Configuration Guide for: CC 7056 Flexible Ramp Cost Allocation / Date: 9/29/145/27/1610/19/2016
Settlements & Billing
BPM Configuration Guide: Flexible Ramp Cost Allocation
CC 7056
Version5.3
CAISO, 2018 / Page 1 of 17Settlements & Billing / Version: 5.3
Configuration Guide for: CC 7056 Flexible Ramp Cost Allocation / Date: 9/29/145/27/1610/19/2016
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 Charge Code in one document.
2.Introduction
2.1Background
A flexible ramping constraint applies as part of the market optimization for the real-time processes. This constraint addresses certain reliability and operational issues observed in the ISO’s operation of the grid.
In accordance with the CAISOTariff, resources that resolve the flexible ramping constraint are to be compensated in Settlements at the Flexible Ramping Constraint Derived Price. The Flexible Ramping Constraint Derived Price is equal to the lesser of:
1) $800/MWh; or
2) the greater of: a) zero, or b) Real-Time Spinning Reserve Ancillary Service Marginal Price; or c) the Flexible Ramping Constraint Shadow Price minus seventy-five percent of the maximum of zero or the simple average Real-Time System Marginal Energy Cost for each of the three five-minute RTD intervals in the applicable fifteen-minute FMM interval.
The Flexible Ramping Constraint Shadow Price is the reduction of the total Energy and Ancillary Services procurement cost associated with a marginal change at each constraint for the individual Balancing Authority Areas (BAA) in the EIM Area and applicable groupings of those areas in which the constraint is enforced, which will be equal to zero (0) if the Flexible Ramping Constraint is not binding.
The CAISO will determine the Flexible Ramping Constraint costs for each constraint as the product of:
1)the resource-specific total Flexible Ramping Constraint costs, calculated as the total compensation, net of rescinded amounts; and
2)the ratio of the Flexible Ramping Constraint Shadow Price to the total Flexible Ramping Constraint Shadow Price
For each constraint and each BAA in the EIM Area, the CAISO will determine the Flexible Ramping Constraint costs attributable to that BAA for which the applicable constraint(s) were binding in the applicable interval, based on the ratio of the BAA’s requirement to its contribution to the individual constraint or group of constraints to which that BAA contributes, and determine each BAA’s apportionment of Flexible Ramping Constraint costs as the summation of the BAA’s amounts.
The costs associated with such compensation, as netted by BAA, are allocated to the CAISO BAA as twenty-five percent of daily gross negative supply deviations and seventy-five percent of hourly measured demand, which consists of metered load and exports. At the end of each month, the costs allocated to daily gross negative supply deviations will be reversed and re-allocated to monthly gross negative supply deviations. The associated costs for individual EIM BAAs are allocated to the EIM Entity Scheduling Coordinator(s).
2.2Description
In this Charge Code (CC) 7056 Flexible Ramp Cost Allocation, the costs from CC 7050 Flexible Ramp Up Capacity Payment,net of the rescission payment from CC 7024 Flexible Ramp Up No Pay Capacity Charge,are apportioned to the Balancing Authority Area (BAA) based on the ratio of the proportion of the shadow price contribution of each constraint or group of constraints resolved by a resource to the total shadow price across all constraints, and by the ratio of a BAA’s Flexible Ramp requirement to its total contribution toward relieving a Flexible Ramp Constraint or constraint group. The total output costs for the CAISO BAA are allocated seventy-five percent to hourly resource-level Measured Demand without exemption to the demand quantities, and twenty-five percent to daily gross negative supply deviation.The total output costs for the EIM BAA are allocated to the EIM Entity Scheduling Coordinator.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / For the CAISO BAA, the costs of flexible ramping capacity payments, as apportioned to CAISO andnet of the rescission No Pay payment, are allocated seventy-five percent to hourly resource-level Measured Demand without exemption to the demand quantities, and twenty-five percent to daily gross negative supply deviation.
2.0 / There shall be no exemption to the hourly Measured Demand quantities for the purpose of allocating the flexible ramping capacity payments to Scheduling Coordinators in the CAISO BAA.
2.1 / The daily gross negative supply deviationis calculated per resource in the CAISO BAA as the sum of total negative Settlement Interval UIE plus total negative Settlement Interval import Operational Adjustments
3.0 / The net imbalance amount calculated as the sum of the final Settlement amounts for Charge Codes 7050 and 7056 in a given trade interval is attributed to rounding and must be output to CC 4989 Daily Rounding Adjustment Allocation.
4.0 / The costs of flexible ramping capacity payments, as apportioned to an EIM BAA and net of rescission No Pay payment, are allocated to the EIM Entity Scheduling Coordinator.
4.1 / A resource participating in the EIM can only be part of one BAA.
5.0 / Each resource with awarded flexible ramping capacity may resolve Flexible Ramping Constraints associated with multiple BAAs within the EIM Area, or just one. This potential combination of Flexible Ramping Constraints is referred to as a group of constraints in which the resource participates.
5.1 / Each Flexible Ramping Constraint corresponds to a BAA or group of BAAs. All permutations of BAAs within the EIM Area are taken into consideration.
6.0 / The total Flexible Ramping Constraint Shadow Price is the resource-specific summation of the flexible ramping shadow prices of all constraints in the group of constraints which the resource may resolve. This is the same shadow price used in the calculation of compensation in Charge Code 7050.
7.0 / The Flexible Ramping Constraint Shadow Price is a constituent element of the aforementioned total – it is the shadow price associated with one Flexible Ramping Constraint or group of such constraints.
8.0 / For the purposes of this Charge Code 7056, the Flexible Ramping Constraint Shadow Price is shown at the resource level. When a resource resolves a constraint pertaining to multiple BAAs, the shadow price is separated by BAA in proportion to the BAA’s Flexible Ramping Constraint requirement quantity, as determined by the CAISO market software.
8.0 / The Flexible Ramping Constraint costs, net of rescission, are apportioned to Flexible Ramping Constraint or group of constraints, as the ratio of the individual Flexible Ramping Constraint Shadow Price to the total Flexible Ramping Constraint Shadow Price
9.0 / The total apportionment to BAAs in the EIM Area represents the netting of Flexible Ramping Constraint costs per Flexible Ramping Constraint or group of Constraints to the individual BAA in which an awarded resource is located.
3.2Predecessor Charge Codes
Charge Code/ Pre-calc NameCC 7050 – Flexible Ramp Up Capacity Payment
Pre-calculation Measured Demand over Control Area
Real Time Energy Quantity Pre-calculation
CC 7024 – Flexible Ramp Up Capacity No Pay Charge
3.3Successor Charge Codes
Charge Code/ Pre-calc NameCC 7057 - Flex Ramp Up Supply Cost Allocation Reversal
CC7058 – Monthly Flex Ramp Up Supply Cost Allocation
CC 4989 – Daily Rounding Adjustment Allocation
3.4Inputs – External Systems
Row # / Variable Name / Description1 / BAABAFMMIntervalResourceFlexRampUpConstraintPrice BrtQ’mdhc / The resource-specific price for an individual Flexible Ramping Constraint or group of constraints which the resource may resolve in an FMM Interval. For a shadow price that involves a group of constraints, this price will reflect the proportional BAA contribution to the Flexible Ramping Constraint requirement. ($/MW)
2 / BAResourceFlexRampUpShadowPrice Brtmdhc / The shadow price for flexible ramping up constraint for an FMM interval. ($/MW)
3 / EIMEntitySCFlag BQ’ / A flag input that, when equal to 1, relates an EIM Balancing Authority Area (EIM BAA) with the associated Business Associate of the EIM Entity Scheduling Coordinator ID.
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/Pre-calc Configuration
1 / BA15MResourceFlexRampUpCapacityPayment BrtF’S’mdhc / CC 7050 – Flexible Ramping Capacity Payment
2 / SettlementIntervalMeteredEnergyBrtuT’I’Q’M’F’S’mdhcif / Real Time Energy Quantity Pre-calculation
3 / SettlementIntervalRealTimeUIE BrtuT’I’Q’M’F’S’mdhcif / Real Time Energy Pre-Calculation
4 / BAFMMIntervalResourceFlexibleRampUpNoPayCapacity BrtF’S’mdhc / CC 7024 – Flexible Ramp Up No Pay Capacity Charge
5 / SettlementIntervalOAEnergyBrtuT’I’Q’M’F’S’mdhcif / Real Time Energy Quantity Pre-calculation
6 / CAISOTotalHourlyMeasuredDemandControlAreaQtymdh / Pre-calculation Measured Demand over Control Area
3.6CAISO Formula
3.6.1BADailyResourceFlexRampCostAllocationAmount
BADailyResourceFlexRampCostAllocationAmount BrtF’S’md = BADailyResourceFlexRampSupplyCostAllocationAmount BrtF’S’md+ BADailyResourceFlexRampDemandCostAllocationAmount BrtF’S’md
3.6.2BADailyResourceFlexRampSupplyCostAllocationAmount
BADailyResourceFlexRampSupplyCostAllocationAmount BrtF’S’md = BADailyResourceGrossNegativeSupplyQuantity BrtF’S’md * CAISODailyFlexRampSupplyAllocationPrice md
3.6.3CAISODailyFlexRampSupplyAllocationPrice
CAISODailyFlexRampSupplyAllocationPrice md = CAISODailyNetFlexRampUpSupplyCosts md /CAISODailyGrossNegativeSupplyQuantity md
3.6.4BADailyResourceFlexRampDemandCostAllocationAmount
BADailyResourceFlexRampDemandCostAllocationAmount BrtF’S’md = BAHourlyResourceFlexRampDemandCostAllocationAmount BrtF’S’mdh
3.6.5BAHourlyResourceFlexRampDemandCostAllocationAmount
BAHourlyResourceFlexRampDemandCostAllocationAmount BrtF’S’mdh=
((-1)*BAHourlyResourceMeasuredDemandQuantity BrtF’S’mdh * CAISOHourlyFlexRampDemandCostAllocationPrice mdh)
3.6.6CAISOHourlyFlexRampDemandCostAllocationPrice
IF
CAISOTotalHourlyMeasuredDemandControlAreaQty mdh <= (-0.001)
THEN
CAISOHourlyFlexRampDemandCostAllocationPricemdh = (CAISOHourlyNetFlexRampUpDemandCosts mdh/ (ABS(CAISOHourlyMeasuredDemandQuantity mdh)) )
ELSE
CAISOHourlyFlexRampDemandCostAllocationPrice mdh= 0
3.6.7CAISOHourlyMeasuredDemandQuantity
CAISOHourlyMeasuredDemandQuantity mdh = BAHourlyResourceMeasuredDemandQuantity BrtF’S’mdh
3.6.8BAHourlyResourceMeasuredDemandQuantity
BAHourlyResourceMeasuredDemandQuantity BrtF’S’mdh = SettlementIntervalMeteredEnergy BrtuT’I’Q’M’F’S’mdhcif
Where Resource Type (t) = ‘LOAD’ or ‘ETIE’
And Where Balancing Authority Area (Q’) = ‘CISO’
3.6.9CAISODailyGrossNegativeSupplyQuantity
CAISODailyGrossNegativeSupplyQuantity md = BADailyResourceGrossNegativeSupplyQuantity BrtF’S’md
3.6.10BADailyResourceGrossNegativeSupplyQuantity
BADailyResourceGrossNegativeSupplyQuantity BrtF’S’md= BAHourlyResourceGrossNegativeSupplyQuantity BrtF’S’mdh
3.6.11BAHourlyResourceGrossNegativeSupplyQuantity
BAHourlyResourceGrossNegativeSupplyQuantity BrtF’S’mdh = BASettlementIntervalResourceGrossNegativeSupplyQuantity BrtF’S’mdhcif
3.6.12BASettlementIntervalResourceGrossNegativeSupplyQuantity
BASettlementIntervalResourceGrossNegativeSupplyQuantity BrtF’S’mdhcif= BASettlementIntervalCAISOBAAResourceNegativeUIEQuantity BrtF’S’mdhcif + BASettlementIntervalResourceNegativeOAQuantity BrtF’S’mdhcif
3.6.13BASettlementIntervalCAISOBAAResourceNegativeUIEQuantity
BASettlementIntervalCAISOBAAResourceNegativeUIEQuantity BrtF’S’mdhcif = ABS (Min (0, SettlementIntervalRealTimeUIE BrtuT’I’Q’M’F’S’mdhcif))
Where Resource type (t) = GEN or ITIE
And Where Balancing Authority Area (Q’) = ‘CISO’
3.6.14BASettlementIntervalResourceNegativeOAQuantity
BASettlementIntervalResourceNegativeOAQuantity BrtF’S’mdhcif= ABS (Min (0,( SettlementIntervalOAEnergyBrtuT’I’Q’M’F’S’mdhcif)
Where Resource Type (t) = ‘ITIE’
And Where Balancing Authority Area (Q’) = ‘CISO’
3.6.15CAISOHourlyNetFlexRampUpDemandCosts
CAISOHourlyNetFlexRampUpDemandCosts mdh = (.75) * CAISOHourlyNetFlexRampUpCosts mdh
3.6.16CAISODailyNetFlexRampUpSupplyCosts
CAISODailyNetFlexRampUpSupplyCosts md = CAISOHourlyNetFlexRampUpSupplyCosts mdh
3.6.17CAISOHourlyNetFlexRampUpSupplyCosts
CAISOHourlyNetFlexRampUpSupplyCosts mdh = (.25) * CAISOHourlyNetFlexRampUpCosts mdh
3.6.18CAISOHourlyNetFlexRampUpCosts
CAISOHourlyNetFlexRampUpCosts mdh =
CAISOFMMIntervalFlexRampUpTotalCost mdhc
3.6.19CAISOFMMIntervalFlexRampUpTotalCost
CAISOFMMIntervalFlexRampUpTotalCost mdhc = BAAFMMIntervalFlexRampUpTotalCost Q’mdhc
Where Balancing Authority Area (Q’) = ‘CISO’
3.6.20EIMEntitySCDailyFlexRampUpTotalCostAllocAmount
EIMEntitySCDailyFlexRampUpTotalCostAllocAmount Bmd = EIMEntityFMMIntervalFlexRampUpTotalCost Q’mdhc * EIMEntitySCFlag BQ’
3.6.21EIMEntityFMMIntervalFlexRampUpTotalCost
EIMEntityFMMIntervalFlexRampUpTotalCost Q’mdhc = BAAFMMIntervalFlexRampUpTotalCost Q’mdhc
Where Balancing Authority Area (Q’) > ‘CISO’
3.6.22BAAFMMIntervalFlexRampUpTotalCost
BAAFMMIntervalFlexRampUpTotalCost Q’mdhc = BAABAFMMIntervalResFlexRampUpAllocAmount BrtQ’mdhc
3.6.23BAABAFMMIntervalResFlexRampUpAllocAmount
BAABAFMMIntervalResFlexRampUpAllocAmount BrtQ’mdhc = BAFMMIntervalNetFlexRampUpCostsBrtmdhc * BAABAFMMIntervalResourceFlexRampUpConstraintRatio BrtQ’mdhc
3.6.24BAABAFMMIntervalResourceFlexRampUpConstraintRatio
If BAResourceFlexRampUpShadowPrice Brtmdhc = 0
Then BAABAFMMIntervalResourceFlexRampUpConstraintRatio BrtQ’mdhc =
(BAABAFMMIntervalResourceFlexRampUpConstraintPrice BrtQ’mdhc+1)/ (BAResourceFlexRampUpShadowPrice Brtmdhc+1)
Else
BAABAFMMIntervalResourceFlexRampUpConstraintRatio BrtQ’mdhc = BAABAFMMIntervalResourceFlexRampUpConstraintPrice BrtQ’mdhc/BAResourceFlexRampUpShadowPrice Brtmdhc
Implementation Note: When the BAResourceFlexRampUpShadowPrice = 0, then the output of this equation shall be limited to resources which have a non-zero BA15MResourceSPINPrice.The equation takes into account the number of BAAs whose constraints can be resolved by a Flexible Ramping Up award to derive a proportion as a basis for allocation.
3.6.25BAFMMIntervalNetFlexRampUpCosts
BAFMMIntervalNetFlexRampUpCosts Brtmdhc = (-1) *
(BA15MResourceFlexRampUpCapacityPayment BrtF’S’mdhc+BAFMMIntervalResourceFlexibleRampUpNoPayCapacity BrtF’S’mdhc)
3.6.26BACISODailyFlexRampCostAllocationAmount
BACISODailyFlexRampCostAllocationAmount Bmd = BADailyResourceFlexRampCostAllocationAmount BrtF’S’md
3.6.27BATotalDailyFlexRampCostAllocationAmount
BATotalDailyFlexRampCostAllocationAmount Bmd =BACISODailyFlexRampCostAllocationAmount Bmd + EIMEntitySCDailyFlexRampUpTotalCostAllocAmount Bmd
3.6.28EIMAreaDailylTotalFlexRampCostAllocationAmount
EIMAreaDailyTotalFlexRampCostAllocationAmountmd=
BATotalDailyFlexRampCostAllocationAmountBmd
Implementation Note: This is provided as part of reporting structure and is not configured as an individual charge type.
3.7Outputs
Output Req ID / Name / Description1 / In addition to any outputs listed below, all inputs shall be included as outputs. / All inputs.
2 / BAHourlyResourceMeasuredDemandQuantity BrtF’S’mdh / Hourly Measured Demand Quantity for a resource in the CAISO BAA for a Trading Hour
(Assumption: Trade Month m and Trading Day d)
3 / BADailyResourceFlexRampDemandCostAllocationAmount BrtF’S’md / Total Daily Flex Ramp Cost Allocation Amount per Business Associate and resource for a Trading Day
4 / BADailyResourceFlexRampSupplyCostAllocationAmount BrtF’S’md / Total Daily Flex Ramp Supply Cost Allocation Amount per Business Associate and resource for a Trading Day
5 / CAISODailyFlexRampSupplyAllocationPrice md / The CAISO Total Daily Flex Ramp Supply Allocation Price per Trading Day
6 / BAHourlyResourceFlexRampDemandCostAllocationAmount BrtF’S’mdh / Hourly Flexible Ramp demand cost allocation amount for a resource for a Trading Hour
(Assumption: Trade Month m and Trading Day d)
7 / CAISOHourlyFlexRampDemandCostAllocationPrice mdh / The CAISO Total Flex Ramp Demand Allocation Price per Trading Hour.
(Assumption: Trade Month m and Trading Day d)
8 / CAISODailyGrossNegativeSupplyQuantity md / The CAISO total daily gross negative Supply quantity per Trading Day.
(Assumption: Trade Month m and Trading Day d)
9 / BADailyResourceGrossNegativeSupplyQuantity BrtF’S’md / The total daily gross negative Supply quantity for a resource for a Trading Day
10 / BASettlementIntervalResourceGrossNegativeSupplyQuantity BrtF’S’mdhcif / The total Settlement Interval gross negative Supply quantity for a resource for a Settlement Interval
(Assumption: Trade Month m and Trading Day d)
11 / BASettlementIntervalCAISOBAAResourceNegativeUIEQuantity BrtF’S’mdhcif / The absolute value of the total Negative Uninstructed Imbalance by resource in the CAISO BAA.
12 / BASettlementIntervalResourceNegativeOAQuantity BrtF’S’mdhcif / The total Settlement Interval gross negative Operational Adjustment quantity per Business Associate and resource for a Settlement Interval in the CAISO BAA.
(Assumption: Trade Month m and Trading Day d)
13 / CAISOHourlyNetFlexRampUpDemandCosts mdh / The CAISO hourly net Flexible Ramp Up Demand Costs for a Trading Hour
(Assumption: Trade Month m and Trading Day d)
14 / CAISODailyNetFlexRampUpSupplyCosts md / The CAISO daily net Flexible Ramp Up Demand Costs for a Trading Day
15 / CAISOHourlyNetFlexRampUpSupplyCosts mdh / The CAISO hourly net Flexible Ramp Up Demand Costs for a Trading Hour
(Assumption: Trade Month m and Trading Day d)
16 / CAISOHourlyNetFlexRampUpCosts mdh / The CAISO hourly total net Flexible Ramp Up Costs for a Trading Hour
(Assumption: Trade Month m and Trading Day d)
17 / EIMAreaDailyTotalFlexRampCostAllocationAmount md / The EIM Area total daily Flexible Ramp Up Costs Allocation Amount for a Trading Day
18 / BADailyResourceFlexRampCostAllocationAmount BrtF’S’md / Total Daily Flex Ramp Cost Allocation Amount per Business Associate for a Trading Day
19 / BAHourlyResourceGrossNegativeSupplyQuantity BrtF’S’mdh / Hourly Gross Negative Supply Quantity per Business Associate for a Trading Hour
20 / CAISOHourlyMeasuredDemandQuantity mdh / CAISO Hourly Measured Demand quantity for a Trading Hour
21 / EIMEntitySCDailyFlexRampUpTotalCostAllocAmount Bmd / EIM Entity Scheduling Coordinator Flex Ramp Up Allocation. This is the total allocation amount for an EIM SC.
22 / EIMEntityFMMIntervalFlexRampUpTotalCost Q’mdhc / Total Flex Ramp Up Allocation Costs for an EIM BAA (non-CAISO) for an FMM Interval
23 / BAAFMMIntervalFlexRampUpTotalCost Q’mdhc / Total Flex Ramp Up Allocation Costs for a given BAA throughout the EIM Area for an FMM Interval
24 / BAABAFMMIntervalResFlexRampUpAllocAmount BrtQ’mdhc / Resource Total Flex Ramp Up Allocation Costs for an FMM Interval
25 / BAABAFMMIntervalResourceFlexRampUpConstraintRatio BrtQ’mdhc / Resource Flexible Ramp Shadow Price Contribution Ratio to the resource total Flexible Ramping Constraint Shadow Price, where the price is proportional to the BAA Flex Ramp Up requirement quantity, for an FMM Interval.
26 / BAFMMIntervalNetFlexRampUpCosts Brtmdhc / Resource Flexible Ramping Constraint Compensation, adjusted for payment rescission (No Pay), expressed as a positive value for an FMM Interval
27 / CAISOFMMIntervalFlexRampUpTotalCost mdhc / CAISO BAA Total Flex Ramp Up Allocation Costs for an FMM Interval
28 / BATotalDailyFlexRampCostAllocationAmount Bmd / Total Daily Flex Ramp Cost Allocation Amount per Business Associate for a Trading Day across the EIM Area
4.Charge Code Effective Date
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
CC 7056 – Flexible Ramp Cost Allocation / 5.0 / 12/13/11 / 10/31/12 / Configuration Impacted
CC 7056 – Flexible Ramp Cost Allocation / 5.1 / 11/01/12 / 4/30/13 / Configuration Impacted
CC 7056 – Flexible Ramp Cost Allocation / 5.2 / 5/01/14 / 09/30/14 / Configuration Impacted and Documentation Updates
CC 7056 – Flexible Ramp Cost Allocation / 5.3 / 10/01/14 / Open9/3010/31/16 / Configuration Impacted and Documentation Updates
CAISO, 2018 / Page 1 of 17