Configuration Guide for: Interim Scheduling Charge for Under-Scheduled Load / Date: 04/01/09
Settlements & Billing
BPM Configuration Guide: Interim Scheduling Charge for Under-Scheduled Load
CC 6044_DAY
and
CC 6044
Version 5.0
CAISO, 2018 / Page 1 of 35Settlements & Billing / Version: 5.0
Configuration Guide for: Interim Scheduling Charge for Under-Scheduled Load / Date: 04/01/09
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 SaMC Charge Code in one document.
2.Introduction
2.1Background
Without a preventive market design measure in place, the potential exists for MRTU Schedule Coordinators associated with large Load-Serving Entities (LSEs)to impact Energy prices through their Demand bidding in the Integrated Forward Market (IFM, also referred to as Day-Ahead Market). In pre-MRTU markets, LSEs had limited ability to impact the total quantity of electricity they purchased asthe purchased quantity was in the hands of electricity end-users. However, LSEs have had the ability to influence where they purchased their power andthis choice continues with MRTU implementation. For example, an LSE with a large net short position going into the Day-Ahead Market (DAM) may find it profitable to shift Demand from the DAM to the Real-Time Market (RTM), if by doing so the LSE would be able to lower the Day-Ahead clearing price on its purchase in the DAM.
In the September 21, 2006 Order, the Commission directed the CAISO to implement convergence bidding. Convergence bidding improves market performance by:
1) providing the effect of expanding the number of competitors and the number of bids into the Day Ahead Market, which in turn helps to prevent the exercise of market power;
2) reducing the price differences between the Real-Time and the Day-Ahead Markets, which thereby reduces the incentive for buyers or sellers not bidding physical schedules in DAM with the expectation of better prices in the RTM;
3) facilitating the CAISO’s management of grid operations through a tariff mechanism that allows the CAISO to distinguish clearly between physical and financial bids; and
4) improving Day-Ahead and Real-Time price convergence and reducing the exercise of market power.
However, convergence bidding is not expected to be implemented until one year after implementation of MRTU. Therefore, an interim measure must be developed to mitigate the potential economic incentive for LSEs to under-schedule Load in the Day-Ahead Market. The mitigation will prevent the exercise of market power when energy prices in the CAISO Energy Markets suggest that it is economic to buy Energy in the Day-Ahead Market as opposed to the Real-Time Market.
The scheme specified within this document applies a penalty in cases where loads are often under-scheduled in the IFM market over the course of a month. Any revenues collected with the assessment of the Interim Scheduling Charge for under-scheduled Load will be treated as “Other Revenues” as indicated in Schedule F, of Part C of the CAISO Tariff and will be used to offset the revenue requirement associated with the Market Usage Charge. The revenue requirement offset will be appliedto the Market Usage Charge rate during the rate’s annual determination.
2.2Description
The Interim Scheduling Charge for an under-scheduled Load is calculated both for the Trading Day and cumulatively for the Trading Month. For the Trading Day, the calculation is performed on an hourly interval basis at theLAP level to present a Scheduling Coordinator (SC) with hourly deviation information and to determine any applicable net-negative deviation penalty charges that may apply in the Trading Hour. The hourly information issummarizedat the LAP level by SC and Trading Day to provide daily charge information for the daily Settlement Statement under Charge Code 6044_DAY. The informationthat appears on the daily Settlement Statement is advisory only. The advisory information indicates at the LAP level a) the total CAISO Demand scheduled by a SC for a Trading Hour, b) the deviation between the SC’s metered CAISO Demand and the total CAISO Demand scheduled by the SC for the Trading Hour, c) whether for a Net-Negative CAISO Demand Deviation the deviation is included as a quantity in the calculation of the monthly Interim Scheduling Charge, and d) the amount of the monthly Interim Scheduling Chargethat is attributable to the hourly deviation.
The daily Net-Negative CAISO Demand Deviation charges for each Trading Hour are summarized at the Trading Day level for each LAP and associated SC. As a monthly calculation, the “Interim Scheduling Charge for Under-Scheduled Load” configuration calculates a penalty amount at the LAP level for the Trading Month over the period extending from the first Trading Day of the Trading Month to the date of the latest Trading Day for which the daily Settlement calculation is being performed. Thus, for the last Trading Day of a Trading Month, the cumulative monthly calculation would extend over all Trading Days of the Trading Month.
The monthly calculation will re-calculate the daily Net-Negative CAISO Demand Deviation charges for each Trading Day and Trading Hour in the Trading Monthly under Charge Code 6044. Except where noted in the formula section, the hourly penalty amount is derived using the same methodology as 6044_DAY. Thus, the same operation may be performed in both the daily calculation under 6044_DAY and the monthly calculation under 6044, yet configuration of the two Charge Codes is distinct and separate such that the operation is distinguishable by unique bill determinants.
The monthly Interim Scheduling Charge for Under-Scheduled Load under Charge Code 6044 is determined cumulatively based upon the current Trading Day’s deviations as well as preceding Trading Days’ deviations in which Net-Negative Deviation exceeds the penalty threshold of fifteen percent (15%) of the SC’s cleared total CAISO Demand (as represented in the SC’s submitted Day-Ahead Schedule for the applicable LAP). The monthly penalty amount constitutes an actual SC settlement chargeresulting from the SC’s hourly under-scheduling of LAP Load over the monthly period.
There are various exemptions to the Interim Scheduling Charge. The Interim Scheduling Charge shall not apply to the following circumstances:
(a)For any given Trading Day for SCs in each applicable LAP in which the CAISO’s daily Day-Ahead peak CAISO Forecast of CAISO Demand is ninety-five percent (95%) or less than daily actual metered CAISO Demand in the respective northern and southern regions of the CAISO Balancing Authority Area as further described in the Business Practice Manuals.
(b)For any given Trading Hour when a SC’s peak metered CAISO Demand is less than or equal to 500 MW in a particular LAP, that SC shall not be subject to the Interim Scheduling Charge for under-scheduling the LAP Demand.
(c)For metered CAISO Demand by Participating Loads.
(d)For metered CAISO Demand that is MSS Load-following Demand.
(e)For any given Trading Hour when the Hourly Real-Time LAP Price is less than the Day-Ahead LAP Price for the same Trading Hour in the applicable LAP.
(f)For metered CAISO Demand of Station Power Loads.
In determining the Interim Scheduling Charge the CAISO applies a rule that has been termed the “Bright Line Rule”. The rule stipulates that in the event, during any given Trading Month, a Scheduling Coordinator’s Net Negative Demand Deviation in an associated Load Aggregation Point (LAP) exceeds fifteen percent (15%) of the Scheduling Coordinator’s cleared total CAISO Demand as represented in its Day-Ahead Schedule in the LAP for one or more Trading Hours in the given month, the Net Negative Demand Deviation shall be subject to a penalty charge. Once the “bright line” criterion has been reached, the Interim Scheduling Charges would be incurred for the remainder of the applicable Trading Month from the time the CAISO has determined that the SC exceeds the bright line criteria for the applicable month and is not imposed on a retroactive basis back to the beginning of the month.
The Interim Scheduling Charge is applied differently for different Net Negative Deviation thresholds. Over a Trading Month period where the Interim Scheduling Charge applies for a SC and scheduled LAP, for any given Trading Hour in which the SC’s Net Negative Deviation of CAISO Demand in the LAP is greater than fifteen percent (15%) and less than twenty percent (20%) of the SC’s cleared total CAISO Demand in the LAP (as represented by the Day-Ahead Schedule submitted by the SC for theLAP), theSC is charged at the rate of $150/MWh for the incremental Net Negative Deviation of CAISO Demand in the LAP that is greater than fifteen percent (15%) and less than twenty percent (20%) of the associatedcleared total CAISO Demand. Over a Trading Month period where the Interim Scheduling Charge applies for a SC and scheduled LAP, for any given Trading Hour in which the SC’sNet Negative Deviation of CAISO Demand in the LAP is greater than or equal to twenty percent (20%) of the SC’scorresponding cleared total CAISO Demand in the LAP(as represented by the Day-Ahead Schedule submitted by the SC for the LAP), the Scheduling Coordinator is charged at the rate of $250/MWh for the incremental Net Negative Deviation of CAISO Demand in the LAP that is greater than or equal to twenty percent (20%) of the associated cleared total CAISO Demand.
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.
Per December 19, 2008 FERC Order to the extent that day ahead scheduled load is curtailed by the CAISO, the curtailed quantity is not subject to the Interim Scheduling Charge. This exemption shall be applied by using the lower of the submitted self-schedule quantity and the cleared CAISO Demand quantity (represented as negative values) to calculate the deviation threshold quantities.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / The advisory Interim Scheduling Charge shall be configured as a daily calculation under Charge Code ‘6044_DAY’. The resulting settlement amounts will not be included on the Market Invoice.
1.1 / The monthly calculation that constitutes the actual Interim Scheduling Charge shall be configured as Charge Code ‘6044’. The resulting settlement amounts will be subsequently included on the Market Invoice.
1.2 / Except where noted in the formula section, the hourly penalty amount generated under Charge Code 6044 is derived using the same methodology (i.e. variable names) as 6044_DAY.
1.3 / Configuration of Charge Codes 6044_DAY and 6044 is distinct and separate such that a calculation that occurs in both Charge Codes is distinguishable by unique bill determinants.
2.0 / The Interim Scheduling Charge for Under-Scheduled Load shall be calculated both for the Trading Day and cumulatively for the Trading Month.
3.0 / Hourly CAISO DemandDeviation information and any applicable Net-Negative CAISO Demand Deviation penalty charges shall be determined for the Trading Day on an hourly interval basis at the LAP level for the Scheduling Coordinator associated with a LAP.
3.1 / The hourly information is summarized at the LAP level by SC and Trading Day to provide daily charge information for the Settlement Statement.
3.1.1 / The advisory information shall indicate at the LAP level the total CAISO Demand scheduled by a SC for a Trading Hour.
3.1.2 / The advisory information shall indicate at the LAP level the deviation between the SC’s metered CAISO Demand and the total CAISO Demand scheduled by the SC for the Trading Hour.
3.1.3 / The advisory information shall indicate at the LAP level whether, for a Net-Negative CAISO Demand Deviation, the deviation is included as a quantity in the calculation of the monthly Interim Scheduling Charge.
3.2 / The Net-Negative CAISO Demand Deviation charges for each Trading Hour shall be summarized at the Trading Day level for each LAP and associated SC.
4.0 / The summary information that appears on the daily Settlement Statement is advisory only and will not be included on the Market Invoice.
5.0 / The “Interim Scheduling Charge for Under-Scheduled Load” configuration shall calculate a cumulative penalty amount at the LAP and associated SC level for the Trading Month.
5.1 / The configuration shall calculate the cumulative penalty amount for a Trading Month over the period extending from the first Trading Day of the Trading Month to the date of the month’s latest Trading Day for which the daily Settlement calculation is being performed.
5.2 / For the monthly calculation the cumulative penalty amount constitutes an actual SC settlement charge resulting from the SC’s under-scheduling of LAP Load over the monthly period. (Fact)
6.0 / The penalty threshold shall be configurable and initially set to fifteen percent (15%) of the SC’s cleared total CAISO Demand (as represented in the SC’s submitted Day-Ahead Schedule for the applicable LAP).
7.0 / The Interim Scheduling Charge shall not apply in the circumstances under Business Rule 7.1 thru 7.6. Each defined circumstance that follows shall represent a business rule that provides for an exemption to the Interim Scheduling Charge.
7.1 / The Interim Scheduling Charge shall not apply for any given Trading Day, SC and associated LAP, the CAISO’s daily Day-Ahead peak CAISO Forecast of CAISO Demand is ninety-five percent (95%) or less than the actual metered CAISO Demand in the LAP’s associated northern or southern region of the CAISO Balancing Authority Area as further described in the Business Practice Manuals.
7.2 / The Interim Scheduling Charge shall not apply for any given Trading Hour,a SC’s peak metered CAISO Demand (as a negative value) is greater less than or equal to -500 MW in a particular LAP. The exemption shall be restricted to and applied to the SC satisfying the criterion.
7.2 / The Interim Scheduling Charge shall not apply to metered CAISO Demand by Participating Loads.
7.4 / The Interim Scheduling Charge shall not apply to metered CAISO Demand that is MSS Load-following Demand.
7.5 / The Interim Scheduling Charge shall not apply for any given Trading Hour and LAP, the Hourly Real-Time LAP Price is less than the Day-Ahead LAP Price for the same Trading Hour in the applicable LAP.
7.6 / The Interim Scheduling Charge shall not apply for metered CAISO Demand of Station Power Loads.
8.0 / In determining the Interim Scheduling Charge the CAISO shall apply a rule that has been termed the “Bright Line Rule”. The rule stipulates that in the event during any given Trading Month a SC’s Net Negative Demand Deviation in an associated LAP exceeds fifteen percent (15%) of the SC’s cleared total CAISO Demand, as represented in the Day-Ahead Schedule provided for the LAP by the SC, for one or more Trading Hours in the given Trading Month, the incremental Net Negative Demand Deviation that exceeds fifteen percent (15%) of the SC’s cleared total CAISO Demand, as represented in the Day-Ahead Schedule shall be subject to a penalty charge for all Trading Hours greater than or equal to the Bright Line threshold value of 1, per July 17, 2008, FERC Order.
8.1 / Once the “bright line” criterion triggers them, the Interim Scheduling Charges shall be incurred for the remainder of the applicable Trading Month from the time the CAISO has determined that the SC meets or exceeds the bright line criteria for the applicable month and shall not be imposed on a retroactive basis back to the beginning of the month.
9.0 / The Interim Scheduling Charge shall be applied differently for different Net Negative Deviation thresholds.
9.1 / For any given Trading Hour and LAP in which the SC’s Net Negative Deviation of CAISO Demand in the LAP is greater than fifteen percent (15%) and less than twenty percent (20%) of the SC’s cleared total CAISO Demand in the LAP (as represented by the Day-Ahead Schedule submitted by the SC for the LAP), the SC shall be charged at the rate of $150/MWh for the incremental Net Negative Deviation of CAISO Demand in the LAP that exceeds fifteen percent (15%) of the SC’s cleared total CAISO Demand, as represented in the Day-Ahead Schedule that is greater than fifteen percent (15%) and less than twenty percent (20%) of the associated cleared total CAISO Demand.
9.2 / For any given Trading Hour and LAP in which the SC’s Net Negative Deviation of CAISO Demand in the LAP is greater than or equal to twenty percent (20%) of the SC’s corresponding cleared total CAISO Demand in the LAP (as represented by the Day-Ahead Schedule submitted by the SC for the LAP), the Scheduling Coordinator shall be charged at the rate of $250/MWh for the incremental Net Negative Deviation of CAISO Demand in the LAP that exceeds twenty percent (20%) of the SC’s cleared total CAISO Demand, as represented in the Day-Ahead Schedule that is greater than or equal to twenty percent (20%) of the associated cleared total CAISO Demand.
10.0 / The SC’s Net Negative Deviation of CAISO Demand in the LAP that is less than fifteen percent (15%) of the SC’s cleared total CAISO Demand, as represented in the Day-Ahead Schedule is not assessed The Interim Scheduling Charge.
11.0 / Revenues collected with the assessment of the Interim Scheduling Charge for Under-Scheduled Load are considered “Other Revenues” as indicated in Schedule F, of Part C of the CAISO Tariff.(Fact)
11.1 / Revenues collected with the assessment of the Interim Scheduling Charge for Under-Scheduled Load are used to offset the revenue requirement associated with the Market Usage Charge of the GMC. (Fact)
11.2 / The revenue requirement offset is applied to the Market Usage Charge rate during the rate’s annual determination. (Fact)
12.0 / 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.
3.2Predecessor Charge Codes