Configuration Guide for: Metered Demand Over TAC Area and CPM / Date: 0712/2418/154 02112/0124/165
Settlements & Billing
BPM Configuration Guide: Metered Demand Over TAC Area And CPM
Pre-Calculation
Version 5.43
Confidential / ÓCAISO, 2016 / Page 119 of 120Settlements & Billing / Version: 5.43
Configuration Guide for: Metered Demand Over TAC Area and CPM / Date: 0712/2418/154 02112/0124/165
Table of Contents
1. Purpose of Document 3
2. Introduction 3
2.1 Background 3
2.2 Description 3
3. Charge Code Requirements 3
3.1 Business Rules 3
3.2 Predecessor Charge Codes 4
3.3 Successor Charge Codes 5
3.4 Inputs – External Systems 5
3.5 Inputs - Predecessor Charge Codes or Pre-calculations 7
3.6 CAISO Formula 8
3.7 Output Requirements 16
4. Charge Code Effective Dates 27
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
2.1 Background
The Interim Capacity Procurement Mechanism (ICPM) has provided an orderly, pre-approved means for the ISO to procure backstop capacity where and when needed to meet Reliability Criteria or otherwise maintain reliable grid operations. The ICPM expires at midnight on March 31, 2011.
The Capacity Procurement Mechanism (The ICPM is replaced by the Capacity Procurement Mechanism (CPM) effective April 1, 2011. The CPM) iswill continue intended to serve as a backstop means to address instances when Resource Adequacy (RA) Resources are not capacity is insufficient to meet all of the operational needs of the ISO and enable it to meet reliability criteria. This mayA RA shortfall may occur as a result of Load Serving Entities (LSEs) failing to comply with RA requirements, LSEs procuring sufficient resources to meet their RA requirements established by Local Regulatory Authorities but not meeting all of the ISO’s specific reliability needs, or unforeseen or changed circumstances affecting system conditions or grid operations. In particular, this backstop mechanism is needed to address significant operational requirements facing the ISO in the near future as a result of the integration of large amounts of variable energy resources.
The CPM retains key features of the ICPM, with several changes and additional enhancements, as follows:
1A new CPM procurement category for resources at risk of retirement that the ISO has determined will be needed for reliability during the following year;
2The addition of two criteria the ISO can consider in selecting capacity for a CPM designation or Exceptional Dispatch from eligible resources that will allow ISO operators to exercise a preference for non-use-limited over use-limited resources and to consider each resource’s operating characteristics;
3Adjustment of CPM compensation when a CPM resource becomes unavailable during the CPM procurement period due to a maintenance outage;
4An Exceptional Dispatch CPM designation may be issued for an Exceptional Dispatch CPM System Reliability Need or an Exceptional Dispatch CPM Non-System Reliability Need. An Exceptional Dispatch CPM System Reliability Need has a term of 30 days and is defined as the existence of a reliability issue where resolution does not require a resource to be in a specific geographic area with the ISO balancing authority area, which may include, but is not limited to, a forced outage of a major transmission line or a forced outage at a large generating unit. An Exceptional Dispatch CPM Non-System Reliability Need has a term of 60 days and is defined as the existence of a reliability issue where resolution depends on a resource in a specific geographic area within the CAISO Balancing Authority Area, which may include, but is not limited to, a local reliability area, zone, or region. If the CAISO determines that the circumstances that led to the Exceptional Dispatch CPM are likely to extend beyond the initial 30-day or 60-day period, the CAISO will issue an Exceptional Dispatch CPM or other CPM designation for an additional period the same length as the initial term.
5On February 16, 2012, the fixed CPM Capacity price of $67.50/kW-year became effective and will remain in effect for two years. On February 16, 2014, the fixed CPM Capacity price will increase by five percent and the effective price will be $70.88/kW-year, which will remain in effect for two years until February 16, 2016.
For the CPM Allocation, ISO Tariff Sections 43.8.1 through 43.8.7 establish the method for allocating the costs of CPM capacity payments for each category of CPM designation. The allocation method for each CPM category is as follows:
1For insufficient Local Capacity Area Resources in an annual or a monthly RA Plan, the CPM costs are allocated pro rata to each Scheduling Coordinator for a deficient LSE based on the ratio of that LSE’s deficiency to the deficiency within the TAC area.
2For a collective deficiency of Local Capacity Area Resources in an annual RA Plan, the CPM costs are allocated to all Scheduling Coordinators of LSEs serving load and Demand from other Resources (e.g., NGR) in the TAC area in which the deficient local capacity area was located.
3For insufficient RA resources to comply with an LSE’s annual and monthly demand and reserve margin requirements, the CPM cost allocation is made pro rata to each LSE based on the proportion of its deficiency to the aggregate deficiency.
4For a significant event, Exceptional Dispatch, or resource at risk of retirement CPM, the costs are allocated to all Scheduling Coordinators for LSEs that serve load and Demand from other Resources (e.g., NGR) in the TAC area where the need for the designation arose, based on each Scheduling Coordinator’s percentage of actual load and Demand from other Resources (e.g., NGR) in the TAC area to total load and Demand from other Resources (e.g., NGR) in that area.
2.2 Description
The Metered Demand Over TAC Area and CPM Pre-Calculation provides outputs to various CAISO charge codes. The outputs present The Metered Demand Over TAC Area And CPM Pre-Calculation determines the Mmetered CAISO dDemand (minus qualified TOR quantity) [see notes in rule 2.2.2 of CC7896] allocation breakdown by TAC Area(s) (minus qualified TORs)and CPM type,, the CPM payment quantity, CPM charge allocation factors, and CPM availability percentages for the settlement of CPM Capacity, the CPM settlement price and the overall CPM charge allocation amount. Its outputs can be used as inputs for any CAISO charge code which requires allocations over metered demand for various TAC Areas or TAC Area combinations, such as the Monthly CPM charge codes. In additionAdditionally, theis pre-calculation will also produce calculate the Supplemental Revenue for CPM metered demand allocation ratio by TAC Area or a combination of TAC Areas, the CPM availability percentages and forced outage factor, and the CPM Settlement price. CAISO Metered Demand is calculated on a Trading Month basis for each combination of Exceptional Dispatch Type of procured CPM capacitycases where a resource declines an Exceptional Dispatch CPM Capacity designation of available non-RA capacity.,
CPM capacity dispatch period during a Trading Month, and TAC area for which charges associated with CPM capacity payments should be allocated. The following table relates the Exceptional Dispatch Type and TAC Area(s) to which CPM charges are allocated for any given CPM capacity dispatch:
CPM Exceptional Dispatch Type / TAC Areas Allocated CPM Charges /CADEF1 / TAC_NORTH
CADEF2 / TAC_ECNTR
CADEF3 / TAC_SOUTH
CADEF4 / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
CADEF5 / TAC_ECNTR-TAC_NORTH
CADEF6 / TAC_SOUTH-TAC_ECNTR
CADEF7 / TAC_SOUTH-TAC_NORTH
CADEF8 / TAC_NCNTR
CADEF9 / TAC_NCNTR-TAC_NORTH
CADEF10 / TAC_NCNTR-TAC_ECNTR
CADEF11 / TAC_NCNTR-TAC_SOUTH
CADEF12 / TAC_SOUTH-TAC_ECNTR-TAC_NORTH
CADEF13 / TAC_NCNTR-TAC_ECNTR-TAC_NORTH
CADEF14 / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR
CADEF15 / TAC_NCNTR-TAC_SOUTH-TAC_NORTH
COLDEF1 / TAC_NORTH
COLDEF2 / TAC_ECNTR
COLDEF3 / TAC_SOUTH
COLDEF4 / TAC_NCNTR
LOCAL1 / TAC_NORTH
LOCAL2 / TAC_ECNTR
LOCAL3 / TAC_SOUTH
LOCAL4 / TAC_NCNTR
ROR1 / TAC_NORTH
ROR2 / TAC_ECNTR
ROR3 / TAC_SOUTH
ROR4 / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
ROR5 / TAC_ECNTR-TAC_NORTH
ROR6 / TAC_SOUTH-TAC_ECNTR
ROR7 / TAC_SOUTH-TAC_NORTH
ROR8 / TAC_NCNTR
ROR9 / TAC_NCNTR-TAC_NORTH
ROR10 / TAC_NCNTR-TAC_ECNTR
ROR11 / TAC_NCNTR-TAC_SOUTH
ROR12 / TAC_SOUTH-TAC_ECNTR-TAC_NORTH
ROR13 / TAC_NCNTR-TAC_ECNTR-TAC_NORTH
ROR14 / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR
ROR15 / TAC_NCNTR-TAC_SOUTH-TAC_NORTH
SIGEVT1 / TAC_NORTH
SIGEVT2 / TAC_ECNTR
SIGEVT3 / TAC_SOUTH
SIGEVT4 / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
SIGEVT5 / TAC_ECNTR-TAC_NORTH
SIGEVT6 / TAC_SOUTH-TAC_ECNTR
SIGEVT7 / TAC_SOUTH-TAC_NORTH
SIGEVT8 / TAC_NCNTR
SIGEVT9 / TAC_NCNTR-TAC_NORTH
SIGEVT10 / TAC_NCNTR-TAC_ECNTR
SIGEVT11 / TAC_NCNTR-TAC_SOUTH
SIGEVT12 / TAC_NCNTR-TAC_ECNTR-TAC_NORTH
SIGEVT13 / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR
SIGEVT14 / TAC_NCNTR-TAC_SOUTH-TAC_NORTH
SIGEVT15 / TAC_SOUTH-TAC_ECNTR-TAC_NORTH
TMODEL1 / TAC_NORTH
TMODEL2 / TAC_ECNTR
TMODEL3 / TAC_SOUTH
TMODEL4 / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
TMODEL5 / TAC_NORTH
TMODEL6 / TAC_ECNTR
TMODEL7 / TAC_SOUTH
TMODEL8 / TAC_NORTH
TMODEL9 / TAC_SOUTH-TAC_ECNTR
TMODEL10 / TAC_NORTH
TMODEL11 / TAC_SOUTH-TAC_ECNTR
NONTMOD / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
SYSEMR / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
TEMR / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
TMODEL / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
VS / TAC_NCNTR-TAC_SOUTH-TAC_ECNTR-TAC_NORTH
FRDEF / Deficient RA Plan
3. Charge Code Requirements
3.1 Business Rules
Bus Req ID / Business Rule /1.01.0 / This pre-calculation will calculate CAISO Mmetered Ddemand over the variousby TAC Areas and and TAC Area combinations on hourly, daily, and monthly basesCPM capacity type for each Business Associate to determine the CAISO Metered Demand for each TAC Area associated with each CPM type of CPM capacity that CAISO awarded to the Business Associate or designated the Business Associate to provide. The daily and monthly metered demand will also be shown summed over all Business Associates and TAC Areas BAs toat the CAISO level to present the CAISO Metered Demand by Exceptional Dispatch Energy type.
2.02.0 / Outputs will also includeprovide availability percentages, prices and metered demand to be outputted into the monthly CPM charge codes which requirethat perform various allocations over one or multiple more TAC Areas.
2.1 / Metered demand quantities will exclude metered demand for which a Transmission OwnershipObligation Rights (TOR) contract has been applied to the Load schedule, up to the source-sink balanced portion of the contract.
3.0 / Offers of capacity to a Competitive Solicitation Process (CSP) shall contain a single price denoted in units of $/kW-month.
3.1 / The price offered into a CSP shall not be less than zero.
3.2 / Offer prices are subject to the CPM Soft Offer Cap of $6.31/kW-month ($75.68/kW-year).
3.2.1 / CPM Capacity shall not be compensated by the CAISO at a rate higher than the CPM Soft Offer Cap unless a Resource Owner of Eligible Capacity makes the required resource-specific cost filing with FERC and FERC approves the filing.
4.0 / Scheduling Coordinators representing resources receiving payment for a CPM designation shall receive a monthly CPM Capacity Payment for each month of CPM designation equal to the product of the kW-month of designated CPM Capacity and the CPM Capacity price per kW-month (based on the capacity’s CSP bid, the CPM Soft Offer Cap, or the resource-specific CPM rate authorized by FERC, as applicable), with a deduction pro-rated for days the capacity was Committed RA Capacity other than CPM Capacity..
4.1 / Furthermore, thatThe CPM Capacity designated to respond to a CPM Significant Event or an Exceptional Dispatch CPM shall receive payment based proportionately on the actual number of days the resource was designated as CPM Capacity during the month to the total number of days in the month.
4.2 / The CPM Capacity Payment shall receive a deduction pro-rated for days the capacity was Committed RA Capacity other than CPM Capacity.
The deduction shall be made on the CPM Capacity for days the capacity was Committed RA Capacity other than CPM Capacity.
4.3 / CPM Capacity designated to respond to a CPM Significant Event or an Exceptional Dispatch CPM shall receive payment based proportionately on the actual number of days the resource was designated as CPM Capacity during the month to the total number of days in the month.
3.0 / A resource with simultaneous or overlapping designations of CPM and CPM Flexible Capacity shall be paid based on the highest MW amount of either designation for the period in which the designations overlap.
3.1 / For overlapping CPM capacity, the resource’s CPM settlement shall be reflected in the Flexible CPM charge code.
3.2 / For a resource with more than two concurrent CPM designations, where one of these designations is for Flexible CPM, the overlapping capacity shall be proportionate to the generic RA CPM deisngations.
4.0 / For a resource with concurrent CPM designations, where one of these designations is for Flexible CPM, the cost allocation shall be proportionate to the deficiency MW from both the generic and flexible resource adequacy capacity.
3.2 Predecessor Charge Codes
Charge Code/ Pre-calc Name /Pre-calculation – Measured Demand over Control Area Pre-Calculation
Pre-calculation – Real Time Price
Pre-calculation – Resource Adequacy Availability Incentive Mechanism
CC 6470 – Real Time Instructed Imbalance Energy Settlement
CC 6482 – Real Time Excess Cost for Instructed Energy Settlement
CC 7872 – Monthly CPM Significant Event Settlement
CC 7874 – Monthly CPM Insufficient Local Capacity Area Resources Settlement
CC 7876 – Monthly CPM Collective Deficiency Settlement
CC 7880 – Monthly CPM Exceptional Dispatch Settlement
CC 7882 – Monthly CPM Capacity at Risk of Retirement Settlement
CC 7884 – Monthly CPM Insufficient Resource Adequacy Resources Settlement
CC 7886 –Monthly CPM Flexible Resource Adequacy Resources Settlement
3.3 Successor Charge Codes
Charge Code/ Pre-calc Name /CC 6482 – Real Time Excess Cost for Instructed Energy Settlement
CC 6488 – Exceptional Dispatch Uplift Settlement
CC 789172 – Monthly CPM Significant Event Settlement
CC 789673 – Monthly CPM Significant Event Allocation
CC 7874 – Monthly CPM Insufficient Local Capacity Area Resources Settlement
CC 7876 – Monthly CPM Collective Deficiency Settlement
CC 7877 – Monthly CPM Collective Deficiency Allocation
CC 7880 – Monthly CPM Exceptional Dispatch Settlement
CC 7882 – Monthly CPM Capacity at Risk of Retirement Settlement
CC 7883 – Monthly CPM Capacity at Risk of Retirement Allocation
CC 7884 – Monthly CPM Insufficient Resource Adequacy Resources Settlement
CC 7881 – Monthly CPM Exceptional Dispatch Allocation
CC 7883 – Monthly CPM Capacity at Risk of Retirement Allocation
3.4 Inputs – External Systems
Row # / Variable Name / Description /6 / RealTimeGenericCPMCapacityQty BrtF’S’mdh / Real time generic CPM capacity (in MW).
71.0 / BAHourlyResourceCPMCapacityDesignatedQty BrtOUU’k’vmdhBrto’UU’k’vvmdh / Hourly CPM Capacity MW Designation quantity (in MW)