Settlements & Billing / Version: 5.10
Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Metered Demand Allocation / Date: 511/2130/109

Settlements & Billing

BPM Configuration Guide: Monthly Resource Adequacy Standard Capacity Product Metered Demand Allocation
(CC 8826)

Version5.10

CAISO, 2018 / Page 1 of 6
Settlements & Billing / Version: 5.10
Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Metered Demand Allocation / Date: 511/2130/109

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

CAISO, 2018 / Page 1 of 6
Settlements & Billing / Version: 5.10
Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Metered Demand Allocation / Date: 511/2130/109

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

The Standard Capacity Product (SCP) is effective on January 1, 2010, as described in CAISO Tariff Section 40.9. SCP incorporates resource Availability Standards and incentives into the ISO Tariff to facilitate contracting for Resource Adequacy(RA) Capacity. SCP also enhances grid reliability and market efficiency by providing an incentive for RA Resources to be available during peak hours.

SCP is a set of attributes defined in the CAISO Tariff which specify the Availability Standard, Non-Availability Charges and Availability Incentive Payments applied to RA capacity. There is one availability standard applicable to RA Resources each month during the RA Compliance Year. Each monthly Availability Standard is based on the historic availability of the RA Resource fleet during a pre-defined set of peak hours during a previous three-year period. At a high level, the CAISO reviews the availability of each RA Resource subject to SCP each month to determine whether its meets the Availability Standard applicable for that month. An RA Resource that has a lower availability rate than the Availability Standard minus the tolerance band of 2.5% is subject to a Non-Availability Charge. A RA Resources that has Availability greater than the Availability Standard plus the tolerance band of 2.5% is eligible for an Availability Incentive Payment.

2.2Description

The Monthly Standard Resource Adequacy Capacity Product Neutrality Allocation (8826) is the payment of the surplus of the Non-Availability Charges collected from RAResources which fail to meet the Availability Standard. The excess not paid out to RA Resources that exceed the Availability Standard plus 2.5% isput into Real Time Neutrality and paid out to Metered Demand. The funds are distributed by calculating a monthly Neutrality Allocation Price and applying it to the amount of Real Time MeteredDemand.

This Charge Code will be implemented pursuant to a configuration enhancement procedure that allows for gains in performance, thereby reducing the volume of calculations executed during the monthly Settlement Run. The outcome of this feature is not published on the monthly Settlements Statements issued to participants. However, this enhancement procedure has no impact on the actual calculation of the settlement amounts determined by this Charge code. The performance enhancement is achieved through the availability of a feature that makes the results of (previously calculated) daily Settlement Runs available to the CAISO operator for the monthly run in lieu of the operator having to re-execute daily calculations within the monthly Settlement Run. Additionally, this feature will provide the CAISO operator monthly totals of (previously calculated) daily outputs as well as monthly totals of primary bill determinants as needed. The CAISO will notify participants of which Charge Code uses this feature by including this statement in the description of the affected Charge Codes. In addition, the CAISO will indicate in the applicable CAISO Formula sections which of the individual calculations within the monthly run utilize this feature.Participants can verify the Settlement Amounts resulting from this Charge Code in their monthly calculations by utilizing the daily input data as defined in the input sections of each Charge Code, the amounts and/or quantities of which are published on the relevant, daily Settlement Statements.

3.Charge Code Requirements

3.1Business Rules

Bus Req ID / Business Rule
1.1 / The"account" for each month would either be paid out to RA Resources that have exceededthe StandardAvailability Standard plus 2.5%or put into the Real Time neutrality and paid back to metereddemand, i.e., any excess not paid out to RA Resources that exceed the Availability Standard plus 2.5% is paid out to Metered Demand.

3.2Predecessor Charge Codes

Charge Code/ Pre-Calc Name
Monthly Resource Adequacy Standard Capacity Product Allocation(CC 8820)
Standard Capacity Product Pre-calculation

3.3Successor Charge Codes

Charge Code/ Pre-calc Name
Monthly Rounding Adjustment Allocation (CC 4999)

3.4Inputs - External Systems

Row # / Variable Name / Description
1 / None

3.5Inputs - Predecessor Charge Codes or Pre-calculations

Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration / Description
1 / BAHourlyNodalSCPMeteredCAISODemandQuantity_MDOverCA Bmdh / Hourly Nodal SCP CAISO Metered Demand by Business Associate B
2 / HourlyNodalSCPMeteredCAISODemandQuantity_MDOverCA mdh / Hourly Nodal SCP CAISO Metered Demand.
3 / CAISOMonthlyAvailabilityNeutralityIncentiveAllocationAmount m / Total Neutrality Allocation to be put into Real Time neutrality and paid back to metered demand.

3.6CAISO Formula

The Monthly Availability Incentiverate is determined by dividing total monthlyNon Availability Charges dollars by the sum of all MW exceeding the Standard plus tolerance band of 2.5%

3.6.1BAMonthlyAvailabilityNeutralityIncentiveAllocationAmount Bm=CAISOMonthlyAvailabilityNeutralityIncentiveAllocationPrice m * BAMonthlyNodalMeteredCAISODemandQuantity_MDOverCABm

Where

BAMonthlyNodalMeteredCAISODemandQuantity_MDOverCABm= BAHourlyNodalSCPMeteredCAISODemandQuantity_MDOverCA Bmdh

The BAHourlyNodalSCPMeteredCAISODemandQuantity_MDOverCA Bmdh is provided by the configuration enhancement procedure that returns a monthly quantity as a summation of daily quantities generated previously calculated under Standard Capacity Product Pre-calculation during daily settlement calculation results for the applicable Trading Month

3.6.2CAISOMonthlyAvailabilityNeutralityIncentiveAllocationPricem=CAISOMonthlyAvailabilityNeutralityIncentiveAllocationAmount m/Abs(MonthlyNodalMeteredCAISODemandQuantity_MDOverCAm )

Where

MonthlyNodalMeteredCAISODemandQuantity_MDOverCAm= HourlyNodalSCPMeteredCAISODemandQuantity_MDOverCA mdh

The HourlyNodalSCPMeteredCAISODemandQuantity_MDOverCA mdh is provided by the configuration enhancement procedure that returns a monthly quantity as a summation of daily quantities generated previously calculated under Standard Capacity Product Pre-calculation during daily settlement calculation results for the applicable Trading Month

3.7Outputs

Output Req ID / Name / Description
1 / In addition to any outputs listed below, all inputs shall be included as outputs.
2 / BAMonthlyAvailabilityNeutralityIncentiveAllocationAmount Bm / Availability Neutrality Allocation Amount By Business Associate B, in the Trading Month m
3 / CAISOMonthlyAvailabilityNeutralityIncentiveAllocationPrice m / CAISO Monthly Availability Neutrality Allocation Price By Business Associate B, in the Trading Month m
4 / BAMonthlyNodalMeteredCAISODemandQuantity_MDOverCABm / Monthly Sum of meter input values for Business Associate B, Trading Month m. The summed quantity includes the individual meter readings for Loads of non-MSS entities and gross-settled MSS entities, and also includes the calculated net MSS Demand value for each net-settled MSS entity.
5 / MonthlyNodalMeteredCAISODemandQuantity_MDOverCA m / Monthly Sum of meter input values for Trading Month m. The summed quantity includes the individual meter readings for Loads of non-MSS entities and gross-settled MSS entities, and also includes the calculated net MSS Demand value for each net-settled MSS entity.

4.Charge Code Effective Date

Charge Code/
Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
Monthly Resource Adequacy Standard Capacity Product Metered Demand Allocation
(CC 8826) / 5.0 / 01/01/10 / Open
12/31/2009 / Configuration Impacted
Monthly Resource Adequacy Standard Capacity Product Metered Demand Allocation
(CC 8826) / 5.1 / 01/01/10 / Open / Configuration Impacted
CAISO, 2018 / Page 1 of 6