Technical Documentation for: CC 7881 Monthly CPM Exceptional Dispatch Allocation / Date: 1/12/11
Settlements & Billing
Monthly CPM Exceptional Dispatch Allocation
(CC 7881)
Version 5.0
ÓCAISO, 2011 / Page 2 of 13Settlements & Billing / Version: 5.0
Technical Documentation for: CC 7881 Monthly CPM Exceptional Dispatch Allocation / Date: 1/12/11
Table of Contents
1. Purpose of Document 3
2. Introduction 3
2.1 Background 3
2.2 Description 4
3. Charge Code Requirements 5
3.1 Business Rules 5
3.2 Predecessor Charge Codes 6
3.3 Successor Charge Codes 6
3.4 Inputs - External Systems 7
3.5 Inputs – Predecessor Charge Codes or Pre-calculations 7
3.6 CAISO Formula 8
3.7 Outputs 11
4. Charge Code Effective Date 13
ÓCAISO, 2011 / Page 2 of 13Settlements & Billing / Version: 5.0
Technical Documentation for: CC 7881 Monthly CPM Exceptional Dispatch Allocation / Date: 1/12/11
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
2.1 Background
The Capacity Procurement Mechanism (CPM) provides an orderly, pre-approved means for the CAISO to procure backstop capacity where and when needed to meet Reliability Criteria or otherwise maintain reliable grid operations.
Although RA programs are in place under California law, and RA requirements have been established by Local Regulatory Authorities, there may be instances when RA Resources are not sufficient to meet all of the operational needs of the ISO and enable it to meet reliability criteria. This may occur as a result of LSEs failing to comply with RA requirements, LSEs procuring sufficient resources to meet their RA requirements established by Local Regulatory Authorities, but not meeting all of the ISO’s specific reliability needs, and unforeseen or changed circumstances affecting system conditions or grid operations. The ISO must have the appropriate tools at its disposal under such circumstances to maintain reliable operations. In particular, the ISO needs the ability to procure resources when such instances occur in order to maintain the reliability of the CAISO Balancing Authority Area. The Interim Capacity Procurement Mechanism (ICPM) has provided that ability and, therefore, the ISO is retaining the key features of the ICPM in conjunction with a few key modifications that will enhance the program.
In reviewing the performance of both the ICPM and the ISO’s new market system
over the first 18 months of their operation, the ISO has come to two key conclusions –
(i) the ICPM has operated effectively and successfully in fulfilling its intended purpose, and (ii) the need for a backstop capacity procurement mechanism continues to exist.
While the use of ICPM has been rather limited, the
potential circumstances and needs that motivated its implementation are still
relevant today. Moreover, given the significant operational requirements facing the ISO
in the near future as a result of the integration of large amounts of variable energy
resources, not seeking the continuation of some
equally-effective type of backstop capacity procurement mechanism would be irresponsible. In order to assure
its ability to operate the system reliably under diverse system conditions, the ISO must
have both a backstop capacity procurement mechanism comparable to ICPM and an
Exceptional Dispatch mechanism as permanent features of its market and operating
structure. As variable energy
resources that are on line increase, they will comprise a greater proportion of LSEs’ RA
capacity and load-serving capacity .. Since variable energy resources’ qualifying capacity is unpredictable due to several inherent constraints (e.g., weather conditions), they may be unable to provide their full RA capacity, which, in turn, could adversely impact system reliability. A backstop
capacity procurement mechanism enables the ISO to procure specific capacity needed
in response to outages in order to maintain the ISO’s compliance with applicable
reliability criteria.
In addition to those aspects of ICPM which the ISO intends to retain, the CPM will feature several enhancements:
· A new CPM procurement category for resources at risk of retirement that the ISO has determined will be needed for reliability in the following year The addition of two criteria the ISO can consider in selecting capacity for a CPM designation or Exceptional Dispatch from eligible resources that will allow ISO operators to exercise a preference for non-use-limited over use-limited resources and to consider each resource’s operating characteristics;
· Adjustment of CPM compensation when a CPM resource becomes unavailable during the CPM procurement period due to a maintenance outage;
· An updated price for backstop capacity.
For the methodology for CPM Compensation, the ISO shall use a CPM price of $55/kW-year as established using the CEC’s updated “Comparative Costs of California Central Station Electricity Generation Technologies” study, issued in 2009.
For the CPM Allocation, the existing ISO Tariff Sections 43.7.1 through 43.7.6 establish the method for allocating the costs of CPM capacity payments for each category of CPM designation. The allocation method for each CPM category as follows:
· For insufficient Local Capacity Area Resources in an annual or a monthly RA Plan, the CPM costs are allocated pro rata to each Scheduling Coordinator for a deficient LSE based on the ratio of that LSE’s deficiency to the deficiency within the TAC area.
· For a collective deficiency of Local Capacity Area Resources in an annual RA Plan, the CPM costs are allocated to all Scheduling Coordinators of LSEs serving load in the TAC area in which the deficient local capacity area was located.
· For insufficient RA resources to comply with an LSE’s annual and monthly demand and reserve margin requirements, the CPM cost allocation is made pro rata to each LSE based on the proportion of its deficiency to the aggregate deficiency.
· For a significant event, Exceptional Dispatch, or resource at risk of retirement CPM, the costs are allocated to all Scheduling Coordinators for LSEs that serve load in the TAC area where the need for the designation arose, based on each Scheduling Coordinator’s percentage of actual load in the TAC area(s) to total load in that area.
2.2 Description
CC 7881 (Monthly CPM Exceptional Dispatch Allocation) provides for the allocation of the cost of the CPM procured on one or multiple TAC Area(s) basis in response to one or more CPM or instances requiring Exceptional Dispatch CPM. For each CPM designation the allocation is applied to all Scheduling Coordinators for LSEs that serve Load in the TAC Area(s) in which the CPM or underlying reason for Exceptional Dispatch caused or threatened to cause a failure to meet Reliability Criteria, based on the percentage of actual Load of each LSE represented by the Scheduling Coordinator in the TAC Area(s) to total Load in the TAC Area(s) as recorded in the CAISO Settlement system for the actual days during any Settlement month period over which the designation has occurred.
The TAC Area Metered demand aggregation will use the Instruction Types displayed in the table below, and this will be the basis of the CPM allocation:
CPM Instruction Codes( O) / TAC Area
(v) / Comments
NONTMOD, SYSEMR, TEMR, TMODEL, TMODEL4, VS / TAC_NORTH +TAC_ECNTR+
TAC_SOUTH / For a CPM designation arising from an exceptional dispatch transmission modeling constraint, System Emergency, System Emergency requiring assistance from outside the CAISO control area, or Voltage Support
TMODEL1, TMODEL5, TMODEL8, TMODEL10 / TAC_NORTH
TMODEL2, TMODEL6 / TAC_ECNTR
TMODEL3, TMODEL7 / TAC_SOUTH
TMODEL9, TMODEL11 / TAC_ECNTR+
TAC_SOUTH
3. Charge Code Requirements
3.1 Business Rules
Bus Req ID / Business Rule /1. / The allocated CPM cost shall apply to all Scheduling Coordinators for LSEs that serve Load in the TAC Area(s) in which the CPM Significant Event caused or threatened to cause a failure to meet Reliability.
2 / The allocation shall be based on the percentage of actual Load of each LSE represented by the Scheduling Coordinator in the TAC Area(s) to total Load in the TAC Area(s) as recorded in the CAISO Settlement system for the actual days during any Settlement month period over which the designation has occurred
3 / This Charge Code shall provide an output on a monthly basis.
4 / Load quantities will exclude Load for which a Transmission Obligation Rights (TOR) contract has been applied to the Load schedule, up to the source-sink balanced portion of the contract.
5 / Actual SCs are referenced by Business Associate ID, and CAISO shall settle with SCs as Business Associates (BA) through these IDs.
3.2 Predecessor Charge Codes
Charge Code/ Pre-Calc Name /TAC Area Metered Demand Allocation Pre-calculation
Monthly CPM Exceptional Dispatch Settlement CC7880
3.3 Successor Charge Codes
Charge Code/ Pre-calc Name /Monthly Rounding Adjustment Allocation CC 4999
ÓCAISO, 2011 / Page 2 of 13
Settlements & Billing / Version: 5.0
Technical Documentation for: CC 7881 Monthly CPM Exceptional Dispatch Allocation / Date: 1/12/11
3.4 Inputs - External Systems
Row # / Variable Name / Description /3.5 Inputs – Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration / Description /1 / BAMonthlyCPMMeteredTACControlAreaDemandMinusBalancedTORAllocFactor BOUU’m / Monthly Control Area (TAC_NORTH, TAC_ECNTR, TAC_SOUTH combination) CPM capacity allocation factor for Business Associate B, by Exceptional Dispatch Type O during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m.
2 / BAMonthlyCPMMeteredTACSouthECentralAreaDemandMinusBalancedTORAllocFactor BOUU’m / Monthly South East Central (TAC_ECNTR, TAC_SOUTH combination) CPM capacity allocation factor for Business Associate B, by Exceptional Dispatch Type O during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m.
3 / BAMonthlyCPMMeteredTACSouthAreaDemandMinusBalancedTORAllocFactor BOUU’m / Monthly TAC_SOUTH ECNTR Area combination CPM capacity allocation factor for Business Associate B, by Exceptional Dispatch Type O during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m.
4 / BAMonthlyCPMMeteredTACECentralAreaDemandMinusBalancedTORAllocFactor BOUU’m / Monthly TAC_ECNTR Area combination CPM capacity allocation factor for Business Associate B, by Exceptional Dispatch Type O during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m.
5 / BAMonthlyCPMMeteredTACNorthAreaDemandMinusBalancedTORAllocFactor BOUU’m / Monthly TAC_NORTH Area combination CPM capacity allocation factor for Business Associate B, by Exceptional Dispatch Type O during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m.
6 / CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m / CAISO Total CMP monthly payment for by Exceptional Dispatch Type O during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m
3.6 CAISO Formula
Business Associate CPM Allocation Charge by Trading Month
3.6.1 BAMonthlyCPMExcepDispCapacityAllocationAmount BUU’m = BAMonthlyCPMTMODEL10CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL8CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL5CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL1CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL6CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL2CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL7CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL3CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL11CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL9CapacityAllocationAmount BOUU’m + BAMonthlyCPMVSCapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODEL4CapacityAllocationAmount BOUU’m + BAMonthlyCPMTMODELCapacityAllocationAmount BOUU’m + BAMonthlyCPMTEMRCapacityAllocationAmount BOUU’m + BAMonthlyCPMSYSEMRCapacityAllocationAmount BOUU’m + BAMonthlyCPMNONTMODCapacityAllocationAmount BOUU’m
3.6.2 BAMonthlyCPMTMODEL10CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACNorthAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL10
3.6.3 BAMonthlyCPMTMODEL8CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACNorthAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL8
3.6.4 BAMonthlyCPMTMODEL5CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACNorthAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL5
3.6.5 BAMonthlyCPMTMODEL1CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACNorthAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL1
3.6.6 BAMonthlyCPMTMODEL6CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACECentralAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL6
3.6.7 BAMonthlyCPMTMODEL2CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACECentralAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL2
3.6.8 BAMonthlyCPMTMODEL7CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACSouthAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL7
3.6.9 BAMonthlyCPMTMODEL3CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACSouthAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL3
3.6.10 BAMonthlyCPMTMODEL11CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACSouthECentralAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL11
3.6.11 BAMonthlyCPMTMODEL9CapacityAllocationAmount BOUU’m = BAMonthlyCPMMeteredTACSouthECentralAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL9
3.6.12 BAMonthlyCPMVSCapacityAllocationAmount BOUU’m= BAMonthlyCPMMeteredTACControlAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = VS
3.6.13 BAMonthlyCPMTMODEL4CapacityAllocationAmount BOUU’m= BAMonthlyCPMMeteredTACControlAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL4
3.6.14 BAMonthlyCPMTMODELCapacityAllocationAmount BOUU’m= BAMonthlyCPMMeteredTACControlAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TMODEL
3.6.15 BAMonthlyCPMTEMRCapacityAllocationAmount BOUU’m= BAMonthlyCPMMeteredTACControlAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = TEMR
3.6.16 BAMonthlyCPMSYSEMRCapacityAllocationAmount BOUU’m= BAMonthlyCPMMeteredTACControlAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = SYSEMR
3.6.17 BAMonthlyCPMNONTMODCapacityAllocationAmount BOUU’m= BAMonthlyCPMMeteredTACControlAreaDemandMinusBalancedTORAllocFactor BOUU’m * CAISOMonthlyTotalCPMExcepDispCapacitySettlementAmount OUU’m
Where O = NONTMOD
3.7 Outputs
Output Req ID / Name / Description /1 / In addition to any outputs listed below, all inputs shall be included as outputs. / All inputs.
2 / BAMonthlyCPMExcepDispCapacityAllocationAmount BUU’m / Total monthly allocated charge (in $) for Business Associate B during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m
3 / BAMonthlyCPMTMODEL10CapacityAllocationAmount BOUU’m / TMODEL10 monthly allocated charge (in $) for Business Associate B during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m
4 / BAMonthlyCPMTMODEL8CapacityAllocationAmount BOUU’m / TMODEL8 monthly allocated charge (in $) for Business Associate B during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m
5 / BAMonthlyCPMTMODEL5CapacityAllocationAmount BOUU’m / TMODEL5 monthly allocated charge (in $) for Business Associate B during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m
6 / BAMonthlyCPMTMODEL1CapacityAllocationAmount BOUU’m / TMODEL1 monthly allocated charge (in $) for Business Associate B during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m
7 / BAMonthlyCPMTMODEL6CapacityAllocationAmount BOUU’m / TMODEL6 monthly allocated charge (in $) for Business Associate B during Settlement Billing Period that extends from Bill Period Start Date U’ to Bill Period End Date U for Trading Month m