Settlements and Billing / Version: 5.10
Configuration Guide for: Declined Hourly Pre-Dispatch Penalty Settlement / Date: 11/04/0905/21/10

Settlements and Billing

BPM Configuration Guide: Declined Hourly Pre-Dispatch Penalty Settlement

CC 6455

Version 5.10

ÓCAISO, 2014 / Page 20 of 20
Settlements and Billing / Version: 5.10
Configuration Guide for: Declined Hourly Pre-Dispatch Penalty Settlement / Date: 11/04/0905/21/10

Table of Contents

1. Purpose of Document 3

2. Introduction 3

2.1 Background 3

2.2 Description 3

3. Charge Code Requirements 5

3.1 Business Rules 5

3.2 Predecessor Charge Codes 5

3.3 Successor Charge Codes 5

3.4 Inputs – External Systems 6

3.5 Inputs - Predecessor Charge Codes or Pre-calculations 8

3.6 CAISO Formula 9

3.7 Outputs 14

4. Charge Code Effective Date 18

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

2.1  Background

The CAISO's Energy dispatch system permits Scheduling Coordinators to indicate that they will not deliver, or "decline" dispatches for import/export energy, recognizing that there could be legitimate reasons to decline. For example, the generator that ultimately backs the transaction might suffer unexpected outages, a marketer might not be able to consummate a transaction as expected, or might find that necessary transmission has become unavailable. A single decline by itself does not tend to cause problems. Simultaneous declines, however, especially of larger MWh quantities, can result in operational problems and market inefficiencies. Under MRTU declined pre-dispatches pose additional concerns than previously experienced due to the direct impact declines have on market clearing prices in the HASP and the potential this creates for detrimental market impacts and gaming opportunities.

Concerned about the lack of clear guidance for expected market behavior with respect to HASP-dispatched intertie bids, and the possibility that the lack of clarity could either encourage infeasible bids or discourage legitimate bids, the CAISO decided to amend its Tariff. Through a collaborative stakeholder process whereby Market Participants contributed to and refined the tariff amendment, the CAISO determined that a financial charge for declines in excess of a specific threshold would be an effective means for discouraging excessive declines of pre-dispatched real-time bids from imports and exports.

Effective Trading Day May 01, 2008, two settlement charge codes were implemented to assess and allocate the charges which apply to HASP Energy import and export bids that SCs have declined to honor in response to a CAISO dispatch instruction. The settlement charge codes apply to both pre-MRTU and post-MRTU Trading Days. Charge Code (CC) 6455 for which the current Configuration Guide document applies, provides for the individual SC charges that are applicable to the declined HASP dispatch instructions. The penalty revenue collected under CC 6455 is subsequently allocated under Charge Code CC 6457 Declined Hourly Pre-Dispatch Penalty Allocation.

2.2  Description

For each HASP intertie schedule that is not delivered, a Decline Potential Charge – Import or Declined Potential Charge – Export shall be calculated on an hourly basis. The potential charge shall apply to any HASP Intertie Schedule when the HASP Intertie Schedule is not delivered for any reason (with no exceptions based on the circumstances of a particular failure to deliver). The Decline Potential Charge – Imports and Decline Potential Charge - Exports for each System Resource and each Trading Hour shall equal the MWh quantity of the respective import or export not delivered multiplied by the greater of $10/MWh or fifty percent (50%) of the HASP Intertie LMP. Separate monthly totals shall be generated for Energy imports and Energy exports, and the totals shall be used to determine the Decline Monthly Charge – Imports and Decline Monthly Charge – Exports, respectively. The total charge assessed under CC 6455 shall be calculated as the sum of the Decline Monthly Charge – Imports and the Decline Monthly Charge – Exports.

The Decline Monthly Charge – Imports shall be applied to each Scheduling Coordinator as the sum of the Scheduling Coordinator’s Decline Potential Charges – Imports for each Trading Hour during that Trading Month multiplied by a ratio. The ratio will represent the portion of the Scheduling Coordinator’s declined HASP Intertie Schedules for Energy imports that exceed the applicable exemption threshold during the Trading Month.

(a)  The ratio will be calculated as follows:

(i)  the Scheduling Coordinator’s total MWh quantity of HASP Intertie Schedules for Energy imports that were not delivered during that Trading Month minus the applicable exemption threshold (defined further below), divided by

(ii)  the Scheduling Coordinator’s total MWh quantity of HASP Intertie Schedules for Energy imports that were not delivered during the Trading Month.

(b)  The applicable exemption threshold is the greater of the following:

(i)  the Tariff-defined Decline Threshold Quantity – Imports/Exports; or

(ii)  the total MWh quantity of HASP Intertie Schedules for Energy imports during the Trading Month multiplied by the Tariff-defined Decline Threshold Percentage – Imports/Exports.

Notwithstanding the foregoing, the Decline Monthly Charge – Imports shall equal zero if either:

(a)  The percentage of the MWh quantity of HASP Intertie Schedules for Energy imports that the Scheduling Coordinator did not deliver during the Trading Month is less than the Decline Threshold Percentage – Imports/Exports; or

(b)  The total MWh quantity of HASP Intertie Schedules for Energy imports that the Scheduling Coordinator did not deliver in the applicable Trading Month is less than the Decline Threshold Quantity – Imports/Exports.

In like manner to the way in which the Decline Monthly Charge – Imports is defined above, the Tariff defines the Decline Monthly Charge – Exports calculation. Thus, the Decline Monthly Charge – Exports shall be applied to each Scheduling Coordinator as sum of the Scheduling Coordinator’s Decline Potential Charges – Exports for each Trading Hour during that Trading Month multiplied by a ratio. The ratio will represent the portion of the Scheduling Coordinator’s declined HASP Intertie Schedules for Energy Exports that exceed the applicable exemption threshold during the Trading Month. The ratio shall be defined for exports as presented above for imports, replacing the text “import” with “export” in the earlier description above for the Decline Monthly Charge – Imports.

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 during 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

3.1  Business Rules

Bus Req ID / Business Rule /
1.0  / This Charge Code shall calculate on a monthly basis.
2.0  / For adjustments to the Charge Code that cannot be accomplished by correction of upstream data inputs/recalculation or operator override Pass Through Bill Charge logic will be applied.
3.0  / Actual SCs are referenced by Business Associate ID, and CAISO shall settle with Business Associates (BA) through these IDs.
4.0  / The formulas herein adopt the convention that payments made by CAISO to BAs will be negative, while payments received by the CAISO from BAs (charges to BAs) will be positive. (In other words, the signs reflect the flow of money from the point of view of the CAISO.)
5.0  / The Declined Hourly Pre-Dispatch Decline charges will not be assessed to HASP Intertie Schedules that did not change incrementally nor decrementally from the IFM schedule.
6.0  / The monthly total of HASP Intertie Schedules for Energy imports or exports shall only include those HASP schedules that changed either incrementally or decrementally from the IFM schedule.

3.2  Predecessor Charge Codes

Charge Code/ Pre-calc Name /
Pre-calculation Real-Time Energy Quantity

3.3  Successor Charge Codes

Charge Code/ Pre-calc Name /
CC 6457 – Declined Hourly Pre-Dispatch Penalty Allocation
CC 4999 – Rounding Adjustment Settlement
ÓCAISO, 2014 / Page 20 of 20
Settlements and Billing / Version: 5.10
Configuration Guide for: Declined Hourly Pre-Dispatch Penalty Settlement / Date: 11/04/0905/21/10

3.4  Inputs – External Systems

Row # / Variable Name / Description /
1. / HASPEnergy BrtuT’bI’M’R’W’F’S’VL’hif / HASP Energy (provided by MQS in MWh) as the incremental expected energy above or below the DA Energy Schedule for Business Associate B, Resource ID r, Resource Type t, Bid Segment b, Trading Month m, Trading Day d, Trading Hour h, Settlement Interval i and Dispatch Interval f, where UDC Index u, Entity Type T’, Gross/Net Flag I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource R’, Entity Component Type F’, and Entity Component Subtype S’ are mapped to the Master File.
2. / DAScheduleEnergyQuantity BrtuT’I’M’VL’W’R’F’S’hif / DA Energy Schedule (provided by MQS in MWh) that corresponds to the flat hourly Day-Ahead Schedule (DAS). It is composed of Day-Ahead Minimum Load Energy, Day-Ahead Self-Scheduled Energy, and Day-Ahead Bid Awarded Energy for Business Associate B, Resource ID r, Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, and MSS Subgroup M’, Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
3. / HASPLMP rtmdh / HASP Hourly Average Locational Marginal Price (in $/MWh) for Resource ID r, Resource Type t, Trading Month m, Trading Day d and Trading Hour h. The price is the arithmetic average of the prices of the four HASP 15-minute intervals of the Trading Hour.
4. / BADeclinedHourlyPreDispatchPenaltyExceptionFlag B / Exception Flag input that, when = 1, indicates Business Associate B is exempted from CC 6455 Declined Hourly Pre-Dispatch Penalty charges. The input is based on SAMC Standing Data.
5. / BAResourceDeclinedHourlyPreDispatchPenaltyExceptionFlag BrtF’ / Exception Flag input that, when = 1, indicates Business Associate B together with Resource ID r of Resource Type t and Entity Component Type F’ is exempted from CC 6455 Declined Hourly Pre-Dispatch Penalty charges. The input is based on SAMC Standing Data.
6. / ImportsDeclineThresholdQuantity m / Derived from SAMC Standing Data, the input presents the Tariff-defined Decline Threshold Quantity – Imports (in MWh). The input data is effective for Trading Month m.
The initial value for ImportsDeclineThresholdQuantity m is 300 MWh.
7. / ExportsDeclineThresholdQuantity m / Derived from SAMC Standing Data, the input presents the Tariff-defined Decline Threshold Quantity – Exports (in MWh). The input data is effective for Trading Month m.
The initial value for ExportsDeclineThresholdQuantity m is 300 MWh.
8. / ImportsDeclineThresholdPercentage m / Derived from SAMC Standing Data, the input presents the Tariff-defined Decline Threshold Percentage – Imports (represented as a decimal number) for Trading Month m.
The initial value for ImportsDeclineThresholdPercentage m is .10 (10%).
9. / ExportsDeclineThresholdPercentage m / Derived from SAMC Standing Data, the input presents the Tariff-defined Decline Threshold Percentage – Exports (represented as a decimal number) for Trading Month m.
The initial value for ExportsDeclineThresholdPercentage m is .10 (10%).
10. / ImportsExportsLMPPercentage m / Derived from SAMC Standing Data, the input presents the Tariff-defined LMP percentage – Imports/Exports (as a decimal number).
The initial value for ImportsExportsLMPPercentage m is 0.50 (50%).
11. / ImportsExportsMinimumDeclinePotentialChargePrice m / Derived from SAMC Standing Data, the input presents the Tariff-defined minimum Decline Potential Charge Price – Imports/Exports (in $/MWh).
The initial value for ImportsExportsMinimumDeclinePotentialChargePrice m is 10.00.
12. / PTBChargeAdjustmentHAPSDeclinedBid BJm / PTB adjustment variable for this Charge Code, amount per Business Associate B, PTB ID J, for Trading Hour h. ($)

3.5  Inputs - Predecessor Charge Codes or Pre-calculations

Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration /
1. / SettlementIntervalOAfromHASPEnergy BrtuT’I’M’F’S’hi / Settlement Interval Operational Adjustment from HASP Energy (in MWh), as derived by the Real-Time Energy Precalculation, for Business Associate B, System Resource r, Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, and MSS Subgroup M’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h and Settlement Interval i.
ÓCAISO, 2014 / Page 20 of 20
Settlements and Billing / Version: 5.10
Configuration Guide for: Declined Hourly Pre-Dispatch Penalty Settlement / Date: 11/04/0905/21/10

3.6  CAISO Formula

The monthly settlement of declined hourly pre-dispatch penalties for each Business Associate by is derived according to the formulation below.

Note: The following calculation is listed starting with the final charge calculation and progressively detailing the intermediate calculations and Settlement input.

3.6.1  Total HASP Intertie Bid Decline Charge over the CAISO Control Area by Trading Month:

CAISOMonthlyHASPIntertieBidDeclineCharge m = BAMonthlyHASPIntertieBidDeclineCharge Bm

3.6.2  Total HASP Intertie Bid Decline Charge by BA and Trading Month:

BAMonthlyHASPIntertieBidDeclineCharge Bm = BAMonthlyHASPIntertieImportBidDeclineCharge Bm + BAMonthlyHASPIntertieExportBidDeclineCharge Bm