Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Settlement / Date: 69/0630/10
Settlements & Billing
BPM Configuration Guide: Monthly Resource Adequacy Standard Capacity Product Settlement
(CC 8824)
Version 5.32
ÓCAISO, 2010 / Page 13 of 13Settlements & Billing / Version: 5.32
Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Settlement / Date: 69/0630/10
Table of Contents
1. Purpose of Document 3
2. Introduction 3
2.1 Background 3
2.2 Description 3
3. Charge Code Requirements 4
3.1 Business Rules 4
3.2 Predecessor Charge Codes 4
3.3 Successor Charge Codes 4
3.4 Inputs - External Systems 5
3.5 Inputs - Predecessor Charge Codes or Pre-calculations 5
3.6 CAISO Charge Code Formula 6
3.7 Output Requirements 10
4. Charge Code Effective Date 13
ÓCAISO, 2010 / Page 13 of 13Settlements & Billing / Version: 5.32
Configuration Guide for: Monthly Resource Adequacy Standard Capacity Product Settlement / Date: 69/0630/10
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 Standard Capacity Product (SCP) is effective on January 1, 2010, as described in CAISO Tariff Section 40.9. SCP incorporates resource availability standards and incentives into the ISO Tariff to facilitate contracting for Resource Adequacy (RA) Capacity. SCP also enhances grid reliability and market efficiency by providing an incentive for RA Resources to be available during peak hours.
SCP is a set of attributes defined in the CAISO tariff which specify the Availability Standard, Non-Availability Charges and Availability Incentive Payments applied to non-exempt RA capacity. There is one availability standard applicable to RA resources each month during the RA compliance year. Each monthly Availability Standard is based on the historic availability of the RA resource fleet during a pre-defined set of peak hours during a previous three-year period. At a high level, the CAISO will review the availability of each RA Resource subject to SCP each month to determine whether its meets the Availability Standard applicable for that month. A RA Resource that has a lower availability rate than the Availability Standard minus the tolerance band of 2.5% is subject to a Non-Availability Charge. A RA Resources that has Availability greater than the Availability Standard plus the tolerance band of 2.5% will be eligible for an Availability Incentive Payment.
2.2 Description
The Monthly Resource Adequacy Standard Capacity Product Settlement (CC8824) is the charge to any RA Resource that failed to meet the monthly Availability Standard minus the tolerance band of 2.5%. The Non-availability charges will be applied on a monthly basis to RA resources that fail to achieve the Availability Standard minus 2.5% during that month.
3. Charge Code Requirements
3.1 Business Rules
Bus Req ID / Business Rule /1.1 / The Hourly RA MW Available from Resource and total Availability Assessment Hours of month includes only peak hours. In essence, the CAISO will sum the MW that are available in the month for only the defined Availability Assessment Hours.
1.2 / A tolerance band of 5.0% is used around the Availability Standard (2.5% on either side of the Availability Standard value) to eliminate the calculation and assessment of Non-Availability Charges and Availability Incentive Payments in very small amounts.
1.3 / The Non-Availability Charges and Availability Incentive Payments will be settled all within the same settlement month
2.0 / The "price" value in the Non-Availability Charge formula is the replacement cost (or CAISO "backstop" cost) of capacity that is established in the CAISO Tariff. That value is currently $41/kW-year, as established in the Interim Capacity Procurement Mechanism ("ICPM") provisions
3.0 / SCP Non-Availability Charges and Availability Incentive Payments apply to the Local Capacity Area RA capacity submitted by a Load following MSS in an annual Resource Adequacy Plan and to the Local Capacity Area RA Capacity of a Modified Reserve Sharing LSE.
3.2 Predecessor Charge Codes
Charge Code/ Pre-Calc Name /Standard Capacity Product Pre-calculation
3.3 Successor Charge Codes
Charge Code/ Pre-calc Name /Monthly Resource Adequacy Standard Capacity Product Allocation (CC 8820)
3.4 Inputs - External Systems
Row # / Variable Name / Description /1 / CAISONonAvailabiltyChargePrice / The "price" value in the Non-Availability Charge formula is the replacement cost (or CAISO "backstop" cost) of capacity that is established in the CAISO Tariff. This is a standing factor data and is equal to 41*1000/12 = $3416.67 per MW per Month
2 / CAISOMonthlyAvailabilityStandard / Monthly Availability Standard as a fraction so that 0<S<1
3 / LowerToleranceBand / Tolerance Band of 2.5%
4 / UpperToleranceBand / Tolerance Band of 2.5%
5 / BARAResourceHistoricalQCAdvisoryFlag Br / This Flag identify only resources whose NQC is determined by Historical Output. This flag has a Start Date of Jan 1, 2011 and End Date Mar 31, 2011. The flag is 1 during the advisory period.
3.5 Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration / Description /1 / BAHourlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’dh / Standard Capacity Product Pre-calculation/
Hourly Assessment Hour calculated Flag by Business Associates during the month m.
32 / BAHourlyRAResourceAssessmentHourSoldCapacityQuantity BrtF’S’dh / Standard Capacity Product Pre-calculation /
Hourly sold capacity during the peak hours by Business Associate B and resources r and Resource Type t
3 / BAHourlyRAResourceAssessmentHourAvailableCapacityQuantity BrtF’S’dh / Standard Capacity Product Pre-calculation/
Total Hourly Capacity MW Available during the Peak Hours by Business Associates B Resource r and Resource Type t during the Trading Hour h.
3.6 CAISO Charge Code Formula
The formula for the Settlements Amount in any given month is as follow:
3.6.1 BAMonthlyResourceNonAvailabilitySettlementAmount Brm = BAMonthlyRAResourceNonAvailabilityChargeQuantity Brm * CAISONonAvailabiltyChargePrice
3.6.2 Where
BAMonthlyRAResourceNonAvailabilityChargeQuantity Brm = Max(0,( BAMonthlyRAResourceLowerBandQuantity Brm - BATotalMonthlyRAResourceAvailabilityQuantity Brm ))
3.6.3 BAMonthlyResourceAvailabilityIncentiveQuantity Brm = Max(0,(BATotalMonthlyRAResourceAvailabilityQuantity Brm - BAMonthlyRAResourceUpperBandQuantity Brm ))
Where
3.6.4 BAMonthlyRAResourceLowerBandQuantity Brm = CAISOAvailabilityLowerBandPercentage * BATotalMonthlyRAResourceSoldQuantity Brm
3.6.5 BAMonthlyRAResourceUpperBandQuantity Brm = CAISOAvailabilityUpperBandPercentage* BATotalMonthlyRAResourceSoldQuantity Brm
3.6.6 Where CAISOAvailabilityUpperBandPercentage = CAISOMonthlyAvailabilityStandard + UpperToleranceBand
3.6.7 CAISOAvailabilityLowerBandPercentage = CAISOMonthlyAvailabilityStandard - LowerToleranceBand
3.6.8 BATotalMonthlyRAResourceSoldQuantity Brm = BATotalMonthlyRAResourceSoldTGQuantity Brm + BATotalMonthlyRAResourceSoldGENQuantity Brm
3.6.9 IF
BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m= 0
BATotalMonthlyRAResourceSoldGENQuantity Brm = 0
ELSE
BATotalMonthlyRAResourceSoldGENQuantity Brm = BAMonthlyRAResourceAssessmentHourSoldCapacityQuantity BrtF’S’m / BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m
Where Resource Type t is GEN
3.6.10 IF
BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m= 0
THEN
BATotalMonthlyRAResourceSoldTGQuantity Brm = 0
ELSE
BATotalMonthlyRAResourceSoldTGQuantity Brm = BAMonthlyRAResourceAssessmentHourSoldCapacityQuantity BrtF’S’m / BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m
WhereResource_Type is ITIE and Entity_Component_type is TG
3.6.11 BATotalMonthlyRAResourceAvailabilityQuantity Brm = BATotalMonthlyRAResourceAvailabilityTGQuantity Brm + BATotalMonthlyRAResourceAvailabilityGENQuantity Brm
3.6.12 IF
BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m= 0
THEN
BATotalMonthlyRAResourceAvailabilityGENQuantity Brm = 0
ELSE
BATotalMonthlyRAResourceAvailabilityGENQuantity Brm = BAMonthlyRAResourceAssessmentHourAvailableCapacityQuantity BrtF’S’m / BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m
Where Resource Type t is GEN
3.6.13 IF
BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m= 0
THEN
BATotalMonthlyRAResourceAvailabilityTGQuantity Brm = 0
ELSE
BATotalMonthlyRAResourceAvailabilityTGQuantity Brm = BAMonthlyRAResourceAssessmentHourAvailableCapacityQuantity BrtF’S’m / BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m
Where Resource_Type is ITIE and Entity_Component_type is TG
Where
BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m = BAHourlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’dh
And where
BAMonthlyRAResourceAssessmentHourAvailableCapacityQuantity BrtF’S’m = BAHourlyRAResourceAssessmentHourAvailableCapacityQuantity BrtF’S’dh
BAMonthlyRAResourceAssessmentHourSoldCapacityQuantity BrtF’S’m = BAHourlyRAResourceAssessmentHourSoldCapacityQuantity BrtF’S’dh
3.6.14 CAISOMonthlyTotalAvailabilityIncentiveQuantity m = BAMonthlyResourceAvailabilityIncentiveQuantity Brm
3.6.15 CAISOMonthlyTotalNonAvailabilitySettlementAmount m = BAMonthlyResourceNonAvailabilitySettlementAmount Brm
Monthly Availability Percentage for all Resources
3.6.16 IF
3.6.17 BARAResourceHistoricalQCAdvisoryFlag Br = 1
3.6.18 THEN
3.6.19 BAMonthlyResourceNonAvailabilitySettlementReportingAmount Brm = 0
3.6.20 ELSE
3.6.21 BAMonthlyResourceNonAvailabilitySettlementReportingAmount Brm = BAMonthlyResourceNonAvailabilitySettlementAmount Brm
3.6.22 IF
BARAResourceHistoricalQCAdvisoryFlag Br = 1
THEN
BAMonthlyRAResourceNonAvailabilityChargeReportingQuantity Brm = 0
ELSE
3.6.23
3.6.24 BAMonthlyRAResourceNonAvailabilityChargeReportingQuantity Brm = BAMonthlyRAResourceNonAvailabilityChargeQuantity Brm
3.6.25 IF
3.6.26 BARAResourceHistoricalQCAdvisoryFlag Br =1
3.6.27 THEN
3.6.28 BAMonthlyAvailabilityIncentiveQuantity Brm = 0
3.6.29 ELSE
3.6.30 BAMonthlyAvailabilityIncentiveQuantity Brm = BAMonthlyResourceAvailabilityIncentiveQuantity Brm
3.6.31 BAMonthlyRAResourceAvailabilityPercentage Brm = BATotalMonthlyRAResourceAvailabilityQuantity Brm / BATotalMonthlyRAResourceSoldQuantity Brm
3.7 Output Requirements
Output Req ID / Name / Description /1 / In addition to any outputs listed below, all inputs shall be included as outputs.
2 / BAMonthlyResourceNonAvailabilitySettlementAmount Brm / The monthly settlement Non Availability Charge amount applied to each Business Associate B of resources r and Resource Type t that does not meet the Availability Standard minus 2.5% after the conclusion of the applicable month m
3 / BAMonthlyRAResourceNonAvailabilityChargeQuantity Brm / RA Resource’s RA Capacity subject to Non-Availability Charge
4 / BAMonthlyResourceAvailabilityIncentiveQuantity Brm / SCP eligible capacity above the Upper Band (X – RA(S+0.025))
5 / BAMonthlyRAResourceLowerBandQuantity Brm / Eligible capacity below the lower tolerance band for each Business Associate B and resources r and Resource Type t for the Month m
6 / BAMonthlyRAResourceUpperBandQuantity Brm / Monthly upper tolerance band capacity by Business Associate B and resources r and Resource Type t for the Month m
7 / BATotalMonthlyRAResourceSoldQuantity Brm / Monthly sold capacity during the Availability Assessment Hours by Business Associate B and resources r and Resource Type t for the Month m
8 / BATotalMonthlyRAResourceAvailabilityQuantity Brm / Total monthly Availability quantity during Availability Assessment hours by Business Associate B and resources r and Resource Type t for the Month m
9 / CAISOAvailabilityLowerBandPercentage / Availability Standard CAISOMonthlyAvailabilityStandardPercentRate minus Lower Band Percentage
10 / CAISOAvailabilityUpperBandPercentage / Availability Rate CAISOMonthlyAvailabilityStandardPercentRate plus Upper Band Percentage
11 / BATotalMonthlyRAResourceSoldGENQuantity Brm / Monthly sold capacity during the peak hours by Business Associate B and resources r and Resource Type t for the Month m
12 / BATotalMonthlyRAResourceSoldTGQuantity Brm / Monthly sold capacity during the peak hours by Business Associate B and resources r and Resource Type t for the Month m
13 / BATotalMonthlyRAResourceAvailabilityGENQuantity Brm / Total monthly availability quantity during peak hours by Business Associate B and resources r and Resource Type t for the Month m
14 / BATotalMonthlyRAResourceAvailabilityTGQuantity Brm / Total monthly availability quantity during peak hours by Business Associate B and resources r and Resource Type t for the Month m
15 / CAISOMonthlyTotalAvailabilityIncentiveQuantity m / CAISO Total Monthly Available Incentive Quantity
16 / CAISOMonthlyTotalNonAvailabilitySettlementAmount m / The CAISO monthly total settlement Non-Availability Charge Amount applied to each Business Associate B that does not meet the Availability Standard minus 2.5% after the conclusion of the applicable month m
17 / BAMonthlyRAResourceAvailabilityPercentage Brm / Availability percentage for each RA resource for each month will be determined by calculating: (a) the total RA capacity MW available over all compliance hours of the month, divided by (b) the total RA capacity MW designated in the Supply Plan for the same hours
18 / BAMonthlyAvailabilityIncentiveQuantity Bm / Sum of SCP eligible capacity above the Upper Band (X – RA(S+0.025)) by Business Associate B.
19 / BAMonthlyRAResourceNonAvailabilityChargeReportingQuantity Bm / RA Resource’s RA Capacity subject to Non-Availability Charge for reporting purpose.
20 / BAMonthlyResourceNonAvailabilitySettlementReportingAmount Bm / The monthly settlement Non Availability Charge amount applied to each Business Associate B for reporting purpose during the month m.
21 / BAMonthlyResourceAvailabilityAssessmentHourCalculatedFlag BrtF’S’m / Sum of all the Hourly calculated flag in a trading month m for Business Associate B
22 / BAMonthlyRAResourceAssessmentHourAvailableCapacityQuantity BrtF’S’m / Monthly Total Capacity MW Available during the Assessment Hours by Business Associates B Resource r and Resource Type t during the Trading Month m
23 / BAMonthlyRAResourceAssessmentHourSoldCapacityQuantity BrtF’S’m / Monthly Total sold capacity during the Assessment hours by Business Associate B and resources r and Resource Type t during the Trading Month m
4. Charge Code Effective Date
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 / 01/01/10 / 12/31/09 / Configuration Impacted
Monthly Resource Adaquacy Standard Capacity Product Settlement (CC 8824) / 5.1 / 01/01/10 / 12/31/09 / Configuration Impacted
Monthly Resource Adaquacy Standard Capacity Product Settlement (CC 8824) / 5.2 / 01/01/10 / Open12/31/2010 / Configuration Impacted
Monthly Resource Adaquacy Standard Capacity Product Settlement (CC 8824) / 5.3 / 01/01/10 / Open / Configuration Impacted
ÓCAISO, 2010 / Page 13 of 13