BPM - CG CC 7057 Monthly Flexible Ramp Supply Cost Allocation Reversal

Settlements & Billing

BPM Configuration Guide: Monthly Flexible Ramp Supply Cost Allocation Reversal

CC 7057

Version5.0

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

A flexible ramping constraint applies as part of the market optimization for the real-time unit commitment or pre-dispatch process (RTPD), and the real time dispatch (RTD) process. This constraint addresses certain reliability and operational issues observed in the ISO’s operation of the grid.

In accordance with Tariff, 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 the c) Flexible Ramping Constraint Shadow Price minus seventy-five percent of the maximum of zero or the simple average Real-Time System Marginal Energy Cost in an applicable RTUC interval .

The Flexible Ramping Constraint Shadow Price is the marginal unit’s resource specific opportunity cost. The costs associated with such compensation net of rescinded amounts are allocated twenty-five percent to daily gross negative supply deviations and seventy-five percent to hourly measured demand, which consists of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.

2.2Description

In Charge Code 7057 -Monthly Flex Ramp Up Supply Cost Allocation Reversal, the daily Flexible Ramp Supply costs allocated to suppliers are summed to a monthly total and then reversed. The monthly total Flexible Ramp Supply costs will then be reallocated in Charge Code 7058 Monthly Flex Ramp Up Supply Cost Allocation based upon monthly gross negative supply deviations.

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

3.6.1BAMonthlyResourceFlexRampSupplyCostAllocationRevAmount

BAMonthlyResourceFlexRampSupplyCostAllocationRevAmount BrtF’S’m = (-1) *BAMonthlyResourceFlexRampSupplyCostAllocationAmount BrtF’S’m

3.6.2BAMonthlyResourceFlexRampSupplyCostAllocationAmount

BAMonthlyResourceFlexRampSupplyCostAllocationAmount BrtF’S’m= BADailyResourceFlexRampSupplyCostAllocationAmount BrtF’S’md

3.6.3BAMonthlyFlexRampSupplyCostAllocationRevAmount

BAMonthlyFlexRampSupplyCostAllocationRevAmount Bm = BAMonthlyResourceFlexRampSupplyCostAllocationRevAmount BrtF’S’m

Implementation Note: This is provided as part of reporting structure and is not configuredas an individual charge type.

3.6.4CAISOMonthlyTotalFlexRampSupplyCostRevAllocationAmount

CAISOMonthlyTotalFlexRampSupplyCostRevAllocationAmountm=

BAMonthlyFlexRampSupplyCostAllocationRevAmount Bm

Implementation Note: This is provided as part of reporting structure and is not configuredas an individual charge type.

3.7Outputs

4.Charge Code Effective Date