Configuration Guide for: CC 8830 Monthly Resource Adequacy Availability Incentive Mechanismt SettlementNeutrality / Date: 7/09/201512/22/1501/07/2016 2/19/16
Settlements andBilling
Configuration Guide: Monthly Resource Adequacy Availability Incentive Mechanism Settlement
CC 8830
Version 5.0
CAISO, 2018 / Page 1 of 13Settlements and Billing / Version: 5.0
Configuration Guide for: CC 8830 Monthly Resource Adequacy Availability Incentive Mechanismt SettlementNeutrality / Date: 7/09/201512/22/1501/07/2016 2/19/16
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 Charge Code Formula
3.6.1RAAIM Non-Availability Settlement Amount
3.6.2RAAIM Non-Availability Quantity
3.6.3RAAIM Obligation Quantity
3.6.4RAAIM Non-Availability Performance
3.7Output Requirements
4.Charge Code Effective Dates
CAISO, 2018 / Page 1 of 13Settlements and Billing / Version: 5.0
Configuration Guide for: CC 8830 Monthly Resource Adequacy Availability Incentive Mechanismt SettlementNeutrality / Date: 7/09/201512/22/1501/07/2016 2/19/16
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 Resource Adequacy Availability Incentive Mechanism (RAAIM) was part of the Reliability Services Initiative, a suite of policies to address rules and process surrounding RA resources. These provisions were implemented on March 1st 2016.
RAAIM enhances grid reliability and market efficiency by providing an incentive for RA resources that meet their bidding obligation and provide energy bids to the market. The new incentive mechanism replaces the previously existing Standard Capacity Product and utilizes a resource’s economic and self schedule bids to evaluate Resource Adequacy and Capacity Procurement Capacity availability. Similar to SCP, RAAIM establishes a monthly standard that RA resources are expected to perform. RA resource’s that fail to meet the threshold are subject to a penalty, while resources that exceed the threshold may receive a payment.
Under SCP, a large number of resources were exempted due to the limitation of evaluating availability based on forced outages. A resources availability was used in the evaluation of RA and CPM Capacity, but calculated separately under SCP and CPM settlement. In reality, RA and CPM capacity share the same must offer rules and adhere to inter-related rules. Additionally, the Flexible Resource Adequacy Criteria and Must Offer Obligation (FRAC-MOO) initiative created economic bidding requirements that were impossible to measure using an outage availability value. A new incentive mechanism was thus necessary in order to expand, integrate, and evaluate more resources on the grid. and accommodate the new bidding obligations introduced with FRAC-MOO.
2.2Description
The Monthly Resource Adequacy Availability Incentive Mechanism Settlement (CC8830) is the charge to any RA Resource that failed to meet the monthly Availability Standard minus the tolerance band of 2%. The Non-availability charges will be applied on a monthly basis to RA resources that fail to achieve the Availability Standard minus 2% during that month.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / Resource Adequacy Availability Incentive Mechanism Monthly Charge or payment shall be assessed to resources with CPM RA, and non-CPM (RAAIM) RA capacity whose Monthly Availability Percentage falls below or above the Availability Incentive Standard Percentage’s respective threshold.
2.0 / The Availability Incentive Standard Percentage is a configurable variable that is evaluated each year. For the first year the RAAIM Standard Percentage will be set at 96.5%.
3.0 / The configurable tolerance band above and belowThere is a tolerance band of 2% above and 2% below the availability incentive standard percentage shall be used to calculate the Availability Incentive Charge/Payment performance threshold. By default, the tolerance band is 2% above and 2% below the availability incentive standard percentage.
4.0 / The Resource Adequacy Availability Incentive Price shall be a configurable variable that is evaluated each year and is 60% of the CSP soft offer cap. For the first year the AI Price is set at ($3.79 kw/month.). The CSP soft offer cap is subject to stakeholder review and potential revision through a FERC filing process at least every four years.
5.0 / The Resource Adequacy Availability Incentive Price for CPM capacity is the maximum of the RAAIM price and the resource-specific CPM capacity price.The Resource Adequacy Availability Incentive Price for CPM capacity is the maximum of the RAAIM price and the CPM capacity price.
6.0 / The Monthly Average RAAIM capacity MW shall be the total sum of the hourly RAAIM capacity MW divided by the total number of obligation hours within the trade month.
7.0 / The Monthly Average CPM capacity MW shall be the total sum of the hourly CPM capacity MW divided by the total number of obligation hours within the trade month.
8.0 / Resource Adequacy Availability Incentive Mechanism Monthly Charge settlement for CPM and non-CPM(RAAIM) capacity shall be the product of the respective availability incentive charge price and the product of Monthly Average capacity MW and RAAIMAI performance charge percentage:
8.1 / CPM RA Capacity:
CPM RAAIM Monthly Charge = CSP price * (Monthly Average CPM capacity MW * RAAIMAvailability Incentive performance charge percentage)
8.2 / Non-CPM (RAAIM) (AI) RA Capacity:
RAAIM Monthly Charge = RAAIM charge price * (Monthly Average (RAAIM) RA capacity MW * RAAIM performance charge percentage)
8.3 / RAAIM Charge performance charge percentage is the equal to the resources Monthly Availability Percentage below the RAAIM monthly availability charge threshold.
9.0 / The first two months of RAAIM will be advisory. In order to facilitate implementing the advisory period a RAAIM advisory flag will be incorporated into the reporting hierarchy of CC 8830 and CC 8831 such that Settlement amounts will calculate but never be billed or invoiced
3.2Predecessor Charge Codes
Charge Code/ Pre-Calc NameResource Adequacy Availability Incentive Mechanism Pre-calculation
3.3Successor Charge Codes
Charge Code/ Pre-calc NameMonthly Resource Adequacy Availability Incentive Mechanism Allocation(CC8831)
3.4Inputs - External Systems
Row # / Variable Name / Description1 / RAAIMNonAvailabiltyChargePrice / The "price" value of the Non-Availability Charge is 60% of the CSP soft offer cap.
2 / RAAIMAvailabilityStandard m / Monthly Availability Standard.
3 / LowerToleranceBand / Tolerance Band of 2.0%
4 / UpperToleranceBand / Tolerance Band of 2.0%
5 / PTBChargeAdjustmentRAAIMBJm / RAAIM non availability PTB charge adjustment for resource specific resources.
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration / Description1 / HourlyAssessmentBidObligationQuantityBrtF’S’mdh / Resource Adequacy Availability Incentive Mechanism Pre-calculation
An RA resource’s hourly RA bid obligation for each RAAIM assessment hour where a bidding obligation existed.
2 / HourlyAssessmentAvailabilityQuantityBrtF’S’mdh / Resource Adequacy Availability Incentive Mechanism Pre-calculation
An RA resource’s hourly availability for each RAAIM assessment hour where a bidding obligation existed.
3 / HourlyRAAIMObligationQuantityBrtF’S’mdh / Resource Adequacy Availability Incentive Mechanism Pre-calculation
This value represents the RA resource’s hourly RAAIM obligation (capacity without CPM) to calculate the resource’s monthly average RA quantity.
4 / HourlyRAAIMGenericCPMQuantityBrtF’S’mdh / Resource Adequacy Availability Incentive Mechanism Pre-calculation
This value represents the hourly generic CPM capacity to calculate the resource’s monthly average CPM quantity.
5 / HourlyRAAIMFlexibleCPMQuantityBrtF’S’mdh / Resource Adequacy Availability Incentive Mechanism Pre-calculation
This value represents the hourly flexible CPM capacity to calculate the resource’s monthly average flexible CPM quanitity.
6 / MonthlyResourceRAAIMCPMPriceBrtm / Resource Adequacy Availability Incentive Mechanism Pre-calculation
The “price” value of the Non-Availability Charge for generic CPM
7 / MonthlyResourceRAAIMFlexibleCPMPrice Brtm / Resource Adequacy Availability Incentive Mechanism Pre-calculation
The “price” value of the Non-Availability Charge for flexible CPM
8 / MonthlyObligationHoursQuantity m / Total number of hours within a given month.
3.6CAISO Charge Code Formula
The formula for the Settlements Amount in any given month is as follow:
3.6.1RAAIM Non-Availability Settlement Amount
3.6.1.1CAISOMonthlyRAAIMNonAvailabilitySettlementAmount
CAISOMonthlyRAAIMNonAvailabilitySettlementAmount m = MonthlyResourceTotalRAAIMNonAvailabilitySettlementAmountBrtF’S’m
Note: The equation above shall utilize the monthly amounts from this charge codes hierarchy in order to include any pass through billing adjustment.
3.6.1.2MonthlyResourceTotalRAAIMNonAvailabilitySettlementAmount
MonthlyResourceTotalRAAIMNonAvailabilitySettlementAmount BrtF’S’m =
MonthlyResourceRAAIMNonAvailabilitySettlementAmount BrtF’S’m + MonthlyResourceCPMNonAvailabilitySettlementAmount BrtF’S’m + MonthlyResourceFlexibleCPMNonAvailabilitySettlementAmount BrtF’S’m
3.6.1.3MonthlyResourceRAAIMNonAvailabilitySettlementAmount
MonthlyResourceRAAIMNonAvailabilitySettlementAmount BrtF’S’m = MonthlyResourceRAAIMNonAvailabilityQuantity BrtF’S’m * RAAIMNonAvailabiltyChargePrice
3.6.1.4MonthlyResourceCPMNonAvailabilitySettlementAmount
MonthlyResourceCPMNonAvailabilitySettlementAmount BrtF’S’m = MonthlyResourceCPMNonAvailabilityQuantity BrtF’S’m * MAX(RAAIMNonAvailabiltyChargePrice, MonthlyResourceRAAIMCPMPrice)
3.6.1.5MonthlyResourceFlexibleCPMNonAvailabilitySettlementAmount
MonthlyResourceFlexibleCPMNonAvailabilitySettlementAmount BrtF’S’m = MonthlyResourceFlexibleCPMNonAvailabilityQuantity BrtF’S’m * MAX(RAAIMNonAvailabiltyChargePrice, MonthlyResourceRAAIMFlexibleCPMPrice)
3.6.2RAAIM Non-Availability Quantity
3.6.2.1MonthlyResourceRAAIMNonAvailabilityQuantity
MonthlyResourceRAAIMNonAvailabilityQuantity BrtF’S’m = MonthlyResourceRAAIMObligationQuantity BrtF’S’m * MonthlyResourcePenaltyPercentage BrtF’S’m
3.6.2.2MonthlyResourceCPMNonAvailabilityQuantity
MonthlyResourceCPMNonAvailabilityQuantity BrtF’S’m = MonthlyResourceCPMObligationQuantity BrtF’S’m * MonthlyResourcePenaltyPercentage BrtF’S’m
3.6.2.3MonthlyResourceFlexibleCPMNonAvailabilityQuantity
MonthlyResourceFlexibleCPMNonAvailabilityQuantityBrtF’S’m = MonthlyResourceFlexibleCPMObligationQuantityBrtF’S’m* MonthlyResourcePenaltyPercentageBrtF’S’m
3.6.3RAAIM Obligation Quantity
3.6.3.1MonthlyResourceRAAIMObligationQuantity
MonthlyResourceRAAIMObligationQuantity BrtF’S’m = MonthlyResourceGrossRAAIMObligationQuantity BrtF’S’m / MonthlyObligationHoursQuantity m
3.6.3.2MonthlyResourceGrossRAAIMObligationQuantity BrtF’S’m
MonthlyResourceGrossRAAIMObligationQuantity BrtF’S’m = HourlyRAAIMObligationQuantity BrtF’S’mdh
3.6.3.3MonthlyResourceCPMObligationQuantity
MonthlyResourceCPMObligationQuantity BrtF’S’m = MonthlyResourceGrossCPMQuantity BrtF’S’m / MonthlyObligationHoursQuantity m
3.6.3.4MonthlyResourceGrossCPMQuantity
MonthlyResourceGrossCPMQuantity BrtF’S’m = HourlyRAAIMGenericCPMQuantity BrtF’S’mdh
3.6.3.5MonthlyResourceFlexibleCPMObligationQuantity
MonthlyResourceFlexibleCPMObligationQuantityBrtF’S’m= MonthlyResGrossFlexCPMQuantity BrtF’S’m/ MonthlyObligationHoursQuantity m
3.6.3.6MonthlyResourceGrossFlexCPMQuantity
MonthlyResourceGrossFlexCPMQuantityBrtF’S’m = HourlyRAAIMFlexibleCPMQuantityBrtF’S’mdh
3.6.4RAAIM Non-Availability Performance
3.6.4.1MonthlyResourcePenaltyPercentage
MonthlyResourcePenaltyPercentageBrtF’S’m = MAX(0,(RAAIMAvailabilityStandard m– LowerToleranceBand)–MonthlyResourcePerformanceBrtF’S’m
3.6.4.2MonthlyResourcePerformance
MonthlyResourcePerformanceBrtF’S’m = (MonthlyAssessmentAvailabilityQuantityBrtF’S’m/ MonthlyAssessmentBidObligationQuantity BrtF’S’m)
3.6.4.3MonthlyAssessmentAvailabilityQuantity
MonthlyAssessmentAvailabilityQuantityBrtF’S’m = HourlyAssessmentAvailabilityQuantityBrtF’S’mdh
3.6.4.4MonthlyAssessmentBidObligationQuantity
MonthlyAssessmentBidObligationQuantity BrtF’S’m = HourlyAssessmentBidObligationQuantityBrtF’S’mdh
3.7Output Requirements
Output Req ID / Name / Description1 / In addition to any outputs listed below, all inputs shall be included as outputs.
2 / CAISOMonthlyRAAIMNonAvailabilitySettlementAmount m / The sum of Non Availability settlement amounts for all resources that receive RAAIM penalty charges for the month.
3 / MonthlyResourceTotalRAAIMNonAvailabilitySettlementAmount BrtF’S’m / The total monthly Non Availability settlement charge amount applied to RA, flexible RA, generic CPM, and flexible CPM capacity of a resource that performs below the Availability Standard threshold.
4 / MonthlyResourceRAAIMNonAvailabilitySettlementAmount BrtF’S’m / The monthly Non Availability settlement charge amount applied to RA and flexible RA capacity of a resources that performs below the Availability Standard threshold.
5 / MonthlyResourceCPMNonAvailabilitySettlementAmountBrtF’S’m / The monthly Non Availability settlement charge amount applied to generic CPM capacity of a resource that performs below the Availability Standard threshold.
6 / MonthlyResourceFlexibleCPMNonAvailabilitySettlementAmountBrtF’S’m / The monthly Non Availability settlement charge amount applied to flexible CPM capacity of a resource that performsbelow the Availability Standard threshold.
7 / MonthlyResourceRAAIMNonAvailabilityQuantityBrtF’S’m / The monthly RA capacity and flexible RA capacity subject to the Non Availability charge price. It is the portion of the monthly RA that is below the Availability Standard threshold.
8 / MonthlyResourceCPMNonAvailabilityQuantityBrtF’S’m / The monthly generic CPM capacity subject to the Non Availability charge price. It is the portion of the monthly RA that is below the Availability Standard threshold.
9 / MonthlyResourceFlexibleCPMNonAvailabilityQuantityBrtF’S’m / The monthly flexible CPM capacity subject to the Non Availability charge price. It is the portion of the monthly RA that is below the Availability Standard threshold.
10 / MonthlyResourceRAAIMObligationQuantityBrtF’S’m / Represents the average RAAIM hourly obligation for the month. The RAAIM obligation is the RA and flexible RA capacity without any CPM capacity.
11 / MonthlyResourceGrossRAAIMObligationQuantityBrtF’S’m / The sum of a resource’s RAAIM obligation over the entire month.
12 / MonthlyResourceCPMObligationQuantityBrtF’S’m / Represents the average generic CPM hourly obligation for the month.
13 / MonthlyResourceGrossCPMQuantityBrtF’S’m / The sum of a resource’s generic CPM obligation for the month.
14 / MonthlyResourceFlexibleCPMObligationQuantity BrtF’S’m / Represents the average flexible CPM hourly obligation for the month.
15 / MonthlyResourceGrossFlexCPMQuantityBrtF’S’m / The sum of a resource’s flexible CPM obligation for the month.
16 / MonthlyResourcePenaltyPercentageBrtF’S’m / For resources that perform below the Availability Standard, this value represents the difference between the resource’s performance and the threshold.
17 / MonthlyResourcePerformanceBrtF’S’m / Represents a resource’s availability as a percentage of all assessment hours the resource had an obligation to bid.
18 / MonthlyAssessmentAvailabilityQuantityBrtF’S’m / The sum of hourly availability for each assessment hour the resource had an RA obligation.
19 / MonthlyAssessmentBidObligationQuantity BrtF’S’m / The sum of hourly RAAIM obligation for each assessment hour the resource had an RA obligation.
4.Charge Code Effective Dates
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
Monthly Resource Adaquacy Standard Capacity Product Settlement (CC 8824) / 5.0 / 11/1/2016 / Open / Configuration Impacted
CAISO, 2018 / Page 1 of 13