High Voltage Access Charge Allocation

Settlements & Billing / Version: 5.12
Configuration Guide for: High Voltage Access Charge Allocation / Date: 05/21/201011/5/2010

Settlements & Billing

BPM Configuration Guide: High Voltage Access Charge Allocation

CC 372

Version 5.12

ÓCAISO, 2010 / Page 2 of 8
Settlements & Billing / Version: 5.12
Configuration Guide for: High Voltage Access Charge Allocation / Date: 05/21/201011/5/2010

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 Input - External Systems 6

3.5 Inputs - Predecessor Charge Codes or Pre-calculations 6

3.6 CAISO Formula 7

3.7 Outputs 7

4. Charge Code Effective Date 7

ÓCAISO, 2010 / Page 2 of 8
Settlements & Billing / Version: 5.12
Configuration Guide for: High Voltage Access Charge Allocation / Date: 05/21/201011/5/2010

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

2.1  Background

The Access Charge methodology provides first that each individual Participating TO’s transmission rate that was on a license-plate basis be aggregated into a TAC Area rate, then over a 10 year transition period that commenced January 1, 2001, at a rate of 10% per year, the Access Charge is transitioned from "TAC Area" rates to ISO Grid-wide rates for High Voltage Transmission Facilities (i.e., TAC Areas are defined broadly as the previous significant Control Areas in the CAISO Control Area). Thus by January 1, 2011, the Access Charges for CAISO will be one rate for the entire CAISO Controlled Grid.

In addition, all new capital additions to Existing High Voltage Facilities and New High Voltage Facilities are were included immediately in the ISO Grid-wide component. Existing High Voltage Facilities are those facilities that were in commercial operation prior to January 1, 2001. Further, the cost-shift associated with the blending of the various PTOs TRR, that impacts the Original Participating TOs is was limited to $72 Million. The transmission Access Charge consists of the High Voltage Access Charge and Transition Charge, and the Low Voltage Access Charge.

For a Participating Transmission Owners (PTO) that turns over Operational Control of its transmission facilities and Entitlements to CAISO, that PTO receives revenues by way of the Access Charge. The use of the Access Charge rate is a way to compensate PTOs and charge users of CAISO Controlled Grid for the embedded cost of the transmission infrastructure. PTOs establish their Transmission Revenue Requirement (TRR), which is the revenue needed to offset the embedded cost of their transmission facilities and Entitlements for their individual Service Area through a proceeding at Federal Energy Regulatory Commission (FERC). In addition, the Access Charge is revised whenever the PTO received approval from FERC that a new rate is effective.

The calculated TAC Blended Rate (TAC Area component and CAISO Grid-wide component) is was also used to limit the annual amount paid by the IOUs based on a proportionality equation consisting of $32 Million for Pacific Gas and Electric Company and Southern California Edison Company and $8 Million for San Diego Gas & Electric Company. CAISO currently hasthru the end of 2010 had three ‘TAC Areas’:

·  North TAC Area (N)

·  East Central TAC Area (EC)

·  South TAC Area (S)

As New PTOs joined, they are were merged into the appropriate TAC Areas. A new TAC Area will be formed, the West Central TAC Area, if the Los Angeles Department of Water and Power turns over Operational Control of its transmission facilities and Entitlements to CAISO. New PTOs may join effective January 1 or July 1 of any given year. and at the transition rate of the year they join is immediately enforced (i.e., if PTO A joins in 2007, then the transition percentages are 70% ISO Grid-wide and 30% TAC Area for Existing High Voltage Transmission Facilities and 100% ISO Grid-wide for New High Voltage Transmission Facilities).

Currently, CAISO intermittently adjusts the TAC BlendedHigh Voltage Access Charge Rates with the effective date of any a revised PTO’s TRR(s). At a minimum, the TAC BlendedHigh Voltage Access Charge Rates are adjusted annually on January 1 with the revision of the PTOs’ Transmission Revenue Balancing Account Adjustment (TRBAA).

The Access Charge assessed to a Market Participant is determined based on the voltage level of the Take-out Point or Scheduling Point. The SC representing Metered Demand is charged the appropriate Access Charge. The relationship of the charges is as follows:

Type of Market Participant / Voltage level of CAISO Controlled Grid Usage / Access Charge Assessed /
MSS Operator or UDC that is also a PTO / 200 kV and above / HVAC
Below 200kV / HVAC and LVAC
MSS Operator, UDC or SC that is not a PTO / 200 kV and above / HVWAC
Below 200kV / LVWAC

2.2  Description

The High Voltage Access Charge Settlement Amount (CC 372) determines the total Access Charge for each UDC and MSS that is also a PTO. If a UDC or MSS is not a PTO then such entity pays the Wheeling Access Charge.

UDCs and MSS Operators that are also PTOs serving Gross Load in a PTO Service Territory are charged on a monthly basis the applicable High Voltage Access Charge (HVAC). The High Voltage Access Charge for a Billing Period is calculated by CAISO as the product of the applicable TAC BlendedHigh Voltage Access Charge Rate and Gross Load connected to the facilities of the UDC and MSS Operator in the PTO Service Territory.

CAISO calculates and collects HVAC from the SC representing the end-user or ‘Load’ from the UDCs and MSSs and pays the amount collected to the PTOs in CC 374. Through the Access Charge implementation process, a single transmission rate throughout CAISO's Controlled Grid will be established effective January 1, 2011.

HVAC charges are calculated on a daily basis based on the hourly usage of the CAISO Controlled Grid but charged monthly. Recalculations for any reason, other than retroactive rate reductions, are run against the most recent Settlement Amounts and Invoiced with other Market based charges. However, retroactive FERC ordered rate reductions are handled separately in accordance with the CAISO Tariff, Appendix F, Schedule 3.

Recalculations for retroactive rate reductions must also be run against the most recent Settlement Amounts, and the adjustments are processed and Invoiced against the associated Bill Period. Retroactive rate increases adjustments are processed once FERC approves the rates which maybe after a Settlement or subsequent to litigation. This could be numerous years after the rate was made effective by FERC.

3.  Charge Code Requirements

3.1  Business Rules

Bus Req ID / Business Rule /
1.0 / HVAC daily charges are calculated on the last day of the trade month and summed for monthly settlement by UDC.
2.0 / The MonthlyTotalHighVoltageAccessChargeSettlementAmount for a given UDC and month is the sum of its UDCMonthTransitionChargeAmount and UDCMonthHVACDueAmount UDCDayHVACDueAmount for the same month
3.0 / OPTO (original PTO) indicator required for PTO designation
43.0 / For adjustments to the Charge Code that cannot be accomplished by correction of upstream data inputs/recalculation or operator override Pass Through Bill Charge logic will be applied
54.0 / An MSS is identified as a UDC for the purposes of the CC 372 HVAC calculation

3.2  Predecessor Charge Codes

Charge Code/ Pre-calc Name /
CG PC High Voltage Access Charge and Transition Charge
HVAC Metered Load Pre-calculation

3.3  Successor Charge Codes

Charge Code/ Pre-calc Name /
CC 374 – High Voltage Access Revenue Payment

3.4  Input - External Systems

Row # / Variable Name / Description /
1 / AnnualCaponBurden uPHv / Annual limit on the cost-shift attributable to the Existing HVTRR per UDC u PTO ID P HVAC Payer ID H and TAC Area ID v. Only exists for original UDC’s. Standing data with effective start and end dates.
2 / OPTOIndicator uP / Indicator designates a PTO as OPTO or NPTO. Standing Data with effective start and end dates.
31 / PTBChargeAdjustmentMonthlyTotalHighVoltageAccessChargeSettlementAmount BJm / PTB Charge Adjustment Monthly Total High Voltage Access Charge Settlement Amount for BA ID B, PTB _D J, and Trading Month m
4 / PreviousMonthYTMExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd / GL Interface or Previous Day Calc
52 / NumericUDCIDHVACPaymentIndicator BuPHv / Numeric UDC ID HVAC Payment Indicator per BA ID B, UDC u, PTO ID P, HVAC Payer ID H, and TAC Area ID v.
6 / PTOExistingFacilityNoLoadException vP / PTO Existing Facility No Load Exception by each PTO (P) associated with TAC Area (v)
Interval value will be set to 1. This exception relates to PTOs without load that have Existing Facilities TRR. This exception required to exempt such entities from Transition Pricing due to lack of load
7 / PreviousMonthYTDTransitionChargeBasedOnActualLoad uPHvmd / GL Interface or Previous Day Calc

3.5  Inputs - Predecessor Charge Codes or Pre-calculations

Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration
1 / HighVoltageBlendedTACAreaRate vmd / CG PC High Voltage Access Charge and Transition Charge
21 / HVACDailyMeteredLoadQuantity uPHvmd / HVAC Metered Load Pre-calculation
3 / HighVoltageExistingFacilitiesTACAreaRate vmd / CG PC High Voltage Access Charge and Transition Charge
2 / HighVoltageCAISOWideRate md / CG PC High Voltage Access Charge and Transition Charge
4 / ExistingHighVoltageFacilityUtilitySpecificRate vPmd / CG PC High Voltage Access Charge and Transition Charge
5 / ExistingHighVoltageFacilityUtilitySpecificRevenueRequirement vPmd / CG PC High Voltage Access Charge and Transition Charge

3.6  CAISO Formula

3.6.1  High Voltage Access Charge Allocation for every UDC u and Settlement Interval m

is defined by:

MonthlyTotalHighVoltageAccessChargeSettlementAmount BuPHvm = DailyHVACDuefromUDC uPHvmd * INTDUPLICATE[NumericUDCIDHVACPaymentIndicator BuPHv]

MonthlyTotalHighVoltageAccessChargeSettlementAmount BuPHvm = (UDCMonthTransitionChargeAmount uPHvm + UDCMonthHVACDueAmount uPHvm) *

NumericUDCIDHVACPaymentIndicator BuPHv

3.6.1.1 UDCMonthHVACDueAmount uPHvm = DailyHVACDuefromUDC uPHvmd

3.6.1.1.1 DailyHVACDuefromUDC uPHvmd = (HighVoltageCAISOWideRate md * HVACDailyMeteredLoadQuantity uPHvmd) * (-1)

3.6.1.1.2 Where DailyHVACDuefromUDC uPHvmd = (HighVoltageBlendedTACAreaRate vmd * HVACDailyMeteredLoadQuantity uPHvmd) * (-1)

3.6.1.2 TotalAmountOPTOBurdenExceedsOPTOCap md = AmountOPTOBurdenExceedsOPTOCap uPHvmd

3.6.1.3 AmountOPTOBurdenExceedsOPTOCap uPHvmd =

IF

OPTOIndicator uP = 1

AND

YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd >AnnualCaponBurden uPHv

THEN

AmountOPTOBurdenExceedsOPTOCap uPHvmd = YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd – AnnualCaponBurden uPHv

ELSE

AmountOPTOBurdenExceedsOPTOCap uPHvmd = 0

3.6.1.4 LastDayoftheMonthYTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd = YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd

Note: This charge type is calculated only once on the last day of the month using eterra LDP frequency. This value is used in the custom view to generate the PreviousMonthYTMExistingHighVoltageFacilitiesNetBenefitBurden for the next month

3.6.1.5 Where YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd =

MTDExistingHighVoltageFacilitiesHVACNetBenefitBurden uPHvmd + PreviousMonthYTMExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd

(This value accounts for all previous months Net Benefit Burden for the year and is the result of a view)

3.6.1.6 Where MTDExistingHighVoltageFacilitiesHVACNetBenefitBurden uPHvmd =

CurrentDay’sExistingHighVoltageFacilitiesHVACNetBenefitBurden uPHvmd

(maintains a running total (RT) for the month)

3.6.1.6.1 Where

CurrentDay’sExistingHighVoltageFacilitiesHVACNetBenefitBurden uPHvmd =

UDCWould PaidUnderEHVFTACAreaRate uPHvmd – (UDCWouldReceiveUnderEHVFUtilitySpecific uPHvmd + (TotalUDCWouldPaidUnderEHVFTACAreaRate md – TotalUDCWouldReceiveUnderEHVFUtilitySpecific md) * ProportionofTotalExistingHighVoltageFacilitiesTRR vPmd))

3.6.1.6.1.1 Where

TotalUDCWouldPaidUnderEHVFTACAreaRate md = UDCWouldPaidUnderEHVFTACAreaRate uPHvmd

3.6.1.6.1.2 Where

UDCWouldPaidUnderEHVFTACAreaRate uPHvmd = (HighVoltageExistingFacilitiesTACAreaRate vmd * HVACDailyMeteredLoadQuantity uPHvmd) * (-1)

3.6.1.6.1.3 Where

TotalUDCWouldReceiveUnderEHVFUtilitySpecific md = UDCWouldReceiveUnderEHVFUtilitySpecific uPHvmd

3.6.1.7 And UDCWouldReceiveUnderEHVFUtilitySpecific uPHvmd =

(ExistingHighVoltageFacilityUtilitySpecificRate Pvmd * HVACDailyMeteredLoadQuantity uPHvmd) * (-1)

3.6.2  And ProportionofTotalExistingHighVoltageFacilitiesTRR vPmd =

ExistingHighVoltageFacilityUtilitySpecificRevenueRequirement vPmd / TotalExistingHighVoltageFacilityUtilitySpecificRevenueRequirement md

Where

PTOExistingFacilityNoLoadException vP > 1

Developmental Note: PTOExistingFacilityNoLoadException vP will be configured as an exception to ensure that PTO’s with existing facility TRR but no load are exempted from transition pricing. The exemption will ensure that such entities are not pulled into this formula and are not used to build the matrix

3.6.2.1 And TotalExistingHighVoltageFacilityUtilitySpecificRevenueRequirement md =

ExistingHighVoltageFacilityUtilitySpecificRevenueRequirement vPmd

Where

PTOExistingFacilityNoLoadException vP > 1

Developmental Note: PTOExistingFacilityNoLoadException vP will be configured as an exception to ensure that PTO’s with existing facility TRR but no load are exempted from transition pricing. The exemption will ensure that such entities are not pulled into this formula and are not used to build the matrix

3.6.2.2 TotalAmountOPTOCapExceedsOPTOBurden md=

AmountOPTOCapExceedsOPTOBurden uPHvmd

3.6.3  Where AmountOPTOCapExceedsOPTOBurden uPHvmd =

IF

AnnualCaponBurden uPHv = 0

THEN

AmountOPTOCapExceedsOPTOBurden uPHvmd = 0

ELSE IF

AmountOPTOBurdenExceedsOPTOCap uPHvmd <= 0

THEN

AmountOPTOCapExceedsOPTOBurden uPHvmd = AnnualCaponBurden uPHv - YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd

ELSE

AmountOPTOCapExceedsOPTOBurden uPHvmd = 0

3.6.4  And FirstAdjustmentNetBenefitBurden uPHvmd =

YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd + 1stRealignmentOptos uPHvmd

3.6.5  And 1stRealignmentOptos uPHvmd =

IF

OPTOIndicator uP = 1

Then IF

AmountOPTOCapExceedsOPTOBurden uPHvmd > 0

Then

1stRealignmentOptos uPHvmd = Min ((AmountOPTOCapExceedsOPTOBurden uPHvmd/ TotalAmountOPTOCapExceedsOPTOBurden md) * TotalAmountOPTOBurdenExceedsOPTOCap md, AmountOPTOCapExceedsOPTOBurden uPHvmd)

Else

1stRealignmentOptos uPHvmd = -1*Min ((AmountOPTOBurdenExceedsOPTOCap uPHvmd / TotalAmountOPTOBurdenExceedsOPTOCap md) * TotalAmountOPTOCapExceedsOPTOBurden md, AmountOPTOBurdenExceedsOPTOCap uPHvmd))

Else

1stRealignmentOptos uPHvmd = 0

3.6.6  IF OPTO'sCapExceeds1stAdjmtORNPTOswNetBenefit uPHvmd =

OPTOIndicator uP = 0

THEN IF

YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd < 0,

Then

OPTO'sCapExceeds1stAdjmtORNPTOswNetBenefit uPHvmd = YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd

Else

OPTO'sCapExceeds1stAdjmtORNPTOs wNetBenefit uPHvmd = 0

Else IF

AmountOPTOCapExceedsOPTOBurden uPHvmd >0

AND

AmountOPTOCapExceedsOPTOBurden uPHvmd - 1stRealignmentOptos uPHvmd >=0

Then

OPTO'sCapExceeds1stAdjmtORNPTOswNetBenefit uPHvmd = (-1) *(AmountOPTOCapExceedsOPTOBurden uPHvmd - 1stRealignmentOptos uPHvmd)

Else

OPTO'sCapExceeds1stAdjmtORNPTOswNetBenefit uPHvmd = (-1) * AmountOPTOCapExceedsOPTOBurden uPHvmd

3.6.7  IF

OPTOIndicator uP = 1

THEN IF

AmountOPTOBurdenExceedsOPTOCap uPHvmd >0

Then

OPTOsStillAboveCap&NPTOswBurden uPHvmd = AmountOPTOBurdenExceedsOPTOCap uPHvmd + 1stRealignmentOptos Hvmd

Else

OPTOsStillAboveCap&NPTOswBurden uPHvmd = 0

Else IF

YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd >0

Then

OPTOsStillAboveCap&NPTOswBurden uPHvmd = YTDExistingHighVoltageFacilitiesNetBenefitBurden uPHvmd

Else

OPTOsStillAboveCap&NPTOswBurden uPHvmd = 0

3.6.8  2ndRealignmentNPTOsHarmlessOPTOsAtorBelowCap uPHvmd =

IF

OPTOIndicator uP = 1

And

OPTO'sCapExceeds1stAdjmtORNPTOswNetBenefit uPHvmd < 0

Then

2ndRealignmentNPTOsHarmlessOPTOsAtorBelowCap uPHvmd = (OPTO'sCapExceeds1stAdjmtORNPTOswNetBenefit uPHvmd / (TotalOPTO'sCapExceeds1stAdjmt md) * TotalOPTOsStillAboveCap&NPTOswBurden md)

Else IF

OPTOsStillAboveCap&NPTOswBurden uPHvmd > 0

Then

2ndRealignmentNPTOsHarmlessOPTOsAtorBelowCap uPHvmd = OPTOsStillAboveCap&NPTOswBurden uPHvmd * (-1)

Else IF

OPTOIndicator uP = 0

AND

OPTO'sCapExceeds1stAdjmtORNPTOswNetBenefit uPHvmd <0

And

TotalOPTO'sCapExceeds1stAdjmt md >=0

Then

2ndRealignmentNPTOsHarmlessOPTOsAtorBelowCap uPHvmd = (OPTO'sCapExceeds1stAdjmtORNPTOswNetBenefit uPHvmd / (TotalNPTO'swNetBenefit md) * TotalOPTOsStillAboveCap&NPTOswBurden md)