Configuration Guide for: High Voltage Access Charge Allocation / Date: 5/18/0905/21/2010
Settlements and Billing
BPM Configuration Guide: High Voltage Access Charge Allocation
CC 372
Version 5.0a1
ÓCAISO, 2010 / Page 19 of 20Settlements and Billing / Version: 5.0a1
Configuration Guide for: High Voltage Access Charge Allocation / Date: 5/18/0905/21/2010
Table of Contents
1. Purpose of Document 3
2. Introduction 3
2.1 Background 3
2.2 Description 4
3. Charge Code Requirements 5
3.1 Business Rules 5
3.2 Predecessor Charge Codes 5
3.3 Successor Charge Codes 6
3.4 Input - External Systems 6
3.5 Inputs - Predecessor Charge Codes or Pre-calculations 7
3.6 CAISO Formula 7
3.7 Outputs 16
4. Charge Code Effective Date 20
ÓCAISO, 2010 / Page 19 of 20Settlements and Billing / Version: 5.0a1
Configuration Guide for: High Voltage Access Charge Allocation / Date: 5/18/0905/21/2010
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 Access Charge methodology provides first that each individual Participating TO’s transmission rate that was on a license-plate basis be aggregated into a TAC Area rate, then over a 10 year transition period that commenced January 1, 2001, at a rate of 10% per year, the Access Charge is transitioned from "TAC Area" rates to ISO Grid-wide rates for High Voltage Transmission Facilities (i.e., TAC Areas are defined broadly as the previous significant Control Areas in the CAISO Control Area). Thus by January 1, 2011, the Access Charges for CAISO will be one rate for the entire CAISO Controlled Grid.
In addition, all new capital additions to Existing High Voltage Facilities and New High Voltage Facilities are included immediately in the ISO Grid-wide component. Existing High Voltage Facilities are those facilities that were in commercial operation prior to January 1, 2001. Further, the cost-shift associated with the blending of the various PTOs TRR, that impacts the Original Participating TOs is limited to $72 Million. The transmission Access Charge consists of the High Voltage Access Charge and Transition Charge, and the Low Voltage Access Charge.
For a Participating Transmission Owners (PTO) that turns over Operational Control of its transmission facilities and Entitlements to CAISO, that PTO receives revenues by way of the Access Charge. The use of the Access Charge rate is a way to compensate PTOs and charge users of CAISO Controlled Grid for the embedded cost of the transmission infrastructure. PTOs establish their Transmission Revenue Requirement (TRR), which is the revenue needed to offset the embedded cost of their transmission facilities and Entitlements for their individual Service Area through a proceeding at Federal Energy Regulatory Commission (FERC). In addition, the Access Charge is revised whenever the PTO received approval from FERC that a new rate is effective.
The calculated TAC Blended Rate (TAC Area component and CAISO Grid-wide component) is also used to limit the annual amount paid by the IOUs based on a proportionality equation consisting of $32 Million for Pacific Gas and Electric Company and Southern California Edison Company and $8 Million for San Diego Gas & Electric Company. CAISO currently has three ‘TAC Areas’:
· North TAC Area (N)
· East Central TAC Area (EC)
· South TAC Area (S)
As New PTOs join, they are merged into the appropriate TAC Areas. A new TAC Area will be formed, the West Central TAC Area, if the Los Angeles Department of Water and Power turns over Operational Control of its transmission facilities and Entitlements to CAISO. New PTOs may join effective January 1 or July 1 of any given year and at the transition rate of the year they join is immediately enforced (i.e., if PTO A joins in 2007, then the transition percentages are 70% ISO Grid-wide and 30% TAC Area for Existing High Voltage Transmission Facilities and 100% ISO Grid-wide for New High Voltage Transmission Facilities).
Currently, CAISO intermittently adjusts the TAC Blended Rates with the effective date of any a revised PTO’s TRR(s). At a minimum, the TAC Blended Rates are adjusted annually on January 1 with the revision of the PTOs’ Transmission Revenue Balancing Account Adjustment (TRBAA).
The Access Charge assessed to a Market Participant is determined based on the voltage level of the Take-out Point or Scheduling Point. The SC representing Metered Demand is charged the appropriate Access Charge. The relationship of the charges is as follows:
Type of Market Participant / Voltage level of CAISO Controlled Grid Usage / Access Charge Assessed /MSS Operator or UDC that is also a PTO / 200 kV and above / HVAC
Below 200kV / HVAC and LVAC
MSS Operator, UDC or SC that is not a PTO / 200 kV and above / HVWAC
Below 200kV / LVWAC
2.2 Description
The High Voltage Access Charge Settlement Amount (CC 372) determines the total Access Charge for each UDC and MSS that is also a PTO. If a UDC or MSS is not a PTO then such entity pays the Wheeling Access Charge.
UDCs and MSS Operators that are also PTOs serving Gross Load in a PTO Service Territory are charged on a monthly basis the applicable High Voltage Access Charge (HVAC). The High Voltage Access Charge for a Billing Period is calculated by CAISO as the product of the applicable TAC Blended Rate and Gross Load connected to the facilities of the UDC and MSS Operator in the PTO Service Territory.
CAISO calculates and collects HVAC from the SC representing the end-user or ‘Load’ from the UDCs and MSSs and pays the amount collected to the PTOs in CC 374. Through the Access Charge implementation process, a single transmission rate throughout CAISO's Controlled Grid will be established effective January 1, 2011.
HVAC charges are calculated on a daily basis based on the hourly usage of the CAISO Controlled Grid but charged monthly. Recalculations for any reason, other than retroactive rate reductions, are run against the most recent Settlement Amounts and Invoiced with other Market based charges. However, retroactive FERC ordered rate reductions are handled separately in accordance with the CAISO Tariff, Appendix F, Schedule 3.
Recalculations for retroactive rate reductions must also be run against the most recent Settlement Amounts, and the adjustments are processed and Invoiced against the associated Bill Period. Retroactive rate increases are processed once FERC approves the rates which maybe after a Settlement or subsequent to litigation. This could be numerous years after the rate was made effective by FERC.
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 / HVAC daily charges are calculated on the last day of the trade month and summed for monthly settlement by UDC.
2.0 / The MonthlyTotalHighVoltageAccessChargeSettlementAmount for a given UDC and month is the sum of its UDCMonthTransitionChargeAmount and UDCMonthHVACDueAmount for the same month
3.0 / OPTO (original PTO) indicator required for PTO designation
4.0 / 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
5.0 / An MSS is identified as a UDC for the purposes of the CC 372 HVAC calculation
3.2 Predecessor Charge Codes
Charge Code/ Pre-calc Name /CG PC High Voltage Access Charge and Transition Charge
HVAC Metered Load Pre-calculation
3.3 Successor Charge Codes
Charge Code/ Pre-calc Name /CC 374 – High Voltage Access Revenue Payment
3.4 Input - External Systems
Row # / Variable Name / Description /1 / AnnualCaponBurden uPHv / Annual limit on the cost-shift attributable to the Existing HVTRR per UDC u PTO ID P HVAC Payer ID H and TAC Area ID v. Only exists for original UDC’s. Standing data with effective start and end dates.
2 / OPTOIndicator uP / Indicator designates a PTO as OPTO or NPTO. Standing Data with effective start and end dates.
3 / PTBChargeAdjustmentMonthlyTotalHighVoltageAccessChargeSettlementAmount BJm / PTB Charge Adjustment Monthly Total High Voltage Access Charge Settlement Amount for BA ID B, PTB _D J, and Trading Month m
4 / PreviousMonthYTMExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd / GL Interface or Previous Day Calc
5 / NumericUDCIDHVACPaymentIndicator BuPHv / Numeric UDC ID HVAC Payment Indicator per BA ID B, UDC u, PTO ID P, HVAC Payer ID H, and TAC Area ID v.
6 / PTOExistingFacilityNoLoadException vP / PTO Existing Facility No Load Exception by each PTO (P) associated with TAC Area (v)
Interval value will be set to 1. This exception relates to PTOs without load that have Existing Facilities TRR. This exception required to exempt such entities from Transition Pricing due to lack of load
7 / PreviousMonthYTDTransitionChargeBasedOnActualLoad uPHvmd / GL Interface or Previous Day Calc
3.5 Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration1 / HighVoltageBlendedTACAreaRate vmd / CG PC High Voltage Access Charge and Transition Charge
2 / HVACDailyMeteredLoadQuantity uPHvmd / HVAC Metered Load Pre-calculation
3 / HighVoltageExistingFacilitiesTACAreaRate vmd / CG PC High Voltage Access Charge and Transition Charge
4 / ExistingHighVoltageFacilityUtilitySpecificRate vPmd / CG PC High Voltage Access Charge and Transition Charge
5 / ExistingHighVoltageFacilityUtilitySpecificRevenueRequirement vPmd / CG PC High Voltage Access Charge and Transition Charge
3.6 CAISO Formula
3.6.1 High Voltage Access Charge Allocation for every UDC u and Settlement Interval m
is defined by:
MonthlyTotalHighVoltageAccessChargeSettlementAmount BuPHvm = (UDCMonthTransitionChargeAmount uPHvm + UDCMonthHVACDueAmount uPHvm) *
NumericUDCIDHVACPaymentIndicator BuPHv
3.6.1.1 UDCMonthHVACDueAmount uPHvm = DailyHVACDuefromUDC uPHvmd
3.6.1.1.1 Where DailyHVACDuefromUDC uPHvmd = (HighVoltageBlendedTACAreaRate vmd * HVACDailyMeteredLoadQuantity uPHvmd) * (-1)
Note: HighVoltageBlendedTACAreaRate vmd is provided by the configuration enhancement procedure that returns (previously calculated) daily HV TAC prices as generated by the High Voltage Access Charge and Transition Charge Pre-calculation.
3.6.1.2 TotalAmountOPTOBurdenExceedsOPTOCap md = AmountOPTOBurdenExceedsOPTOCap uPHvmd
3.6.1.3 AmountOPTOBurdenExceedsOPTOCap uPHvmd =
IF
OPTOIndicator uP = 1
AND
YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd >AnnualCaponBurden uPHv
THEN
AmountOPTOBurdenExceedsOPTOCap uPHvmd = YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd – AnnualCaponBurden uPHv
ELSE
AmountOPTOBurdenExceedsOPTOCap uPHvmd = 0
3.6.1.4 LastDayoftheMonthYTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd = YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd
Note: This charge type is calculated only once on the last day of the month using eterra LDP frequency. This value is used in the custom view to generate the PreviousMonthYTMExistingHighVoltageFacilitiesNetBenefitBurden for the next month
3.6.1.5 Where YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd =
MTDExistingHighVoltageFacilitiesHVACNetBenefitBurden uPHvmd + PreviousMonthYTMExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd
(This value accounts for all previous months Net Benefit Burden for the year and is the result of a view)
3.6.1.6 Where MTDExistingHighVoltageFacilitiesHVACNetBenefitBurden uPHvmd =
CurrentDay’sExistingHighVoltageFacilitiesHVACNetBenefitBurden uPHvmd
(maintains a running total (RT) for the month)
3.6.1.6.1 Where
CurrentDay’sExistingHighVoltageFacilitiesHVACNetBenefitBurden uPHvmd =
UDCWould PaidUnderEHVFTACAreaRate uPHvmd – (UDCWouldReceiveUnderEHVFUtilitySpecific uPHvmd + (TotalUDCWouldPaidUnderEHVFTACAreaRate md – TotalUDCWouldReceiveUnderEHVFUtilitySpecific md) * ProportionofTotalExistingHighVoltageFacilitiesTRR vPmd))
3.6.1.6.1.1 Where
TotalUDCWouldPaidUnderEHVFTACAreaRate md = UDCWouldPaidUnderEHVFTACAreaRate uPHvmd
3.6.1.6.1.2 Where
UDCWouldPaidUnderEHVFTACAreaRate uPHvmd = (HighVoltageExistingFacilitiesTACAreaRate vmd * HVACDailyMeteredLoadQuantity uPHvmd) * (-1)
Note: HighVoltageExistingFacilitiesTACAreaRate vmd is provided by the configuration enhancement procedure that returns (previously calculated) daily Existing Facilities TAC Area prices as generated by the High Voltage Access Charge and Transition Charge Pre-calculation.
3.6.1.6.1.3 Where
TotalUDCWouldReceiveUnderEHVFUtilitySpecific md = UDCWouldReceiveUnderEHVFUtilitySpecific uPHvmd
3.6.1.7 And UDCWouldReceiveUnderEHVFUtilitySpecific uPHvmd =
(ExistingHighVoltageFacilityUtilitySpecificRate Pvmd * HVACDailyMeteredLoadQuantity uPHvmd) * (-1)
Note: ExistingHighVoltageFacilityUtilitySpecificRate Pvmd is provided by the configuration enhancement procedure that returns (previously calculated) daily Existing Facilities Utility Specific prices as generated by the High Voltage Access Charge and Transition Charge Pre-calculation
3.6.2 And ProportionofTotalExistingHighVoltageFacilitiesTRR vPmd =
ExistingHighVoltageFacilityUtilitySpecificRevenueRequirement vPmd / TotalExistingHighVoltageFacilityUtilitySpecificRevenueRequirement md
Where
PTOExistingFacilityNoLoadException vP > 1
Developmental Note: PTOExistingFacilityNoLoadException vP will be configured as an exception to ensure that PTO’s with existing facility TRR but no load are exempted from transition pricing. The exemption will ensure that such entities are not pulled into this formula and are not used to build the matrix
Note: ExistingHighVoltageFacilityUtilitySpecificRevenueRequirement Pvmd is provided by the configuration enhancement procedure that returns (previously calculated) daily Existing HV Facilities Utility Specific revenue requirement amounts as generated by the High Voltage Access Charge and Transition Charge Pre-calculation
3.6.2.1 And TotalExistingHighVoltageFacilityUtilitySpecificRevenueRequirement md =
ExistingHighVoltageFacilityUtilitySpecificRevenueRequirement vPmd
Where
PTOExistingFacilityNoLoadException vP > 1
Developmental Note: PTOExistingFacilityNoLoadException vP will be configured as an exception to ensure that PTO’s with existing facility TRR but no load are exempted from transition pricing. The exemption will ensure that such entities are not pulled into this formula and are not used to build the matrix
Note: ExistingHighVoltageFacilityUtilitySpecificRevenueRequirement Pvmd is provided by the configuration enhancement procedure that returns (previously calculated) daily Existing HV Facilities Utility Specific revenue requirement amounts as generated by the High Voltage Access Charge and Transition Charge Pre-calculation