BPM - CG CC 7050 Flexible Ramp up Capacity Payment

Settlements & Billing

BPM Configuration Guide: Flexible Ramp Up Capacity Payment

CC 7050

Version5.1b

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1)the resource-specific total Flexible Ramping Constraint costs, calculated as the total compensation, net of rescinded amounts; and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

3.2Predecessor Charge Codes

3.3Successor Charge Codes

3.4Inputs – External Systems

3.5Inputs - Predecessor Charge Codes or Pre-calculations

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

4.Charge Code Effective Date