Settlements and Billing / Version: 5.0
Configuration Guide for: CC 8835 AnnualResource Adequacy Availability Incentive Mechanismt Neutrality / Date: 7/21/2015

Settlements and Billing

Configuration Guide: Annual Resource Adequacy Availability Incentive Mechanism Neutrality
CC 8835

Version 5.0

CAISO, 2019 / Page 1 of 7
Settlements and Billing / Version: 5.0
Configuration Guide for: CC 8835 AnnualResource Adequacy Availability Incentive Mechanismt Neutrality / Date: 7/21/2015

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

3.7Output Requirements

4.Charge Code Effective Dates

CAISO, 2019 / Page 1 of 7
Settlements and Billing / Version: 5.0
Configuration Guide for: CC 8835 AnnualResource Adequacy Availability Incentive Mechanismt Neutrality / Date: 7/21/2015

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

Any Non-Availability Charge funds that are not distributed to Resource Adequacy Resources eligible to receive Availability Incentive Payments in a month will be added to the funds available for Availability Incentive Payments in the next month and will continue to roll over to the successive month until paid out or December 31, at which time the funds will be distributed to Load Serving Entities based on their load ratio share for the year.

3.Charge Code Requirements

3.1Business Rules

Bus Req ID / Business Rule
1.0 / Unallocated RAAIM monthly charge amounts at the end of the calendar year shall be allocated pro rata to (annual) load.
2.0 / Unallocated funds will be held in a trust/holding account in finance.
3.0 / Funds within the account shall accrue interest, and will be allocated out with any monthly unallocated funds with the year-end allocation.
4.0 / BusinessAssociateYearlyNodalMeteredCAISODemandQty BUU’md is an output from a special process which reflects the yearly summation of the Monthlymetered demand BusinessAssociateMonthlyRAAIMNodalMeteredCAISODemandQty Bm from the RA Availability Incentive Mechanism PC. The Bill period start date (U’) and the Bill period end date (U) are mapped to the first and the last date of the assessment year. (For example,if the meter data is for 2015, the period start date will be January 1, 2015 and the period end date will be December 31, 2015). The statement date will be the first date of the assessment year.
4.1 / An SCsyearly load quantity summationreflects the individual meter readings for Loads of non-MSS entities and gross-settled MSS entities, and also includes the calculated net MSS Demand value for each net-settled MSS entity

3.2Predecessor Charge Codes

Charge Code/ Pre-Calc Name
Measured Demand Pre-calculation

3.3Successor Charge Codes

Charge Code/ Pre-calc Name
None

3.4Inputs - External Systems

Row # / Variable Name / Description
1 / PTBCAISOAnnualUnallocatedRAAIMChargeAmountJU’Umd / Reflects any unallocated RAAIM monthly charge amounts from the previous calendar year which at the end of the calendar year shall be allocated pro rata to (annual) load
2 / PTBCAISOAnnualUnallocatedRAAIMAccruedInterestAmount JU’Umd / Reflects any interest accrued to unallocated RAAIM charge amounts from the previous calendar year
3 / BusinessAssociateYearlyNodalMeteredCAISODemandQty BUU’md / An SCs yearly load quantity summation derived as a result of a special process which reflects the individual meter readings for Loads of non-MSS entities and gross-settled MSS entities, and also includes the calculated net MSS Demand value for each net-settled MSS entity

3.5Inputs - Predecessor Charge Codes or Pre-calculations

Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration / Description
1
2
3
4
5

3.6CAISO Charge Code Formula

The formula for the Settlements Amount in any given month is as follow:

3.6.1.1BusinessAssociateAnnualRAAIMNeutralityAllocationAmount BU’Umd= BusinessAssociateAnnualRAAIMNeutralityAllocationPercentage BU’Umd* CAISOAnnualRAAIMNeutralityAllocationAmount U’Umd
3.6.1.2CAISOAnnualRAAIMNeutralityAllocationAmount U’Umd=PTBCAISOAnnualUnallocatedRAAIMAccruedInterestAmount JU’Umd+ PTBCAISOAnnualUnallocatedRAAIMChargeAmount JU’Umd
3.6.1.3BusinessAssociateAnnualRAAIMNeutralityAllocationPercentage BU’Umd = ABS(BusinessAssociateYearlyNodalMeteredCAISODemandQty BUU’md) /ABS(CAISOAnnualRAAIMNeutralityAllocationQuantity U’Umd)
3.6.1.4CAISOAnnualRAAIMNeutralityAllocationQuantity U’Umd=BusinessAssociateYearlyNodalMeteredCAISODemandQty BUU’md

3.7Output Requirements

Output Req ID / Name / Description
1 / In addition to any outputs listed below, all inputs shall be included as outputs.
2 / BusinessAssociateAnnualRAAIMNeutralityAllocationAmountBU’Umd / Reflects Unallocated RAAIM monthly charge amounts along with any interest having accrued to such funds allocation pro rata to (annual) load at the end of the calendar year
3 / CAISOAnnualRAAIMNeutralityAllocationAmount U’Umd / The sum of any unallocated RAAIM charge amounts from the trust/holding account along with any interest having accrued to such funds
4 / BusinessAssociateAnnualRAAIMNeutralityAllocationPercentageBU’Umd / Load Serving Entities load ratio share for the year
5 / CAISOAnnualRAAIMNeutralityAllocationQuantity U’Umd / CAISO-wide sum of Load Serving Entities load for the year

4.Charge Code Effective Dates

Charge Code/
Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
Annual Resource Adaquacy Standard Capacity Product Neutrality (CC 8835) / 5.0 / 11/1/2016 / Open / Configuration Impacted
CAISO, 2019 / Page 1 of 7