Settlements and Billing / Version: 5.65
Configuration Guide for: RTM Net Amount / Date: 019/0419/132

Settlements and Billing

BPM Configuration Guide:RTM Net Amount

Pre-calculation

Version 5.65

CAISO, 2018 / Page 1 of 21
Settlements and Billing / Version: 5.65
Configuration Guide for: RTM Net Amount / Date: 019/0419/132

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

3.7Output

4.Charge Code Effective Dates

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

Bid Cost Recovery (BCR) is the process by which the CAISO ensures SCs are able to recover Start Up Costs (SUC), Minimum Load Costs (MLC), Transition Costs (TC), and Energy Bid Costs. In order to be eligible to recover SUC and MLC, a Generating Unit, Pumping Load, Pumped-Storage Hydro Unit, or Resource-Specific System Resource must be committed by the CAISO. Likewise, the CAISO must commit a Multi-Stage Generating Resource in order for it to receive TC compensation. Bid Cost Recovery for Energy and Ancillary Services (A/S) Bids applies to Bid Cost Recovery Eligible Resourcesin general (for example, Generating Units, Pumping Load, Pumped-Storage Hydro Units, Proxy Demand Resources, and resource-specific System Resources without a Circular Schedule) scheduled or dispatched by CAISO,independent of whether they are CAISO-committed or instead areself self-committed.

For purposes of determining BCR eligibility, CAISO uses a concept called Commitment Period. A Commitment Period consists of the consecutive time periods within a Trading Day when a resource is on-line, synchronized to the grid, and available for dispatch. A Commitment Period is comprised of two distinct sub-types --- Self-Commitment Period and CAISO Commitment Period. The portion of a Commitment Period where a resource submits Energy self-schedule or A/S self self-provision is called a Self-Commitment Period. A Self-Commitment Period may include time periods when a resource is not operating pursuant of an Energy self-schedule or A/S self-provision, but must be as a result of an Energy Self-Schedule or A/S self-provision on due to ramping constraints, minimum up time, or minimum down time. Resources are not eligible for BCR of SUC, MLC, or TC during Self-Commitment Periods, but are eligible for BCR of awarded Energy and A/S. The portion of a Commitment Period that is not a Self-Commitment Period is called CAISO Commitment Period. Resources are eligible to receive BCR for SUC, MLC, TC, awarded Energy and A/S during a CAISO Commitment Period.

SUC, MLC, and TC for each market and resource are determined in Pre-calculation IFM/RUC/RTM Start-up and Minimum Load Eligibility Cost and then used as inputs to calculate a resource’s net difference between costs and revenues in separate Pre-calculations by market --- IFM Net Amount, RUC Net Amount, and RTM Net Amount. If the difference between the total costs and the market revenues is positive in the relevant market, then the net amount represents a Shortfall. If the difference is negative in the relevant market, the net amount represents a Surplus. For each resource, the IFM, RUC, and RTM Shortfalls and Surpluses are then netted over all hours of a Trading Day. As a result, surpluses from any of the CAISO Markets offset any shortfalls from the other markets over the entire Trading Day. If the net Trading Day amount is positive (a Shortfall), then the resource receives a BCR Uplift Payment equal to the net Trading Day amount under CC 6620 Bid Cost Recovery Settlement.

For MSS entities that have elected gross settlement, the Energy settlement is the same as other Scheduling Coordinators. For MSS entities that have elected net settlement, for both IFM and RTM the settlement MWh quantity is based on the net of Generation and Demand (scheduled quantities in the Day-Ahead Schedule by the IFM and measured quantities for RTM) within the MSS. Therefore, the settlement quantity is proposed to be done on MSS-level basis. Net load from MSS operators that have elected net settlement will be settled at the MSS LAP price and net-Generation from such MSS operators will be settled at the weighted average LMPs over all PNodes within the MSS with Generation schedules for IFM and measured Generation for RTM as weighting factors.

Consistent with Section 11.8.2.2 of the ISO Tariff, the portions of the day-ahead schedule and dispatched energy at or below a resource’s minimum load will be based on delivered energy.

The same tolerance band used to determine whether the resource is entitled to minimum load cost recovery will be used to determine whether a resource’s market revenue is accounted for to net minimum load cost payments. Applying the Tolerance Band, the ISO determines whether or not the resource is “on” and thereby, its start-up and minimum load costs are recoverable, if “its metered Energy in a Settlement Interval is equal to or greater than the difference between its Minimum Load Energy and the Tolerance Band.” Otherwise, the resource is deemed “off” and does not recover its minimum load costs. If the resource is determined to be “on” (as the Tolerance Band requirement is met), the ISO will also calculate the market revenues used to offset the minimum load costs in that given interval.

2.2Description

For each Settlement Interval, this Pre-calculation will generate the RTM costs, RTM revenue, and the RTM Net Amount as the net difference between RTM costs and RTM revenue for various Bid Cost Recovery Eligible Resources (for example, Generating Units, Pumping Load, Pumped-Storage Hydro Units, Proxy Demand Resources and resource specific System Resource system resourceswithout a Circular Schedule). The RTM Net Amount is subsequently used as an input for CC 6620, Bid Cost Recovery Settlement and Pre-calculation Bid Cost Recovery Sequential Netting.

Consistent with the September 21, 2006 FERC Order, IFM Bid Cost for any settlement interval is based on whether the resource’s Day-Ahead Schedule was actually delivered. The portions of the day-ahead schedule and dispatched Energy at or below a resource’s minimum load will remain subject to satisfying the Tolerance Band. For other portions of the Day-Ahead Schedule the delivered portions of the Day-Ahead Schedule are evaluated based on the metered energy adjustment factor. Additionally stated in Paragraph #516, Resources that fall short of the Day Ahead and RT Dispatch Instructions shall only be guaranteed the recovery of cost associated with the Energy actually provided, and should not receive payment for deviations from DA Schedule or RT Dispatch Instructions. Also, as part of the November 20, 2006 Compliance Filing, Rerate Energy, MSS Load Following Energy and Ramping Energy Deviation are also excluded from the RTM Energy Bid Cost.

Performance factors, based on the Tolerance Band for Minimum Load Energy and on the Day-Ahead Metered Energy Adjustment Factor – as calculated in the Pre-calculation Metered Energy Adjustment Factor, in the case of non-Minimum Load Energy, are used to determine IFM Energy eligible for Bid Cost Recovery. The Awarded Energy is broken into two (2) categories, Minimum Load Energy and non-Minimum Load Energy, and then the Energy in each category is multiplied by the appropriate performance factor to determine the portion of Energy in each of the 2 categories that receives Bid Cost Recovery.

To apply the Tolerance Band to the Minimum Load Revenue, separate formulas have been provided in the CAISO Formula section of the current document for 2 different Trading Day ranges as follows:

i.from 08/01/2010 (the effective start date of the associated configuration change, as specified in Section 4) to 12/07/2010 (the date on which Multistage Generator functionality was introduced); and

ii.from 12/07/2010 onward.

Under net settlement for an MSS entity, Real-Time Energy settlements follow the same principle as the IFM Energy net settlement for an MSS entity. The Real-time Energy price is determined at individual MSS level whether it is within MSS Aggregation or being standalone. For an MSS net-load in metering, i.e. MSS Measured internal Demand exceeds MSS Measured internal Generation; the Energy price associated with the MSS is defined as the MSS Real-Time LAP price for the settlement interval. For MSS net-generation in metering, i.e. MSS Measured internal Generation exceeds MSS Measured internal Demand, the Energy price associated with the MSS is the weighted average of real-time LMPs for all applicable PNodes within the relevant MSS. The weighting factors for computing the weighted average are the Measured Energy of all Generation at the corresponding PNodes. All IIE components of Supply resources including Load Following Energy that were settled at Resource-specific Settlement Interval LMP if under gross, are settled at the Energy Price of MSS defined above. Moreover, UIE for both Supply resource and Demand within the MSS are also settled at this same Energy price. Residual Imbalance Energy, Energy related to Exceptional Dispatches and Standard Ramping Energy are settled following the same principles for gross.

RTM revenue is the sum of RTM Instructed Imbalance Energy revenue and the RTM AS revenue (reduced by any AS relevant No Pay).

3.Charge Code Requirements

3.1Business Rules

Bus Req IDBus Req ID / Business Rule
1.0 / This Pre-calc is a daily computation generating results on a Settlement Interval basis.
1.02.0 / Resources that fall short of the RT Dispatch Instructions shall only be guaranteed the recovery of cost associated with the Energy actually provided. In the case of positive uninstructed deviation, the eligible resource will be entitled to Bid Cost Recovery based on its scheduled Energy.
2.02.1 / RTM Net Amount is the difference between the RTM Bid Cost and the RTM Market Revenue
2.12.1.1 / RTM Bid Cost consists of the eligible RTM Start-Up Cost, eligible RTM Minimum Load Cost, eligible Transition Cost, RTM Energy Bid Cost, and the RTM AS Bid Cost.
2.1.1.1 / The RTM AS Bid Cost includes the adjustment of the AS No Pay.

2.1.1

/ For each Settlement Interval, the Real-Time Market AS Bid Cost shall be the product of the average Real-Time Market AS Award from each accepted AS Bid submitted in the Settlement Interval for the Real-Time Market, reduced by any relevant tier-1 No Pay capacity in that Settlement Interval (but not below zero), with the relevant AS Bid price.
2.1.1.12.1.1.2 / The RTM AS Bid Cost at every Settlement Interval is derived from the RTM AS Bid Cost of the Ancillary Service interval as follows:
The average Real Time AS Award in a Settlement Interval is derived by first dividing the (hourly) 15 minute Real-Time Market AS Award for each 15-minute Commitment Interval by the number of 15-minute Commitment Intervals in a Trading Hour (4), then subsequently dividing each result by the number of Dispatch Intervals in a Commitment Interval (3) resulting in an average, 5-minute AS Award quantity for each Commitment Interval. Finally, the average Real-Time Market AS Award in a Settlement Interval is the sum ofcalculated as the sum of the respective 5-minute AS Award quantitiesy for that Settlement Interval.

2.1.1.2

/ The RTM AS Bid Cost includes the adjustment of the AS No Pay.
2.1.1.3 / The RTM Minimum Load Cost is input into the currently defined calculation from a predecessor configuration. (Fact)
2.22.1.2 / RTM Market Revenue consists of the RTM Energy revenue (including the revenue for the Minimum Load) and the RT AS revenue. RTM Energy revenue excludes the Standard Ramping Energy, Residual Imbalance Energy, Exceptional Dispatch Energy, Rerate Energy, MSS Load Following Energy, Ramping Energy Deviation, and Regulating Energy.
2.1.2.1 / The RTM AS revenue includes the adjustment of AS No Pay.
2.1.2.2 / For non-CAISO Real-Time Market Commitment periods, the RTM Energy revenue excludes revenue for Minimum Load of resources committed in RUC that become ineligible for minimum load cost recovery due to the Settlement Interval being considered a non-CAISO Commitment period in Real Time.
2.2.1 / RTM Market Revenue shall include revenue from Instructed Imbalance Energy, calculated as the sum of the products of the Instructed Imbalance Energy (where for Pumped-Storage Hydro Units and Participating Load operating in the pumping mode or serving Load, the MWh is negative), except Standard Ramping Energy, Residual Imbalance Energy, Exceptional Dispatch Energy, Derate Energy, MSS Load following Energy, Ramping Energy Deviation and Regulation Energy, with the relevant Real-Time Market LMP, for each Dispatch Interval in the Settlement Interval.
2.2.1.1 / The Instructed Imbalance Energy for this calculation is subject to the Real-Time Metered Energy Adjustment Factor to capture metered energy.
2.2.2 / RTM Market Revenue shall include Minimum Load revenue, calculated as the product of the delivered MWh at or below the resource’s Minimum Load submitted to the Real-Time Market (including Energy from Minimum Load of Bid Cost Recovery Eligible Resources committed in RUC) and the relevant Real-Time Market LMP, for each Dispatch Interval in the Settlement Interval.
2.2.2.12.1.2.3 / The RTM Minimum Load Energy used in the determination of RTM Minimum Load revenue for BCR shall be qualified by whether or not the Resource’s Energy output has met or surpassed the Tolerance Band limit.
2.2.2.1.12.1.2.3.1 / If the Tolerance Band requirement has not been satisfied, the RTM Minimum Load revenue and RTM Minimum Load Cost shall = 0.
2.2.2.1.22.1.2.3.2 / If the Tolerance Band requirement has been satisfied, the RTM Minimum Load revenue shall be computed as the product of the RTM Minimum Load Energy and the Resource-specific RT LMP.
2.1.2.3.3 / The RTM Minimum Load Cost is input into the currently defined calculation from a predecessor configuration. Fact
2.2.2.2 / For non-CAISO Real-Time Market Commitment periods, the RTM Energy revenue excludes revenue for Minimum Load of resources committed in RUC that become ineligible for minimum load cost recovery due to the Settlement Interval being considered a non-CAISO Commitment period in Real Time.
2.2.3 / RTM Market Revenue shall include Real-Time Market AS Award revenue calculated as the product of the Real-Time Market AS Award from each accepted Real-Time Market AS Bid in the Settlement Interval with the relevant ASMP, divided by the number of fifteen (15)-minute Commitment Intervals (4) in a Trading Hour, and prorated to the duration of the Settlement Interval.
2.2.3.1 / The RTM revenue includes the adjustment for applicable AS No Pay.
3.03.0 / Regardless of Resource Type, RTM Net Amount must follow the same sign convention - positive RTM Net Amount indicates a revenue Shortfall, negative RTM Net Amount indicates a revenue Surplus.
4.04.0 / PTB Logic does not appliesy to the RTM Net Amount Pre-calculation.
5.05.0 / MSS Load Following Energy is not subjected to Bid Cost Recovery.
5.15.1 / Optimal Energy that overlaps with MSS Load Following Energy is not eligible for Bid Cost Recovery.
5.25.2 / Optimal Energy that overlaps with MSS Load Following Energy is identified via Overlap Flag (provided by MQS).
6.06.0 / For the MSS entity electing net settlement, if the RT Metered Demand exceeds the RT Metered Generation energy, the MSS energy is not eligible for BCR with the exception for Ancillary Service Awards, which are eligible for BCR regardless of MSS gross or net election.
7.07.0 / For the MSS entity electing net settlement, if the RT Metered Generation energy exceeds the RT Metered Demand, only the RT Metered Generation energy that is above the RT Metered Demand is eligible for BCR.
8.08.0 / Non-Dynamic System Resources and Resource-Specific System Resources are considered to be outside the MSS; therefore, system resources will settle on a resource basis at the Intertie LMP or Resource-Specific LMP, respectively, regardless of net or gross election.
9.09.0 / For Multi-Stage Generating (MSG) Resources, Energy Bid Costs (determined under IFM Net Amount Pre-calculation, RUC Net Amount Pre-calculation, and RTM Net Amount Pre-calculation) are calculated at the resource level.

10.0

/ For a Multi-Stage Generating Resource the CAISO will determine the RTM AS Bid Cost based on the Generating Unit level.
11.010.0 / For Multi-Stage Generating (MSG) Resources, the comparison of market revenues to bid costs occurs at the resource level.

12.0

/ The import portion of any Schedule resulting from Bids submitted in violation of Tariff Section 30.5.5 (Scheduling Sourcing/Sinking in Same Balancing Authority Area) will be settled at the lower of the: (a) LMP of the Scheduling Point for the import portion of the Schedule in the market in which the import portion of the Schedule was awarded; or (b) LMP of the scheduling point for the export portion of the Schedule in the market in which the export portion of the Schedule was awarded.

12.1