Configuration Guide for: Flexible Ramp Up Capacity Payment / Date: 03/05/20145/27/16
Settlements & Billing
BPM Configuration Guide: Flexible Ramp Up Capacity Payment
CC 7050
Version5.1b
CAISO, 2019 / Page 1 of 11Settlements & Billing / Version: 5.1b
Configuration Guide for: Flexible Ramp Up Capacity Payment / Date: 03/05/20145/27/16
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 Charge Code in one document.
2.Introduction
2.1Background
A flexible ramping constraint applies as part of the market optimization for the real-timeprocesses. This constraint addresses certain reliability and operational issues observed in the ISO’s operation of the grid.
In accordance with theCAISOTariff, resources that resolve the flexible ramping constraint are to be compensated in Settlements at the Flexible Ramping Constraint Derived Price. The Flexible Ramping Constraint Derived Price is equal to the lesser of:
1) $800/MWh; or
2) the greater of: a) zero, or b) Real-Time Spinning Reserve Ancillary Service Marginal Price; or c) the Flexible Ramping Constraint Shadow Price minus seventy-five percent of the maximum of zero or the simple average Real-Time System Marginal Energy Cost for each of the three five-minute RTD intervals in the applicable fifteen-minute FMM interval..
The Flexible Ramping Constraint Shadow Price is the reduction of the total Energy and Ancillary Services procurement cost associated with a marginal change at each constraint for the individual Balancing Authority Areas (BAA) in the EIM Area and applicable groupings of those areas in which the constraint is enforced, which will be equal to zero (0) if the Flexible Ramping Constraint is not binding.
The CAISO will determine the Flexible Ramping Constraint costs for each constraint as the product of:
1)the resource-specific total Flexible Ramping Constraint costs, calculated as the total compensation, net of rescinded amounts; and
2)the ratio of the Flexible Ramping Constraint Shadow Price to the total Flexible Ramping Constraint Shadow Price
For each constraint and each BAA in the EIM Area, the CAISO will determine the Flexible Ramping Constraint costs attributable to that BAA for which the applicable constraint(s) were binding in the applicable interval, based on the ratio of the BAA’s requirement to its contribution to the individual constraint or group of constraints to which that BAA contributes, and determine each BAA’s apportionment of Flexible Ramping Constraint costs as the summation of the BAA’s amounts.
The costs associated with such compensation,as netted by BAA,are allocated to the CAISO BAA astwenty-five percent of daily gross negative supply deviations and seventy-five percent of hourly measured demand, which consists of metered load and exports. At the end of each month, the costs allocated to daily gross negative supply deviations will be reversed and re-allocated to monthly gross negative supply deviations. The associated costs for individual EIM BAAs are allocated to the EIM Entity Scheduling Coordinator(s).
2.2Description
In this Charge Code 7050, payments are applied to resources with awarded flexible ramping capacity which resolved the Flexible Ramping Constraint(s) in the EIM Area in which they participate in theFifteen Minute Market (FMM). The capacity payment per resource shall be computed as the product of the flexible ramping up capacity award times the greater of: a) zero, or b) Real-Time Spinning Reserve Ancillary Service Marginal Price; or c) the Flexible Ramping Constraint Shadow Price minus seventy-five percent of the greater of zero or the simple average Real-Time System Marginal Energy Cost for each of the three five-minute RTD intervals in the applicable fifteen-minute FMM interval..
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / The flexible ramping up capacity payment per resource per FMM interval shall be computed as the product of .25 hours times the awarded flexible ramping up capacity of the resource and Flexible Ramping Constraint Derived Price.
1.1 / The Flexible Ramping Constraint Derived Price is equal to the lesser of: 1) $800 per MWh, or 2) the greater of: a) zero, or b) Real-Time Spinning Reserve Ancillary Service Marginal Price; or the Flexible Ramping Constraint Shadow Price minus seventy-five percent of the maximum of zero or the simple average Real-Time System Marginal Energy Cost for each of the three five-minute RTD intervals in the applicable fifteen-minute FMM interval.
1.3 / The Flexible Ramping Constraint shadow price shall be provided at the resource level, and shall reflect the aggregation of the Flexible Ramping Constraints which the resource helped to resolve.
1.4 / The Real-Time Spinning Reserve Ancillary Services Marginal Price shall be provided at the resource level
1.5 / The Real-Time System Marginal Energy Cost will be provided at the system level.
1.6 / Currently, only flexible ramping up (as opposed to ramping down) capacity shall be evaluated and awarded in the market optimization.
1.7 / The awarded flexible ramp up capacity is determined by the market optimization as the capacity required to resolve the constraint(s) in the groupings and individual BAA in the EIM Area.
2.0 / An FMM interval spans 15 minutes. There are four (4) FMM intervals per hour, starting at the beginning of a Trading Hour, and repeating every 15 minutes thereafter.Each FMM interval overlaps with three RTD intervals.
2.1 / The hourly ramp up capacity award (in MW) for a resource for each FMM interval shall be multiplied by .25 to come up with the relevant 15-minute interval ramp up MW for the resource.
2.2 / A 15-minute flexible ramp up capacity assessment per resource shall be calculated as the product of the 15-minute FMM interval ramp up MWh and the corresponding 15-minute FMM interval Flexible Ramping Constraint Derived Pricefor the resource.
3.0 / The flexible ramp up capacity payment per BA per FMM interval is the sum of the BA’s flexible ramping capacity payments for all its resources for that FMM interval.
4.0 / For a resource that is part of an EIM BAA, the RT Spinning Reserve Ancillary Services Marginal Price shall be $0.00.
4.1 / All EIM Participating Resources with economic bids available to the RTUC optimization will be eligible to ensure sufficient ramping capability, and may be awarded flexible ramping capacity.
5.0 / For adjustments to the Charge Code that cannot be accomplished by correction of upstream data inputs, recalculation or operator override Pass Through Bill Charge logic will be applied.
3.2Predecessor Charge Codes
Charge Code/ Pre-calc NameNone
3.3Successor Charge Codes
Charge Code/ Pre-calc NameCC 7056 – Flexible Ramp Cost Allocation
CC 7024 – Flexible Ramp Up No Pay Capacity Charge
3.4Inputs – External Systems
Row # / Variable Name / Description1 / BAResourceFlexRampUpCapacityAwardBrtF’S’mdhc / Flexible ramping up capacity award for the 15-minute FMM interval c. (MW)
2 / BAResourceFlexRampUpShadowPrice Brtmdhc / The shadow price for flexible ramping up constraint for the 15-minute FMM interval c. ($/MW)
3 / PTBFlexRampUpPaymentAmount BJmdh / Pass Through Bill (PTB) amount for this Charge Code. ($)
4 / RTSpinCapacityASMPrtmdhc / Real-time Spinning Reserve Ancillary Service Marginal Price (ASMP) at the resource level ($/MW)
5 / CAISODispatchIntervalRT_SMECPrice mdhcif / The System Marginal Energy Cost (SMEC) in the Real Time market (RTD). ($/MWh)
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/Pre-calc Configuration
None
3.6CAISO Formula
3.6.1BAHrlyResourceFlexRampUpCapacityPayment
BAHrlyResourceFlexRampUpCapacityPayment BrtF’S’mdh =
BA15MResourceFlexRampUpCapacityPayment BrtF’S’mdhc
3.6.2BA15MResourceFlexRampUpCapacityPayment
BA15MResourceFlexRampUpCapacityPaymentBrtF’S’mdhc =(-1)*(.25) *BAResourceFlexRampUpCapacityAward BrtF’S’mdhc * BA15MResourceFlexRampUpConstraintDerivedPrice Brtmdhc
3.6.2.1BA15MResourceFlexRampUpConstraintDerivedPriceBrtmdhcBA15MResourceFlexRampUpConstraintDerivedPriceBrtmdhc = Min($800, BA15MResourceFlexRampUpSPINPriceBrtmdhc)
3.6.2.2BA15MResourceFlexRampUpSPINPriceBrtmdhc
BA15MResourceFlexRampUpSPINPriceBrtmdhc = Max(0, Max(RTSpinCapacityASMPrtmdhc, BA15MResourceFlexRampUpAdjustedPriceBrtmdhc))
3.6.2.3BA15MResourceFlexRampUpAdjustedPriceBA15MResourceFlexRampUpAdjustedPriceBrtmdhc = BAResourceFlexRampUpShadowPriceBrtmdhc- ((.75) * Max(0, CAISO15MRT_SMECPrice mdhc))
3.6.2.4CAISO15MRT_SMECPrice mdhc
CAISO15MRT_SMECPrice mdhc= Average(CAISODispatchIntervalRT_SMECPricemdhcif)
3.6.3BAHourlyResourceFlexRampUpCapacity =
BAHourlyResourceFlexRampUpCapacity BrtF’S’mdh = (.25) BAResourceFlexRampUpCapacityAward BrtF’S’mdhc
3.6.4BAHRLYFlexRampUpCapacityPayment
BAHRLYFlexRampUpCapacityPayment Bmdh=
BAHrlyResourceFlexRampUpCapacityPayment BrtF’S’mdh
Implementation Note: The above charge type is provided as part of reporting structure and is not configured as an individual charge type.
3.6.5EIMAreaHRLYTotalFlexRampUpCapacityPayment
EIMAreaHRLYTotalFlexRampUpCapacityPayment mdh= (BAHRLYFlexRampUpCapacityPayment Bmdh+ PTBFlexRampUpPaymentAmountBJmdh)
Implementation Note: The above charge type is provided as part of reporting structure and is not configured as an individual charge type.
3.7Outputs
Output Req ID / Name / Description1 / In addition to any outputs listed below, all inputs shall be included as outputs. / All inputs.
2 / CAISO15MRT_SMECPrice mdhc / The 15 Minute Average Real Time System Marginal Energy Cost Price ($/MWh)
3 / BA15MResourceFlexRampUpAdjustedPrice Brtmdhc / The 15-Minute Resource-Specific Flexible Ramp Up Adjusted Price for 15-minute FMM interval c ($/MW)
4 / BA15MResourceFlexRampUpSPINPrice Brtmdhc / The 15-Minute Resource-Specific Flexible Ramp Up Spin Price for 15-minute FMM interval c ($/MW)
5 / BA15MResourceFlexRampUpConstraintDerivedPrice Brtmdhc / The shadow price for Flexible Ramp up derived Price for the 15-minute FMM interval c. ($/MW)
6 / BA15MResourceFlexRampUpCapacityPayment BrtF’S’mdhc / The FMM interval Flexible Ramp up capacity payment for 15-minute FMM interval c. ($)
7 / BAHrlyResourceFlexRampUpCapacityPayment BrtF’S’mdh / The Hourly Flexible Ramp up capacity payment. ($)
8 / BAHRLYFlexRampUpCapacityPayment Bmdh / The payment to Business Associate B for the total awarded Flexible Ramp up capacity of all resources associated with B for Trading Hour h. ($)
9 / EIMAreaHRLYTotalFlexRampUpCapacityPayment mdh / The EIM Area total Flexible Ramp up capacity payment to all Business Associates for Trading Hour h. ($)
10 / BAHourlyResourceFlexRampUpCapacity BrtF’S’mdh / Hourly Flexible Ramp Up Capacity
4.Charge Code Effective Date
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
CC 7050 – Flexible Ramp Up Capacity Payment / 5.0 / 12/13/11 / 10/31/12 / Configuration Impacted
CC 7050 – Flexible Ramp Up Capacity Payment / 5.1 / 11/1/12 / 4/30/2014 / Configuration Impacted
CC 7050 – Flexible Ramp Up Capacity Payment / 5.1a / 05/01/2014 / 09/30/2014 / Documentation Edits Only
CC 7050 – Flexible Ramp Up Capacity Payment / 5.1b / 10/01/2014 / Open9/30/16 / Documentation Edits Only
CAISO, 2019 / Page 1 of 11