Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Allocation / Date: 3/27/127/1/20155/31/16
Standard Capacity Product
BPM Configuration Guide: Monthly Resource Adequacy Standard Capacity Product Allocation
(CC 8820)
Version5.2a
CAISO, 2018 / Page 1 of 8Standard Capacity Product / Version: 5.2a
Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Allocation / Date: 3/27/127/1/20155/31/16
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
CAISO, 2018 / Page 1 of 8Standard Capacity Product / Version: 5.2a
Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Allocation / Date: 3/27/127/1/20155/31/16
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
The Standard Capacity Product (SCP) is effective on January 1, 2010, as described in CAISO Tariff Section 40.9. SCP incorporates resource Availability Standards and incentives into the ISO Tariff to facilitate contracting for Resource Adequacy (RA) Capacity. SCP also enhances grid reliability and market efficiency by providing an incentive for RA Resources to be available during peak hours.
SCP is a set of attributes defined in the CAISO Tariff which specify the Availability Standard, Non-Availability Charges and Availability Incentive Payments applied to RA capacity. There is one availability standard applicable to RA Resources each month during the RA Compliance Year. Each monthly Availability Standard is based on the historic availability of the RA Resource fleet during a pre-defined set of peak hours during a previous three-year period. At a high level, the CAISO reviews the availability of each RA Resource subject to SCP each month to determine whether its meets the Availability Standard applicable for that month. An RA Resource that has a lower availability rate than the Availability Standard minus the tolerance band of 2.5% is subject to a Non-Availability Charge. A RA Resources that has Availability greater than the Availability Standard plus the tolerance band of 2.5% is eligible for an Availability Incentive Payment.
2.2Description
The Monthly Standard Resource Adequacy Capacity Product Allocation (CC 8820) is the payment of the NonAvailability Charges collected from RAResources which fail to meet the Availability Standard. The funds collected from the application of Non-Availability Charges are allocated to RA resources that exceed the Availability Standard plus the tolerance band of 2.5%. The funds are distributed by calculating a monthly Availability Incentive Payment rate and applying it to the amount of capacity that exceeded the Availability Standard plus 2.5%.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.1 / The "account" for each month would either be paid out to RA Resources that have exceeded the Standard Availability Standard plus 2.5% or put into the Real Time neutrality and paid back to metered demand, i.e., any excess not paid out to RA Resources that exceed the Availability Standard plus 2.5% is paid out to MeteredDemand.
1.2 / The Non-Availability Charges and Availability Incentive Payments are all settled within the same settlement month
2.0 / SCP Non-Availability Charges and Availability Incentive Payments apply to the Local Capacity Area RA Capacity submitted by a Load following MSS in an annual Resource Adequacy Plan and to the Local Capacity Area RA Capacity of a Modified Reserve Sharing LSE.
3.0 / The monthly Availability Incentive Payment Rate will equal the total Non-Availability Charge assessed for the month divided by the total Resource Adequacy Capacity eligible to receive the Availability Incentive Payment that month, provided that the Availability Incentive Payment rate shall not exceed three times the Non-Availability Charge rate.
3.2Predecessor Charge Codes
Charge Code/ Pre-Calc NameMonthly Standard Resource Adequacy Capacity Product Settlement(CC 8824 )
3.3Successor Charge Codes
Charge Code/ Pre-calc NameMonthly Standard Resource Adequacy Capacity Product Allocation (CC 8826 )
3.4Inputs - External Systems
Row # / Variable Name / Description1 / CAISOAvailabilityIncentiveRateCap / CAISO Availability Incentivecap. The cap is three times the Non-Availability Charge rate..
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration / Description1 / BAMonthlyAvailabilityIncentiveQuantity Brm / Sum of all SCP Eligible capacity above the Upper Band (X – RA(S+0.025)) by Business Associate B.
2 / CAISOMonthlyTotalNonAvailabilitySettlementAmount m / Settlement Non Availability Charge Amount to be applied to each Business Associate B that do not meet the Availability Standard after the conclusion of the applicable month m
3 / CAISOMonthlyTotalAvailabilityIncentiveQuantity m / CAISO Total Monthly Available Incentive Quantity
4 / BAMonthlyResourceNonAvailabilitySettlementReportingAmount Brm / The monthly settlement Non Availability Charge amount applied to each Business Associate B for reporting purpose during the month m.
3.6CAISO Formula
The Monthly Availability Incentiverate is determined by dividing total monthlyNon Availability Charges dollars by the sum of all MW exceeding the Standard plus tolerance bandof 2.5%
3.6.1BAResourceMonthlyAvailabilityAdvisoryIncentivePayment Brm = (-1)*Min(CAISOAvailabilityIncentiveRateCap, CAISOMonthlyAvailabilityAdvisoryIncentiveRate m)* BAMonthlyResourceAvailabilityIncentiveQuantityBrm
3.6.2CAISOMonthlyAvailabilityAdvisoryIncentiveRate m = CAISOMonthlyTotalNonAvailabilitySettlementAmountm / CAISOMonthlyTotalAvailabilityIncentiveQuantitym
3.6.3BAResourceMonthlyAvailabilityIncentivePayment Brm=(-1) *Min(CAISOAvailabilityIncentiveRateCap, CAISOMonthlyAvailabilityIncentiveRate m)* BAMonthlyAvailabilityIncentiveQuantity Brm
Where
CAISOMonthlyAvailabilityIncentiveRatem =CAISOMonthlyResourceNonAvailabilitySettlementReportingAmountm /CAISOMonthlyAvailabilityIncentiveQuantitym
3.6.4CAISOMonthlyResourceNonAvailabilitySettlementReportingAmountm = BAMonthlyResourceNonAvailabilitySettlementReportingAmount Brm
3.6.5CAISOMonthlyAvailabilityIncentiveQuantitym = BAMonthlyAvailabilityIncentiveQuantityBrm
3.6.6CAISOMonthlyAvailabilityNeutralityIncentiveAllocationAmount m= BAResourceMonthlyAvailabilityIncentivePayment Brm+BAMonthlyResourceNonAvailabilitySettlementReportingAmount Brm
3.7Outputs
Output Req ID / Name / Description1 / In addition to any outputs listed below, all inputs shall be included as outputs.
2 / BAResourceMonthlyAvailabilityIncentivePayment Brm / Monthly Resource availability credits by Business Associate B, by Resource r and by Resource Type t for the trading Month m will equal the monthly availability credit rate times the MW availability above the target plus dead band.
3 / CAISOMonthlyAvailabilityIncentiveRate m / A monthly Availability Incentive Payment rate will be determined by dividing total monthly nonavailability charges dollars by the sum of all MW exceeding target plus dead band of all RA resources.
4 / CAISOMonthlyAvailabilityNeutralityIncentiveAllocationAmount m / If there is any remaining surplus, then that surplus would be put it into Real Time neutrality and paid back to metered demand.
5 / CAISOMonthlyAvailabilityAdvisoryIncentiveRate m / A monthly Advisory Availability Incentive Payment rate will be determined by dividing total monthly non availability charges dollars by the sum of all MW exceeding target plus dead band of all RA resources.
6 / BAResourceMonthlyAvailabilityAdvisoryIncentivePaymentBrm / Monthly Resource availability 3 Months Advisory credits by Business Associate B, by Resource r and by Resource Type t for the trading Month m will equal the monthly availability credit rate times the MW availability above the target plus dead band.
7 / CAISOMonthlyResourceNonAvailabilitySettlementReportingAmountm / CAISO Monthly Non Availability Charge Reporting Amount. This value excludes the charge for HQC resources during the advisory period.
8 / CAISOMonthlyAvailabilityIncentiveQuantitym / CAISO Monthly Incentive Availability quantity. This value excludes the Incentive Quantity for HQC resources during the advisory period.
4.Charge Code Effective Date
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
Monthly Resource Adequacy Standard Capacity Product Allocation
(CC 8820) / 5.0 / 01/01/10 / 12/31/2009 / Configuration Impacted
Monthly Resource Adequacy Standard Capacity Product Allocation
(CC 8820) / 5.0a / 01/01/10 / 12/31/2010 / Documentation Only
Monthly Resource Adequacy Standard Capacity Product Allocation
(CC 8820) / 5.1 / 01/01/11 / 3/31/2011 / Configuration Impacted
Monthly Resource Adequacy Standard Capacity Product Allocation
(CC 8820) / 5.2 / 04/01/11 / 2/15/2012 / Documentation Only
Monthly Resource Adequacy Standard Capacity Product Allocation
(CC 8820) / 5.2a / 02/16/2012 / Open2/29/201610/31/2016 / Documentation Only
CAISO, 2018 / Page 1 of 8