM revenue for Generating Unit, Pumping Load, Pumped-Storage Hydro Units, and system resources. The RTM Net Amount is subsequently used as an input for CC 6620, Bid Cost Recovery Settlement and Pre-calculation Bid Cost Recovery Sequential Netting.

Prior to the September 21, 2006 FERC Order, as long as a resource performed within its relevant Tolerance Band according to CAISO Real-Time Dispatch Instructions, RTM costs were calculated as the algebraic summation of eligible Start Up Costs and eligible Minimum Load Costs, calculated by predecessor Pre-calculation IFM/RUC/RTM Start-up and Minimum Load Eligibility, as well as A/S costs (reduced by any relevant AS No Pay), and Energy costs for each Settlement Interval. Otherwise, the resource’s RTM Bid Costs for that Settlement Interval would be set to zero. With the FERC Order, a resource will no longer be required to perform within its relevant Tolerance Band as stated in Paragraph #516 of the FERC Order. Additionally stated in Paragraph #516, Resources that fall short of the Day Ahead and RT Dispatch Instructions shall only be guaranteed the recovery of cost associated with the Energy actually provided, and should not receive payment for deviations from DA Schedule or RT Dispatch Instructions. Also, as part of the November 20, 2006 Compliance Filing, Rerate Energy, MSS Load Following Energy and Ramping Energy Deviation are also excluded from the RTM Energy Bid Cost.

Under net settlement for an MSS entity, Real-Time Energy settlements follow the same principle as the IFM Energy net settlement for an MSS entity. The Real-time Energy price is determined at individual MSS level whether it is within MSS Aggregation or being standalone. For an MSS net-load in metering, i.e. MSS Measured internal Demand exceeds MSS Measured internal Generation; the Energy price associated with the MSS is defined as the MSS Real-Time LAP price for the settlement interval. For MSS net-generation in metering, i.e. MSS Measured internal Generation exceeds MSS Measured internal Demand, the Energy price associated with the MSS is the weighted average of real-time LMPs for all applicable PNodes within the relevant MSS. The weighting factors for computing the weighted average are the Measured Energy of all Generation at the corresponding PNodes. All IIE components of Supply resources including Load Following Energy that were settled at Resource-specific Settlement Interval LMP if under gross, are settled at the Energy Price of MSS defined above. Moreover, UIE for both Supply resource and Demand within the MSS are also settled at this same Energy price. Residual Imbalance Energy, Energy related to Exceptional Dispatches and Standard Ramping Energy are settled following the same principles for gross.

RTM revenue is the sum of RTM Instructed Imbalance Energy revenue and the RTM AS revenue (reduced by any AS relevant No Pay).

3.Charge Code Requirements

3.1Business Rules

Bus Req ID / Business Rule
1.0 / This Pre-calc is a daily computation generating results on a Settlement Interval basis.
2.0 / Resources that fall short of the RT Dispatch Instructions shall only be guaranteed the recovery of cost associated with the Energy actually provided.In the case of positive uninstructed deviation, the eligible resource will be entitled to Bid Cost Recovery based on its scheduled Energy.
2.1 / RTM Net Amount is the difference between the RTM Bid Cost and the RTM Market Revenue
2.1.1 / RTM Bid Cost consists of the eligible RTM Start-Up Cost, eligible RTM Minimum Load Cost, RTM Energy Bid Cost, and the RTM AS Bid Cost.
2.1.1.1 / The RTM AS Bid Cost includes the adjustment of the AS No Pay.
2.1.1.2 / The RTM AS Bid Cost at every Settlement Interval is derived from the RTM AS Bid Cost of the Ancillary Service interval as follows:
The average Real Time AS Award in a Settlement Interval is derived by dividing the (hourly) 15 minute Real-Time Market AS Award by the number of 15-minute Commitment Intervals in a Trading Hour (4) then subsequently dividing by the number of Dispatch Intervals in a Commitment Interval (3) resulting in an average, 5-minute AS Award quantity. Finally, the average Real-Time Market AS Award in a Settlement Interval is the sum of the respective 5-minute AS Award quantity for that Settlement Interval.
2.1.2 / RTM Market Revenue consists of the RTM Energy revenue (including the revenue for the Minimum Load) and the RT AS revenue. RTM Energy revenue excludes the Standard Ramping Energy, Residual Imbalance Energy, Exceptional Dispatch Energy, Rerate Energy, MSS Load Following Energy, Ramping Energy Deviation, and Regulating Energy.
2.1.2.1 / The RTM AS revenue includes the adjustment of AS No Pay.
2.1.2.2 / For non-CAISO Real-Time Market Commitment periods, the RTM Energy revenue excludes revenue for Minimum Load of resources committed in RUC that become ineligible for minimum load cost recovery due to the Settlement Interval being considered a non-CAISO Commitment period in Real Time.
2.1.2.2 / The RTM Minimum Load Energy used in the determination of RTM Minimum Load revenue for BCR shall be qualified by whether or not the Resource’s Energy output has met or surpassed the Tolerance Band limit.
2.1.2.2.1 / If the Tolerance Band requirement has not been satisfied, the RTM Minimum Load revenue and RTM Minimum Load Cost shall = 0.
2.1.2.2.1 / If the Tolerance Band requirement has been satisfied, the RTM Minimum Load revenue shall be computed as the product of the RTM Minimum Load Energy and the Resource-specific RT LMP.
2.1.2.3 / The RTM Minimum Load Cost is input into the currently defined calculation from a predecessor configuration. Fact
3.0 / Regardless of Resource Type, RTM Net Amount must follow the same sign convention - positive RTM Net Amount indicates a revenue Shortfall, negative RTM Net Amount indicates a revenue Surplus.
4.0 / PTB Logic does not apply to RTM Net Amount Pre-calculation.
5.0 / MSS Load Following Energy is not subjected to Bid Cost Recovery.
5.1 / Optimal Energy that overlaps with MSS Load Following Energy is not eligible for Bid Cost Recovery.
5.2 / Optimal Energy that overlaps with MSS Load Following Energy is identified via Overlap Flag (provided by MQS).
6.0 / For the MSS entity electing net settlement, if the RT Metered Demand exceeds the RT Metered Generation energy, the MSS energy is not eligible for BCR with the exception for Ancillary Service Awards, which are eligible for BCR regardless of MSS gross or net election.
7.0 / For the MSS entity electing net settlement, if the RT Metered Generation energy exceeds the RT Metered Demand, only the RT Metered Generation energy that is above the RT Metered Demand is eligible for BCR.
8.0 / Non-Dynamic System Resources and Resource-Specific System Resources are considered to be outside the MSS; therefore, system resources will settle on a resource basis at the Intertie LMP or Resource-Specific LMP, respectively, regardless of net or gross election.

3.2Predecessor Charge Codes

Charge Code/ Pre-calc Name
Pre-calc – Start-Up and Minimum Load Cost
Pre-calc – Metered Energy Adjustment Factor
Pre-calc – Real Time Price
Pre-calc – IFM Net Amount
Pre-calc – MSS Netting

3.3Successor Charge Codes

Charge Code/ Pre-calc Name
CC 6620 – Bid Cost Recovery Settlement
Pre-calc – Bid Cost Recovery Sequential Netting

3.4Inputs – External Systems

Row # / Variable Name / Description
1 / DispatchlntervalOptimalIIE BrtuT’bI’M’VL’W’R’F’S’hif / Incremental or Decremental Optimal IIE provided by MQS as an expected energy allocation quantity for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Bid Segment b, Gross/Net FlagI’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
2 / DispatchIntervalRTPumpingEnergyBrtuT’I’M’VL’W’R’F’S’hif / Real Time Pumping Energy provided by MQS as an expected energy allocation quantity for participating pumpunits by for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Gross/Net FlagI’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
3 / DispatchlntervalRTIIEMinimumLoadEnergy BrtuT’I’M’VL’W’R’F’S’hif / Minimum Load Energy resulting from a RUC or RTM Commitment provided by MQS as an expected energy quantity for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Gross/Net FlagI’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
4 / RTMEnergyBidPriceBrtuT’bI’M’VL’W’R’F’S’hif / Real-time Energy Bid Price provided by MQS as an output of expected energy allocation quantity for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Bid Segment b, Gross/Net FlagI’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
5 / HASPEnergy BrtuT’bI’M’VL’W’R’F’S’hif / HASP Energy MWh for Hourly Pre-Dispatched System Resources provided by MQS as an output of expected energy allocation quantity for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Bid Segment b, Gross/Net FlagI’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
6 / HASPEnergyBidPriceBrtuT’bI’M’VL’W’R’F’S’hif / HASPEnergyBidPrice for Hourly Pre-Dispatched System Resources provided by MQS as an output of expected energy allocation quantity for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Bid Segment b, Gross/Net FlagI’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
7 / HASPLMP rth / HASP Locational Marginal Price for Resource ID r, Resource Type t, and Trading Hour h.
8 / RUCMLCFlagBrtuT’I’M’F’S’hi / Indicates the qualified Settlement Intervals for RUC Minimum Load Costs recovery because of the following: (a) it is within a CAISO Commitment Period, (b) it is not within an IFM Commitment Period, and (c) it is not dispatched under an RMR Contract. Provided by MQS for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Gross/Net FlagI’, MSS Subgroup M’, Entiity Component Type F’, Entity Component Subtype S’, Trading Hour h, and Settlement Interval i.
9 / RTMMLCFlagBrtuT’I’M’F’S’hi / Indicates the qualified Settlement Intervals for RTM Minimum Load Costs recovery because of the following: (a) it is within a CAISO Commitment Period, (b) it is not within an IFM or RUC Commitment Period, and (c) it is not dispatched under an RMR Contract. Provided by MQS for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Gross/Net FlagI’, MSS Subgroup M’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, and Settlement Interval i.
10 / 15MinuteRTMSpinAwardedBidQuantity BrtuT’I’M’VL’W’R’F’S’a’hc / Real-Time Awarded Spinning Reserve Bid capacity for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, Gross/Net FlagI’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource R’, Entity Component Type F’, Entity Component Subtype S’, Intertie Constraint a’, Trading Hour h, and Ancillary Service Interval c.
Values are incremental with respect to Day Ahead IFM.