Configuration Guide for: Excess Cost Neutrality Allocation / Date: 09/28/09 12/3/13
Settlements and Billing
BPM Configuration Guide:Excess Cost Neutrality Allocation
CC 6480
Version 5.2 5.3
CAISO, 2019 / Page 1 of 8Settlements and Billing / Version: 5.2: 5.3
Configuration Guide for: Excess Cost Neutrality Allocation / Date: 09/28/09 12/3/13
Table of Contents
1Purpose of Document
2Introduction
2.1Background
2.2Description
3Charge 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
4Charge Code Effective Date
1Purpose of Document
The purpose of this document is to capture the requirements and design specification for a settlementsCharge Code in one document.
2Introduction
2.1Background
In Charge Code (CC) 6482 Real-Time Excess Cost for Instructed Energy Settlement the ISO settle Excess Costs for incremental FMM Exceptional Dispatch IIE and RTD Exceptional Dispatch IIE priced above the FMM Interval LMP or Settlement Interval Real-Time LMP, respectively. However, the Settlement of Excess Cost for decremental FMM Exceptional Dispatch IIE and RTD Exceptional Dispatch IIE priced below theFMM Interval LMP orSettlement Interval Real-Time LMP, respectively,is not required in CC 6482 since the entire Exceptional Dispatch price is settled completely (without any excess cost breakdown) in CC 6470. . CC 6482 settles the excess cost for Energy transactions where the Settlement type is one of the emergency “exceptional” Energy types (“SYSEMR”, “SYSEMR1” or “TEMR”) as defined in CAISO Tariff. The SYSEMR Exceptional Dispatch Energy type represents Energy, including Energy from forced Start-Ups and Shut-Downs, that is delivered as a result of an Exceptional Dispatch for System Emergency conditions, to avoid intervention in market operations, mitigate over generation conditions, or to prevent or relieve an imminent System Emergency. TEMR represents Energy purchased by the CAISO from a utility in another Control Area as a result of a CAISO request for assistance in System Emergency conditions in order to avoid an intervention in market operations, or to prevent or relieve an imminent System Emergency. TEMR Energy excludes Energy from Exceptional Dispatches. CC 6482 does not cover Excess Costs forFMM Exceptional Dispatch IIE and RTD Exceptional Dispatch IIE associated with transmission and other various reasons not related to emergency conditions, as they are covered in other charge codes (for instance, CC 6488 – “Exceptional Dispatch Uplift Settlement”).
Emergency Energy for either SYSEMR or TEMR from Fifteen Minute Market will be settled at the higher of the FMM Interval LMP, Energy Bid price or, if applicable, the Default Energy Bid price for Energy that does not have an Energy Bid price, or, as applicable to System Resources, the negotiated price. Emergency Energy for either SYSEMR or TEMR dispatched in RTDwill be settled at the higher of the Settlement Interval LMP, Energy Bid price or, if applicable, the Default Energy Bid price for Energy that does not have an Energy Bid price, or, as applicable to System Resources, the negotiated price. The negotiated System Resource Energy price may exceed the Bid Ceiling.
These Excess Costs will be allocated in two-tier based total negative Uninstructed Imbalance Energy in CC 6486 Real Time Excess Cost for Instructed Energy Allocation and Measured Demand excluding Demand served through transmission rights in CC 6480 Excess Cost Neutrality Allocation.
2.2Description
The allocation of costs paid to Scheduling Coordinators in the Real Time Excess Cost for Instructed Energy Settlement is split into two tiers. The first tier of costs is collected in this CC 6486, Real Time Excess Cost for Instructed Energy Allocation. Charge Code 6486 collects the total costs associated with CC 6482 Real-Time Excess Cost for Instructed Energy Settlement to the extent that the total Energy procured with price above Resource-SpecificFMM LMP or Settlement Interval LMP is less than or equal to total Net Negative Uninstructed Imbalance Energy quantity in the corresponding interval. If the total quantity of Energy procured in CC 6482 is greater than the quantity of Net Negative Uninstructed Imbalance Energy, only the portion of Excess cost up to the Net Negative UIE is allocated in CC 6486, the remaining amount is recovered by Measured Demand excluding Demand served through transmission rightsin this CC 6480 Excess Cost Neutrality Allocation.
Measured Demand is defined as metered CAISO Demand plus Real-Time Interchange export schedules for applicable System Resources (excluding Supplemental and OOM Energy) for a Business Associate in a given Settlement Interval. Certain Business Associates and/or resources are exempt from CC 6480 Excess Cost Neutrality Allocation as defined in the MRTU Charge Code Exemptions document.
Since the revenues collected from Uninstructed Deviation Penalties in CC 4470 and CC 4480 can reduce CC 6480 Excess Cost Neutrality Allocation costs, these are summed with amounts paid in CC 6482 and the Net Negative Deviation allocation portion in CC 6486 to determine if an allocation to CC 6480 is warranted. If the net sum of these charge types is negative, this amount is charged to Measured Demand excluding Demand served through transmission rights in CC 6480. If the net sum is positive, this amount is passed to the Market Clearing system for accrual in the Surplus Account.
Excess Cost Payments allocation is automatically calculated by the Settlements System on a 10-minute interval basis at the Business Associate level and reported as such on the Settlement Statement.
3Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / Excess Cost Neutrality Allocation only allocates the portion of Excess Cost Payments that is in excess of the Uninstructed Imbalance Energy quantity, plus any Uninstructed Deviation Penalty (UDP) quantities collected for that interval.
2.0 / Excess Cost Neutrality Allocation does not allocate PIR resource Excess Cost Payments.
3.0 / TIf the sum of Excess Cost Payments and, Allocation of Excess Cost Payments, and the UDP amounts collected is negative, that amount is allocated to the market based on Measured Demandexcluding Demand served through transmission rights.
4.0 / If the sum of Excess Cost Payments, Allocation of Excess Cost Payments, and collected UDP amounts is positive, that amount is output to Market Clearing and accrued in the surplus account.
5.0 / The net imbalance amount calculated as the sum of the final Settlement amount for Charge Code 6482, 6486, and 6480 in a given Trading Month is attributed to rounding, and must be output to Rounding Adjustment Settlement (CC 4999).
6.0 / Excess Cost Neutrality Allocation is calculated for a Business Associate for each Settlement Interval in the hour where the Excess Cost Payment quantity is greater than the Net Negative Uninstructed Imbalance Energy quantity.
7.0 / A per unit charge price will be calculated for each Settlement Interval in each hour for Excess Cost Neutrality Allocation.
8.0 / The per unit charge price for Excess Cost Neutrality Allocation is determined as the ratio of the total Excess Cost Neutrality Allocation amount divided by the Total Settlement Interval Measured Demand excluding Demand served through transmission rights for the calculation period.
9.0 / PTB adjustments do not apply to CC 6480, but any PTB Amounts from CC 6482 and, CC 6486, CC 4470, and CC 4480 must be included in the allocation logic for the CC 6480 calculation in order to ensure neutrality is maintained.
3.2Predecessor Charge Codes
Charge Code/ Pre-calc NameMeasured Demand over Control Area Pre-calculation
CC 6482 – Real Time Excess Cost for Instructed Energy Settlement
CC 6486 – Real Time Excess Cost for Instructed Energy Allocation
CC 4470 – Negative Uninstructed Deviation Penalty
CC 4480 – Positive Uninstructed Deviation Penalty
3.3Successor Charge Codes
Charge Code/ Pre-calc NameRounding Adjustment Settlement (CC 4999)
3.4Inputs – External Systems
Row # / Variable Name / Description1 / NoneUDPChargeFlag / A flag indicating that UDP is being charged to SCs and that UDP revenues collected will reduce Excess Cost allocations. UDP collected = 1, UDP not collected = 0
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration1 / CAISOTotalExcessCostIIESettlementAmount mdhcifhi / CC 6486 – Allocation of Excess Cost for Instructed Energy
2 / CAISOTotalExcessCostIIEAllocationAmount mdhcifhi / CC 64862 – Excess Cost for Instructed Energy
3 / CAISOTotalNegativeUninstructedDeviationPenaltySettlementAmount hi / CC 4470 – Negative Uninstructed Deviation Penalty
4 / CAISOTotalPositiveUninstructedDeviationPenaltySettlementAmount hi / CC 4480 – Positive Uninstructed Deviation Penalty
53 / CAISOTotalSettlementIntervalMeasuredDemandMinusRightsControlAreaQty_LFEx6 mdhcif / Measured Demand over Control Area Pre-calculation
64 / BASettlementIntervalMeasuredDemandMinusRightsControlAreaQty_LFEx6 Bmdhcif / Measured Demand over Control Area Pre-calculation
3.6CAISO Formula
ExcessCostSurplusAccrualAmount hi =MAX (0, CAISOTotalExcessCostIIESettlementAmount hi + CAISOTotalExcessCostIIEAllocationAmount hi + + (UDPChargeFlag * (CAISOTotalNegativeUninstructedDeviationPenaltySettlementAmount hi + CAISOTotalPositiveUninstructedDeviationPenaltySettlementAmount hi)))
3.6.1ExcessCostNeutralityAllocationSettlementAmount
ExcessCostNeutralityAllocationSettlementAmount Bmdhcifhi = (-1) * BASettlementIntervalMeasuredDemandMinusRightsControlAreaQty_LFEx6 Bmdhcif
*ExcessCostNeutralityAllocationPrice mdhcifhi
3.6.2ExcessCostNeutralityAllocationPrice
ExcessCostNeutralityAllocationPrice mdhcifhi = ABS (CAISOTotalECNeutralityAllocationAmount mdhcifhi) / ABS (CAISOTotalSettlementIntervalMeasuredDemandMinusRightsControlAreaQty_LFEx6mdhcif)
3.6.3CAISOTotalECNeutralityAllocationAmount
CAISOTotalECNeutralityAllocationAmount mdhcifhi = MIN (0, CAISOTotalExcessCostIIESettlementAmount mdhcifhi+ CAISOTotalExcessCostIIEAllocationAmount mdhcifhi+ + (UDPChargeFlag * (CAISOTotalNegativeUninstructedDeviationPenaltySettlementAmount hi + CAISOTotalPositiveUninstructedDeviationPenaltySettlementAmount hi)))
3.7Outputs
Output ID / Name / Description1 / ExcessCostNeutralityAllocationSettlementAmountBmdhcifBhi / The total amount in dollars allocated to a Business Associate for Excess Cost Allocations based on Measured Demandexcluding Demand served through transmission rights
2 / ExcessCostSurplusAccrualAmount hi / If the CAISO Total Neutrality Allocation Amount is net positive, this amount is calculated as a payment to the CAISO for Surplus accrual in Market Clearing.
3 / ExcessCostNeutralityAllocationPrice mdhcifhi / The price that is multiplied by the MeasuredDemand quantityexcluding Demand served through transmission rights to calculate the ExcessCostNeutralityAllocationSettlementAmount.
4 / CAISOTotalECNeutralityAllocationAmount mdhcifhi / CAISO Total Neutrality Allocation Amount per Hour h and settlement Interval i.
5 / In addition to any outputs listed above, all inputs shall be included as outputs.
4Charge Code Effective Date
Charge Code/Pre-calc Name / Document
Version / Effective Start Date / Effective End Date / Version Update Type
CC 6480 – Excess Cost Neutrality Allocation / 5.0 / 04/01/09 / 3/31/09 / Documentation Edits Only
CC 6480 – Excess Cost Neutrality Allocation / 5.1 / 04/01/09 / 10/31/09 / Configuration Impacted
CC 6480 – Excess Cost Neutrality Allocation / 5.2 / 11/01/09 / Open 4/30/14 / Configuration Impacted
CC 6480 – Excess Cost Neutrality Allocation / 5.3 / 5/1/14 / Open / Configuration Impacted
CAISO, 2019 / Page 1 of 8