Configuration Guide for: IFM Net Amount / Date: 046/001/110
Settlements & Billing
BPM Configuration Guide: IFM Net Amount
Pre-calculation
Version 5.32
Confidential / CAISO, 2018 / Page 1 of 37Settlements & Billing / Version: 5.32
Configuration Guide for: IFM Net Amount / Date: 046/001/110
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-calculation
3.6CAISO Formula
3.7Outputs
4.Charge Code Effective Date
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 recover SUC and MLC, a Generating Unit, Pumped-Storage 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 Resources in general (for example, Generating Units, Pumped-Storage Units, Proxy Demand Resources, and resource-specific System Resources) scheduled or dispatched by CAISOindependent of whether they are CAISO-committed or instead are 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 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 on as a result of an Energy Self-Schedule or A/S self-provision 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 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 exactly the same as other Scheduling Coordinators. For MSS entities that have elected net settlement, for both IFM and RTM the Energy 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 pPortions of the day-ahead schedule and dispatched energy at or below a resource’s minimum load will be based on delivered energy. The ISO will use the Tariff-defined Tolerance Band to determine whether or not the market revenues as well as the start-up and minimum load costs are captured.
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 obtains minimum load cost payments. The ISO has adopted this practice to ensure that minimum load energy actually delivered is captured for both costs and revenues. Applying the Ttolerance Bband, 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 his rrequirement 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 IFM Bid Costs, IFM market revenue, and the IFM Net Amount as the net difference between IFM costs and IFM revenue for various Bid Cost Recovery Eligible Resources (for example,Generating Units, Pumped-Storage Units, Proxy Demand Resources and resource specific System Resources). The IFM Net Amount is subsequently used as an input for CC 6620, Bid Cost Recovery Settlement and pre-calculation Bid Cost Recovery Sequential Netting.
Prior to the Consistent with the September 21, 2006 FERC Order, , as long as a resource performed within its relevant Tolerance Band according to CAISO dispatch instructions, IFM Bid Costs were calculated as the algebraic summation of eligible Start Up Costs and eligible Minimum Load Costs, calculated by predecessor pre-calculation IFM/RUC/RTM Start-up and Minimum Load Eligibility, as well as A/S costs, and Energy costs. Otherwise, the resource’s IFM Bid Costs for any Settlement Interval were set to zero. With the FERC Order,IFM Bid Costs for any settlement interval is based on whether the resource’s Dday-Aahead Sschedule was actually delivered. For except for 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.. ForAll other portions of the Dday-Aahead Sschedule the delivered portions of the Day-Ahead Schedule are evaluated based on the metered energy adjustment factor. condition, a resource will no longer be required to perform within its relevant Tolerance Band as stated in Paragraph #516 of the FERC Order. 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.
IFM market revenues are calculated for each Settlement Interval as the sum of 1) The product of Awarded A/S and the relevant ASMP, divided by the number of Settlement Intervals in a Trading Hour, plus 2) The product of Awarded Energy (above Minimum Load or Self-Schedule for Self Commitment Periods, but the entire IFM Schedule for CAISO Commitment Periods) and the IFM LMP, divided by the number of Settlement Intervals in a Trading Hour. 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:
- 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
- from 12/07/2010 onward.
For the MSS entity electing net settlement regardless of other MSS optional elections, the settlement MWh quantity is determined at the MSS level for MSSs within MSS Aggregation or being standalone rather than on individual resource level. For an MSS net-load in the DA Schedule, i.e. MSS internal Demand exceeds internal generation in the Day-Ahead Schedule; the MSS is not eligible for BCR. For the MSS net-generation in Day-Ahead Schedule, i.e. MSS internal Generation exceeds the internal Demand; the Energy of the net Generation in Day-Ahead schedule is paid at the price equal to the weighted average of IFM LMPs for all applicable PNodes within the relevant MSS, the net Generation energy is eligible for BCR. The weighting factors for computing the weighted average are the MSS Generation corresponding to different PNodes in Day-Ahead schedule. The settlement MWh quantity is the net Energy of the MSS.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / This Pre-calc is a daily computation generating results on a Settlement Interval basis.
2.0 / Resources that fall short of the Day Ahead 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.
2.1 / Mitigated Bid prices are used when calculating IFM Bid Costs.
3.0 / Regardless of Resource Type, IFM Net Amount must follow the same sign convention --- positive IFM Net Amount indicates a Shortfall, negative IFM Net Amount indicates a Surplus.
4.0 / Resource-specific System Resources are system resources that are eligible to submit a 3-part bid and are paid or charged at the resource-specific Day Ahead LMP.
5.0 / Pass Through Bill Charge Adjustment Logic does not apply.
6.0 / For the MSS entity electing net settlement, if the DA Demand exceeds the DA Generation schedule, the MSS energy is not eligible for BCR,with the exception of Ancillary Awards, which are eligible for BCR regardless of MSS gross or net election.
7.0 / For the MSS entity electing net settlement, if the DA Generation schedule exceeds the DA Demand, only the DA Generation schedule energy that is above the DA Demand is eligible for BCR.
8.0 / Non-Dynamic System Resources and Resource-Specific System Resources are considered to be outside the MSS; therefore, will settle on a resource basis at the Intertie LMP or Resource-Specific LMP respectively, regardless of net or gross election.
9.0 / 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 Multi-Stage Generating (MSG) Resources, the comparison of market revenues to bid costs occursat the resource level.
11.0 / The IFM Minimum Load Energy used in the determination of IFM 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.
11.1 / If the Tolerance Band requirement has not been satisfied, the IFM Minimum Load revenue and IFM Minimum Load Cost shall = 0.
11.2 / If the Tolerance Band requirement has been satisfied, the IFM Minimum Load revenue shall be computed as the product of the IFM Minimum Load Energy and the Resource-specific DA LMP.
11.3 / The IFM Minimum Load Cost is input into the currently defined calculation from a predecessor configuration. Fact
3.2Predecessor Charge Codes
Charge Code/ Pre-calc NamePre-calc –Start-Up and Minimum Load Cost
Pre-calc – Metered Energy Adjustment Factor
CC 6011 – Day Ahead Energy, Congestion, Loss Settlement
3.3Successor Charge Codes
Charge Code/ Pre-calc NamePre-calc – RTM Net Amount
CC 6620 – Bid Cost Recovery Settlement
Pre-calc – Bid Cost Recovery Sequential Netting
3.4Inputs – External Systems
Row / Variable Name / Description1 / DAMinimumLoadQuantity BrtuT’I’M’VL’W’R’F’S’hif / Day Ahead Minimum Load Quantity (provided by MQS) for Business Associate B, Resource r , Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
2 / DAAwardedSpinBidCapacityBrtuT’I’M’VL’W’R’F’S’a’h / Day Ahead Spinning Reserve Awarded Bid Capacity for Business Associate B, Resource r , Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Intertie Constraint a’, and Trading Hour h.
3 / DASpinBidPriceBrtuT’I’M’VL’W’R’F’S’h / Day Ahead Spinning Reserve Capacity Bid Price for Business Associate B, Resource r , Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, and Trading Hour h.
4 / DASpinCapacityASMPrth / Day Ahead Spinning Reserve Ancillary Service Marginal Price for Resource r , Resource Type t, and Trading Hour h.
5 / DAAwardedNonSpinBidCapacityBrtuT’I’M’VL’W’R’F’S’a’h / Day Ahead Non-Spinning Reserve Awarded Bid Capacity for Business Associate B, Resource r , UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Intertie Constraint a’, and Trading Hour h.
6 / DANonSpinBidPriceBrtuT’I’M’VL’W’R’F’S’h / Day Ahead Non-Spinning Reserve Capacity Bid Price for Business Associate B, Resource r, Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, and Trading Hour h.
7 / DANonSpinCapacityASMPrth / Day Ahead Non-Spinning Reserve Ancillary Service Marginal Price for Resource r , Resource Type t, and Trading Hour h.
8 / DAAwardedRegUpBidCapacityBrtuT’I’M’VL’W’R’F’S’a’h / Day Ahead Regulation Up Awarded Bid Capacity for Business Associate B, Resource r , Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Intertie Constraint a’, and Trading Hour h.
9 / DARegUpBidPriceBrtuT’I’M’VL’W’R’F’S’h / Day Ahead Regulation Up Capacity Bid Price for Business Associate B, Resource r , Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, and Trading Hour h.
10 / DARegUpCapacityASMPrth / Day Ahead Regulation Up Ancillary Service Marginal Price for Resource r , Resource Type t, and Trading Hour h.
11 / DAAwardedRegDownBidCapacityBrtuT’I’M’VL’W’R’F’S’a’h / Day Ahead Regulation Down Awarded Bid Capacity for Business Associate B, Resource r , Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Intertie Constraint a’, and Trading Hour h.
12 / DARegDownBidPriceBrtuT’I’M’VL’W’R’F’S’h / Day Ahead Regulation Down Capacity Bid Price for Business Associate B, Resource r , Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, and Trading Hour h.
13 / DARegDownCapacityASMPrth / Day Ahead Regulation Down Ancillary Service Marginal Price for Resource r , Resource Type t, and Trading Hour h.
14 / DAEnergyBidPrice BrtuT’bI’M’VL’W’R’F’S’hif / Day Ahead Energy Bid Price (provided by MQS) for Business Associate B, Resource r, Resource Type tUDC Index u, Entity Type T’, Bid Segment b, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
15 / DayAheadLMP rth / Day Ahead Locational Marginal Price for Resource r, Resource Type t, and Trading Hour h.
Prices for Resource-Specific System Resource (Tie Generators) shall be mapped to Resource-Specific Day Ahead LMP. Prices for Non-Dynamic System Resource s shall be mapped to Day Ahead Intertie LMP.
16 / DAScheduleEnergyAllocationQuantityBrtuT’bI’M’VL’W’R’F’S’hif / The Day Ahead Expected Energy Allocation Schedule quantity (provided by MQS) inclusive of Minimum Load, Self-schedule, and awarded bid Energyfor Business Associate B, Resource r, Resource Type t UDC Index u, Entity Type T’, Bid Segment b, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
17 / DASelfSchedule BrtuT’I’M’VL’W’R’F’S’hif / The Self Schedule energy quantity of the Day Ahead Schedule above Minimum Load (provided by MQS) for Business Associate B, Resource r, Resource Type t UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f
18 / DAPumpingEnergy BrtuT’I’M’VL’W’R’F’S’hif / The Day Ahead Pumping Energy (provided by MQS) from Pumped-Storage Unit and Participating Loads for Business Associate B, Resource r, Resource Type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
19 / DALoadSchedule BrtuT’I’M’AA’R’pW’F’S’vVL’h / DA Load Schedule (provided by IFM) for Business Associate B, Resource r, Resource type t, UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, and MSS Subgroup M’, APN_ID A, APN Type A’, Penalty Resource ID R’, Price Node ID p, MSS Emission Pay Flag W’, Entity Component Type F’, Entity Component Subtype S’, TAC Area ID v, RUC Participation Flag V, Load Following Flag L’, and Trading Hour h. Represents non-participating load resource IDs, and is a negative value.
20 / DABidAwardEnergyQuantityBrtuT’I’M’VL’W’R’F’S’hif / The Day Ahead Awarded Expected Energy Bid quantity above Minimum Load and Self Schedule (provided by MQS)for Business Associate B, Resource r, Resource Type t UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, RUC Participation Flag V, Load Following Flag L’, MSS Emission Pay Flag W’, Penalty Resource ID R’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, Settlement Interval i, and Dispatch Interval f.
21 / SettlementIntervalIFMCAISOCommitPeriod BrtF’S’hi / Provided by MQS, indicates resource was committed ON by CAISO in IFM. 1: for ON, 0: for OFF or Self-Committed for Business Associate B, Resource r, Resource Type t, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, and Settlement Interval i.
22 / IFMPumpingCostFlagBrtuT’I’M’F’S’hi / Indicates IFM Pumping Costs for a settlement interval are qualified for cost compensation (provided by MQS) for Business Associate ID B, Resource ID r, Resource Type t , UDC Index u, Entity Type T’, MSS Gross/Net Energy Settlement Type I’, MSS Subgroup M’, Commitment Period O’, Entity Component Type F’, Entity Component Subtype S’, Trading Hour h, and Settlement Interval i. Qualified = 1, Not qualified = 0.
3.5Inputs - Predecessor Charge Codes or Pre-calculation
Row # / Variable Name / Predecessor Charge Code/Pre-calc Configuration
1 / EligibleIFMMLC BrtuT’I’M’F’S’hi / Pre-calc – Start-Up and Minimum Load Cost
2 / EligibleIFMSUC BrtuT’I’M’F’S’hi / Pre-calc – Start-Up and Minimum Load Cost
3 / EligibleIFMPumpingCostBrtuT’I’M’F’S’hi / Pre-calc – Start-Up and Minimum Load Cost
4 / EligibleIFMSDC BrtuT’I’M’F’S’hi / Pre-calc – Start-Up and Minimum Load Cost
5 / EligibleIFMTCBrtuT’I’M’F’S’hi / Pre-calc – Start-Up and Minimum Load Cost
6 / MLC_PMinRealTimeOnFlag BrtF’S’hi / Pre-calc – Start-Up and Minimum Load Cost
7 / MLCRealTimeOnFlag BrtF’S’hi / Pre-calc – Start-Up and Minimum Load Cost
86 / DA_MSSNetSupplyLMP M’h / CC 6011 – Day Ahead Energy, Congestion, Loss Settlement
97 / DAMeteredEnergyAdjustmentFactor BrtuT’I’M’F’S’hif / Pre-calc – Metered Energy Adjustment Factor
3.6CAISO Formula
3.6.1For Non-MSS entities and MSS entities with Gross Settlement Election