S&B BPM - CG PC RTM Net Amount

Settlements and Billing

BPM Configuration Guide:RTM Net Amount

Pre-calculation

Version 5.2a3

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 Dates

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

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), Transition Costs (TC), and Energy Bid Costs. In order to be eligible to recover SUC and MLC, a Generating Unit, Pumping Load, Pumped-Storage Hydro Units, or Resource-Specific System Resource must be committed by the CAISO. Likewise, the CAISO must commit a Multi-Stage Generating Resource in order for it to receive TC compensation. Bid Cost Recovery for Energy and Ancillary Services (A/S) Bids (A/S) applies to various Bid Cost Recovery Eligible Resources in general (for example, Generating Units, Pumping Load, Pumped-Storage Hydro Units, Proxy Demand Resources, and resource-specific System Resources) scheduled or dispatched by CAISO,regardless independent of whether they are CAISO-committed or instead are 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, or TC 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, TC, awarded Energy and A/S during a CAISO Commitment Period.

SUC, and MLC, and TC 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

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 various Bid Cost Recovery Eligible Resources (for example, Generating Units, Pumping Load, Pumped-Storage Hydro Units, Proxy Demand Resources 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

3.2Predecessor Charge Codes

3.3Successor Charge Codes

3.4Inputs – External Systems