Settlements and Billing / Version: 5.2b5.3
Configuration Guide for: Start-Up and Minimum Load Cost / Date: 02/05/10062/019/10

Settlements and Billing

BPM Configuration Guide: Start-Up and Minimum Load Cost

Pre-calculation

Version 5.2b5.3

CAISO, 2019 / Page 1 of 36
Settlements and Billing / Version: 5.2b5.3
Configuration Guide for: Start-Up and Minimum Load Cost / Date: 02/05/10062/019/10

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 Charge Codes

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

2.1 Background

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 Costsbid 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 (A/S) applies to various 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 CAISO independent of whether they are CAISO-committed or instead are self committedincluding Self-Scheduled periods.

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 due to Ramping constraints, Minimum Run Time, or Minimum Down Time. Resources are not eligible for BCR of SUC, and 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, and 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.

This Pre-calc calculates the eligible Start-Up Costs and the eligible Minimum Load Costs of IFM, RUC, and RTM for the Bid Cost Recovery.

2.2 Description

For each Settlement Interval, this Pre-calculation will generate determine the eligible Start-Up Costs, and the eligible Minimum Load Costs, and Transition Costs of IFM, RUC, and RTM for the Bid Cost Recovery purposes. Also, for each resource and Settlement Interval, this Pre-calculation will determine the eligibility to receive the Start-Up Costs and the Minimum Load Costs of IFM, RUC, and RTM.

Every time a resource is committed to Start-Up, Start-Up Costs will be incurred. The eligible Start-Up Costs for Bid Cost Recovery is not dependent on the length of a Commitment Period, but dependent on whether it is self-committed, RMR committed, or it really starts-up based upon the meter value. If the Start-Up Costs are eligible for the Bid Cost Recovery, the Start-Up Costs will be distributed evenly to all Settlement Intervals within the CAISO Commitment Period.

After a resource starts up, no matter if it is dispatched beyond the Minimum Load or not, the Minimum Load Costs will be incurred. However, whether the costs are eligible for the Bid Cost Recovery, depends on whether the unit is self-committed, RMR committed, or it really starts-up based on the meter value. If the Minimum Load Costs are eligible for the Bid Cost Recovery, the Settlement Interval Minimum Load Costs (derived from the hourly Minimum Load Costs) will be applied to the Settlement Interval.

3. Charge Code Requirements

3.1 Business Rules

Bus Req. ID / Business Rule
1.0 / This pre-calc is a daily computation generating results on a Settlement Interval basis.
2.0 / For each Settlement Interval, only the IFM Start-Up Costs in a CAISO IFM Commitment Period is eligible for Bid Cost Recovery. The following rules shall apply sequentially to qualify the IFM Start-Up Costs in an IFM Commitment Period. As soon as a CAISO IFM Commitment Period fails a check, the CAISO IFM Commitment Period won’t be qualified for the Cost Recovery for the IFM Start-Up Costs.
2.1 / The IFM Start-Up Costs for an IFM Commitment Period shall be zero if there is an IFM Self-Commitment Period within or overlapping with that IFM Commitment Period.
2.2 / The IFM Start-Up Costs for an IFM Commitment Period shall be zero if the Bid Cost Recovery Eligible Resource is manually pre-dispatched under an RMR Contract prior to the Day-Ahead Market or the resource is flagged as an RMR Dispatch in the Day-Ahead Schedule in the Day-Ahead Market anywhere within the applicable IFM Commitment Period.
2.3 / The IFM Start-Up Costs for an IFM Commitment Period shall be zero if there is no actual Start-Up at the start of the applicable IFM Commitment Period because the IFM Commitment Period is the continuation of an IFM or RUC Commitment Period from the previous Trading Day.
2.4 / The IFM Start-Up Costs for an IFM Commitment Period shall be zero if the Start-Up is delayed by the Real-Time Market past the IFM Commitment Period in question or cancelled by the Real-Time Market before the start-up process has started.
2.5 / If an IFM Start-Up is terminated in the Real-Time within the applicable IFM Commitment Period through an Exceptional Dispatch Shut-Down Instruction issued while the Bid Cost Recovery Eligible Resource was Starting Up, the IFM Start-Up Costs for that IFM Commitment Period shall be prorated by the ratio of the Start-Up time before termination over the total IFM Start-Up time.
2.6 / The IFM Start-Up Costs are qualified if an actual Start-Up occurs within the applicable IFM Commitment Period. An actual Start-Up is detected between two consecutive Settlement Intervals when the relevant metered Energy in the applicable Settlement Intervals increases from below the Minimum Load EnergyPMin and reaches or exceeds the relevant Minimum Load EnergyPMin. The Minimum Load Energy is the product of the relevant Minimum Load and the duration of the Settlement Interval.
2.8 / The IFM Start-Up Costs will be qualified if an actual Start-Up occurs earlier than the start of the IFM Commitment Period if the advance start-up is as a result of a Start-Up instruction issued in a RUC or Real-Time Market process subsequent to the IFM, or the advance Start-Up is uninstructed but is still within the same Trading Day and the Bid Cost Recovery Eligible Resource actually stays on until the targeted IFM Start-Up.
3.0 / The IFM Minimum Load Costs for the applicable Settlement Interval shall be the Minimum Load Costs submitted to the CAISO in the IFM divided by the number of Settlement Intervals in a Trading Hour.
3.1 / For each Settlement Interval, only the IFM Minimum Load Costs in a CAISO IFM Commitment Period is eligible for Bid Cost Recovery. The IFM Minimum Load Costs for any Settlement Interval is zero if:
a) The Settlement Interval is in an IFM Self Commitment Period for the Bid Cost Recovery Eligible Resource; or
b) The Bid Cost Recovery Eligible Resource is manually pre-dispatched under an RMR Contract prior to the Day-Ahead Market or the resource is flagged as an RMR Dispatch in the Day-Ahead Schedule for the applicable Settlement Interval; or
c) The Bid Cost Recovery Eligible Resource is not actually on during the applicable Settlement Interval. A Bid Cost Recovery Eligible Resource is detected as not actually being On if the metered Energy in that Settlement Interval is less than the relevant MLEPMin within the Tolerance Band
4.0 / For each Settlement Interval, only the RUC Start-Up Costs in a CAISO RUC Commitment Period is eligible for Bid Cost Recovery. The following rules shall be applied in sequence and shall qualify the RUC Start-Up Costs in a RUC Commitment Period. As soon as a CAISO RUC Commitment Period fails a check, the CAISO RUC Commitment Period shall not qualify for the Bid Cost Recovery for the RUC Start-Up Costs.
4.1 / The RUC Start-Up Costs for a RUC Commitment Period is zero if there is an IFM Commitment Period within that RUC Commitment Period.
4.2 / The RUC Start-Up Costs for a RUC Commitment Period is zero if the Bid Cost Recovery Eligible Resource is manually pre-dispatched under an RMR Contract prior to the Day-Ahead Market or is flagged as an RMR Dispatch in the Day-Ahead Schedule anywhere within that RUC Commitment Period.
4.3 / The RUC Start-Up Costs for a RUC Commitment Period is zero if there is no RUC Start-Up at the start of that RUC Commitment Period because the RUC Commitment Period is the continuation of an IFM or RUC Commitment Period from the previous Trading Day.
4.4 / The RUC Start-Up Costs for a RUC Commitment Period is zero if the Start-Up is delayed beyond the RUC Commitment Period in question or cancelled by the Real-Time Market prior to the Bid Cost Recovery Eligible Resource starting its Start-Up process.
4.5 / If a RUC Start-Up is terminated in the Real-Time within the applicable RUC Commitment Period through an Exceptional Dispatch Shut-Down Instruction issued while the Bid Cost Recovery Eligible Resource is starting-up the, RUC Start-Up Costs is prorated by the ratio of the Start-Up Time before termination over the RUC Start-Up Time.
4.6 / The RUC Start-Up Costs for a RUC Commitment Period is qualified if an actual Start-Up occurs within that RUC Commitment Period.
4.7 / The RUC Start-Up Costs shall be qualified if an actual Start-Up occurs earlier than the start of the RUC Start-Up, if the relevant Start-Up is still within the same Trading Day and the Bid Cost Recovery Eligible Resource actually stays on until the RUC Start-Up, otherwise the Start-Up Costs are zero for the RUC Commitment Period.
5.0 / The Minimum Load Costs for the applicable Settlement Interval shall be the Minimum Load Costs of the Generating Bid Cost Recovery Eligible Resource divided by the number of Settlement Intervals in a Trading Hour.
5.1 / For each Settlement Interval, only the RUC Minimum Load Costs in a CAISO RUC Commitment Period is eligible for Bid Cost Recovery. The RUC Minimum Load Costs for any Settlement Interval is zero if:
(1) The Bid Cost Recovery Eligible Resource is manually pre-dispatched under an RMR Contract or the resource is flagged as an RMR Dispatch in the Day-Ahead Schedule in that Settlement Interval;
(2) The Bid Cost Recovery Eligible Resource is not actually on in the applicable Settlement Interval, indicated by metered Energy in that Settlement Interval less than the PMinrelevant MLE; or
(3) The applicable Settlement Interval is included in an IFM Commitment Period.
5.2 / For each Settlement Interval for which a resource was originally within a CAISO RUC Commitment Period and in Real Time it is not within a CAISO Commitment Period, the RUC Minimum Load Costs for that Settlement Interval is zero.
6.0 / For each Settlement Interval, only the Real-Time Market Start-Up Costs in a CAISO Real-Time Market Commitment Period is eligible for Bid Cost Recovery. The following rules shall be applied in sequence and shall qualify the Real-Time Market Start-Up Costs in a Real-Time Market Commitment Period. As soon as a CAISO RTM Commitment Period fails a check, the CAISO RTM Commitment Period won’t be qualified for the Cost Recovery for the RTM Start-Up Costs.
6.1 / The Real-Time Market Start-Up Costs are zero if there is a Real-Time Market Self-Commitment Period within the Real-Time Market Commitment Period.
6.2 / The Real-Time Market Start-Up Costs are zero if the Bid Cost Recovery Eligible Resource has been manually pre-dispatched under an RMR Contract or the resource is flagged as an RMR Dispatch in the Day-Ahead Schedule or Real-Time Market anywhere within that Real-Time Market Commitment Period.
6.3 / The Real-Time Market Start-Up Costs are zero if there is no Real-Time Market Start-Up at the start of that Real-Time Market Commitment Period because the Real-Time Market Commitment Period is the continuation of an IFM or RUC Commitment Period from the previous Trading Day.
6.4 / If a Real-Time Market Start-Up is terminated in the Real-Time within the applicable Real-Time Market Commitment Period through an Exceptional Dispatch Shut-Down Instruction issued while the Bid Cost Recovery Eligible Resource is starting-up the Real-Time Market Start-Up Costs are prorated by the ratio of the Start-Up Time before termination over the Real-Time Market Start- Up Time.
6.5 / The Real-Time Market Start-Up Costs shall be qualified if an actual Start-Up occurs within that Real-Time Market Commitment Period.
6.6 / The Real-Time Market Start-Up Costs for a Real-Time Market Commitment Period shall be qualified if an actual Start-Up occurs earlier than the start of the Real-Time Market Start-Up, if the relevant Start-Up is still within the same Trading Day and the Bid Cost Recovery Eligible Resource actually stays on until the Real-Time Market Start-Up, otherwise the Start-Up Costs are zero for the RTM Commitment Period.
7.0 / For each Settlement Interval, only the Real-Time Market Start-Up Costs in a CAISO Real-Time Market Commitment Period are eligible for Bid Cost Recovery.
7.1 / The Real-Time Market Minimum Load Costs for any Settlement Interval is zero if:
(1) The Settlement Interval is included in a Real-Time Market Self Commitment period for Bid Cost Recovery Eligible Resource;
(2) The Bid Cost Recovery Eligible Resource has been manually dispatched under an RMR contract or the resource has been flagged as an RMR Dispatch in the Day-Ahead Schedule or the Real-Time Market in that Settlement Interval;
(3) The Bid Cost Recovery Eligible Resource is not actually on in that Settlement Interval; or
(4) The Settlement Interval is included in an IFM or RUC Commitment Period.
8.0 / In order for a Bid Cost Recovery Eligible Resource (such as a Participating Generating Unit, System Unit, or Dynamic System Resource) to receive Start-Up or Minimum Load Costs recovery, the resource must operate at the Minimum Load level.
9.0 / In order for a Pump-Storage resource or pumping load to receive Shut-Down Cost recovery, the resource must not be pumping during the Shut-Down period.
10.0 / The hourly Shut-Down Costs are divided by the number of Settlement Intervals in the given Trading Hour where the Shut-Down is expected to occur. If a qualified Pump-Storage or Pumping Load does not pump for any Settlement Interval within the relevant Trading Hour, then the entire hour is deemed as eligible for Shut-Down Cost recovery.
11.0 / Tolerance Band values shall be calculated in MWh at 10-minute Settlement Interval basis at a resource-specific level.
12.0 / The Tolerance Band shall be calculated for Generating Units, System Units, and Dynamic System Resources for MLC eligibility.
13.0 / The Tolerance Band for Bid Cost Recovery Eligible Resources (such as Participating Generating Units, System Units, and Dynamic System Resources) shall be calculated as the greater of the absolute value of:
  • GeneratorToleranceBandMW parameter (5 MW) divided by number of Settlement Intervals per Settlement Period, or
  • GeneratorToleranceBandPercent parameter (3%) times the Generating Unit’s Maximum Operating MW limit divided by number of Settlement Intervals per Settlement Period

14.0 / The Tolerance Band for Bid Cost Recovery Eligible Resources (such as Participating Generating Units, System Units, and Dynamic System Resources) shall be constant for a Trading Day.
15.0 / Transitions Costs are applicable to Multi-Stage Generating Units (MSG) only.
16.0 / For Multi-Stage Generating Multi-Stage Generating Units (MSG) Resources, the Minimum Load Costs, Start-up Costs, and Transition Costs (all provided by MQS) shall be calculated at MSG Configuration (or state) level.
17.0 / For Multi-Stage Multi-Stage Generating (MSG) ResourcesGenerating Units (MSG), 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.
18.0 / For Multi-Stage Multi-Stage Generating (MSG) ResourcesGenerating Units (MSG), the comparison of market revenues to bid costs occurs at the resource level.
19.0 / For Multi-Stage Multi-Stage Generating (MSG) ResourcesGenerating Units (MSG), the Transition Costs and Minimum Load Costs (provided by MQS) will be evaluated in following the order: RTM -> RUC -> IFM. If the Transition Costs or Minimum Load Costs have been determined within that market as qualified, the eligibility for the subsequent market will not be considered.

3.2 Predecessor Charge Codes

Charge Code/ Pre-calc Name
Pre-calc – MSS Netting
Pre-calc – System Resource Deemed Delivered Energy

3.3 Successor Charge Codes

Charge Code/ Pre-calc Name
Pre-calc – IFM Net Amount
Pre-calc – RUC Net Amount
Pre-calc – RTM Net Amount

3.4 Inputs – External Systems

.