Configuration Guide for: Declined Hourly Pre-Dispatch Penalty Allocation / Date: 11/04/09
Settlements & Billing
BPM Configuration Guide: Declined Hourly Pre-Dispatch Penalty Allocation
Version 5.0CAISO, 2019 / Page 1 of 9
Settlements & Billing / Version: 5.0
Configuration Guide for: Declined Hourly Pre-Dispatch Penalty Allocation / Date: 11/04/09
Table of Contents
1.Purpose of Document
3.Charge Code Requirements
3.2Predecessor Charge Codes
3.3Successor Charge Codes
3.4Inputs - External Systems
3.5Inputs - Predecessor Charge Codes or Pre-calculations
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.
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.
In line with the CAISO Tariff CC 6457 provides Scheduling Coordinators with a credit as their share of the total of all Decline Monthly Charges – Imports and Decline Monthly Charges – Exports assessed through CC6455 for the applicable Trading Month. The payment credits shall be allocated in proportion to each Scheduling Coordinator’s Measured CAISO Demand (in MWh) relative to the total Measured CAISO Demand for the CAISO Balancing Authority Area during the Trading Month. The CC 6457 allocation shall be performed monthly for each Trading Month and for each Scheduling Coordinator (referred to herein as Business Associate – BA). In the monthly calculation the Measured CAISO Demand quantities for a Trading Month shall be determined from the daily Measured CAISO Demand results that were produced by the daily settlement runs for each Trading Day of the Trading Month.
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 RulesBus Req ID / Business Rule
1.0 / The Declined Hourly Pre-Dispatch Penalty Allocation (CC 6457) configuration shall apply to each Scheduling Coordinator having a nonzero value for Measured CAISO Demand, excluding any Measured Demand associated with balanced TOR contract rights.
2.0 / The Declined Hourly Pre-Dispatch Penalty Allocation (CC 6457) configuration shall allocate the total CC 6455 monthly charges for a Trading Month to each Business Associate as payments.
2.1 / The allocation basis for the payments shall be Measured CAISO Demand with each BA receiving a payment of the total CC 6455 monthly charge revenue in proportion to the ratio of the BA’s Measured CAISO Demand to the overall Measured CAISO Demand for the CAISO Control Area.
3.0 / To allow that manually calculated CC 6457 allocation results be used to adjust the results calculated by means of the formulas contained herein Charge Code results Pass Through Bill Charge logic shall be provided.
4.0 / Actual SCs are referenced by Business Associate ID, and CAISO shall settle with Business Associates (BA) through these IDs.
5.0 / 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).
3.2 Predecessor Charge CodesCharge Code/ Pre-calc Name
CC6455 – Declined Hourly Pre-Dispatch Penalty Settlement
Measured Demand over Control Area Precalculation
3.3 Successor Charge CodesCharge Code/ Pre-calc Name
CC 4999 – Rounding Adjustment Settlement
3.4 Inputs - External SystemsRow # / Variable Name / Description
1. / PTBAllocationAdjustmentHAPSDeclinedBid 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-calculationsRow # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration
1. / CAISOMonthlyHASPIntertieBidDeclineCharge m / Total of CC 6455 HASP intertie bid decline charges (in U.S. $) for all Business Associates and all Trading Days of Trading Month m.
2. / BAHourlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty Bmdh / Measured Demand quantity minus Demand served through balanced source-sink TOR transmission rights of Business Associate B, where the Measured Demand quantity represents the Demand served by Business Associate B over the CAISO Control Area in Trading Hour h, Trading Day d and Trading Month m.
3. / CAISOTotalHourlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty mdh / Total Measured Demand quantity minus Demand served through balanced source-sink TOR transmission rights of Business Associates, where the Measured Demand quantity represents the Demand of the CAISO Control Area over Trading Hour h of Trading Day d and Trading Month m.
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 Allocation Amount by Business Associate and Trading Month
BAMonthlyHASPIntertieBidDeclineAllocationAmount Bm = BAMonthlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty Bm * CAISOMonthlyHASPIntertieBidDeclinePrice m
3.6.2 Where BAMonthlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty Bm = BAHourlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty Bmdh
Note: For CC 6457, BAHourlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty Bmdh is provided by a configuration enhancement procedure that returns the monthly quantity as a summation of the (previously calculated) hourly BA total of Measured Demand minus TOR contract rights quantities generated by the Measured Demand over Control Area Pre-calculation as daily settlement calculation results for the applicable Trading month.
3.6.3 And CAISOMonthlyHASPIntertieBidDeclinePrice m = (-1) * CAISOMonthlyHASPIntertieBidDeclineCharge m / CAISOTotalMonthlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty m
3.6.4 And CAISOTotalMonthlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty m = CAISOTotalHourlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty mdh
Note: For CC 6457, CAISOTotalHourlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty mdh is provided by a configuration enhancement procedure that returns the monthly quantity as a summation of the (previously calculated) hourly CAISO total of Measured Demand minus TOR contract rights quantities generated by the Measured Demand over Control Area Pre-calculation as daily settlement calculation results for the applicable Trading month.
3.7 OutputsOutput Req ID / Name / Description
In addition to any outputs listed below, all inputs shall be included as outputs. / All inputs. Refer to section 3.6 and 3.7 above for input descriptions.
/ BAMonthlyHASPIntertieBidDeclineAllocationAmount Bm / HASP intertie bid decline allocation payment (in U.S. $) for Business Associate B and all Trading Days of Trading Month m.
/ BAMonthlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty Bm / Measured Demand quantity minus Demand served through balanced source-sink TOR transmission rights of Business Associate B, where the Measured Demand quantity represents the Demand served by Business Associate B over the CAISO Control Area and Trading Month m.
/ CAISOMonthlyHASPIntertieBidDeclinePrice m / HASP intertie bid decline payment allocation price, calculated for Trading Month m as the total monthly CC 6455 Declined hourly HASP intertie pre-dispatch penalty charges divided by the CAISO total monthly Measured Demand minus TOR contract rights quantity.
/ CAISOTotalMonthlyMeasuredDemandMinusBalancedTOR_DeclinedHASPBidsQty m / Total Measured Demand quantity minus Demand served through balanced source-sink transmission rights of Business Associates, where the Measured Demand quantity represents the Demand of the CAISO Control Area over Trading Month m.
4. Charge Code Effective DateCharge Code/
Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
Declined Hourly Pre-Dispatch Penalty Allocation / 5.0 / 4/01/09 / Open / Configuration Impacted
CAISO, 2019 / Page 1 of 9