Business Practice Manual For s10

Business Practice Manual for Compliance Monitoring

Version 32

Last Revised: July 23, 2009May 13, 2010 CAISO Business Practice Manual BPM for Compliance Monitoring

Approval Date: July 23, 2009May 13, 2010

Effective Date: July 23, 2009May 13, 2010

BPM Owner: Nancy Traweek

BPM Owner’s Title: Director, Operations Support

Revision History Version Date Description 3 5/13/10 PRR 190. Removal BPM language for No Pay (Spin and Non-Spin) and Residual Unit Commitment Capacity Rescission. Effective Trade Date February 1, 2010, these charges have been integrated into the Settlements System and are reflected in PRR 150, 151 and 152 for BPM for Settlements and Billing. Removed sections 4, 7 and 8, I.1-I.4, and J. Modified Sections, 1, 6 and K. 2 7/23/09 Update to Formula #114 Dispatchable RUC and Exhibit J-1. Availability- limited Undispatchable RUC Example. Change made based on PRR #33.

Version 2 Last Revised: July 23, 2009 Page 1 CAISO Business Practice Manual BPM for Compliance Monitoring

TABLE OF CONTENTS 1. Introduction...... 7 1.1 Purpose of CAISO Business Practice Manuals...... 7 1.2 Purpose of this Business Practice Manual...... 8 1.3 References...... 9 2. Uninstructed Deviation Penalties...... 10 2.1 Application of Uninstructed Deviation Penalties...... 10 2.2 Uninstructed Deviation Penalty Calculation...... 11 2.2.1 Tolerance Band...... 12 2.2.2 Positive Uninstructed Deviation Penalty...... 12 2.2.3 Negative Uninstructed Deviation Penalty...... 13 2.2.4 Settlement Interval Penalty Location Real-Time LMP...... 13 2.3 Uninstructed Deviation Penalty Exemptions...... 13 2.3.1 Resource Exemptions...... 13 2.3.2 Other Uninstructed Deviation Penalty Exemptions...... 15 2.4 Dispatch Operating Point Deviation Calculation...... 19 2.4.1 Adjusted Dispatch Operating Point Deviation and Total Exemption Energy...20 2.4.2 Dispatch Operating Point Deviation for Regulating Units Calculation...... 21 2.4.3 Uninstructed Deviation Penalty Billable Quantity Calculation...... 22 2.5 Uninstructed Deviation Penalties Aggregations...... 22 2.5.1 UDP Aggregation Tolerance Band...... 23 2.5.2 UDP Aggregation Dispatch Operating Point Determination Calculation...... 24 2.5.3 UDP Aggregation Adjusted Dispatch Operating Point Determination Calculation...... 24 2.5.4 Uninstructed Deviation Penalty Aggregation Billable Quantity...... 27 2.6 Non-Dynamic System Resources...... 27 2.6.1 Non-Dynamic System Resource Tolerance Band...... 28 2.6.2 Non-Dynamic System Resource DOPD...... 28 2.6.3 Non-Dynamic System Resource Billable Quantity...... 28 2.7 Uninstructed Deviation Penalty Revenue Allocation...... 29 3. Metered Subsystem Penalties...... 30 3.1 Metered Subsystem LFDPs for Load Following MSSs...... 30 3.1.1 Load Following MSS Deviation Calculation...... 30

3.1.2 MSS Deviation Band...... 31 3.1.3 Day Ahead MSS Sales and Purchases in IFM...... 31 3.1.4 Dispatch Operating Point Deviation Calculation...... 32 3.1.5 Failure to Load Follow within MSS Deviation Band...... 32 3.1.6 MSS LFDP Pricing...... 33 3.1.7 MSS LFDP Revenue Allocation...... 33 3.2 MSS Demand Forecast Errors for Non-Load Following MSS...... 33 3.2.1 Penalty Point Accrual...... 34 3.2.2 Residual Unit Commitment (RUC) Opt In Requirement...... 35 4. Ancillary Services Payment Rescissions (No Pay)...... 36 4.1 No Pay Overview...... 36 4.2 No Pay for Generating Units & Dynamic System Resources...... 38 4.2.1 Undispatchable Capacity...... 38 4.2.2 Unavailable Capacity...... 42 4.2.3 Undelivered Capacity...... 43 4.2.4 Unsynchronized Ancillary Service Capacity...... 45 4.2.5 No Pay Charges for Generating Units on Regulation...... 45 4.3 No Pay for Participating Loads...... 46 4.3.1 Undispatchable Capacity...... 46 4.3.2 Undelivered Capacity...... 46 4.3.3 Unavailable Capacity...... 47 4.4 No Pay for Non-Dynamic System Resources...... 47 4.4.1 Difference between Ancillary Service Award Amount & E-Tag Amount...... 48 4.4.2 Declined Ancillary Service Instruction...... 48 4.4.3 Other Potential No Pay Charges for Non-Dynamic System Resources...... 49 4.5 No Pay Billable Quantity...... 49 5. Regulation Non-Compliance...... 51 5.1 Regulation Non-Compliance Overview...... 51 5.2 Off Control...... 52 5.3 Constrained Limits...... 53 5.4 Out-of-Range...... 54 5.5 Communication Failure...... 54 5.6 Regulation Non-Compliance Billable Quantity...... 55

6. No Pay & Regulation Non-Compliance Pricing & Revenue Allocation...... 56 6.1 No Pay & Regulation Non-Compliance Pricing...... 56 6.2 No Pay & Regulation Non-Compliance Revenue Allocation (Market Refund)...... 56 7. Residual Unit Commitment Capacity Payment Rescission...... 57 7.1 Residual Unit Commitment Rescission Payments Overview...... 57 7.2 Rescission of Payments for Undispatchable RUC Capacity for Generating Units, & Dynamic System Resources...... 58 7.2.1 Order of Payment Rescission for Undispatchable RUC for Multiple Capacity Obligations ...... 59 7.3 Rescission of Payments for Undelivered RUC Capacity for Generating Units, & Dynamic System Resources...... 59 7.4 Rescission of Payments for RUC Availability Bids for Resource Adequacy Capacity 60 7.5 Reporting of Undispatchable/Undelivered Resource Adequacy RUC Capacity...... 61 7.6 RUC Capacity Payment Rescission Billable Quantity...... 61 8. RUC Capacity Rescission Pricing & Revenue Allocation...... 62 8.1 RUC Capacity Rescission Pricing...... 62 8.2 RUC Capacity Rescission Revenue Allocation (Market Refund)...... 62 9. Publication of Market Performance Information...... 63 10. Audit & Testing Requirements...... 64 10.1 Auditing & Testing Overview...... 64 10.2 Performance Audits...... 64 10.2.1 Spinning Reserve Audits...... 65 10.2.2 Non-Spinning Reserve Audits...... 65 10.2.3 Regulation Audits...... 66 10.2.4 Voltage Support Audits...... 66 10.2.5 Black Start Audits...... 66 10.2.6 RUC Capacity Audits...... 66 10.2.7 Consequences of Failure to Pass a Performance Audit...... 67 10.3 Compliance Testing...... 67 10.3.1 Spinning Reserve Testing...... 67 10.3.2 Non-Spinning Reserve Testing...... 68 10.3.3 Regulation Testing...... 69 10.3.4 Voltage Support Testing...... 69 10.3.5 Black Start Testing...... 69

10.3.6 RUC Capacity Testing...... 69 10.3.7 Consequences of Failure to Pass Compliance Tests...... 70 A. Outage & Rerate UDP Exemption...... A-1 A.1. Calculation of Reported Availability...... A-1 A.2 Outage & Rerate Reporting Requirement...... A-2 B. Start-Up and Shut-Down Energy UDP Exemption...... B-1 B.1 Start-Up & Shut-Down Settlement Intervals Determinations...... B-1 B.2 Exemption Energy for Start-up and Shut-Down Settlement Intervals...... B-2 C. CAISO Systems UDP Exemption...... C-1 C.1 Scheduling and Logging System for ISO California...... C-1 C.2 Automated Dispatch System/Real-Time Market...... C-1 D. Manual Dispatch Instructions UDP Exemption...... D-1 E. Dispatch Instruction Validation UDP Exemption...... E-1 F. Examples Of Uninstructed Deviation Penalties...... F-1 F.1 Positive UDP for Single Resource...... F-1 F.2 Negative UDP for Single Resource...... F-3 F.3 UDP for Aggregation...... F-5 F.4 UDP for Regulation Unit...... F-7 G. Examples Of Penalty Point Accrual For Non-Load Following MSSs...... G-1 G.1 Examples of Penalty Point Accrual For Non-Load Following MSSs...... G-1 H. Ancillary Services Schedules Examples...... H-1 H.1 Ancillary Services Schedules Examples...... H-1 I. Non-Compliance (No Pay & Regulation Non-Compliance) Examples...... I-1 I.1 Undispatchable Unit Outage or Derate/Rerate No Pay charges...... I-1 I.2 Undispatchable Ramp Limited No Pay charges...... I-3 I.3 Unavailable No Pay charges...... I-5 I.4 Undelivered No Pay charges...... I-6 I.5 Regulation Non-Compliance charges – Constrained Limits...... I-7 J. RUC Capacity Payment Rescission Examples...... J-1 J.1 Availability-limited Undispatchable RUC charges...... J-1 J.2 Undelivered RUC charges...... J-3 J.3 Ineligible RUC Bid charges...... J-5 K. Settlements Bill Determinant Name Cross Reference...... K-1

K1. Settlements Bill Determinant Name Cross Reference...... K-1

List of Exhibits:

Exhibit 1-1: CAISO BPMs...... 7 Exhibit 2-1: Applicability of Uninstructed Deviation Penalties...... 11 Exhibit 2-2: UDP Aggregations...... 23 Exhibit 2-3: Outage of Unit in UDP Aggregation...... 24 Exhibit 2-4: Rerate of Unit in UDP Aggregation...... 25 Exhibit 2-5: ADS Reason Codes...... 27 Exhibit 4-1: Order of Rescission for Unavailable Ancillary Service Capacity...... 43 Exhibit 7-1: Order of Rescission for RUC Capacity...... 59 Exhibit A-1: Forced Outage Reporting Requirement...... A-3 Exhibit F-1: Positive UDP for Single Resource...... F-1 Exhibit F-2: Negative UDP for Single Resource...... F-3 Exhibit F-3: UDP for Aggregation...... F-5 Exhibit F-4: UDP for Regulation Unit Example...... F-7 Exhibit G-1: Examples of Penalty Point Accrual For Non-Load Following MSSs...... G-1 Exhibit H-1: Ancillary Services Awards and Schedules Example...... H-1 Exhibit I-1: Undispatchable Unit Outage or Derate/Rerate No Pay Example ...... I-1 Exhibit I-2: Undispatchable Ramp Limited No Pay Example...... I-3 Exhibit I-3: Unavailable No Pay Example...... I-5 Exhibit I-4: Undeliverable No Pay Example...... I-6 Exhibit I-5: Regulation Non-Compliance Constrained Limits Example...... I-7 Exhibit J-1: Availability-limited Undispatchable RUC Example...... J-1 Exhibit J-2: Undelivered RUC Example...... J-3

1. Introduction

Welcome to CAISO BPM for Compliance Monitoring. In this Introduction you will find the following information:

 The purpose of CAISO BPMs

 What you can expect from this CAISO BPM

 Other CAISO BPMs or documents that provide related or additional information

1.1 Purpose of CAISO Business Practice Manuals

The Business Practice Manuals (BPMs) developed by CAISO are intended to contain implementation detail, consistent with and supported by the CAISO Tariff, including: instructions, rules, procedures, examples, and guidelines for the administration, operation, planning, and accounting requirements of CAISO and the markets. Exhibit 1-1 lists CAISO BPMs.

Exhibit 1-1: CAISO BPMs

BPM for Market Operations BPM for Market Instruments BPM for Settlements & Billing BPM for Scheduling Coordinator Certification and Termination BPM for Congestion Revenue Rights BPM for Candidate CRR Holder Registration BPM for Managing Full Network Model BPM for Rules of Conduct Administration BPM for Outage Management BPM for Metering BPM for Reliability Requirements BPM for Credit Management BPM for Compliance Monitoring BPM for Definitions & Acronyms BPM for BPM Change Management Process for MRTU Business Practice Manuals BPM for Transmission Planning Process

1.2 Purpose of this Business Practice Manual

The BPM for Compliance Monitoring describes processes and procedures in place to ensure grid reliability through the monitoring of Market Participant operation in accordance with the provisions of the CAISO Tariff. To the extent that Market Participants operate in a manner affecting the reliability of the CAISO Controlled Grid, Uninstructed Deviation Penalties (UDPs) and rescission of payments for Ancillary ServicesRegulation (AS) capacity, including Regulation, and Residual Unit Commitment (RUC) Capacity, in addition to potential Sanctions, may apply.

Market Participants are expected to comply at all times with the requirements of the CAISO Tariff and, unless exempted, follow all Dispatch Instructions and operating orders.

 Penalties are imposed for certain deviations from desired or scheduled operations (e.g., production or consumption of Uninstructed Imbalance Energy or UIE).

 Capacity payments are rescinded (withdrawn) for certain failures to perform (e.g., No Pay and RUC Capacity payment rescissionRegulation Non-Compliance).

The provisions of this BPM are intended to be consistent with the CAISO Tariff. If the provisions of this BPM nevertheless conflict, with the CAISO Tariff, the CAISO is bound to operate in accordance with the CAISO Tariff. Any provision of the CAISO Tariff that may have been summarized or repeated in this BPM is only to aid understanding. Even though every effort will be made by CAISO to update the information contained in this BPM and to notify Market Participants of changes, it is the responsibility of each Market Participant to ensure that he or she is using the most recent version of this BPM and to comply with all applicable provisions of the CAISO Tariff.

A reference in this BPM to the CAISO Tariff, a given agreement, any other BPM or instrument, is intended to refer to the CAISO Tariff, that agreement, BPM or instrument as modified, amended, supplemented or restated.

The captions and headings in this BPM are intended solely to facilitate reference and not to have any bearing on the meaning of any of the terms and conditions.

1.3 References

Other reference information related to this BPM includes:

 BPM for Rules for Conduct Administration, for information related to Sanctions that can be imposed for actions that violate certain provisions of the CAISO Tariff

 BPM for Settlements & Billing, for details of the formulas used for calculation of the actual charges relating to the provisions of this BPM for Compliance Monitoring

 BPM for Reliability Requirements, for information related to the Resource Adequacy (RA) provisions of the CAISO Tariff

 BPM for Definitions & Acronyms, for definition of the capitalized terms and acronyms used in this BPM

2. Uninstructed Deviation Penalties

Welcome to the Uninstructed Deviation Penalties section of the BPM for Compliance Monitoring. In this section you will find the following information:

 A description of when UDPs apply

 A description of how CAISO calculates UDP billable quantities

 A description of the exemptions from UDPs

 A description of how CAISO calculates Dispatch Operating Point Deviations (DOPDs)

 A description of the treatment of Non-Dynamic System Resources

 A description of the process by which groups of resources and their individual UDPs can be aggregated

 A description of the mechanism by which UDP revenues are distributed

2.1 Application of Uninstructed Deviation Penalties

CAISO Tariff Section 11.23, Penalties for Uninstructed Imbalance Energy

The Real-Time Market (RTM) provides a balancing tool critical to the reliable operation of the CAISO Balancing Authority Area. Uninstructed Deviation Penalties provide a strong incentive for suppliers to follow Schedules, as amended by Dispatch Instructions issued by CAISO.

Exhibit 2-1 presents when UDPs are applied:

Exhibit 2-2: Applicability of Uninstructed Deviation Penalties

System Units System Resources Load Generating Units (MSS)

Load Following Non-Dynamic System UDP Applies Participating Load Not Selected Resource

UDP Applies Pre-Dispatched UDP Does Not Apply

Load Following UDP Applies Non-Participating Selected Load

MSS Deviation Penalties Apply DAM Schedule UDP Does Not Apply

UDP Does Not Apply

Dynamic System Resources

UDP Applies

Note that all System Units in a Load following MSS with an annual election for net settlement are designated as Load following whereas System Units in MSSs with an annual election for gross settlement may or may not be designated as Load following.

2.2 Uninstructed Deviation Penalty Calculation

CAISO calculates UDP billable quantities within its Compliance application. These values are pushed to Settlements where UDP billable quantities are multiplied by the appropriate price (see Section 2.2.4) to calculate the UDP charge.

2.2.1 Tolerance Band

CAISO Tariff Section 11.23(l & m)

The Tolerance Band is expressed in terms of Energy (MWh) and represents the amount Generating Units, System Units1 and imports from Dynamic System Resources can deviate from Dispatch Instructions without incurring UDP. Deviations within the Tolerance Band are exempt from UDP. The Tolerance Band is intended to accommodate normal variations in a Generating Unit’s, System Unit’s or Dynamic System Resource’s output.

The Tolerance Band is equal to the greater of the following quantities:

 Five MW

 Three percent of the relevant Generating Unit’s, System Unit’s or Dynamic System Resource’s2 maximum output (PMax), as registered in the Master File

The Tolerance Band for Generating Units, Dynamic System Resources and System Units for each Settlement Interval is represented in MWh and is calculated as follows:

Tolerance Band [MWh] = max(0.03 * PMax, 5 MW)/6 (1)

The Tolerance Band is not applied to Non-Dynamic System Resources (see Section 2.6).

2.2.2 Positive Uninstructed Deviation Penalty

CAISO Tariff Section 11.23(l)

For all resources subject to UDP, a positive Uninstructed Deviation occurs when the actual metered output is greater than the Energy that CAISO expected to receive in a Settlement Interval, resulting in positive UIE. The UDP for positive Uninstructed Deviations from Expected Energy that exceed the upper Tolerance Band is charged at 100% of the applicable Locational Marginal Price (LMP).

1 In this Section 2, references to System Units mean only non-Load following System Units. See Section 3 for details on Load following System Units. 2 Section DSP 8.6 of the Dynamic Scheduling Protocol in Appendix X of the CAISO Tariff specifies that a "Pmax like" value must be established for a Dynamic System Resource. In accordance with the definition of the term "Tolerance Band," this "PMax-like" value will be determined by an agreement between CAISO and the SC representing the Dynamic System Resource on an individual case basis, taking into account the number and size of the generating resources or the allocated portions of the generation that comprise the Dynamic System Resource.

2.2.3 Negative Uninstructed Deviation Penalty

CAISO Tariff Section 11.23(m)

Negative UIE represents a shortfall in delivery of Energy to the CAISO system in a Settlement Interval. For all resources subject to UDP, a negative Uninstructed Deviation occurs when the actual metered output is less than the Expected Energy in that Settlement Interval. The UDP for negative deviations from the Expected Energy that fall below the lower Tolerance Band is charged at 50% of the applicable LMP.

2.2.4 Settlement Interval Penalty Location Real-Time LMP

The Settlement Interval Penalty Location Real-Time LMP is used in the calculation of positive UDP Settlements amounts and negative UDP Settlement amounts. The Settlement Interval Penalty Location Real-Time LMP is calculated for each UDP Location as the 10-minute weighted average price of two 5-minute Dispatch Interval LMPs and the two 5-minute optimal Instructed Imbalance Energy (IIE) quantities. Additional details on the calculation of the Settlement Interval Penalty Location Real-Time LMP are contained in the BPM for Settlements & Billing.

2.3 Uninstructed Deviation Penalty Exemptions

There are various exemptions that can reduce or eliminate UDP billable quantities. These include both exemptions for certain classes of supply resources as well as exemptions under certain circumstances.

2.3.1 Resource Exemptions

The following sections describe Resource exemptions for UDP.

2.3.1.1 Regulatory Must-Run Exemption

CAISO Tariff Section 11.23(e)

Regulatory Must-Run Generation, including Hydro Spill Generation and Generation that is required to run by applicable federal or California laws, regulation or other governing jurisdictional authorities, is not subject to UDP because these units may deviate from Dispatch Instructions and Schedules to meet these legal obligations. A flag in the CAISO Master File specifies the resources that are designated to be Regulatory Must-Run Generation. All Energy output from such resources is treated as Regulatory Must-Run Generation.

2.3.1.2 Participating Intermittent Resources Exemption

Participating Intermittent Resources that meet the scheduling obligations in the Participating Intermittent Resource program section of the BPM for Market Operations Attachment B, Section B.6 are not subject to UDP. This exemption is determined hourly by the UDP application and is based on the Participating Intermittent Resource’s compliance with scheduling obligations.

2.3.1.3 Qualifying Facilities Exemption

Qualifying Facilities (QFs) that execute a Participating Generator Agreement (PGA) or QF PGA directly with CAISO are subject to UDP. Qualifying Facilities without a valid PGA or QF PGA with CAISO, but that are listed on the PGA of their Participating Transmission Owner/Utility Distribution Company (PTO/UDC), are not subject to UDP. Dynamically scheduled QFs with an existing power purchase agreement with the applicable UDC/PTO are also not subject to UDP. These resources are not under the operational control of the PTO/UDC and, therefore, it is inappropriate to charge the PTO/UDC for Uninstructed Deviations undertaken outside their control. This exemption is identified by the UDP application through a Master File flag that indicates that the QF does not have an individual PGA or QF PGA with CAISO.

2.3.1.4 Condition 2 Reliability Must-Run Units Exemption

CAISO Tariff Section 11.23(u)

The Reliability Must-Run Contract (RMR Contract) allows a Generator to specify the unit as a Condition 1 or Condition 2 RMR Unit.

 Condition 1 provides a limited guaranteed fixed-cost recovery and allows the Generating Unit to participate in the Energy market to recover its remaining fixed costs. Condition 1 RMR Units are subject to UDP.

 Condition 2 provides full cost recovery with the restriction that the Generating Unit can only operate at the direction of CAISO. The Condition 2 RMR Contract provides Sanctions for a Generating Unit owner that does not comply with its Dispatch notices, and Condition 2 RMR Units are exempt from UDP. The PTO compensates the Condition 2 RMR Unit’s owner for any costs not recovered from the market including applicable penalties, and receives payment for any market revenues in excess of the

Condition 2 RMR Unit’s costs. This exemption is identified by the UDP application through a Master File flag that indicates the unit is a Condition 2 RMR Unit.

2.3.2 Other Uninstructed Deviation Penalty Exemptions

For the resources that are subject to UDP, DOPD is calculated as the amount, in MWh, that the resource deviates from its Expected Energy in the Settlement Interval. UDP exemptions may apply to resources for specified Settlement Intervals in which all or a portion of the DOPD is exempt from UDP (i.e., Exemption Energy). Exemption Energy can result in following situations:

2.3.2.1 Zero or Negative LMP Exemption

CAISO Tariff Section 11.23(k)

UDP does not apply when the applicable 10-minute LMP is negative or zero.

2.3.2.2 System Emergency Exemption

CAISO Tariff Section 11.23(a)

Excessive positive UIE that is delivered in the time periods that CAISO has declared a staged System Emergency is not subject to positive UDP. In staged System Emergency conditions, Generating Units may offer CAISO operating capacity beyond their PMax, as registered in the CAISO Master File, that is not available under normal system conditions.

2.3.2.3 Exceptional Dispatch Exemption for Out-of- Market Dispatch

CAISO Tariff Section 11.23(o)

UDP only applies to Exceptional Dispatch transactions where the start time, duration, and the amount of Energy to be delivered for the out-of-market transaction has been agreed upon in advance by the supplier and CAISO so that an accurate Dispatch Instruction is issued.

2.3.2.4 Scheduled Tests Exemption

CAISO Tariff Section 11.23(n)

Deviations that occur during a scheduled test are not subject to UDP. The scheduled test must be scheduled in accordance with CAISO’s Outage scheduling requirements (i.e., there must be an approved Outage card with the “Unit Testing” attribute enabled for a scheduled test).

2.3.2.5 Outages & Rerates Exemption

CAISO Tariff Section 11.23(p)

Deviations that result from an Outage or Rerate are not subject to UDP. However, the Outage or Rerate must be reported to CAISO no more than 30 minutes after the Outage occurs to ensure complete protection from UDP (see also Section 2.3.2.10). Resources that report Outages or Rerates are expected to operate in a manner consistent with the information reported to CAISO. See Attachment A for additional details on the Outage and Rerate UDP exemption.

2.3.2.6 Loads Exemption

CAISO Tariff Section 11.23(c)

All Loads, both Participating Loads and Non-Participating Loads, are exempt from UDP.

2.3.2.7 Load Following MSS System Unit Exemption

CAISO Tariff Section 11.23(f)

System Units are Generating Units that are part of an MSS. If the MSS Operator elects, on an annual basis, to follow Load, then the System Units that are designated as Load following in the MSS are exempt from UDP but are subject to the MSS penalties in Section 3. This exemption is identified by the UDP application through a Master File flag that indicates the System Unit is part of an MSS. Non-Load following System Units within a Load following MSS are not exempt from UDP.

2.3.2.8 Start-up & Shut-Down Energy Exemption

CAISO Tariff Section 11.23(v)

Generating Units deliver Energy during Start-Up and Shut-Down between the time that the Generating Unit is synchronized to the CAISO Controlled Grid and the time that the Generating Unit’s minimum operating level (PMin) is reached and from the time the Generating Unit reaches its minimum operating level until it disconnects from the CAISO Controlled Grid. Because operating levels below a Generating Unit’s Reported Minimum Availability are unsustainable, CAISO’s RTM Applications cannot model the Energy generated during Start-Up and Shut-Down, so no Dispatch Instructions are issued below the resource’s Reported Minimum Availability. This results in CAISO classifying Energy produced below a Generating Unit’s minimum operating level as UIE.

The exemption for Start-Up and Shut-Down Energy applies to individual Generating Units and to Generating Units in approved UDP Aggregations. This exemption does not apply to Dynamic System Resources since their Start-Up and Shut-Down Energy is delivered in the host Balancing Authority Area and the dynamic signal is only active when the Dynamic System Resource schedules in the CAISO Markets. See Attachment B for additional details on the Start-Up and Shut-Down Energy UDP exemption.

2.3.2.9 Frequency Response Exemption

CAISO Tariff Section 11.23(w)

UDP does not apply to deviations by a Generating Unit that are attributable to any automatic response to a system disturbance. Governors regulate the output of Generating Units in instances when system frequency varies from 60 Hz by greater than + or – 0.036 Hz. Since governor response may cause Generating Units to deviate from Expected Energy, a UDP exemption is provided for such deviations for the duration of the frequency excursion and for an additional five minutes, when a Generating Unit’s deviation is in the same direction as the mitigating frequency response. Positive UDP is exempted when the system frequency falls below 59.950 Hz. Negative UDP is exempted when the system frequency rises above 60.050 Hz.

2.3.2.10 CAISO System Exemption

Critical CAISO systems, such the Automated Dispatch System (ADS), RTM Applications, and Scheduling and Logging System for ISO California (SLIC) need to be available in Real-Time so that Dispatch Instructions, Outages, and Rerates can be communicated between Market Participants and CAISO. If one of these systems is not available, then important information that can affect a Generating Unit’s ability to reasonably deliver Expected Energy is not properly communicated and the Generating Unit may appear to deviate as a result. In order to assure that resources are not subject to UDP due to a CAISO system issue, a UDP exemption is provided in the event that an ADS or RTM Application issue causes an infeasible Dispatch Instruction to be communicated or prevents timely communication of Dispatch Instructions, or a SLIC outage prevents a resource from reporting an event that affects such resource’s ability to deliver Energy. In addition, UDP is not applied to manual Dispatch Instructions that are not confirmed by a Dispatch Instruction transmitted through ADS (see Section 2.3.2.12). See Attachment C for more details on the UDP exemption for unavailability of CAISO systems.

2.3.2.11 Existing (Transmission) Contract Schedule Change Exemption

CAISO Tariff Section 11.23(q)

Adjustments to any Generating Unit, Curtailable Demand, System Unit, and System Resource Day-Ahead Schedules or Hour-Ahead Scheduling Process (HASP) Intertie Schedules made in accordance with the terms of TRTC for Existing Contracts or TORs are not subject to UDP. Valid changes to ETC Self-Schedules or TOR Self-Schedules submitted after the close of the HASP or RTM are not subject to UDP.

2.3.2.12 Manual Dispatch Instruction Exemption

CAISO provides a UDP exemption for Dispatch Instructions manually issued to individual Generating Units, System Units, and Dynamic System Resources that are not confirmed by a Dispatch Instruction issued through ADS.

See Attachment D for more details on the manual Dispatch Instruction UDP exemption.

2.3.2.13 Dispatch Instruction Validation Exemption

CAISO Tariff Section 11.23(s)

CAISO reviews Dispatch Instructions issued through ADS to verify that they are delivered to Market Participants and to verify that they are delivered with sufficient time for the Market Participant to respond. CAISO provides a UDP exemption in instances where Market Participants do not receive Dispatch Instructions or receive them late. See Attachment E for more details on the Dispatch Instruction validation UDP exemption.

2.3.2.14 Regulation Transition Exemption

CAISO Tariff Section 11.23(g)

An exemption for Regulation transition periods provides a UDP accommodation in instances where CAISO does not return a unit to its Dispatch Operating Point (DOP)3 at the end of an hour in which it was scheduled to provide Regulation, which could potentially cause the unit to be off its DOP in the next hour when Regulation is not scheduled.

When a Generating Unit or Dynamic System Resource provides Regulation services to CAISO and demonstrates performance measured by being on Automatic Generation Control (AGC) for

3 Note that the Dispatch Operating Target (DOT) is the operating level to which a resource has been dispatched through the issuance of a Dispatch Instruction, while the DOP is the operating level of the resource at any point in time during its ramp to its DOT.

Regulation in the last Settlement Interval in one hour and that resource does not have a Regulation Schedule in the next hour, then that resource is provided a UDP exemption to allow it to return to its DOP. This exemption is provided from the top of the hour through the earliest Settlement Interval after the top of the hour that meets one of the following criteria:

 The first Settlement Interval in which DOPD changes sign (i.e., is positive in one Settlement Interval and negative in the next, or negative in one Settlement Interval and positive in the next)

 The first Settlement Interval in which DOPD is less than the Tolerance Band of the individual unit

 The Settlement Interval that is the 6th Settlement Interval after the top of the hour

CAISO provides a UDP exemption for additional Settlement Intervals providing the unit has consistently ramped towards its DOP at the applicable Ramp Rate.

CAISO also does not impose UDP on a unit that is temporarily taken off AGC to move to a new Regulating Range provided that reason is communicated to CAISO in advance and logged in SLIC.

2.4 Dispatch Operating Point Deviation Calculation

The DOPD represents the difference between the Expected Energy and the metered Energy output of the resource over a Settlement Interval that is used for the purposes of UDP. To the extent that the DOPD exceeds the Tolerance Band, a resource is subject to UDP. The relevant calculations for each Settlement Interval are as follows:

DOPD [MWh] = 0 (default value) (2)

IF, Metered Energy > Expected Energy, DOPD = max(0, Meter Data – max(Expected Energy, Effective Upward Regulation Limit/6)) (3)

IF, Metered Energy ≤ Expected Energy, DOPD = min(0, Meter Data – min(Expected Energy, Effective Downward Regulation Limit/6)) (4)

The DOPD in most cases is equal to UIE calculated for UIE Charge Codes in Settlement files.

 UIE Tier 1 is uninstructed Energy from Dispatch Instructions  UIE Tier 2 represents any remaining UIE

The DOPD may differ from UIE Tier 1 and UIE Tier 2 when a Generating Unit is scheduled for Regulation since Settlements uses a Regulation Energy quantity equal to the total Regulation capacity and the UDP calculations use a combination of the actual Regulation Limits and the DOP, depending on AGC status of the unit in each minute. See Section 2.4.2 for more details on the calculation of Effective Regulation Limits and the DOPD for units providing Regulation.

2.4.1 Adjusted Dispatch Operating Point Deviation and Total Exemption Energy

The Adjusted DOPD represents the DOPD adjusted by Exemption Energy. Exemption Energy is associated with the following UDP exemptions:

 Outage and Rerates  Start-Up and Shut-Down Energy  Frequency response  CAISO systems  Manual Dispatch Instructions  Dispatch Instruction validation  Regulation transition

Exemption Energy offsets the DOPD of a resource deviating due to a condition that justifies an exemption from UDP. Exemption Energy is equal to the negative of the DOPD of the deviating resource, with the exception of Exemption Energy for the Start-Up and Shut-Down Energy exemption, which can be various values that range up to the negative of the DOPD of the exempted resource.

The application that calculates UDP calculates Exemption Energy values for each exempted condition that a resource is subject to during a Settlement Interval. Because more than one exempted condition can apply to a resource for a given Settlement Interval, the UDP application sums the Exemption Energy values for the Settlement Interval to produce a total Exemption Energy value for each resource. The total Exemption Energy adjusts the magnitude of positive or negative DOPD down to as low as zero, but it will not convert positive DOPD to negative DOPD, or vice versa.

The relevant calculations for each Settlement Interval are as follows:

Adjusted DOPD [MWh] = DOPD + Total Exemption Energy (5)

If DOPD > 0, Total Exemption Energy = max(-DOPD, SUM of individual Energy exemptions for the resource) (6)

If DOPD < 0, Total Exemption Energy = min(-DOPD, SUM of individual Energy exemptions for the resource) (7)

2.4.2 Dispatch Operating Point Deviation for Regulating Units Calculation

Generating Units and Dynamic System Resources scheduled to provide Regulation must be on control and providing sufficient Regulating Range in Real-Time. Expected Regulation Limits are determined by the following quantities:

 The unit’s Day-Ahead Energy Schedule  The quantity of Regulation Up and Regulation Down capacity awarded  The operating limits of the Generating Unit in Real-Time

The Effective Regulation Limits used in the DOPD equation are determined by the Generating Unit’s AGC status, which is recorded every minute of the hour by the UDP application. The Effective Regulation Limit equals the Regulation Limit when the AGC status for that minute shows that the unit is on control.

CAISO sends set point or pulse signals to a unit providing Regulation within its Regulation Limits when the unit is on control.

 When a unit is on control and operating within its Regulation Limits, the unit does not receive UDP. The calculation of DOPD is formulated so that DOPD is equal to 0 MWh when a resource providing Regulation is operating within the Regulating Range provided in Real-Time and non-zero when a resource providing Regulation is operating outside of the Regulating Range.

 If a unit is not on control during a particular minute, then the Effective Regulation Limit used to calculate UDP is equal to zero. If a unit is off control for all 10 minutes of a Settlement Interval, then the Effective Regulation Limits in equations 3 and 4 in Section 2.4 are zero and DOPD is determined by comparing the unit’s metered Energy to Expected Energy (i.e., the Generating Unit is not on Regulation and is treated like all other Generating Units not providing Regulation).

 Similarly, if a unit is not scheduled for Regulation, then the Effective Regulation Limits in equations 3 and 4 are zero and the unit’s metered Energy is only compared to its Expected Energy.

The Effective Regulation Limits are capacity values (MW) that are converted to Energy values (MWh) by dividing by six.

2.4.3 Uninstructed Deviation Penalty Billable Quantity Calculation

The Adjusted DOPD represents the unit’s total deviation from Expected Energy that is subject to UDP. The UDP billable quantity is the Adjusted DOPD reduced by the Tolerance Band. The billable quantity represents the amount of the Uninstructed Deviation that receives UDP. Since the positive UDP and negative UDP are separate Charge Codes, separate positive and negative billable quantity equations are calculated. The relevant calculations for each Settlement Interval are as follows:

IF, Adjusted DOPD > 0, Positive UDP Billable Quantity = max(0, Adjusted DOPD – Tolerance Band) (8)

IF, Adjusted DOPD < 0, Negative UDP Billable Quantity = min(0, Adjusted DOPD + Tolerance Band) (9)

Positive UDP is charged at 100% of the applicable LMP and negative UDP is charged at 50% of the applicable LMP (see Sections 2.2.2, 2.2.3 and 2.2.4).

2.5 Uninstructed Deviation Penalties Aggregations

CAISO Tariff Section 11.23(h) and Appendix R, UDP Aggregation Protocol

Generating Units may be aggregated to allow Market Participants to manage their Generating Unit portfolios. For the purposes of UDP only, UDP Aggregations are treated as a single Generating Unit. Standard UDP Aggregations are those in which all Generating Units in the UDP Aggregation connect to the CAISO Controlled Grid at the same location and voltage level. Custom UDP Aggregations may include Generating Units connected to the CAISO Controlled Grid at different locations and/or voltage levels. In aggregating resources together, a Market Participant gains the ability to offset Imbalance Energy obligations caused by an Outage or Rerate of one Generating Unit in the UDP Aggregation by adjusting its Generation on another Generating Unit in the UDP Aggregation. UDP Aggregations must be approved by CAISO based on an assessment of the impact on System Reliability. Since resources classified as Regulatory Must-Run Generation are exempt from UDP, they have no effect when included in a UDP Aggregation.

Exhibit 2-2 provides examples of both standard and custom UDP Aggregations.

Exhibit 2-3: UDP Aggregations Standard Aggregation Custom Aggregation  Same Location  Different Location

 Same Voltage  Different Voltage

 Engineering Review to prevent reliability impacts

U5 U4 U3 U2 U1 U5 U4 U3 U2 U1

2.5.1 UDP Aggregation Tolerance Band

The Tolerance Band of a UDP Aggregation is based on the sum of the PMax of each of the operating Generating Units in the UDP Aggregation. A unit’s PMax is included in the UDP Aggregation if one of the following conditions is true:

Meter Data > 0 MWh, or

Expected Energy > 0, or

Day-Ahead Energy Schedule > 0.

The UDP Aggregation Tolerance Band for each Settlement Interval is calculated as follows:

UDP Aggregation Tolerance Band [MWh] = max(0.03 * SUM PMax of operating Generating Units in UDP Aggregation, 5 MW)/6 (10)

The UDP Aggregation Tolerance Band is a capacity value (MW) that is converted to an Energy value (MWh) by dividing by six.

2.5.2 UDP Aggregation Dispatch Operating Point Determination Calculation

The UDP Aggregation DOPD represents the amount of Energy by which the aggregation of Generating Units deviates from its total Expected Energy. The UDP Aggregation DOPD is the sum of the DOPD for each unit in the UDP Aggregation. The calculation of the DOPD for each unit is described in Section 2.4. The relevant equation for the UDP Aggregation DOPD is as follows:

UDP Aggregation DOPD [MWh] = SUM of DOPD of each Generating Unit in the approved UDP Aggregation (11)

2.5.3 UDP Aggregation Adjusted Dispatch Operating Point Determination Calculation

The UDP Aggregation Adjusted DOPD modifies the UDP Aggregation DOPD to account for deviations of Generating Units within UDP Aggregations under the following conditions:

 Deviations that offset Imbalance Energy obligations incurred by another Generating Unit in the UDP Aggregation due to an Outage or Rerate that prevents the unit from meeting its scheduled Energy obligation.

 Deviations that result from certain exempted conditions.

The function of the UDP Aggregation Adjusted DOPD is presented in Exhibit 2-3. If units A and B are in a UDP Aggregation and unit A suffers an Outage, unit B may adjust its output above its Expected Energy to offset the Imbalance Energy charges resulting from the Outage of unit A (assuming that a SLIC ticket is submitted within 30 minutes for unit A). However, the UDP Aggregation may be assessed UDP if unit B adjusts its output in excess of the Outage that exists on unit A.

Exhibit 2-4: Outage of Unit in UDP Aggregation

Exhibit 2-4 presents the converse situation when unit A experiences a Rerate of its Reported Minimum Availability that forces it to produce more Energy than represented in its Day-Ahead Energy Schedule. In this case, unit B may reduce its output below its total Energy Schedule by as much as the amount that unit A is constrained above its total Energy Schedule.

Exhibit 2-5: Rerate of Unit in UDP Aggregation

The UDP Aggregation Derate Energy4 is the sum of the Derate Energy for all Generating Units in the UDP Aggregation. Derate Energy is an Energy type calculated by the RTM Applications (the Energy Type is “SLIC” in Expected Energy files); however, if a unit reports an Outage or Rerate after the fact, then the UDP application calculates an adjusted Derate Energy for the time period when the RTM Applications have not taken into account the Outage and have not calculated Derate Energy. UDP Aggregation Derate Energy is used in the calculation of UDP to allow a unit in a UDP Aggregation to deviate to compensate for another unit’s inability to deliver its total Energy Schedule. UDP Aggregation Derate Energy does not compensate for another unit’s inability to deliver IIE. In other words, it does not enable a unit in a UDP Aggregation to adjust output by the amount of a CAISO Dispatch Instruction issued to a unit in the UDP Aggregation that is subject to a Rerate or Outage.

Positive Exemption Energy and negative Exemption Energy are the sums of the positive and negative total Exemption Energy values, respectively, of all of the Generating Units in a UDP Aggregation. The calculation of total Exemption Energy for each unit is described in Section 2.4.1. Positive Exemption Energy and negative Exemption Energy are used as inputs to the calculation of UDP Aggregation Adjusted DOPD and offset any UDP Aggregation DOPD caused by a condition that warrants a UDP exemption.

4 Derate Energy includes Energy resulting from PMax derates and Minimum Load overrates (Rerate).

The relevant equations for each Settlement Interval are as follows:

IF, Reported Maximum Availability/6 < Expected Energy for a Generating Unit in a UDP Aggregation

THEN, Adjusted Derate Energy [MWh] = min(0, Reported Maximum Availability/6 – Total Energy Schedule/6) (12)

If Reported Minimum Availability/6 > Expected Energy for a Generating Unit in a UDP Aggregation

THEN, Adjusted Derate Energy [MWh] = max(0, Reported Minimum Availability/6 – Total Energy Schedule/6) (13)

Where total Energy Schedule is non-zero for both of the equations above

UDP Aggregation Derate Energy [MWh] = SUM Derate Energy calculated by the RTM Applications for every Generating Unit plus SUM Adjusted Derate Energy for each Generating Unit (14)

Positive Exemption Energy [MWh] = SUM Total Exemption Energy > 0 for each Generating Unit in UDP Aggregation (15)

Negative Exemption Energy [MWh] = SUM Total Exemption Energy < 0 for each Generating Unit in UDP Aggregation (16)

The UDP Aggregation Adjusted DOPD is calculated as follows:

UDP Aggregation Adjusted DOPD [MWh] = UDP Aggregation DOPD (by default) (17)

IF, the UDP Aggregation DOPD < 0

THEN, UDP Aggregation Adjusted DOPD = min(0, UDP Aggregation DOPD + Positive Exemption Energy + max(0, UDP Aggregation Derate Energy)) (18)

IF the UDP Aggregation DOPD > 0

THEN, UDP Aggregation Adjusted DOPD = max(0, UDP Aggregation DOPD + Negative Exemption Energy + min(0, UDP Aggregation Derate Energy)) (19)

2.5.4 Uninstructed Deviation Penalty Aggregation Billable Quantity

The UDP Aggregation billable quantity represents the total excess Uninstructed Deviation that is subject to UDP. The relevant equations for each Settlement Interval are as follows:

Positive Deviation Billable Quantity [MWh] = 0 (default value) (20)

IF, UDP Aggregation Adjusted DOPD > 0

THEN, Positive UDP Billable Quantity = max(0, UDP Aggregation Adjusted DOPD – UDP Aggregation Tolerance Band) (21)

Negative Deviation Billable Quantity [MWh] = 0 (default value) (22)

IF, UDP Aggregation Adjusted DOPD < 0

THEN, Negative UDP Billable Quantity = min(0, UDP Aggregation Adjusted DOPD + UDP Aggregation Tolerance Band) (23)

2.6 Non-Dynamic System Resources

Non-Dynamic System Resources can submit Energy Bids in the HASP. CAISO must issue HASP Intertie Schedules for such resources at Scheduling Points for the full next Trading Hour. The Non-Dynamic System Resource will be subject to UDP if CAISO issues a HASP Intertie Schedule and the Scheduling Coordinator (SC) representing the Non-Dynamic System Resource fails to deliver the Energy. No other transactions for Non-Dynamic System Resources will be subject to UDP.

If an SC fails to deliver Energy from a HASP Intertie Schedule for a Non-Dynamic System Resource, then the CAISO will consider the “Reason Code” in ADS for the “decline” or “partial” acceptance of the HASP Intertie Schedule to determine if the resource could not physically deliver the Energy due to an operational limitation. Exhibit 2-5 lists the ADS Reason Codes.

Exhibit 2-6: ADS Reason Codes

Reason Code Reason Text 10 Line down 13 Unit Derate 14 No Available Transmission 15 Time Out: Minimum Accepted 16 Timed Out: Forced Decline

Reason Code Reason Text 17 Unscheduled Flow 18 Per Generation Dispatcher 19 Curtailed by Reliability Authority 20 Unable to complete market transaction 21 Bid Error

ADS Reason Codes 15, 16, 18, 19, 20 and 21 are not related to physical operating limitations and, as such, will not provide an exemption from UDP. CAISO will use additional information, such as SLIC logs, to verify all other ADS Reason Codes.

2.6.1 Non-Dynamic System Resource Tolerance Band

There are no normal variations in the output of a Non-Dynamic System Resource during an operating hour; therefore, it is not necessary to apply a Tolerance Band around the Expected Energy. The Tolerance Band for Non-Dynamic System Resources is calculated as follows:

Non-Dynamic System Resource Tolerance Band [MWh] = 0 (24)

2.6.2 Non-Dynamic System Resource DOPD

Since the Non-Dynamic System Resource instruction is valid for the entire operating hour, Expected Energy for each Settlement Interval is calculated by dividing the hourly instruction by six. The relevant equations are as follows:

Expected Energy for Non-Dynamic System Resources [MWh] = Dispatch Instruction/6 (25)

DOPD for Non-Dynamic System Resource [MWh] = System Resource Checkout/6 – Expected Energy (26)

2.6.3 Non-Dynamic System Resource Billable Quantity

The UDP billable quantity for each Settlement Interval for Non-Dynamic System Resources is calculated as follows:

Positive Deviation Billable Quantity [MWh] = 0 (default value)

If DOPD >0, Positive UDP Billable Quantity [MWh] = max (0,DOPD – Non-Dynamic System Resource Tolerance Band) (27)

If DOPD <0, Negative UDP Billable Quantity [MWh] = min (0,DOPD + Non-Dynamic System Resource Tolerance Band) (28)

2.7 Uninstructed Deviation Penalty Revenue Allocation

CAISO Tariff Section 11.23(t)

The revenue collected from the UDP Charge Codes is allocated in the following sequence:

 Reduce 2nd Tier of excess cost allocation (above-LMP5 pro-rata allocation to all SCs’ metered Demand).

 Any remaining amounts go to a CAISO Surplus Account and is managed per the BPM for Settlements & Billing.

5 “Above-LMP,” as used here, refers to Exceptional Dispatch and is not meant to offset Bid Cost Recovery associated with the difference between Bid price and LMP.

3. Metered Subsystem Penalties

Welcome to the Metered Subsystem Penalties section of the BPM for Compliance Monitoring. In this section you will find the following information:

 A description of MSS Load Following Deviation Penalties (LFDPs) for Load following MSSs

 A description of the MSS penalties for MSS Demand Forecast errors for non-Load following MSSs

3.1 Metered Subsystem LFDPs for Load Following MSSs

MSS entities (MSS Aggregators or, if not part of an MSS Aggregation, individual MSS Operators) that elect Load following in accordance with Section 4.9.13.2 of the CAISO Tariff must meet certain performance requirements. Specifically, if their Load following is inaccurate, resulting in MSS deviations from scheduled net interchange with the rest of the CAISO Controlled Grid in excess of a threshold, the MSS Operator is assessed a penalty.

An MSS Operator that elects Load following in its annual designation must specify a net or gross Settlement election.

 Net Settlement & Load Following MSS – All resources inside the MSS are Load following; Load following resources in an MSS Aggregation but outside the MSS are subject to the rules for all Load following resources. Non-Load following resources in an MSS Aggregation but outside the MSS, if any, are subject to resource-specific UDP.

 Gross Settlement & Load Following MSS – Some resources within the MSS are not Load following. Non-Load following resources are subject to resource specific UDP.

Whether net or gross Settlement is elected by the MSS Operator, Load following resources are exempt from resource specific UDP.

3.1.1 Load Following MSS Deviation Calculation

A Load following MSS Operator or MSS Aggregator is required to match its Energy supplies with its Demand requirements within a defined deadband in each Settlement Interval. A Load following MSS Operator or MSS Aggregator also has the ability to bid into the CAISO's Day- Ahead, HASP and Real-Time Markets and enter into RMR Contracts. If a Load following MSS Operator’s or MSS Aggregator’s Energy Bids are dispatched by CAISO, the IIE also becomes a

Version 2 Last Revised: July 23, 2009 Page 30 CAISO Business Practice Manual BPM for Compliance Monitoring delivery requirement for the MSS. Financial penalties are assessed on excessive Uninstructed Deviations by a Load following MSS.

3.1.2 MSS Deviation Band

CAISO Tariff Section 4.9.13.2, 11.7.1

The MSS Deviation Band is 3% of the actual metered Demand. The MSS Deviation Band is calculated for each Settlement Interval as follows:

MSS Deviation Band [MWh] = 0.03 * (Metered Demand) (29)

3.1.3 Day Ahead MSS Sales and Purchases in IFM

In the Day Ahead Market, the SC for the MSS or MSS Aggregation can bid a combination of Self-Schedules and generator Energy curves that result in final Generation Schedules that are greater or less than the MSS Operator’s or MSS Aggregator’s need for Energy to balance all of its obligations. The resulting difference represents the amount of Energy, which can be positive for a sale or negative for a purchase that is considered sold or purchased in the Day-Ahead IFM. This Energy has an obligation to be delivered in real-time, so the amount must be accounted for in the DOPD calculation.

Day Ahead MSS/MSSA Sales/Purchases [MWh] = Sum of Day Ahead Final External Generation Schedules/6 * (1-Fixed Loss Factor6) + Sum of Day Ahead Final Internal Generation Schedules/6 + Sum of Day Ahead Submitted Import Schedules/6 * (1-Fixed Loss Factor) – Sum of Day Ahead Submitted Export Schedules/6 + Sum of Day Ahead Submitted SC-to-SC Trades into the MSS/MSSA – Sum of Day Ahead Submitted SC-to-SC Trades of out of the MSS/MSSA – SUM of Day Ahead Submitted Self-Scheduled Demand/6 (30) where

Submitted means the quantities submitted to CAISO’s Day-Ahead Market, unaffected by any cuts that might happen in the IFM in the creation of Day-Ahead Schedules

6 Fixed Loss Factor is a fixed factor, agreed upon by CAISO and the MSS Operator or MSS Aggregator, that represents average grid losses between the MSS Operator's or MSS Aggregator's Generating Units and imports and the CAISO Controlled Grid.

3.1.4 Dispatch Operating Point Deviation Calculation

The DOPD represents MSS Aggregation Imbalance Energy adjusted for Day Ahead Sales or Purchases, MSS expected IIE and Regulation Energy. MSS expected IIE is an amount calculated by CAISO that represents the Energy dispatched by CAISO that is required to be provided by the MSS. This MSS expected IIE includes Energy from Energy Bids (including those associated with Spinning Reserve and Non-Spinning Reserve), Real-Time Energy from RMR Units, and Exceptional Dispatch Energy. MSS expected IIE does not include energy associated with Load following instructions.

The DOPD is calculated as follows:

MSS/MSSA Imbalance Energy [MWh] = SUM of MSS Generation Internal + SUM of (MSS Generation External * (1 - Fixed Loss Factor)) + Sum of MSS Scheduled Imports * (1 – Fixed Loss Factor) – Sum of MSS Scheduled Exports + Sum of SC-to-SC Trades into the MSS/MSSA – Sum of SC-to-SC Trades out of the MSS/MSSA - Metered Demand

DOPD [MWh] = MSS Imbalance Energy – MSS expected IIE – MSS Day Ahead Sales/Purchases - CAISO Expected Reg Up Energy + CAISO Expected Reg Down Energy (32)

3.1.5 Failure to Load Follow within MSS Deviation Band

CAISO Tariff Section 11.7.1

The DOPD represents the Load following MSS’s total deviation from Expected Energy that is subject to the MSS LFDP. The MSS LFDP billable quantity is the DOPD reduced by the MSS Deviation Band. The billable quantity represents the amount of the Uninstructed Deviation that receives an MSS LFDP. Since the positive MSS LFDP and negative MSS LFDP are separate Charge Codes, separate positive and negative billable quantity equations are calculated. The relevant calculations for each Settlement Interval are as follows:

Positive MSS Deviation Billable Quantity [MWh] = 0 (default value) (33)

IF, DOPD > 0

THEN, Positive MSS LFDP Billable Quantity = max(0, DOPD – MSS Deviation Band)

Negative MSS LFDP Billable Quantity [MWh] = 0 (default value) (35)

IF, DOPD < 0

THEN, Negative MSS LFDP Billable Quantity = min(0, DOPD + MSS Deviation Band) (36)

3.1.6 MSS LFDP Pricing

CAISO Tariff Section 11.7.1

The prices used to charge the LFDP for each MSS Aggregation or individual MSS, if it is not part of an MSS Aggregation, are separated in the following two cases:

 Over-generation outside of the MSS Deviation Band is settled at 100% of the highest Settlement Interval Real-Time LMP for all on-line Generating Units in the relevant MSS Load Aggregation Point (LAP). Generators are settled at resource specific LMP prices. There is no way to determine which resource(s) within the MSS Aggregation are responsible for over-generation and any type of determination would be contrary to the concept that there is no resource specific deviation band for Load following resources.

 Negative MSS LFDP billable quantity is settled at 200% of the MSS-specific penalty price, which is defined as the simple average of the Settlement Interval default LAP prices

3.1.7 MSS LFDP Revenue Allocation

The revenues collected from the MSS Load Following Deviation Penalty Charge Codes are used to calculate an MSS Deviation Penalty neutrality amount. This amount is credited to a CAISO Surplus Account and is used to offset Grid Management Charge (GMC) requirements per the CAISO Tariff.

3.2 MSS Demand Forecast Errors for Non-Load Following MSS

CAISO Tariff Section 31.5.2.2.2

This section pertains to MSS Operators that do not elect Load following. MSS Operators that do not elect Load following may elect to opt-in or opt-out from RUC participation. All such MSS Operators that opt-out of RUC participation are exempt from RUC cost allocation. However, if such MSS Operators Self-Schedule based on their own MSS Demand Forecasts, as opposed to the one produced and published by CAISO, they are subject to a penalty point system as

Version 2 Last Revised: July 23, 2009 Page 33 CAISO Business Practice Manual BPM for Compliance Monitoring discussed below. For purposes of the MSS Demand Forecast Errors for Non-Load Following MSSs, the CAISO utilizes the CAISO Two-Day Ahead MSSA Load Forecast.

In each Trading Hour where the Self-Scheduled MSS Demand is less than the CAISO’s Demand Forecast for the MSS, and less than the MSS metered Demand by a threshold, the relevant MSS accrues penalty points. The penalty points increase at an accelerated rate as the Demand deviation increases. If the MSS accumulates a certain number of penalty points within a period of time, it must then opt in to RUC for the remainder of the MSS option election year, and the next election year, and the relevant elections must be updated in the Master File. In this case, since the MSS options are common among all MSSs in an MSS Aggregation, all other MSS Operators in the same MSS Aggregation must also opt in to RUC, or separate and form a different MSS Aggregation.

3.2.1 Penalty Point Accrual

If the SC for the MSS submits hourly Demand Self-Schedules in the Day-Ahead Market (DAM) that are less than the CAISO’s Demand Forecast for the MSS Demand, the SC is exempt from the RUC cost allocation but is monitored for its compliance with the supply requirement based on the following performance criteria.

If an MSS Demand Self-Schedule in the Integrated Forward Market (IFM) is less than the CAISO’s Demand Forecast for the MSS Demand and MSS metered Demand, then penalty points accrue as follows:

 If the difference between the actual metered Demand and the IFM Self-Schedule in any hour is greater than the lesser of 2% of the CAISO’s Demand Forecast for the MSS or 5 MW, but less than the lesser of 5% or 10 MW, then the SC for the MSS has one penalty point counted against it for each occurrence;

IF min(0.05 * MSS Demand Forecast, 10 MW) > (Metered Demand – IFM Self- Schedule)

(Metered Demand – IFM Self-Schedule) > min(0.02 * MSS Demand Forecast, 5 MW)

One Penalty Point is accrued (37)

 If the difference in any hour is greater than or equal to the lesser of 5% or 10 MW, but less than the lesser of 10% or 20 MW, then the SC for the MSS has two penalty points counted against it for each occurrence;

IF min(0.10 * MSS Demand Forecast, 20 MW) > (Metered Demand – IFM Self- Schedule)

(Metered Demand – IFM Self-Schedule) ≥ min(0.05 * MSS Demand Forecast, 10 MW)

Two Penalty Points are accrued (38)

 If the difference in any hour is greater than or equal to the lesser of 10% or 20 MW, then the SC for the MSS has five penalty points counted against it for each occurrence.

IF min(0.10 * MSS Demand Forecast, 20 MW) ≤ (Metered Demand – IFM Self- Schedule)

Five Penalty Points are accrued (39)

The maximum penalty points that can be accrued during a single Trading Day for each MSS is five. In other words, the penalty points registered for an MSS on a given Trading Day are capped at five penalty points. A numeric example of the MSS Penalty Point System for Non- Load Following MSS is provided in Attachment G.

3.2.2 Residual Unit Commitment (RUC) Opt In Requirement

CAISO Tariff Sections 4.9.13 and 31.5.2.2.2

A total of more than 20 penalty points within 12 consecutive months requires the MSS to opt in to RUC for the remainder of the MSS option election year and the next election year. The relevant elections must be updated in the CAISO Master File. Since the MSS options are common among all MSSs in an MSS Aggregation, all other MSS Operators in the same MSS Aggregation must also opt in to RUC, or separate and form a different MSS Aggregation.

4. Ancillary Services Payment Rescissions (No Pay)

Welcome to the Ancillary Services Payment Rescissions (No Pay) section of the BPM for Compliance Monitoring. In this section you will find the following information:

 A description of the rescission of payments for Generating Units7 and Dynamic System Resources that have AS obligations that are undispatchable, unavailable, or undelivered and Generating Units that are unconnected

 A description of the rescission of payments for AS for Participating Loads that have AS obligations that are undispatchable, unavailable, or undelivered

 A description of the rescission of payments for AS for Non-Dynamic System Resources that decline AS Dispatch Instructions, or that have electronic tags inconsistent with AS Awards and Schedules

4.1 No Pay Overview

CAISO Tariff Sections 8.10.8 and 11.10.9

When CAISO issues an AS Award in the DAM, HASP, and RTM, an AS capacity payment is made through the DAM, HASP, and RTM Charge Codes specified for each AS in the BPM for Settlements & Billing. These AS charges flow through to Settlements, regardless of resource performance in Real-Time.

The resources issued AS Awards are required to convert that capacity into Energy if dispatched in Real-Time or keep that capacity unloaded and available on their resource for potential Dispatch of Energy in Real-Time. If a resource fails to fulfill the requirements of the AS Award, then that resource is not entitled to its full AS capacity payment. The No Pay charges eliminate AS capacity payments to the extent that the requirements were not fulfilled. The No Pay amount for Qualified AS self-provision reduces the relevant SC’s effective AS self-provision in the AS cost allocation, effectively charged back at the relevant AS rate.

No Pay applies in each Settlement Interval for resources that are scheduled for Spinning and Non-Spinning Reserve (Spin and Non-Spin) capacity for the following reasons:

 Undispatchable Capacity – There are two subcategories of Undispatchable Capacity:

7 For the purpose of No Pay, Generating Units includes System Units and Physical Scheduling Plants.

. Availability-Limited Capacity – If a resource’s capacity is de-rated in Real-Time, the total amount of previous AS Awards and Schedules may not be available in Real- Time for Dispatch due to the availability limitation.

. Ramp-Limited Capacity – Spinning and Non-Spinning Reserve are required to be delivered in 10 minutes. If a resource does not have the 10-minute Ramp Rate capability (determined by its Start-Up Time and Ramp Rate curve) in Real-Time to deliver the AS was awarded or scheduled, then a portion of the AS capacity is not available due to the Ramp Rate limitations on the resource.

 Undelivered Capacity – If Energy from a resource’s AS Award or Schedule is dispatched, then that resource is responsible for delivering at least 90% of the Expected Energy attributed to that dispatched AS capacity in order to avoid a No Pay charge.

 Unavailable Capacity – No Pay charges apply when AS capacity is unavailable because it is converted to Energy without Dispatch Instructions from CAISO. Uninstructed Deviations in Real-Time may cause AS capacity to be unavailable to CAISO as Operating Reserve.

 Declined Instruction – Non-Dynamic System Resources respond to Dispatch Instructions with an “Accept”, “Partial” or “Decline” response. When a Non-Dynamic System Resource partially accepts or declines an AS Dispatch Instruction, No Pay applies to the amount not delivered.

 Untagged AS Schedule – Non-Dynamic System Resources are required to tag DAM and HASP/RTM AS awarded in the IFM. The CAISO application for recording Energy import/export transactions matches individual AS Awards and Schedules and their associated tags. The AS Award or Schedule may be adjusted based on conditions in the external Balancing Authority Areas. No Pay applies for the difference between the AS Award or Schedule and the tagged AS Award or Schedule.

 Unsynchronized Capacity – A Generating Unit has an AS Award or Schedule rescinded if the resource does not comply with the AS synchronization standards of that service.

The AS synchronization standards are as follows:

. Spinning Reserve – Spinning Reserve is generation that is already on-line, or “spinning”, with additional capacity that is capable of ramping over a specified range within 10 minutes and running for at least two hours.

Resources issued AS Awards or Schedules for Spinning Reserve in either the DAM or RTM must be synchronized to the CAISO Controlled Grid.

. Non-Spinning Reserve – Non-Spinning Reserve is AS capacity that is available but not on-line, that is capable of being synchronized and ramping to a specified level within 10 minutes (or Load that is capable of being interrupted in 10 minutes), and then capable of producing dispatched Energy (or being interrupted) for at least two hours.

A resource may be certified to Bid/self-provide Day-Ahead Non-Spinning Reserve but may not be certified to Bid/self-provide Real-Time Non-Spinning Reserve. Real- Time Non-Spinning Reserve certification ensures that a resource can provide Non- Spinning Reserve from an off-line position. Therefore, Day-Ahead Non-Spinning Reserve AS capacity issued an AS Award or Schedule in the DAM, in the absence of certification for Real-Time Non-Spinning Reserve, is required to be on-line and spinning in Real-Time.

In some cases, more than one of these No Pay consequences can apply in a Settlement Interval. The No Pay billable quantity is the sum of all the No Pay consequences. No Pay does not apply to Generating Units that are scheduled to provide Regulation if they are on AGC.

4.2 No Pay for Generating Units & Dynamic System Resources

Payments can be rescinded for undispatchable, unavailable, and undelivered AS capacity and when the Generating Unit is unconnected.

4.2.1 Undispatchable Capacity

CAISO Tariff Section 8.10.8.1 and 11.10.9.1

Ancillary Services capacity can be undispatchable because the Generating Unit or Dynamic System Resource is experiencing an Outage or Rerate or because the Generating Unit or Dynamic System Resource is Ramp Rate constrained.

4.2.1.1 Unit Outage or Derate/Rerate

CAISO stores information on de-rates, Rerates and Outages in the SLIC application. If a resource obligated to provide AS capacity is de-rated or Rerated, then the total amount of AS capacity may not be available for Dispatch in Real-Time.

The Reported Maximum and Minimum Availability is calculated as a weighted average of the maximum and minimum unit availability as reported in SLIC over the Settlement Interval. This calculation captures any de-rates and Rerates that were entered in SLIC after the Dispatch was calculated by the RTM Applications. The maximum and minimum Bid capacity is restricted by both the Reported Maximum and Minimum Availability of the unit through SLIC and by the amount of Energy offered in the Energy Bid Curve.

Ex-post capacity Limits:

The maximum and minimum ex-post capacity limits of a resource reflect the Bid capacity and reported availability and define the operating levels to which the resource is considered dispatchable by CAISO. Note that maximum/minimum ex-post are capacity (MW) quantities and not Energy (MWh) quantities.

Details of the calculation of the maximum/minimum ex-post capacities are provided in the BPM for Market Operations Appendices – Section C.4 Ex Post Capacity Allocation.

Using the maximum and minimum ex-post capacities, the availability-limited AS capacity for Generating Units and Dynamic System Resources is calculated.

For Generating Units and Dynamic System Resources that do not have a fast start units status, Availability-Limited Non-Spin Capacity [MW] = min(Total Non-Spin Schedule8, max(0, max(0, maximum ex-post capacity – max(min(minimum ex-post capacity, DA Energy Schedule), Minimum Load Dispatch)) – Total Spin Schedule9))

For Generating Units and Dynamic System Resources that do have a fast start unit status, Availability-Limited Non-Spin Capacity [MW] = min(Total Non-Spin Schedule, max(0, maximum ex-post capacity – Total Spin Schedule)) (40)

Availability-Limited Spin Capacity [MW] = min(Total Spin Schedule, max(0, maximum ex- post capacity – max(minimum ex-post capacity, Minimum Load Dispatch))) (41)

These equations calculate how much AS capacity is available on the resource with the availability limitation. A numeric example of Undispatchable Unit Outage or Derate/Rerate No Pay charges is provided in Exhibit I-1.

8 For the purpose of this BPM for Compliance Monitoring, “Total Non-Spin Schedule” refers to the total of AS Awards and Schedules for Non-Spinning Reserve. A numeric example of AS schedules is provided in Exhibit H-1. 9 For the purpose of this BPM for Compliance Monitoring, “Total Spin Schedule” refers to the total of AS Awards and Schedules for Spinning Reserve. A numeric example of AS schedules is provided in Exhibit H-1.

Ramp Rate Constrained Capacity

When CAISO issues an AS Award or Schedule in the forward markets, the resource is expected to deliver that service in accordance with the Bid parameters originally specified. Those Bid parameters include a Ramp Rate and a resource Start-Up Time. Each resource providing Real-Time services for CAISO Dispatch also submits an Energy Bid Curve. The Energy Ramp Rate curve may show that the amount of AS capacity awarded in the forward markets based on Ramp Rate and resource Start-Up Time is not available due to a lower Ramp Rate or change in Start-Up Time in the Energy Bid Curve. CAISO only dispatches resources according to their capability as specified in the Energy Bid. Since Operating Reserves are 10-minute services, only that Operating Reserve capacity that can be converted into Energy within 10 minutes is actual Operating Reserve for CAISO. Using the 10-minute incremental Operating Reserve availability, No Pay determines if Operating Reserve capacity that was awarded in the forward markets is available within 10 minutes in Real-Time.

The first step in the calculation for ramp-limited capacity is to determine how much AS capacity, in MW, was dispatched in the Settlement Interval:

Dispatched Non-Spin Capacity [MW] = min(Availability-Limited Non-Spin Capacity, max(0, DOT – (maximum ex-post capacity – Availability-Limited Spin Capacity – Availability-Limited Non-Spin Capacity))) (42)

Dispatched Spin Capacity [MW] = min(Availability-Limited Spin Capacity, max(0, DOT – (maximum ex-post capacity – Availability-Limited Spin Capacity))) (43)

Once the dispatched Spinning and Non-Spinning Reserve are calculated, the amount of Spinning and Non-Spinning Reserve that was not dispatched (in MW) is calculated and compared to the Ramp Rate capability of the unit in the Settlement Interval, which is represented by the available Operating Reserve.

Undispatched Non-Spin Capacity [MW] = Availability-Limited Non-Spin Capacity – Dispatched Non-Spin Capacity (44)

Undispatched Spin Capacity [MW] = Availability-Limited Spin Capacity – Dispatched Spin Capacity (45)

Undispatched AS capacity is further limited by the Ramp Rate capability as follows:

Ramp-Limited Non-Spin Capacity [MW] = min(Undispatched Non-Spin Capacity, max(0, Available Operating Reserve)) (46)

Ramp-Limited Spin Capacity [MW] = min(Undispatched Spin Capacity, max(0, Available Operating Reserve - Ramp-Limited Non-Spin Capacity)) (47)

These equations calculate how much AS capacity is available on the resource with the Ramp Rate limitation.

The available Operating Reserve is obtained from the RTM Applications for relevant resources in each Dispatch Interval using the applicable Ramp Rate function, the DOT from the previous Dispatch Interval, and Start-Up Time, if applicable. This available Operating Reserve reflects the incremental 10-minute capability of a resource.

For example, a resource that at a given DOP has a lower Ramp Rate than what was used to procure Operating Reserve, may be incapable of providing the awarded Operating Reserve in full.

The available Operating Reserve calculation is performed on all resources that have capacity covered by Bids (whether submitted or inserted proxy bids) regardless of whether AS capacity has been awarded and regardless of the resource’s on-line status. Only Energy from System Resources issues HASP Intertie Schedules is exempted from this requirement. The calculation of available Operating Reserve is described in the BPM for Market Operations.

Once both availability-limited and ramp-limited capacity are calculated, the total Undispatchable Capacity quantity can be determined:

Undispatchable Non-Spin Capacity [MWh] = (Total Non-Spin Schedule – Dispatched Non- Spin Capacity – Ramp-Limited Non-Spin Capacity)/6 (48)

Undispatchable Spin Capacity [MWh] = (Total Spin Schedule – Dispatched Spin Capacity – Ramp-Limited Spin Capacity)/6 (49)

From the Undispatchable Capacity, the dispatchable AS capacity is calculated as follows:

Dispatchable Non-Spin Capacity [MWh] = Total Non-Spin Schedule/6 – Undispatchable Non-Spin Capacity (50)

Dispatchable Spin Capacity [MWh] = Total Spin Schedule/6 – Undispatchable Spin Capacity (51)

Dispatchable AS Capacity [MWh] = Dispatchable Spin Capacity + Dispatchable Non-Spin Capacity (52)

A numeric example of Undispatchable Ramp Limited No Pay charges is provided in Exhibit I-2.

Unavailable Capacity

After accounting for the amount of AS capacity that is undispatchable, a Generating Unit or Dynamic System Resource must retain unloaded capacity on the resource for the portion of AS capacity that is dispatchable. If the resource deviates into that dispatchable AS capacity, then that AS capacity is unavailable to CAISO.

The following equations calculate the Unavailable Capacity for a resource:

Unavailable AS Capacity [MWh] = max(0, min(Meter Data – Expected Energy, Meter Data – (Maximum ex-post capacity/6 – (Dispatchable AS Capacity – Delivered AS IIE)))) (53)

The Unavailable Capacity is then allocated to each of the AS services from lowest quality to highest quality in order to preserve the highest quality AS capacity for CAISO.

Allocation of Unavailable Capacity to AS services:

Unavailable Non-Spin Capacity [MWh] = min(Unavailable AS Capacity, max(0, Dispatchable Non-Spin Capacity - Delivered Non-Spin IIE)) (54)

Unavailable Spin Capacity [MWh] = min(Unavailable AS Capacity - Unavailable Non-Spin Capacity, max(0, Dispatchable Spin Capacity - Delivered Spin IIE)) (55)

A numeric example of Unavailable No Pay charges is provided in Exhibit I-3.

4.2.1.2 Order of Unavailable No Pay Charges for Resources with More than One Capacity Obligation in a Settlement Interval

If a Generating Unit, Participating Load (see Section 4.3) or Dynamic System Resource is obligated to provide more than one AS in a Settlement Interval, the order in which the non- compliant Unavailable AS capacity is apportioned to the various services under this Section 4.2.2.1 is as follows.

 For Unavailable Capacity the non-compliant capacity is first apportioned to any Non- Spinning Reserves

 If the amount of non-compliant AS capacity exceeds the amount of awarded Non- Spinning Reserves, then the payment is eliminated for the amount of non-compliant Spinning Reserves

 If the same AS is awarded or scheduled in the DAM, HASP, or RTM then the payments are rescinded in proportion to the amount of each AS capacity awarded or scheduled in each market

 If the same AS is self-provided and Bid, the order of rescission is first the amount of AS capacity amounts submitted in Bids and then the Self-Provided AS capacity

Exhibit 4-1 provides a representation of the order in which AS capacity payments are rescinded through Unavailable No Pay charges.

Exhibit 4-7: Order of Rescission for Unavailable Ancillary Service Capacity

DA + RT Bid Awarded Non-Spin

DA + RT Self Provided Non-Spin

DA + RT Bid Awarded Spin

DA + RT Self Provided Spin

Energy Schedule

4.2.2 Undelivered Capacity

If Energy from a Generating Unit or Dynamic System Resource is dispatched, then that resource is responsible for delivering at least 90%10 of the Expected Energy attributed to that dispatched AS capacity in order to retain full AS capacity payment. If the energy delivered from the dispatched AS capacity is not within the tolerance factor, 10% of the Expected Energy

10 Per Market Notice dated September 1, 2000 a resource must deliver at least 90% of the Energy Dispatched from Ancillary Services. The tolerance factor (10%) is subject to modification to be effective 24 hours after a notice is published on the CAISO Website.

Version 2 Last Revised: July 23, 2009 Page 43 CAISO Business Practice Manual BPM for Compliance Monitoring attributed to the dispatched AS capacity, the payment for the remaining Dispatchable AS Capacity is rescinded.

IF, Delivered Spin IIE ≥ (1 – Tolerance Factor) * Spin IIE

THEN, Undelivered Spin Capacity = 0

ELSE, Undelivered Spin Capacity [MWh] = max(0, Dispatchable Spin Capacity – Delivered Spin IIE) (56)

IF, Delivered Non-Spin IIE ≥ (1 – Tolerance Factor) * Non-Spin IIE

THEN, Undelivered Non-Spin Capacity = 0

ELSE Undelivered Non-Spin Capacity [MWh] = max(0, Dispatchable Non-Spin Capacity – Delivered Non-Spin IIE) (57)

Where Delivered Spin and Non-Spin IIE are calculated as follows:

Undelivered IIE [MWh] = max(0, (Expected Energy – Meter Data)) (58)

Undelivered Residual IE [MWh] = min(max(0, Residual IE), Undelivered IIE) (59)

Undelivered Spin IIE [MWh] = min(Spin IIE, max(0, Undelivered IIE – Undelivered Residual IE) (60)

Undelivered Non-Spin IIE [MWh] = min(Non-Spin IIE, Undelivered IIE – Undelivered Residual IE – Undelivered Spin IIE) (61)

Delivered Residual IE [MWh] = Residual IE – Undelivered Residual IE (62)

Delivered Spin IIE [MWh] = Spin IIE – Undelivered Spin IIE (63)

Delivered Non-Spin IIE [MWh] = Non-Spin IIE – Undelivered Non-Spin IIE (64)

Delivered AS IIE [MWh] = Delivered Spin IIE + Delivered Non-Spin IIE (65)

A numeric example of Undelivered No Pay charges is provided in Exhibit I-4.

4.2.3 Unsynchronized Ancillary Service Capacity

Generating Units receive a No Pay charge if the resource has a Spinning Reserve AS Award or Schedule in the DAM or HASP/RTM when the Generating Unit is not already on-line, or “spinning” in Real-Time. In the IFM, Non-Spinning Reserve can be procured from all online resources and from off-line Fast-Start Resources so long as those Fast-Start Resources are explicitly certified with CAISO to provide Non-Spin from an off-line position. The No Pay charge is calculated for each Settlement Interval as:

IF, DAM or HASP/RTM Spinning Reserve schedule > 0;

AND, Generating Unit is not synchronized to the CAISO Controlled Grid

THEN, Unsynchronized Spinning Reserve Billable Quantity [MWh] = Total Spin Schedule/6 (66)

Generating Units receive a No Pay charge if the Generating Unit has a Non-Spinning Reserve AS Award or Schedule in the DAM, but is not certified to provide Non-Spinning Reserve from off-line position (i.e., the Generating Unit is not certified for Real-Time Non-Spinning Reserve) and is not “spinning” in Real-Time.

IF, the Generating Unit has a Non-Spinning Reserve Award or Schedule in the absence of Real-Time Non-Spinning Reserve certification

AND, Generating Unit is not synchronized to the CAISO Controlled Grid

THEN, Unsynchronized Non-Spinning Reserve Billable Quantity [MWh] = Total Non- Spin Schedule/6 (67)

4.2.4 No Pay Charges for Generating Units on Regulation

CAISO Tariff Section 8.10.8.6

Generating Units11 providing Regulation are exempt from No Pay charges except for a manually calculated charge for Regulation Up, Regulation Down, Spinning Reserve, and Non-Spinning Reserve capacity for time periods when the unit is not running

Generating Units that are obligated to provide Regulation are monitored to determine if the amount of Regulation was actually available in Real-Time. Charges to rescind Regulation capacity payments for units that are off AGC, are not providing sufficient Regulating Range, are generating outside of the Regulating Range, or whose telemetry equipment is not available will

11 In addition to Generating Units, Dynamic System Resources may be capable of providing Regulation.

Version 2 Last Revised: July 23, 2009 Page 45 CAISO Business Practice Manual BPM for Compliance Monitoring be made through the Regulation non-compliance charges as described in Section 5 of this BPM.

4.3 No Pay for Participating Loads

Participating Loads are certified to provide Non-Spinning Reserve. These resources do not have a PMax value in the Master File so the Unavailable Capacity equation as designed for Generating Units and Dynamic System Resources cannot apply to Participating Loads. Additionally, the portion of the Undispatchable Capacity related to the reduction in Generating Unit availability cannot apply to Participating Loads since they do not have a changing availability. Specific No Pay rules have been designed for Participating Loads.

4.3.1 Undispatchable Capacity

Since Participating Loads submit Energy Bids for AS capacity that could have Ramp Rates that are not sufficient to deliver the AS in 10 minutes, the No Pay for Undispatchable Capacity related to Ramp Rate limitations apply.

Dispatched Non-Spin Capacity [MW] = DOT (68)

Undispatched Non-Spin Capacity [MW] = Total Non-Spin Schedule – Dispatched Non-Spin Capacity (69)

Ramp-Limited Non-Spin Capacity [MW] = min(Undispatched Non-Spin Capacity, max(0, Available Operating Reserve)) (70)

Undispatchable Non-Spin Capacity [MWh] = (Total Non-Spin Schedule – Dispatched Non- Spin Capacity – Ramp-Limited Non-Spin Capacity)/6 (71)

4.3.2 Undelivered Capacity

Using the Energy calculations, the undelivered No Pay equations determine if at least 90% of Expected Energy dispatched from AS capacity was delivered.

IF, (Delivered Non-Spin IIE ≥ (1 – Tolerance Factor) * Non-Spin IIE)

THEN, Undelivered Non-Spin Capacity = 0

ELSE, Undelivered Non-Spin Capacity [MWh] = max(0, Dispatchable Non-Spin Capacity – Delivered Non-Spin IIE) (72)

Where Energy calculations are made as follows:

Undelivered Energy for Participating Loads [MWh] = max(0, Metered Energy - (Load Schedule/6 – Non-Spin IIE)) (73)

Undelivered Non-Spin IIE for Participating Loads [MWh] = min(Non-Spin IIE, Undelivered IIE) (74)

Delivered Non-Spin IIE for Participating Loads [MWh] = Non-Spin IIE – Undelivered Non- Spin IIE (75)

The RTM Applications model a Participating Load’s total Energy Schedule as negative Expected Energy and any IIE related to an AS Dispatch as positive Expected Energy; therefore, in most cases, total Expected Energy for a Participating Load is negative.

4.3.3 Unavailable Capacity

Participating Loads can undertake Uninstructed Deviations that can make AS capacity unavailable as unloaded Operating Reserve.

Unavailable Capacity for Participating Loads [MWh] = max(0, min((Load Schedule/6 – Non- Spin IIE) - Metered Energy), max(0, Dispatchable Non-Spin Capacity - Delivered Non-Spin IIE)-Metered Energy )) (76)

Unavailable Non-Spin Capacity [MWh] = min(Unavailable Capacity for Participating Load, max(0, Dispatchable Non-Spin Capacity – Delivered Non-Spin Energy)) (77)

4.4 No Pay for Non-Dynamic System Resources

Non-Dynamic System Resources lose AS capacity payments if:

 They decline AS Dispatch Instructions

 There is a difference between their AS Award or Schedule amount and the AS capacity amount reported in an electronic tag

 The CAISO dispatcher determines that the Energy dispatched was not delivered

4.4.1 Difference between Ancillary Service Award Amount & E-Tag Amount

Non-Dynamic System Resources that are issued AS Awards or Schedules in the DAM are required to electronically tag (E-Tag as prescribed by WECC) the AS capacity. If the amounts of AS capacity in an E-Tag differ from the amounts of AS capacity awarded or scheduled for the Non-Dynamic System Resource, the Undispatchable Capacity equals the amount of the difference.

IF, (Tagged Spin Schedule < Spin Schedule)

THEN, Untagged Spin Capacity [MWh] = max(0, (Settlement Interval12 Spin Schedule – Settlement Interval Tagged Spin Schedule))/6 (78)

IF, (Tagged Non-Spin Schedule < Non-Spin Schedule)

THEN, Untagged Non-Spin Capacity [MWh] = max(0, (Settlement Interval Non-Spin Schedule – Settlement Interval Tagged Non-Spin Schedule))/6 (79)

4.4.2 Declined Ancillary Service Instruction

Non-Dynamic System Resources have the option to decline AS Dispatch Instructions.13 Non- Dynamic System Resources are required to tag an after-the-fact “checkout” value for the Dispatched AS Energy that was provided in Real-Time. To the extent that the after-the-fact checkout value does not meet the ADS AS Dispatch Instruction quantity, the declined AS capacity is as follows:

Declined Spin Capacity [MWh] = max(0, min(Settlement Interval ADS Spin Instruction, Settlement Interval Tagged Spin Schedule) – Settlement Interval Checkout Spin Capacity)/6 (80)

Declined Non-Spin Capacity [MWh] = max(0, min(Settlement Interval ADS Non-Spin Instruction, Settlement Interval Tagged Non-Spin Schedule) – Settlement Interval Checkout

12 Schedules and tagged/checkout capacity may be hourly or 15-minute. The Settlement Interval represents the Schedule or capacity amount (in MW) that is applicable to a given Settlement Interval (currently 10 minutes). This concept of Settlement Interval also applies to ADS Dispatch Instructions, which may occur on a 5-minute basis. See Attachment H for an example of how these different time periods are treated in calculating total Schedule amounts. 13 CAISO does not allow Generating Units, Dynamic System Resources and Participating Loads to decline Dispatch Instructions. Market Participants may indicate they cannot perform, however, that is informational only and the Expected Energy from that Dispatch Instruction is still an obligation for the resource.

Non-Spin Capacity)/6 (81)

4.4.3 Other Potential No Pay Charges for Non-Dynamic System Resources

Other No Pay consequences can apply to Non-Dynamic System Resources and No Pay charges are calculated manually and applied to Settlement statements. If the CAISO dispatcher determines that Energy from an accepted AS Dispatch Instruction is not actually delivered in Real-Time, the CAISO dispatcher does not enter a value for delivered Energy in the CAISO application for recording Energy import/export transactions and creates a SLIC log detailing the non-compliance event.

CAISO uses the information in the SLIC log but creates manually a No Pay billable quantity for Undelivered Capacity. Additionally, if a CAISO dispatcher determines AS capacity from a Non- Dynamic System Resource is undispatchable because the relevant Scheduling Point has been de-rated, then the CAISO dispatcher creates a SLIC log detailing the non-compliance event. CAISO also uses the SLIC log information and create manually a No Pay billable quantity for Undispatchable Capacity.

In this situation, compliance confirms the information in the SLIC log and creates a manual No Pay charge that rescinds the AS capacity that was awarded in the DAM or HASP.

4.5 No Pay Billable Quantity

The billable quantity for Generating Units, Dynamic System Resources and Participating Loads is calculated as follows:

No Pay Spin Billable Quantity [MWh] = max((Undispatchable Spin Capacity + Undelivered Spin Capacity + Unavailable Spin Capacity), Unsynchronized Spin Capacity) (82)

No Pay Bid Awarded Spin Billable Quantity [MWh] = min(No Pay Spin Billable Quantity, Bid Awarded Spin Capacity/6) (83)

No Pay Self-Provision Spin Billable Quantity [MWh] = max(0, No Pay Spin Billable Quantity - No Pay Bid Awarded Spin Billable Quantity) (84)

No Pay Non-Spin Billable Quantity [MWh] = max((Undispatchable Non-Spin Capacity + Undelivered Non-Spin Capacity + Unavailable Non-Spin Capacity), Unsynchronized Non- Spin Capacity) (85)

No Pay Bid Awarded Non-Spin Billable Quantity [MWh] = min(No Pay Non-Spin Billable Quantity, Bid Awarded Non-Spin Capacity/6) (86)

No Pay Self-Provision Non-Spin Billable Quantity [MWh] = max(0, No Pay Non-Spin Billable Quantity - No Pay Bid Awarded Non-Spin Billable Quantity) (87)

Non-Dynamic System Resources are only subjected to declined and adjusted automated No Pay. Manual No Pay charges still apply for those Non-Dynamic System Resources that accept an AS Dispatch Instructions and do not deliver Energy in Real-Time or when the AS is unavailable due to transmission constraints.

For Non-Dynamic System Resources:

No Pay Spin Bid Billable Quantity [MWh] = min((Untagged Spin Capacity + Declined Spin Capacity), Total Bid Spin Schedule/6) (88)

No Pay Spin Self Provision Billable Quantity [MWh] = max(0, (Untagged Spin Capacity + Declined Spin Capacity) - No Pay Spin Bid Billable Quantity) (89)

No Pay Non-Spin Bid Billable Quantity [MWh] = min((Untagged Non-Spin Capacity + Declined Non-Spin Capacity), Total Bid Non-Spin Schedule/6) (90)

No Pay Non-Spin Self Provision Billable Quantity [MWh] = max(0, (Untagged Non-Spin Capacity + Declined Non-Spin Capacity) - No Pay Non-Spin Bid Billable Quantity) (91)

5. Regulation Non-Compliance

Welcome to the Regulation Non-Compliance section of the BPM for Compliance Monitoring. In this section you will find the following information:

 A description of regulation non-compliance

 A description of non-compliance due to the Generating Unit being off control

 A description of non-compliance due to the Generating Unit having constrained limits

 A description of non-compliance due to the Generating Unit being out of Regulating Range

 A description of non-compliance due to a communications failure

 A description of the calculation of billable quantities for Regulation non-compliance

 A description of the advanced notice provided to SCs of Regulation non-compliance

5.1 Regulation Non-Compliance Overview

CAISO Tariff Sections 8.10.8.6 and 11.23(g)

Regulation non-compliance is a monitoring program designed to rescind Regulation capacity payments when the service is not available in Real-Time. Regulation is comprised of two services (Regulation Up and Regulation Down) that may be provided by Generating Units certified by CAISO as equipped and capable of responding to CAISO’s direct digital control signals, or by Dynamic System Resources that have been certified by CAISO as capable of delivering such service to the CAISO Balancing Authority Area. Regulation Up and Regulation Down are distinct capacity products, with separately specified requirements and marginal prices. CAISO’s AGC system issues instructions every four seconds to each resource providing Regulation to help assure that CAISO balances Demand and supply in the CAISO Balancing Authority Area in accordance with North American Electric Reliability Council (NERC) and WECC operating criteria. Regulation is used to control the Energy output of Generating Units and Dynamic System Resources within a prescribed range in response to changes in system frequency, tie-line loading, or the relation of these to each other so as to maintain the target system frequency and/or the established interchange with other Balancing Authority Areas within the predetermined limits.

CAISO monitors the performance of each Generating Unit or Dynamic System Resource that has Regulation scheduled in each hour. Regulation non-compliance charges are incurred when any one of the criteria in the following four sub-sections apply. The Regulation non-compliance program only rescinds Regulation capacity payments when the quantity of Regulation capacity is non-compliant. The Regulation non-compliance program does not measure Regulation quality. A metric to measure the quality of response to CAISO set point signals to Generating Units on Regulation will be developed in the future. However, if in the review of Regulation non- compliance events or in Real-Time operations, CAISO determines that a Generating Unit’s or Dynamic System Resource’s quality of Regulation response is inadequate, CAISO will contact the resource owner and work on recalibrating the unit’s AGC equipment so that the appropriate level of Regulation response is achieved.

5.2 Off Control

Generating Units and Dynamic System Resources that are awarded Regulation Up or Regulation Down in the CAISO Markets are required to be on AGC for the entire hour. When scheduled for Regulation, a Generating Unit or Dynamic System Resource must turn on the Generation equipment that automatically responds to signals from the CAISO's Energy Management System (EMS) in Real-Time to control the power output of electric generators.

Generating Units and Dynamic System Resources are required to be on AGC when scheduled for Regulation. A unit’s Remote Intelligent Gateway communicates the AGC status of Regulation units to CAISO every four seconds and the CAISO’s EMS records this information and stores it in an application called PI (Plant Information). If a unit is scheduled for Regulation, the AGC status must read “on” for the entire hour. CAISO pulls the AGC status for every minute of the hour for each unit scheduled to provide Regulation. If a unit is off control for more than five consecutive minutes, then a Regulation non-compliance billable quantity is calculated to rescind the Regulation capacity payment for both Regulation Down and Regulation Up.

The calculation for off control in each Settlement Interval is as follows:

Regulation Up Off Control MW = (number of minutes off control/10 minutes) * Total Regulation Up Schedule (92)

Regulation Down Off Control MW = (number of minutes off control/10 minutes) * Total Regulation Down Schedule (93)

5.3 Constrained Limits

In Real-Time, a Generating Unit’s or Dynamic System Resource’s operating range must be sufficient to provide the Regulation capacity that has been scheduled for the unit in the forward markets. CAISO sets Regulation Limits based on the unit’s Day-Ahead Energy Schedule, quantity of Regulation capacity awarded, and the unit’s operating limits telemeter from the unit to CAISO in Real-Time.

Generating Units and Dynamic System Resources must provide adequate operating capacity on the unit to accommodate the full amount of Regulation Up and Regulation Down capacity scheduled. An expected Regulating Range is calculated based on the unit’s DOT and amount of Regulation capacity scheduled in the DAM and RTM.

Expected High Regulation Limit [MW] = DOT + Regulation Up Capacity (94)

Expected Low Regulation Limit [MW] = DOT - Regulation Down Capacity (95)

The effective high and low Regulation Limits are determined in Real-Time by the expected high and low Regulation Limits as constrained by the operating limits of the unit as communicated to CAISO from the unit’s Remote Intelligent Gateway. CAISO cannot send Set Point signals for Regulation that are outside the operating limits that are communicated by the unit to CAISO. Operating limits that cannot accommodate the expected high and low Regulation Limits constrain the unit and the full amount of Regulation capacity is not available in Real-Time.

Available Regulation Up Capacity [MW] = High Effective Regulation Limit – DOT (96)

Constrained Regulation Up [MW] = Total Regulation Up Schedule – Available Regulation Up Capacity (97)

Available Regulation Down Capacity [MW] = DOT – Down Effective Regulation Limit (98)

Constrained Regulation Down [MW] = Total Regulation Down Schedule – Available Regulation Down Capacity (99)

Regulation Up Constrained MW = (number of minutes constrained/10 minutes) * Constrained Regulation Up (100)

Regulation Down Constrained MW = (number of minutes constrained/10 minutes) * Constrained Regulation Down (101)

A numeric example of Regulation Non-Compliance for Constrained Limits is provided in Exhibit I-15.

5.4 Out-of-Range

A Generating Unit or Dynamic System Resource scheduled to provide Regulation must generate within its Regulating Range to receive the full Regulation capacity payment.

When a unit is providing Regulation, CAISO sends Set Point signals to direct the unit within its Regulating Range. CAISO cannot send the unit Set Point signals outside of its Regulating Range. If a unit is operating significantly outside of the Regulating Range, then it is no longer following the CAISO’s Set Point signals and is no longer providing Regulation. Regulation non- compliance charges are calculated when a unit generates more than 10 MW outside of the Regulating Range for more than 10 consecutive minutes. Out-of-range charges are not calculated when a Dispatch Instruction is issued that adjusts the preferred operating point and Regulation Limits.

Regulation Up Out-of-Range MW = (number of minutes out-of-range/10 minutes) * Total Regulation Up Schedule (102)

Regulation Down Out-of-Range MW = (number of minutes out-of-range/10 minutes) * Total Regulation Down Schedule (103)

5.5 Communication Failure

All Generating Units and Dynamic System Resources certified to provide Regulation must have communication equipment such as a Remote Intelligent Gateway installed that allows that unit to receive Set Point signals. If a unit’s Remote Intelligent Gateway is not operational then the unit cannot receive Set Point signals and respond to system conditions on a four second basis.

Units certified to provide Regulation must have communication equipment capable of sending and receiving information every four seconds to CAISO. If the communication equipment at the unit is not operational in Real-Time when the unit is scheduled for Regulation, then Regulation non-compliance charges are calculated until the equipment is operational (i.e., non-compliance charges is prorated based on the number of minutes). If the communication problem is related to any CAISO equipment, then Regulation non-compliance charges are not calculated.

Regulation Up Communication Error MW = (number of minutes of Communication Error/10 minutes) * Total Regulation Up Schedule (104)

Regulation Down Communication Error MW = (number of minutes of Communication Error/10 minutes) * Total Regulation Down Schedule (105)

5.6 Regulation Non-Compliance Billable Quantity

The billable quantity for Regulation non-compliance is calculated as follows:

Total Regulation Up Unavailable MW = Regulation Up Off Control MW + Regulation Up Constrained MW + Regulation Up Out-of-Range MW + Regulation Up Communication Error MW (106)

Total Regulation Down Unavailable MW = Regulation Down Off Control MW + Regulation Down Constrained MW + Regulation Down Out-of-Range MW + Regulation Down Communication Error MW (107)

Total Regulation Up Unavailable Minutes = min (10, Regulation Up Off Control Minutes + Regulation Up Out-of-Range Minutes + Regulation Up Constrained Limits Minutes + Regulation Up Communication Error Minutes) (108)

Total Regulation Down Unavailable Minutes = min (10, Regulation Down Off Control Minutes + Regulation Down Out-of-Range Minutes + Regulation Down Constrained Limits Minutes + Regulation Down Communication Error Minutes) (109)

Regulation Up Bid Billable Quantity [MWh] = min(Total Regulation Up Unavailable MW/6, Bid Awarded Regulation Up Schedule/6) (110)

Regulation Up Self-Provided Billable Quantity [MWh] = min(max(0, Total Regulation Down/6 – Regulation Up Bid Billable Quantity), Self-Provided Regulation Up Schedule/6)

Regulation Down Bid Billable Quantity [MWh] = min(Total Unavailable MW/6, Bid Awarded Regulation Down Schedule/6) (112)

Regulation Down Self-Provided Billable Quantity [MWh] = min(max(0, Total Regulation Down /6 – Regulation Down Bid Billable Quantity), Self-Provided Regulation Down Schedule/6) (113)

6. No Pay & Regulation Non-Compliance Pricing & Revenue Allocation

Welcome to the No Pay & Regulation Non-Compliance Pricing & Revenue Allocation section of the BPM for Compliance Monitoring. In this section you will find the following information:

 A description of the No Pay and Regulation non-compliance prices that are applied to the No Pay billable quantities and Regulation non-compliance billable quantities to determine the amount of the rescinded capacity payments

 A description of the allocation of these rescinded capacity payments back to the SCs

6.1 No Pay & Regulation Non-Compliance Pricing

The No Pay and Regulation non-compliance charges are based on the price paid for AS capacity and Regulation for which the requirements were not fulfilled. In effect, the charges eliminate the capacity payments made. No Pay capacityRegulation non-compliance from AS Awards and Schedules are settled in two tiers:

Tier 1: For No PayRegulation non-compliance from AS Awards, the AS price used in the No Pay Regulation Non-Compliance charge is calculated as the weighted average of the Ancillary Service Marginal Prices (ASMPs) across the DAM, HASP, and RTM. The weighting factors are the AS Award amounts in each AS market.

Tier 2: Any remaining No Pay ASRegulation Non-Compliance Capacity up to the total AS award from qualified AS self-provision in the DAM and RTM reduces the relevant SC’s effective AS self-provision in the AS cost allocation, effectively charged back at the relevant AS rate.

6.2 No Pay & Regulation Non-Compliance Revenue Allocation (Market Refund)

CAISO Tariff Sections 11.10.2, 11.10.3 & 11.10.4, 11.10.9.4

The collected No Pay and Regulation non-compliance revenue is used to offset the hourly Ancillary Service Obligation Settlement charges in accordance with the BPM for Settlements & Billing. The Obligation Settlement charges are specific by Ancillary Service type and are a predecessor charge code to the Ancillary Service Neutrality Allocation charges, which are also specific by Ancillary Service type.

7. Residual Unit Commitment Capacity Payment Rescission

Welcome to the Residual Unit Commitment Capacity Payment Rescission section of the BPM for Compliance Monitoring. In this section you will find the following information:

 A description of rescission of payments that can occur for failures to meet requirements for awarded RUC

 A description of the rescission of payments that can occur for Generating Units14 and Dynamic System Resources that have RUC obligations that are undispatchable, undelivered or ineligible for RUC payment

 A description of the determination of the RUC rescission billable quantities

7.1 Residual Unit Commitment Rescission Payments Overview

CAISO Tariff Sections 8.10.7 and 8.10.8, 11.2.2.2

During the DAM, if the scheduled Demand is less than the CAISO Forecast of CAISO Demand, RUC Capacity is procured to ensure sufficient committed capacity is available and on-line to meet the forecasted CAISO Demand, as well as any forecasted shortfalls of minimum generation requirements.

RUC Availability Bids (above the Minimum Load) may only be submitted if an Energy Bid has also been submitted in the IFM. If a resource is under an RA obligation for a specific amount of capacity pursuant to Section 40 of the CAISO Tariff, the RA Capacity must participate in RUC with a RUC Availability Bid price of $0/MW. If a RUC Availability Bid is not submitted for the RA Capacity, then CAISO inserts a $0/MW proxy Bid per hour for the full amount of the RA Capacity for resources qualified to have a Resource Adequacy obligation. Resource Adequacy Resources that are not qualified for a Resource Adequacy obligation must also submit a $0/MW proxy Bid for the amount of RUC obligation submitted in the DAM up to their Resource Adequacy Capacity. However, SIBR will not validate that resources that are not qualified for a Resource Adequacy obligation submit a $0/MW proxy Bid. If a Resource Adequacy Resource submits a non-zero Bid for RUC Capacity for the portion of the resource obligated to provide RUC at $0/MW, then a capacity charge will rescind the RUC Capacity payment. Non-zero RUC Availability Bids may be submitted for the portion of a resource’s capacity that is not RA

14 For the purpose of RUC rescission, Generating Units includes System Units.

Capacity. Capacity not pre-dispatched pursuant to an RMR Contract may also submit non-zero RUC Availability Bids.

The rescission charge for a RUC Award rescinds the RUC Capacity payments to the extent that the resource with a RUC Award does not fulfill the requirements associated with that award. The rescission charge rescinds RUC Capacity payment for Generating Units and Dynamic System Resources when one of the following occurs:

 Generating Unit and Dynamic System Resource – RUC Capacity is availability-limited undispatchable due to an Outage or Rerate, is undelivered outside of a tolerance band, or ineligible for a RUC Award because it is a Resource Adequacy Resource.

7.2 Rescission of Payments for Undispatchable RUC Capacity for Generating Units, & Dynamic System Resources

The undispatchable RUC rescission calculation applies to availability-limited undispatchable RUC Capacity. Therefore, the calculation considers the RUC Award, the Day-Ahead Spinning Reserve AS Award or Schedule and the Non-Spinning Reserve AS Award or Schedule and maximum ex-post capacity. RUC Capacity, unlike AS capacity, is not required to be unloaded and, therefore, minimum ex-post capacity is not included in this equation. MSS Load following capacity does not exist if a MSS resource elects the RUC option, as indicated in the CAISO Master File.

Dispatchable RUC Capacity [MWh] = min(RUC Total Capacity, max(0, (maximum ex-post capacity – Max(Day-Ahead Energy Schedule,Minimum Load Dispatch)) –Day-Ahead Total Spin Schedule –Day-Ahead Total Non-Spin Schedule + Real Time Regulation Up Schedule))/6 (114)

Undispatchable RUC Capacity [MWh] = max(0,(RUC Total Capacity/6) – Dispatchable RUC Capacity) (115)

Undispatchable RUC Bid Capacity [MWh] = min(RUC Bid Capacity/6, Undispatchable RUC Capacity) (116)

A numeric example of Availability-limited Undispatchable RUC charges is provided in Exhibit J-1.

7.2.1 Order of Payment Rescission for Undispatchable RUC for Multiple Capacity Obligations

CAISO Tariff Section 11.16

If a Generating Unit or Dynamic System Resource is awarded RUC Capacity, the order in which the non-compliance RUC Capacity is apportioned is as follows. For undispatchable RUC Capacity, the non-compliance capacity is first apportioned to Bid-based RUC Capacity, then to any RA RUC Capacity. The capacity designated by an MSS Operator as Load following up capacity and Load following down capacity takes precedence over the other RUC Capacity obligations.

Exhibit 7-8: Order of Rescission for RUC Capacity

RUC Bid based Capacity

RA RUC (zero price)

DA Spin & Non- Spin (sum of all self and bid awards)

DA Regulation Up

Energy Schedule

7.3 Rescission of Payments for Undelivered RUC Capacity for Generating Units, & Dynamic System Resources

For each Settlement Interval in which the total metered output for a Generating Unit, System Unit or Dynamic System Resource is less than real-time Expected Energy by more than the Tolerance Band (Max (5 MW, 3% unit's Pmax)/6) and less than the RUC Schedule15, the RUC capacity for that Settlement Interval will be rescinded.

15 RUC Schedule equals RUC Capacity plus (greater of) DA Schedule or Minimum Load

IF, Metered Energy + Tolerance Band < Expected Energy AND IF, Metered Energy < RUC Schedule/6

THEN, Undelivered RUC Capacity [MWh] = RUC Total Capacity/6 (117)

Undelivered RUC Bid Capacity [MWh] = min (RUC Bid Capacity/6, Undelivered RUC Capacity) (118)

A numeric example of Undelivered RUC charges is provided in Exhibit J-2.

7.4 Rescission of Payments for RUC Availability Bids for Resource Adequacy Capacity

Resource Adequacy Resources (RAR) not qualified for a Resource Adequacy obligation (ex: hydro, intermittent resources) must bid in RUC at a $0/MW proxy Bid for capacity up to the Resource Adequacy Capacity as reported in the monthly Supply Plans. There is no SIBR validation to ensure that resources not qualified for a Resource Adequacy obligation offer Resource Adequacy Capacity at a $0/MW proxy Bid. A resource not qualified for a Resource Adequacy obligation that bids non-zero RUC Capacity before committing at least the amount of its Resource Adequacy Capacity at a $0/MW price will have the RUC Capacity payment rescinded.

Day-Ahead Committed Capacity [MW] = Max (Day-Ahead Energy Schedule, Minimum Load Dispatch, P-Min for Fast Start Units where RA RUC Capacity >0) + Day-Ahead Total Spin Schedule + Day-Ahead Total Non-Spin Schedule + Day-Ahead Total Regulation Up Schedule + RA RUC Capacity (119)

Ineligible RUC Bid Capacity [MWh] = Min (RUC Bid Capacity/6, RUC Bid Capacity/6 – Undispatchable RUC Bid Capacity, Max (0, Resource Adequacy Capacity - Day-Ahead Committed Capacity)/6) (120)

Where Resource Adequacy Capacity represents the amount of Resource Adequacy Capacity reported for the resource in a monthly Supply Plan.

7.5 Reporting of Undispatchable/Undelivered Resource Adequacy RUC Capacity

Capacity committed in RUC from an RA Resource has a zero Bid price and does not have a financial RUC rescission consequence when RA RUC becomes undispatchable or undelivered. The action by CAISO is to report the non-compliance to the Local Regulatory Authority and to publish the undispatchable or undelivered RA Capacity MWh amount, although no price is applied.

Undispatchable RA RUC Capacity [MWh] = max(0, min(RA RUC Capacity/6, (Undispatchable RUC Capacity - Undispatchable RUC Bid Capacity)) (121)

Undelivered RA RUC Capacity [MWh] = max(0, min(RA RUC Capacity/6, (Undelivered RUC Capacity – Undelivered RUC Bid Capacity)) (122)

7.6 RUC Capacity Payment Rescission Billable Quantity

For Generating Units and Dynamic System Resources:

RUC Bid Capacity Rescission Billable Quantity [MWh] = max(0, max(Undispatchable RUC Bid Capacity + Ineligible RUC Bid Capacity, Undelivered RUC Bid Capacity)) (123)

RUC RA Capacity Rescission Billable Quantity [MWh] = max(0, max(Undispatchable RUC RA Capacity, Undelivered RUC RA Capacity)) (124)

8. RUC Capacity Rescission Pricing & Revenue Allocation

Welcome to the RUC Capacity Rescission Pricing and Revenue Allocation section of the BPM for Compliance Monitoring. In this section you will find the following information:

 A description of the RUC Capacity rescission prices that are applied to the RUC Capacity rescission billable quantities to determine the amount of the rescinded capacity payments

 A description of the allocation of these rescinded RUC Capacity payments back to the SCs

8.1 RUC Capacity Rescission Pricing

The RUC Capacity payment price used in the RUC Capacity rescission charge for RUC Capacity is the resource awarded RUC Price. Additional details on the actual price calculation are contained in the BPM for Settlements & Billing.

8.2 RUC Capacity Rescission Revenue Allocation (Market Refund)

The collected RUC Capacity rescission revenue offsets the Day Ahead Residual Unit Commitment (RUC) Tier 1 Allocation amount and is further described in the BPM for Settlements & Billing.

9. Publication of Market Performance Information

Welcome to the Publication of Market Performance Information section of the BPM for Compliance Monitoring.

CAISO reserves the right to publish market performance information in order to encourage compliance with obligations, safeguard electric system reliability and reduce incentives to engage in gaming or market manipulation.

10. Audit & Testing Requirements

CAISO Tariff Sections 8.9 and 8.10

Welcome to the Audit & Testing Requirements section of the BPM for Compliance Monitoring. In this section you will find the following information:

 A description of overall auditing and testing provisions

 A description of the provisions for performance audits

 A description of the provisions for periodic testing

10.1 Auditing & Testing Overview

Availability of contracted and self-provided AS and RUC Capacity is verified by CAISO by testing of Generating Units, Participating Loads and System Resources, by auditing of response to CAISO Dispatch Instructions, and by analysis of the appropriate Meter Data, or interchange schedules. CAISO may test the capability of any Generating Unit, System Unit, System Resource, external import of a System Resource, Participating Load, or reactive device providing AS or RUC Capacity.

Participating Generators, owners or operators of Participating Loads, operators of System Units or System Resources, owners or operators of reactive devices and SCs must notify CAISO immediately whenever they become aware that an AS or RUC Capacity is not available. All Participating Generators, owners or operators of Participating Loads, operators of System Units or System Resources and owners or operators of reactive devices must check, monitor and/or test their system and related equipment routinely to assure availability of the committed AS and RUC Capacity.

These requirements apply to AS whether the AS is contracted or self-provided. For a duration specified by CAISO, CAISO may suspend the technical eligibility certificate of an SC for a Generating Unit, System Unit, Participating Load or System Resource that repeatedly fails to perform. CAISO must develop measures to discourage repeated non-performance on the part of both bidders and self-providers.

10.2 Performance Audits

In addition to testing under this Section 10, CAISO periodically audits the performance of resources providing AS or RUC Capacity to confirm the ability of such resources to meet the applicable AS standard for performance and control or to provide the RUC Capacity, as

Version 2 Last Revised: July 23, 2009 Page 64 CAISO Business Practice Manual BPM for Compliance Monitoring described in Sections 4, 5, and 7. Actions to be taken by CAISO upon the failure of a provider of AS to pass an audit include rescission of payments. Additional actions are required if the resource is a RA Resource. The SC may also be subject to Sanctions. A Market Participant that objects to certain audit obligations for which Sanctions apply may seek review by FERC.

10.2.1 Spinning Reserve Audits

CAISO audits the performance of a Generating Unit or external import of a System Resource providing Spinning Reserve by auditing its response to Dispatch Instructions and by analyzing Meter Data associated with the Generating Unit. Such audits may not necessarily occur on the hour.

A Generating Unit providing Spinning Reserve is evaluated on its ability to respond to a Dispatch Instruction, move at the MW/minute Ramp Rate stated in its Bid, reach the amount of Spinning Reserve capacity scheduled for the current Settlement Period within 10 minutes of issue of the Dispatch Instruction by CAISO, and respond to system frequency deviations outside the allowed frequency dead band. An external import of a System Resource providing Spinning Reserve is evaluated on its ability to respond to a Dispatch Instruction, move at the MW/minute Ramp Rate stated in its Bid, and reach the amount of Spinning Reserve capacity scheduled for the current Settlement Period within 10 minutes of issue of the Dispatch Instruction by CAISO.

10.2.2 Non-Spinning Reserve Audits

CAISO audits the performance of a Generating Unit, Participating Load, or System Resource providing Non-Spinning Reserve by auditing its response to Dispatch Instructions and by analyzing Meter Data associated with the resource. Such audits may not necessarily occur on the hour.

A Generating Unit providing Non-Spinning Reserve is evaluated on its ability to respond to a Dispatch Instruction, move in accordance with the time delay and MW/minute Ramp Rate stated in its Bid, and reach the amount of Non-Spinning Reserve capacity under the control of CAISO scheduled for the current Settlement Period within 10 minutes of issue of the Dispatch Instruction by CAISO.

An external import of a System Resource providing Non-Spinning Reserve is evaluated on its ability to respond to a Dispatch Instruction, move in accordance with the time delay and MW/minute Ramp Rate stated in its Bid, and reach the amount of Non-Spinning Reserve capacity scheduled for the current Settlement Period within 10 minutes of issue of the Dispatch Instruction by CAISO.

A Participating Load providing Non-Spinning Reserve from Curtailable Demand is evaluated on its ability to respond to a Dispatch Instruction, move in accordance with the time delay and MW/minute Ramp Rate stated in its Bid, and reach the amount of Non-Spinning Reserve capacity scheduled for the current Settlement Period within 10 minutes of issue of the Dispatch Instruction by CAISO.

10.2.3 Regulation Audits

CAISO audits the performance of a Generating Unit providing Regulation by monitoring its response to CAISO EMS control or, in the case of an external import of a System Resource providing Regulation, by monitoring the dynamic interchange response to CAISO EMS control around its Set Point within its rated MW/minute Ramp Rate over the range of Regulation capacity scheduled for the current Settlement Period.

10.2.4 Voltage Support Audits

CAISO audits the performance of a resource providing Voltage Support by auditing of its response to Dispatch Instructions and by analyzing Meter Data associated with the resource.

A resource providing Voltage Support is evaluated on its ability to provide reactive support over the stated power factor range of the resource, provide reactive support within the prescribed time periods, and demonstrate the effective function of automatic voltage control equipment for the amount of Voltage Support under the control of CAISO for the current Settlement Period.

10.2.5 Black Start Audits

CAISO audits the performance of a Black Start Generating Unit by analyzing Meter Data and other records to determine that the performance criteria relating to the Black Start from that Black Start Generating Unit were met when required.

10.2.6 RUC Capacity Audits

CAISO audits the performance of a Generating Unit, Participating Load, or System Resource providing RUC Capacity by auditing its response to Dispatch Instructions and by analyzing Meter Data associated with the resource. Such audits may not necessarily occur on the hour.

A Generating Unit providing RUC Capacity is evaluated on its ability to respond to a Dispatch Instruction, start within the designated time delay, move at the MW/minute Ramp Rate stated in its Bid, reach the amount of RUC Capacity scheduled for the Settlement Period concerned and sustain operation at this level for a sufficient time to assure availability over the specified period.

An external import of a System Resource providing RUC Capacity is evaluated on its ability to respond to a Dispatch Instruction, start within the designated time delay, move at the MW/minute Ramp Rate stated in its Bid, reach the amount of RUC Capacity scheduled for the Settlement Period concerned and sustain operation at this level for a sufficient time to assure availability over the specified period.

10.2.7 Consequences of Failure to Pass a Performance Audit

There are two actions that result from a failed audit:

 Notification of Performance Audit Results – CAISO gives the SC for a provider of AS or RUC Capacity a written notice of the results of such audit. CAISO, at the same time, sends a copy of the notice to the provider of AS or RUC Capacity. For any RA Resource failing to pass a performance audit, CAISO also notifies the California Public Utilities Commission (CPUC) or the relevant Local Regulatory Authority of the failure.

 Penalties for Failure to Pass Performance Audit – The SC for a provider of AS or RUC Capacity whose resource fails a performance audit is subject to the financial penalties provided for in the CAISO Tariff. In addition, Sanctions described in the BPM for Rules on Conduct Administration may come into effect.

10.3 Compliance Testing

In addition to auditing under Section 10.2, CAISO periodically tests the performance of resources providing AS or RUC Capacity to confirm the ability of such resources to meet the applicable AS standard for performance and control or to provide the RUC Capacity. Details of unannounced compliance testing are located in Operating Procedure G-214, Unannounced Compliance Tests at, http://caiso.com/thegrid/operations/opsdoc/gcp/index.html. Actions taken by CAISO upon the failure of a provider of AS Capacity to pass a test include rescission of payments. A Market Participant that objects to certain test obligations for which Sanctions apply may seek review by FERC.

10.3.1 Spinning Reserve Testing

CAISO tests the Spinning Reserve capability of a Generating Unit, System Unit or System Resource by issuing unannounced Dispatch Instructions requiring the Generating Unit, System Unit or System Resource to ramp up to its 10-minute reserve capability.

CAISO measures the response of the Generating Unit, System Unit or System Resource to determine compliance with requirements. Such tests may not necessarily occur on the hour. The SC for the Generating Unit, System Unit or System Resource is paid the Settlement price

Version 2 Last Revised: July 23, 2009 Page 67 CAISO Business Practice Manual BPM for Compliance Monitoring for the incremental IIE that is consumed or delivered as a result of a Dispatch Instruction for purposes of AS capacity testing or pre-commercial operations testing for Generating Units. The Settlement price is the maximum of the resource-specific Settlement Interval LMP or the Energy Bid price, if Energy is associated with an Energy Bid. All Energy costs for these types of Exceptional Dispatch are included in the IIE Settlement amount.

10.3.2 Non-Spinning Reserve Testing

CAISO tests the Non-Spinning Reserve capability of a Generating Unit, Participating Load, System Unit or System Resource by issuing unannounced Dispatch Instructions requiring the Generating Unit, Participating Load, System Unit or System Resource to come on line and ramp up or to reduce Demand to its 10-minute capability.

CAISO measures the response of the Generating Unit, System Unit, System Resource or Participating Load to determine compliance with requirements. The SC for the Generating Unit, System Unit, Participating Load or System Resource is paid the Settlement price for incremental IIE that is consumed or delivered as a result of a Dispatch Instruction for purposes of AS testing or pre-commercial operations testing for Generating Units. The Settlement price is the maximum of the resource-specific Settlement Interval LMP or the Energy Bid Price, if Energy is associated with an Energy Bid. All Energy costs for these types of Exceptional Dispatch are included in the IIE Settlement amount. The testing process differs for Generating Units, System Units, and System Resource and for Curtailable Demand:

 Testing of a Generating Unit, System Unit or System Resource – CAISO tests the Non-Spinning Reserve capability of a Generating Unit, System Unit or an external import of a System Resource by issuing unannounced Dispatch Instructions requiring the Generating Unit or System Unit to come on line and ramp up or, in the case of a System Resource, to affirmatively respond to Real-Time interchange schedule adjustment; all in accordance with the SC’s Bid. Such tests may not necessarily occur on the hour. CAISO measures the response of the Generating Unit, System Unit or external import of a System Resource to determine compliance with its stated capabilities.

 Testing of a Curtailable Demand – CAISO tests the Non-Spinning Reserve capability of a Participating Load providing Curtailable Demand by issuing unannounced Dispatch Instructions requiring the operator of the Participating Load to report the switchable Demand of that Participating Load actually being served by the operator at the time of the instruction. No actual Participating Load is disconnected as part of the test.

10.3.3 Regulation Testing

CAISO tests the capability of any Generating Unit or System Resource providing Regulation by using the CAISO EMS to move that Generating Unit’s or System Resource’s output over the full range of its Regulation capacity within a 10-minute period.

10.3.4 Voltage Support Testing

CAISO monitors a Generating Unit’s response to Voltage Support instructions in order to determine compliance with Dispatch Instructions. The testing process differs for Generating Units and other reactive devices.

 Testing of Generating Unit – CAISO tests the Voltage Support capability of a Generating Unit by issuing unannounced Dispatch Instructions requiring the Generating Unit to adjust its power factor outside the specified power factor band of 0.90 lag to 0.95 lead, but within the limits of the Generating Unit’s capability curve.

 Testing of Other Reactive Devices – CAISO tests the Voltage Support capability of other reactive devices (shunt capacitors, static var compensators, synchronous condensers, reactors, etc.) by issuing unannounced Dispatch Instructions requiring operation of such devices.

10.3.5 Black Start Testing

CAISO tests the Black Start capability of a Generating Unit by issuing unannounced Dispatch Instructions requiring the Generating Unit to start on a Black Start basis. Such test may include issuing Dispatch Instructions to start and synchronize the resource, testing of all communications circuits, simulating switching needed to connect the Black Start Generating Unit to the transmission system, and testing the features unique to each facility that relate to Black Start service. CAISO measures the response of the Generating Unit to determine compliance with the terms of any Black Start contract. The SC or Black Start Generator for the Generating Unit is paid the Generating Unit's contract price for the output under the Black Start test.

10.3.6 RUC Capacity Testing

CAISO tests the capability of a Generating Unit, Participating Load, System Unit or external import of a System Resource to provide RUC Capacity by issuing unannounced Dispatch Instructions requiring the Generating Unit, Participating Load, System Unit or System Resource to follow the Dispatch Instruction. The Dispatch Instructions may require the Generating Unit or

System Unit to come on line and ramp up or, in the case of a System Resource, to affirmatively respond to a Real-Time interchange schedule adjustment; all in accordance with the SC’s Bid.

CAISO measures the response of the Generating Unit, System Unit or System Resource to determine compliance with requirements. Such tests may not necessarily occur on the hour. The SC for the Generating Unit, Participating Load, System Unit or System Resource is paid the Energy Bid price of the Generating Unit, Participating Load, System Unit or System Resource for the output under the RUC test.

10.3.7 Consequences of Failure to Pass Compliance Tests

At the conclusion of each test, the following occurs:

 Notification of Testing Results – If a Generating Unit, Participating Load, or System Resource fails a compliance test, CAISO notifies the SC whose resource was the subject of the test and the provider or owner or operator of the Generating Unit, Participating Load, or System Resource providing AS or RUC Capacity of such failure by any means as soon as reasonably practicable after the completion of the test. In addition, regardless of the outcome of the test, CAISO provides the SC whose resource was subject to a test written notice of the results of such test. CAISO at the same time sends a copy of the notice to the provider or owner or operator of the Generating Unit, Participating Load, or System Resource providing AS or RUC Capacity. For any RA Resource failing a test, CAISO also notifies the CPUC or Local Regulatory Authority of the failure.

 Penalties for Failure to Pass Testing – The SC whose resource fails a test is subject to the financial penalties provided for below. In addition, CAISO may institute Sanctions described in the BPM for Rules of Conduct Administration.

A Generating Unit, Participating Load, System Unit, or System Resource that fails a test is deemed not to have been available to provide the AS or RUC Capacity concerned or the relevant portion of that service for the entire period the Generating Unit, Participating Load, System Unit or System Resource was committed to provide the service, unless appropriate documentation (i.e., daily test records) confirming the availability of that service during the committed period(s) is presented to CAISO. The “committed period” is defined as the total of all the hours/days the Generating Unit, Participating Load, System Unit, or System Resource was scheduled by CAISO to provide the AS or RUC Capacity beginning from: (i) the last successful test; or (ii) the last time the Generating Unit, Participating Load, System Unit or System Resource actually provided Energy or reduced Demand to provide AS or RUC Capacity; whichever results in a shorter committed period.

The SC for a Generating Unit, Participating Load, System Unit or System Resource that fails a test is not entitled to payment for the AS concerned or a RUC Availability Payment or for the committed period and adjustments to reflect this are made in the calculation of payments to the SC, provided that any such penalty is reduced to reflect any adjustment made over the duration of the committed period for Undispatchable, Undeliverable or Unavailable Capacity.

System Units providing AS or RUC Capacity to CAISO are subject to the same testing, compensation, and penalties as are applied to individual Generating Units providing AS or RUC Capacity.

If payments for a particular AS or RUC Capacity in a particular Settlement Period would be rescinded under more than one provision of this Section 10.3, the total amount to be rescinded for a particular AS in a particular Settlement Period must not exceed the total payment due in that Settlement Period.

Attachment A

OUTAGE & RERATE UDP EXEMPTION CAISO Business Practice Manual BPM for Compliance Monitoring

A.Outage & Rerate UDP Exemption A.1. Calculation of Reported Availability

The RTM Applications provide the Expected Energy data used by the application that calculates UDP. To calculate how a unit can be dispatched, the RTM Applications use information on unit maximum/minimum availability and Ramp Rates that are available at the time of Dispatch. However, due to delays in Outages and Rerates being reported to CAISO (i.e., once an event occurs an Outage card must be submitted and approved before the RTM Applications can respond to the event), the Expected Energy data provided by the RTM Applications may, for a limited period, produce Expected Energy values that are not physically deliverable by the resource. As such, the UDP application uses a Reported Minimum or Maximum Availability value that represents output levels that consider the actual availability of Generating Units and Dynamic System Resources as reported by Market Participants through extended SLIC.

For example, a 750 MW unit may be scheduled to deliver 500 MW for hour ending 13. Assume that at 12:20 the unit experiences an Outage that adjusts the unit’s maximum availability to 400 MW due to the loss of a feed-water pump. Until such time as the Rerate is reported and acknowledged by the CAISO dispatcher, the Expected Energy calculation is inaccurate since the RTM Applications will continue to instruct the unit to 500 MW, when the unit can really only deliver 400 MW according to its Reported Maximum Availability. No UDP is assessed during the time that the RTM Applications Expected Energy is incorrect, so long as the Outage is reported no more than 30 minutes after it occurs as indicated in Section A.2 below.

Additionally when a Generating Unit or Dynamic System Resource Rerates its minimum availability to a higher level, the Reported Minimum Availability represents the minimum level of output for the unit. The relevant equations for each Settlement Interval are as follows:

IF, Reported Maximum Availability/6 < Expected Energy

THEN, Exemption Energy = –DOPD (125)

IF, Reported Minimum Availability/6 > Expected Energy

THEN, Exemption Energy = –DOPD (126)

The Reported Maximum Availability and Reported Minimum Availability are capacity values (MW) that are converted to Energy (MWh) values by dividing by six, to represent the Energy produced at the reported availability over a Settlement Interval.

Version 2 Last Revised: July 23, 2009 Page A-1 CAISO Business Practice Manual BPM for Compliance Monitoring

A.2 Outage & Rerate Reporting Requirement

An Outage or Rerate must be reported to CAISO no more than 30 minutes after the Outage occurs to ensure complete protection from UDP. Resources that report Outages or Rerates are expected to operate in a manner consistent with the information reported to CAISO. Based on this requirement, Reported Maximum Availability is not calculated for the time period that is more than 30 minutes prior to the time that the Outage or Rerate event was reported to CAISO.

In the following example, a Generating Unit has an Outage event that occurs at minute 2 in the Operating Hour, but the Outage is not reported to CAISO until minute 42. The RTM Applications cannot take the Outage into account until after minute 42 when it is submitted and subsequently accepted by CAISO. Assuming the CAISO dispatcher accepts the Outage in time for the RTM Applications to incorporate into their Dispatch calculations initiated at minute 45, the RTM Applications will send the unit a Dispatch that will take the unit to its Reported Maximum Availability in the Dispatch Interval for the time period from minutes 50-55.

As shown in the Figure below, Reported Maximum Availability is calculated starting at minute 12. Since the Outage for the resource was not reported until 40 minutes after the actual event at minute 2, the change in availability begins 30 minutes prior to the time the Outage was submitted to CAISO, which is minute 12 (minute 42 minus 30 minutes).

Reported Maximum Availability and Reported Minimum Availability are calculated as the most restrictive availability existing within a Settlement Interval. Settlement Interval 2, from minute 10 to minute 20, will have Reported Maximum Availability equal to the availability existing at the end of the Settlement Interval. The Reported Maximum Availability is 40 MW, or 6.67 MWh, which is less than the Expected Energy instructed by the RTM Applications of 70 MW, or 11.67 MWh, and the resource is exempt from UDP based on the Equation 123. The exemption continues until CAISO acknowledges the Outage and the RTM Applications instruct the unit to a level that can be delivered according to the reported availability – through the end of Settlement Interval 5 in this example.

Exhibit A-: Forced Outage Reporting Requirement

Attachment B

START-UP & SHUT-DOWN ENERGY UDP EXEMPTION CAISO Business Practice Manual BPM for Compliance Monitoring

B.Start-Up and Shut-Down Energy UDP Exemption B.1 Start-Up & Shut-Down Settlement Intervals Determinations

For the purpose of applying the Start-Up and Shut-Down Energy exemption, the application that calculates UDP flags Start-up Settlement Intervals, which span from the Start-Up begin Settlement Interval to the Start-Up end Settlement Interval. The Start-Up begin Settlement Interval is the first Settlement Interval in which the unit synchronizes to the CAISO Controlled Grid as determined by the unit’s Meter Data. The Start-Up end Settlement Interval is determined by either the maximum Start-Up Time for the unit, as specified in the Master File, or by the delivery of Energy from the unit exceeding the unit’s Reported Minimum Availability plus its Tolerance Band. The relevant equations are as follows:

Start-up Begin Settlement Interval = Settlement Interval with Metered Energy > 0, where Metered Energy in prior Settlement Interval = 0 (127)

Start-up End Settlement Interval 1 = Settlement Interval containing Start-up Begin Settlement Interval + Maximum Start-up Time (128)

Start-up End Settlement Interval 2 = Settlement Interval in which Metered Energy ≥ Reported Minimum Availability/6 + Tolerance Band (129)

Start-up Settlement Intervals = all Settlement Intervals between Start-up Begin Settlement Interval and the earliest of Start-up End Settlement Interval 1 or Start-up End Settlement Interval 2, inclusive (130)

When a unit is instructed to Shut-Down by the RTM Applications, the RTM Applications use the appropriate Ramp Rates to instruct the unit to its Reported Minimum Availability. Once the unit is at its Reported Minimum Availability, the RTM Applications Dispatch the unit to Shut-Down and calculate zero Expected Energy after the Shut-Down point, effectively assuming immediate Shut-Down after the unit reaches PMin. The actual Energy that the unit may produce while ramping down from the Reported Minimum Availability after the Shut-Down instruction is exempt from UDP for the minimum of two Settlement Intervals or the duration defined by the Generating Unit’s shut downtime in the Master File. The relevant equations to flag the Shut-Down Settlement Intervals are as follows:

Shut-Down Begin Settlement Interval = Settlement Interval with Expected Energy > 0, where Expected Energy in subsequent Settlement Interval = 0 (131)

Version 2 Last Revised: July 23, 2009 Page B-1 CAISO Business Practice Manual BPM for Compliance Monitoring

Shut-Down Settlement Intervals = all Settlement Intervals between Shut Down Begin Settlement Interval + max(20 minutes, unit’s Shut-Down time), inclusive (132)

B.2 Exemption Energy for Start-up and Shut-Down Settlement Intervals

The application that calculates UDP provides the Start-Up and Shut-Down Energy exemption by adjusting the DOPD of Generating Units in Settlement Intervals flagged as Start-Up or Shut- Down and adjusts the aggregate Adjusted DOPD of UDP Aggregations in Settlement Intervals for which any Generating Unit belonging to the UDP Aggregation is flagged as Start-up or Shut- Down. It calculates Adjusted DOPD and aggregate Adjusted DOPD after calculating an Exemption Energy value, which is calculated for each Settlement Interval as follows:

IF, Expected Energy = 0 for each Dispatch Interval (133)

THEN, Exemption Energy = –min(DOPD, Reported Minimum Availability/6) (134)

IF, Expected Energy > 0 for only 1 Dispatch Interval (135)

THEN, Exemption Energy = –min(max(0, DOPD), Reported Minimum Availability/12)

IF, Expected Energy > 0 for each Dispatch Interval (137)

THEN, Exemption Energy = 0 (138)

The Reported Minimum Availability is a capacity value (MW) that is converted to an Energy (MWh) value by dividing by six or twelve, to represent the Energy produced at the reported availability over a Settlement Interval or Dispatch Interval, respectively. For Settlement Intervals with no Expected Energy, the first equation above provides an exemption equal to the output of the unit up to a maximum of the unit’s Reported Minimum Availability. For Settlement Intervals where there is Expected Energy in only one Dispatch Interval, the second equation above provides an exemption equal to the output of the unit for one Dispatch Interval up to a maximum of the unit’s Reported Minimum Availability. For Settlement Intervals where there is Expected Energy in both Dispatch Intervals, the last equation above does not provide an exemption because the start-up and shutdown exemption does not apply to Energy produced above a unit’s minimum operating level and does not apply to negative UIE. These calculations are based on the assumption that Start-Up and Shut-Down Dispatch Instructions are effective at the beginning of a Dispatch Interval; Start-Up and Shut-Down instructions that are effective at times

Version 2 Last Revised: July 23, 2009 Page B-2 CAISO Business Practice Manual BPM for Compliance Monitoring other than the beginning of a Dispatch Interval are only manually issued by CAISO, and responses to manually issued instructions are exempt from UDP.

Version 2 Last Revised: July 23, 2009 Page B-3 CAISO Business Practice Manual BPM for Compliance Monitoring

Attachment C

CAISO SYSTEMS UDP EXEMPTION CAISO Business Practice Manual BPM for Compliance Monitoring

C.CAISO Systems UDP Exemption C.1 Scheduling and Logging System for ISO California

Market Participants are required to report Outages and Rerates within 30 minutes to avoid UDP. If SLIC has system issues that prevent a Market Participant from logging an Outage or Rerate that would otherwise excuse UDP, then an appropriate adjustment is made on a case-by-case basis. CAISO considers SLIC system issues when administering the 30-minute reporting requirement. If system issues prevent the reporting of an Outage or Rerate and the SLIC web client is unavailable for more than 5 consecutive minutes during the period from the start of the Outage or Rerate to 30 minutes after the start, CAISO extends the time that an Outage or Rerate may be reported to CAISO to include the 30 minute period after SLIC again becomes available after a system issue.

C.2 Automated Dispatch System/Real-Time Market

Dispatch Instructions for Generating Units and Dynamic System Resources generated by the RTM Applications and then transmitted to Market Participants identify the time and output level for each point of inflection in the Dispatch profile attributable to changing Ramp Rates. In the event the RTM Applications or ADS are not functioning, or are not used for a particular Dispatch Instruction, CAISO issues verbal Dispatch Instructions by telephone. Since such Dispatch Instructions do not reflect the same specificity as those issued by the RTM Applications and ADS, CAISO provides a UDP exemption for Generating Units and Dynamic System Resources in instances where the RTM Applications or ADS is not functioning. This exemption is applied for the period the system issue exists up to the earliest Settlement Interval, inclusive, that meets one of the following criteria:

 The Settlement Interval prior to the first Settlement Interval in which DOPD changes sign (i.e., is positive in one Settlement Interval and negative in the next, or negative in one Settlement Interval and positive in the next)

 The Settlement Interval prior to the first Settlement Interval in which DOPD is less than the Tolerance Band of the individual unit

 The Settlement Interval that is the 6th Settlement Interval after the cessation of the RTM Applications and ADS system issue

In cases where an individual unit incurs UDP in more than six Settlement Intervals following an RTM Applications or ADS system issue, CAISO provides a UDP exemption for additional

Version 2 Last Revised: July 23, 2009 Page C-1 CAISO Business Practice Manual BPM for Compliance Monitoring

Settlement Intervals providing the unit has consistently ramped towards its DOP at the applicable Ramp Rate.

The relevant equation for the applicable Settlement Intervals is as follows:

Exemption Energy = –(DOPD of Generating Unit deviating due to condition caused by CAISO system issue) (139)

In general, when a Generating Unit is not at its DOP because of not receiving an RTM Applications or ADS instruction or because a unit providing Regulation is released from CAISO control away from its DOP, CAISO exempts the Generating Unit from UDP for the time required for the Generating Unit to reach its DOP following the Ramp Rate supplied to CAISO.

To simplify the application of this rule, CAISO provides up to six Settlement Intervals for the Generating Unit to reach its DOP as determined by the Generating Unit DOPD being less than the Tolerance Band of the individual unit or by the DOPD changing sign indicating that the unit had reached its DOP. In addition, although six Settlement Intervals was selected as a reasonable time for a Generating Unit to reach its DOP in these cases, any resource that has not met the criteria described above after six Settlement Intervals is investigated by CAISO and is exempt from UDP for more than six Settlement Intervals in instances where the Generating Unit has consistently ramped towards its DOP at the applicable Ramp Rate.

Version 2 Last Revised: July 23, 2009 Page C-2 CAISO Business Practice Manual BPM for Compliance Monitoring

Attachment D

MANUAL DISPATCH INSTRUCTIONS UDP EXEMPTION CAISO Business Practice Manual BPM for Compliance Monitoring

D.Manual Dispatch Instructions UDP Exemption

CAISO provides a UDP exemption for Dispatch Instructions manually issued to individual Generating Units and Dynamic System Resources that are not confirmed by a Dispatch Instruction issued through ADS. This exemption is provided for the Settlement Intervals in which the manually issued Dispatch Instruction was effective to the earliest Settlement Interval, inclusive, that meets one of the following criteria:

 The Settlement Interval that is the 6th Settlement Interval after the last Settlement Interval in which the manually issued Dispatch Instruction was effective

In cases where an individual unit incurs UDP in more than six Settlement Intervals following the Settlement Intervals in which a manual Dispatch Instruction was effective, CAISO provides a UDP exemption for additional Settlement Intervals providing the unit has consistently ramped towards its DOP at the applicable Ramp Rate.

Exemption Energy = –(DOPD of Generating Unit deviating due to manual Dispatch Instruction) (140)

Version 2 Last Revised: July 23, 2009 Page D-1 CAISO Business Practice Manual BPM for Compliance Monitoring

Attachment E

DISPATCH INSTRUCTION VALIDATION UDP EXEMPTION CAISO Business Practice Manual BPM for Compliance Monitoring

E.Dispatch Instruction Validation UDP Exemption

CAISO reviews Dispatch Instructions issued through ADS to verify that they were delivered to Market Participants and to verify that they were delivered with sufficient time for the Market Participant to respond.

CAISO provides a UDP exemption in instances where Market Participants do not receive Dispatch Instructions or receive them late. Dispatch Instructions are transmitted to Market Participants through an ADS client provided by CAISO to Market Participants (“MP Client”) or through the ADS Application Program Interface (API), using Market Participant developed applications or a CAISO-provided download client. Unless a Market Participant notifies CAISO that it elects to use the ADS API as its primary means of receiving Dispatch Instructions for a particular resource, CAISO uses the validation received from the MP Client to confirm receipt of Dispatch Instructions. For those Market Participants that elect to use the ADS API as their primary means of receiving Dispatch Instructions, CAISO uses validation data associated with successful transmission of Dispatch Instructions to the Market Participant’s ADS API.

Market Participants that use the ADS API as their primary means of receiving Dispatch Instructions, and receive them through non-CAISO developed applications, must maintain acceptable performance of the systems that use the API. If the Market Participant’s systems experience issues such that they are unable to retrieve Dispatch Instructions through the ADS API, CAISO provides a UDP exemption provided the issue is communicated to the CAISO Control Center and logged in SLIC. If such system issue is not resolved within 24 hours, the Market Participant must revert to the MP Client as its means of receiving Dispatch Instructions, and CAISO subsequently uses the validation received from the MP Client to confirm receipt of Dispatch Instructions. If a system issue is resolved after 24 hours, the Market Participant must notify the CAISO Control Center that they are resuming use of the ADS API as their primary means of receiving Dispatch Instructions.

If a Dispatch Instruction is not validated as received CAISO provides a UDP exemption for the Settlement Interval in which the Dispatch Instruction was first effective until the effective time of the next validated ADS instruction. The exemption is also provided after effective time of the validated ADS instruction to the earliest Settlement Interval, inclusive, that meets one of the following criteria:

Version 2 Last Revised: July 23, 2009 Page E-1 CAISO Business Practice Manual BPM for Compliance Monitoring

 The Settlement Interval that is the 6th Settlement Interval after the end of the effective time of the validated ADS instruction

In cases where a resource incurs UDP in more than six Settlement Intervals following a non- validated instruction, CAISO provides a UDP exemption for additional Settlement Intervals providing the unit has consistently ramped towards its DOP at the applicable Ramp Rate.

If a Dispatch Instruction is validated after the start time of the instruction, CAISO provides a UDP exemption from the Settlement Interval in which the Dispatch Instruction was first effective to the earliest Settlement Interval, inclusive, that meets one of the following criteria:

 The Settlement Interval that is the 6th Settlement Interval after the Settlement Interval in which the late Dispatch Instruction was first effective

In cases where a resource incurs UDP in more than six Settlement Intervals following a late instruction, CAISO provides a UDP exemption for additional Settlement Intervals provided the unit has consistently ramped towards its DOP at the applicable Ramp Rate.

If a Dispatch Instruction is validated as received less than 90 seconds before its start time, CAISO provides a UDP exemption for the initial Settlement Interval to which the instruction is applicable.

Exemption Energy = –(DOPD of Generating Unit deviating due to Dispatch Instruction validation issue) (141)

Version 2 Last Revised: July 23, 2009 Page E-2 CAISO Business Practice Manual BPM for Compliance Monitoring

Attachment F

EXAMPLES OF UNINSTRUCTED DEVIATION PENALTIES CAISO Business Practice Manual BPM for Compliance Monitoring

F. Examples Of Uninstructed Deviation Penalties F.1 Positive UDP for Single Resource

Exhibit F-: Positive UDP for Single Resource

Assumptions:

Unit Data MW MWh

P-Max 100 Tolerance Band 5 0.83 Upper Tol Band 65 Lower Tol Band 55 Meter 78 13 RTMA Data MW MWh

DOP 60 Expected Energy 10

Step 1: Calculate Tolerance Band

Version 2 Last Revised: July 23, 2009 Page F-1 CAISO Business Practice Manual BPM for Compliance Monitoring

Tolerance Band [MWh] = max (3% * Pmax, 5 MW)/6 Tolerance Band [MWh] = max (3% * 100, 5 MW)/6 Tolerance Band [MWh] = 0.83 MWh

Step 2: Calculate DOPD

DOPD [MWh] = 0 (default value) If Meter > Expected Energy, DOPD = max (0, Meter – min (Expected Energy, Effective Upward Regulation Limit/6)) If Meter <= Expected Energy, DOPD = min (0, Meter – min (Expected Energy, Effective Downward Regulation Limit/6))

If 13 > 10, DOPD = max (0, 13 – 10) = 3 MWh

Step 3: Calculate Billable Quantity

Positive UDP BQ: If DOPD > 0, Positive UDP BQ = max (0, DOPD – Tolerance Band) Negative UDP BQ: If DOPD < 0, Negative UDP BQ = min (0, DOPD + Tolerance Band) Positive UDP Billable Quantity: If 3 > 0, Positive UDP BQ = max (0, 3 – 0.83) = 2.17 MWh

F.2 Negative UDP for Single Resource

Exhibit F-: Negative UDP for Single Resource

Assumptions:

Unit Data MW MWh

P-Max 400 Tolerance Band 12 2 Upper Tol Band 228 Lower Tol Band 204 Meter 180 30 RTMA Data MW MWh

DOP 216 Expected Energy 36

Step 1: Calculate Tolerance Band Tolerance Band [MWh] = max (3% * Pmax, 5 MW)/6 Tolerance Band [MWh] = max (3% * 400, 5 MW)/6 Tolerance Band [MWh] = 2 MWh

Step 2: Calculate DOPD

DOPD [MWh] = 0 (default value) If Meter <= Expected Energy , DOPD = min (0, Meter – (Expected Energy, Effective Downward Regulation Limit/6))

If 30 < 36, DOPD = min (0, 30 – 36) = -6 MWh

Step 3: Calculate Billable Quantity Negative UDP BQ: If DOPD < 0, then Negative UDP BQ = min (0, DOPD + Tolerance Band) Negative UDP Billable Quantity: If -6 < 0, Negative UDP BQ = min (0, -6 + 2) = - 4 MWh

F.3 UDP for Aggregation

Exhibit F-: UDP for Aggregation

Assumptions:

Step 1: Calculate Aggregation Tolerance Band Tolerance Band [MWh] = max (3%*(P-Max Unit A + P-Max Unit B), 5MW) / 6 Tolerance Band [MWh] = max (3%*300, 5 MW) /6 = 1.5 MWh

Step 2: Calculate Aggregation DOPD DOPD for Unit A [MWh] = If Reported Maximum Availability/6 < Expected Energy, DOPD = 0 DOPD for Unit A = If 30/6 < 10, DOPD = 0 MWh

DOPD for Unit B [MWh] = If Meter > Expected Energy , DOPD = max (0, Meter – Expected Energy) DOPD for Unit B = If 25 > 19, DOPD = max (0, 25 - 19) = 6 MWh

The Aggregation DOPD is the sum of the DOPD for all resources in the Aggregation: DOPD for Unit A + DOPD for Unit B = 0 + 6 = 6 MWh

Step 3: Calculate Adjusted Derate Energy

If one unit in the Aggregation is de-rated, then another unit can over-generate to cover the unit’s Energy Schedule. For each unit in the Aggregation:

If Reported Maximum Availability/6 < Expected Energy for Generating Unit in a UDP Aggregation, then Adjusted Derate Energy = min(0, Reported Maximum Availability/6 – Total Energy Schedule/6)

Adjusted Derate Energy for Unit A = 30/6 - 10 = - 5 MWh

Aggregation Derate Energy = Sum of Derate Energy for all units in the Aggregation. Unit A is 5 MWh short on its Energy Schedule and Unit B can over-generate to compensate and minimize UIE charges.

Step 4: Calculate Aggregation Adjusted DOPD If the Aggregation DOPD < 0, Aggregation Adjusted DOPD = min(0, Aggregation DOPD + max(0, Aggregation Derate Energy)) If the Aggregation DOPD > 0, Aggregation Adjusted DOPD = max(0, Aggregation DOPD + min(0, Aggregation Derate Energy)) Aggregation Adjusted DOPD = IF 6 > 0 , Adjusted Aggregation DOPD = Max (0, 6 + Min (0, -5)) = Max (0, 6 + (-5)) = 1 Aggregation Adjusted DOPD = 1 MWh

Step 5: Calculate UDP Billable Quantity If Aggregation Adjusted DOPD > 0, Positive UDP Billable Quantity = Max(0, Aggregation Adjusted DOPD – Aggregation Tolerance Band) If Aggregation Adjusted DOPD < 0, Negative UDP Billable Quantity = Min(0, Aggregation Adjusted DOPD + Aggregation Tolerance Band)

If 1 MWh > 0, Positive UDP Billable Quantity = max (0, 1 - 1.5) = 0 MWh

F.4 UDP for Regulation Unit

Exhibit F-: UDP for Regulation Unit Example

Assumptions:

Step 1: Calculate Tolerance Band Tolerance Band [MWh] = max ( 3%*P-Max, 5 MW) /6 = max (3%* 120, 5 MW) / 6 = 0.83 MWh

Step 2: Calculate DOPD If Meter > Expected Energy then, DOPD = max (0, Meter – Max (Expected Energy, Effective Up Regulation Limit / 6)) If 15 > 10, DOPD = max (0, 15 – Max (10, 100/6)) = max (0, 15 – 16.67) = 0 MWh

Step 3: Calculate Billable Quantity Since DOPD = 0, no UDP Billable Quantity Regulating Energy will be paid IIE_reg. There will be no UDP charge.

Attachment G

EXAMPLES OF PENALTY POINT ACCRUAL FOR NON-LOAD FOLLOWING METERED SUBSYSTEMS CAISO Business Practice Manual BPM for Compliance Monitoring

G.Examples Of Penalty Point Accrual For Non- Load Following MSSs G.1 Examples of Penalty Point Accrual For Non-Load Following MSSs

The following example illustrates the penalty point accrual system for Non-Load following MSS that is applied when two conditions occur, 1) MSS does not schedule to the CAISO Demand Forecast and, 2) MSS Metered Demand exceeds Schedule.

Exhibit G-: Examples of Penalty Point Accrual For Non-Load Following MSSs

CAISO Demand Demand Self- Metered First Penalty Example Forecast Schedule Demand Condition Points Description Schedule is less than forec ast but m eter = 1 100 90 90 N o Points 0 0 0 schedule so 1s t condition not satisfied

Schedule is less than forec ast and schedule is less than m eter so 1st condition is satis fied but difference between m eter and C alculate schedule does not exceed 2% of the 2 100 90 92 Points 0 0 0 forecast so no points are c alc ulated

Schedule is less than forec ast and schedule is less than m eter so 1st condition is satis fied and difference between m eter and C alculate schedule exceeds 2% of the forecast so 1 3 100 90 94 Points 1 0 0 point is calculated

Schedule is less than forec ast and schedule is less than m eter so 1st condition is satis fied and difference between m eter and C alculate schedule exceeds 5% of the forecast so 2 4 100 90 98 Points 0 2 0 points are calculated

Schedule is less than forec ast and schedule is less than m eter so 1st condition is satis fied and difference between m eter and C alculate schedule exceeds 10% of the forecast so 5 5 100 90 101 Points 0 0 5 points are calculated

Version 2 Last Revised: July 23, 2009 Page G-1 CAISO Business Practice Manual BPM for Compliance Monitoring

Attachment H

ANCILLARY SERVICES SCHEDULES EXAMPLES CAISO Business Practice Manual BPM for Compliance Monitoring

H.Ancillary Services Schedules Examples H.1 Ancillary Services Schedules Examples

Ancillary Service Awards or Schedules can be awarded/self-provided on an hourly basis in the Day-Ahead Market (DAM) and may also be awarded/self-provided on a 15-minute basis in the Real-Time Market (RTM). Therefore, in any given 10-minute Settlement Interval, the total AS Awards and Schedules may vary. The following example provides information to help SCs obtain total Spinning Reserve, total Non-Spinning Reserve, total Regulation Up and total Regulation Down Awards and Schedules on a 10-minute basis, which can be used in the No Pay and Regulation non-compliance formulas. Note: In this example RT Self Schedules are not reflected, but in CMRI, RT Self Schedules will reflect DA Bid + DA Self + RT incremental Self. This example assumes no incremental RT Self Schedule.

Exhibit H-: Ancillary Services Awards and Schedules Example

DA A/S Schedule HE 1 Market Type DA Schedule 1 Bid 60 1 Self 45 RT A/S Schedule HE RT Interval RT Bid RT Self RT Cleared 1 1 20 110 130 1 2 25 110 135 1 3 30 110 140 1 4 15 110 125

Settlement Final Bid Final Self Total Interval Schedule Schedule Schedule A/S Schedule Rules for each Settlement Interval Final Bid Schedule =DA Bid Schedule + RT Bid Schedule for RT Interval 1 1 80 50 130 Final Self Schedule =Total Cleared for RT Interval 1 - (DA Bid + RT Bid for RT Interval 1) Final Bid Schedule= DA Bid Schedule + average of RT Bid Schedule for RT Interval 1 and RT Bid Schedule for RT Interval 2 Final Self Schedule= average of Total Cleared for RT Interval 1 and RT Interval 2 - (DA Bid + average of RT Bid for RT Interval 1 2 82.5 50 132.5 and RT Bid for RT Interval 2) Final Bid Schedule =DA Bid Schedule + RT Bid Schedule for RT Interval 2 3 85 50 135 Final Self Schedule =Total Cleared for RT Interval 2 - (DA Bid + RT Bid for RT Interval 2) Final Bid Schedule=DA Bid Schedule + RT Bid Schedule for RT Interval 3 4 90 50 140 Final Self Schedule =Total Cleared for RT Interval 3 - (DA Bid + RT Bid for RT Interval 3) Final Bid Schedule= DA Bid Schedule + average of RT Bid Schedule for RT Interval 3 and RT Bid Schedule for RT Interval 4 Final Self Schedule= average of Total Cleared for RT Interval 3 and RT Interval 4 - (DA Bid + average of RT Bid for RT Interval 3 5 82.5 50 132.5 and RT Bid for RT Interval 4) Final Bid Schedule=DA Bid Schedule + RT Bid Schedule for RT Interval 4 6 75 50 125 Final Self Schedule =Total Cleared for RT Interval 4 - (DA Bid + RT Bid for RT Interval 4)

Version 2 Last Revised: July 23, 2009 Page H-1 CAISO Business Practice Manual BPM for Compliance Monitoring

Attachment I

NON-COMPLIANCE EXAMPLES CAISO Business Practice Manual BPM for Compliance Monitoring

I. Non-Compliance (No Pay & Regulation Non- Compliance) Examples I.1 Undispatchable Unit Outage or Derate/Rerate No Pay charges.

Ancillary Services capacity can be undispatchable because the Generating Unit or Dynamic System Resource is experiencing an Outage or Rerate. CAISO stores information on de-rates, Rerates and Outages in the SLIC application. If a resource obligated to provide AS capacity is de-rated or Rerated, then the total amount of AS capacity may not be available for Dispatch in Real-Time.

Exhibit I-: Undispatchable Unit Outage or Derate/Rerate No Pay Example

Assumptions:

Version 2 Last Revised: July 23, 2009 PageI-1 CAISO Business Practice Manual BPM for Compliance Monitoring

SLIC Data MW Unit Data MW P-Max 200 P-Max 200 De-rate 20 Energy 110 Report Max Availability 60 Non-Spin Capacity 60 Report Min Availability 0 Spin Capacity 30 RTMA Data Total Schedules 200 Maximum Bid Capacity 180 Minimum Bid Capacity 110

Unit Data MW SLIC Data MW P-Max 200 P-Max 200 Energy 110 De-rate 20 Non-Spin Capacity 60 RTMA Data Spin Capacity 30 Maximum Ex post Capacity 180 Total Schedules 200 Minimum Ex post Capacity 110

Step 1: Calculate Availability-Limited Non-Spinning Reserve Capacity

Availability-Limited Non-Spin Capacity = MIN (Total Non-Spin Schedule, MAX(0, MAX(0, Maximum ex-post capacity – MAX(MIN(Minimum ex-post capacity, DA Energy Schedule), DA Energy Schedule, Minimum Load Dispatch)) – Total Spin Schedule)) Availability-Limited Non-Spin Capacity = MIN (60, MAX(0, MAX(0, 180 – MAX(MIN(110, 110), 110, 0)) – 30)) Availability-Limited Non-Spin Capacity = MIN (60, 40) Availability-Limited Non-Spin Capacity = 40 MW of Non-Spin Available

Step 2: Calculate Availability-Limited Spinning Reserve Capacity Availability-Limited Spin Capacity = MIN (Total Spin Schedule, MAX(0, Maximum ex-post capacity – MAX(Minimum ex- post capacity, Energy Schedule, Minimum Load Dispatch)))

Availability-Limited Spin Capacity = MIN (30, MAX(0, 180-110)) Availability-Limited Spin Capacity = MIN (30, 70) Availability-Limited Spin Capacity = 30 MW of Spin Available for Dispatch

Step 3: Calculate No-Pay Billable Quantity Undispatchable Non-Spin Capacity = (Non-Spin Schedule – Availability-Limited Non-Spin Capacity)/6 Undispatchable Non-Spin Capacity = (60-40)/6 = 20/6 = 3.33 MWh

Undispatchable Spin Capacity = (Spin Schedule – Availability-Limited Spin Capacity)/6 Undispatchable Spin Capacity = (30-30)/6 = 0/6 = 0 MWh

I.2 Undispatchable Ramp Limited No Pay charges.

When CAISO issues an AS Award or Schedule in the forward markets, the resource is expected to deliver that service in accordance with the Bid parameters originally specified. Those Bid parameters include a Ramp Rate and a resource Start-Up Time. Each resource providing Real- Time services for CAISO Dispatch also submits an Energy Bid Curve. The Energy Ramp Rate curve may show that the amount of AS capacity awarded in the forward markets based on Ramp Rate and resource Start-Up Time is not available due to a lower Ramp Rate or change in Start-Up Time in the Energy Bid Curve. CAISO only dispatches resources according to their capability as specified in the Energy Bid. Since Operating Reserves are 10-minute services, only that Operating Reserve capacity that can be converted into Energy within 10 minutes is actual Operating Reserve for CAISO. Using the 10-minute incremental Operating Reserve availability, No Pay determines if Operating Reserve capacity that was awarded in the forward markets is available within 10 minutes in Real-Time.

Exhibit I-: Undispatchable Ramp Limited No Pay Example

Assumptions:

RTMA Data MW Unit Data MW DOT 50 P-Max 200 Operating Res. Avail 70 (Bid at 7 MW/min) Energy 50 Max. Ex postBid 200 Spin Capacity 100 (Bid at 10 MW/min) Capacity

Total Schedules 150 Min. Ex postBid 50 Capacity

Step 1: Calculate Availability-Limited Spinning Reserve Capacity Availability-Limited Spin Capacity = MIN (Total Spin Schedule, MAX(0, Maximum ex-post capacity – MAX(Minimum ex- post capacity, Energy Schedule, Minimum Load Dispatch)))

Availability-Limited Spin Capacity = MIN (100, MAX(0, 200-50)) Availability-Limited Spin Capacity = MIN (100, 150) Availability-Limited Spin Capacity = 100 MW of Spin Available for Dispatch

Step 2: Calculate Dispatched Spin Capacity Dispatched Spin Capacity = min(Availability-Limited Spin Capacity, max(0, DOT – (Maximum ex-post capacity – Availability-Limited Spin Capacity)))

Dispatched Spin Capacity = min(100, max(0, 50 – (200 – 100) Dispatched Spin Capacity = 0 MW of Dispatched Spin Capacity

Step 3: Calculate Undispatched Spin Capacity Undispatched Spin Capacity = Availability-Limited Spin Capacity – Dispatched Spin Capacity Undispatched Spin Capacity = (100 – 0) Undispatched Spin Capacity = 100 MW

Step 4: Calculate Ramp-Limited Spin Capacity Ramp-Limited Spin Capacity = min(Undispatched Spin Capacity, max(0, Available Operating Reserve - Ramp-Limited Non-Spin Capacity))

Ramp-Limited Spin Capacity = min(100, max(0, 70 – 0) Ramp-Limited Spin Capacity = 70 MW

Step 5: Calculate No Pay Billable Quantity Undispatchable Spin Capacity = (Total Spin Schedule – Dispatched Spin Capacity – Ramp-Limited Spin Capacity)/6

Undispatchable Spin Capacity = (100 – 0 – 70)/6 Undispatchable Spin Capacity = 5 MWh of Spin is not available as Operating Reserve due to ramp rate limitations

I.3 Unavailable No Pay charges.

After accounting for the amount of AS capacity that is undispatchable, a Generating Unit or Dynamic System Resource must retain unloaded capacity on the resource for the portion of AS capacity that is dispatchable. If the resource deviates into that dispatchable AS capacity, then that AS capacity is unavailable to CAISO.

Exhibit I-: Unavailable No Pay Example

Assumptions:

Unit Data MW MWh

P-Max 100

Energy 40 6.66

Spin Capacity 60

Total Schedules 100

Meter 70 11.67 RTMA Data MW MWh

DOP 40 Expected Energy 6.67

SLIC Data MW MWh

Upper Economic 80 13.33 LimitMaximum ex-post capacity

Undispatchable Unit Availability AS Capacity subject to No Pay 100 MW Meter Scheduled ScheduledAS Capacity AS Dispatchable Capacity Unavailable AS AS Capacity capacity subject to No Pay 40 MW DOP Energy Energy Energy Energy Schedule Schedule Schedule Schedule

Real -Time Real -Time DAM Schedule Availability Dispatch Step 1: Calculate Unavailable AS Capacity Unavailable AS Capacity = max(0, min(Meter Data – Expected Energy, Meter Data – (Maximum ex-post capacity/6 – (Dispatchable AS Capacity – Delivered AS IIE)))) Unavailable AS Capacity = max(0, min(11.67 – 6.67, 11.67 – (80/6 – (40/6 – 0)))) Unavailable AS Capacity = min(5, 5) Unavailable AS Capacity = 5 MWh I.4Undelivered No Pay charges.

If Energy from a Generating Unit or Dynamic System Resource is dispatched, then that resource is responsible for delivering at least 90% of the Expected Energy attributed to that dispatched AS capacity in order to retain full AS capacity payment. If the energy delivered from the dispatched AS capacity is not within the tolerance factor, 10% of the Expected Energy attributed to the dispatched AS capacity, the payment for the remaining Dispatchable AS Capacity is rescinded.

Exhibit I-: Undeliverable No Pay Example

Assumptions: Unit Data MW MWh

P-Max 100

Energy 40

Spin Capacity 60 10

Total Schedules 100

Meter 50 8.33 RTMA Data MW MWh

DOP 70 Expected Energy 11.67 Spin IIE 5

Delivered Spin IIE 1.66

Step 1: Calculate Undelivered Spin Capacity

Undispatchable AS Unit Availability Capacity subject to No Pay 100 MW DOP

Scheduled Undelivered AS AS Dispatchable capacity subject to Capacity AS Capacity No Pay

40 MW Meter Energy Energy Energy Schedule Schedule Schedule

Real-Time Real-Time DAM Schedule Availability Dispatch Undelivered Spin Capacity = IF, Delivered Spin IIE ≥ (1 – Tolerance Factor) * Spin IIE, 0, Dispatchable Spin Capacity – Delivered Spin IIE)

Undelivered Spin Capacity = IF, 1.66 MWh ≥ (1 – 0.10) * 5, 0, 6.66 – 1.66) = 5 MWh or 30 MW is undelivered

I.15 Regulation Non-Compliance charges – Constrained Limits

In Real-Time, a Generating Unit’s or Dynamic System Resource’s operating range must be sufficient to provide the Regulation capacity that has been scheduled for the unit in the forward markets. CAISO sets Regulation Limits based on the unit’s Day-Ahead Energy Schedule, quantity of Regulation capacity awarded, and the unit’s operating limits telemeter from the unit to CAISO in Real-Time.

Exhibit I-1: Regulation Non-Compliance Constrained Limits Example

Unit Data MW

DAM Schedule 50 Scheduled Regulation Up 30 Scheduled Regulation Down 40 Plant Low Effective Regulation Limit 20 Plant High Effective Regulation Limit 75 DOT 50

Step 1: Calculate Expected Regulation Range

Expected High Regulation Limit = DOT + Regulation Up Capacity Expected High Regulation Limit = 50 + 30 = 80 MW

Expected Low Regulation Limit = DOT - Regulation Down Capacity Expected Low Regulation Limit = 50 - 40 = 10 MW Expected Regulation Capacity Range = 10 MW to 80 MW

Step 2: Calculate Available Regulation Capacity

Available Regulation Up Capacity = High Effective Regulation Limit – DOT Available Regulation Up Capacity = 75 – 50 = 25 MW

Available Regulation Down Capacity = DOT - Low Effective Regulation Limit Available Regulation Down Capacity = 50 - 20 = 30 MW

Step 3: Calculate Constrained Regulation Capacity

Constrained Regulation Up = Total Regulation Up Schedule – Available Regulation Up Capacity

Constrained Regulation Up = 30 – 25 = 5 MW

Constrained Regulation Down = Total Regulation Down Schedule – Available Regulation Down Capacity Constrained Regulation Down = 40 – 30 = 10 MW

Attachment J

RUC Capacity Payment Rescission Examples CAISO Business Practice Manual BPM for Compliance Monitoring

J. RUC Capacity Payment Rescission Examples J.1 Availability-limited Undispatchable RUC charges

The undispatchable RUC rescission calculation applies to availability-limited undispatchable RUC Capacity only. Therefore, the calculation considers the RUC Award, the Day-Ahead Spinning Reserve AS Award or Schedule and the Non-Spinning Reserve AS Award or Schedule and Maximum ex-post capacity. RUC Capacity, unlike AS capacity, is not required to be unloaded and, therefore, Minimum ex-post capacity is not included in this equation. MSS Load following capacity does not exist if a MSS resource elects the RUC option, as indicated in the CAISO Master File.

Exhibit J-: Availability-limited Undispatchable RUC Example

Assumptions:

SLIC Data MW Unit Data MW P-Max 200 De-rate 20 PMax 200 RTMA Data Energy 110 Maximum Ex post Capacity 180 RUC Capacity 55 Spin Schedule 35

Unit Availability Undispatchable RUC Capacity subject to No Pay 200 MW

RUC RUC Capacity Capacity

Spin Spin Capacity Capacity 110 MW

Energy Energy Schedule Schedule

Real-Time Final DA Schedule Version 2 Last Revised: JulyAvailability 23, 2009 Page J-1 CAISO Business Practice Manual BPM for Compliance Monitoring

Step 1: Calculate Dispatchable RUC Capacity

Dispatchable RUC Capacity = min (RUC Total Capacity, max(0, (Maximum ex-post capacity – (max(Day-Ahead Energy Schedule, Minimum Load Dispatch)) – Day-Ahead Total Spin Schedule – Day-Ahead Total Non-Spin Schedule+ RT Regulation Up Schedule))/6

Dispatchable RUC Capacity [MWh] = min (55, max(0, (180- max(110, 0)) – 35 – 0 + 0))/6

Dispatchable RUC Capacity [MWh] = min (55, 35)/6

Dispatchable RUC Capacity = 35 MW or 5.83 MWh

Step 2: Calculate Undispatchable RUC Capacity Undispatchable RUC capacity [MWh] = max(0,(RUC Total Capacity/6 – Dispatchable RUC Capacity)) Undispatchable RUC Capacity [MWh] = max(0,(9.167 – 5.83)) Undispatchabe RUC Capacity [MWh = 3.33 MWh

Undispatchable RUC Capacity = 3.33 MWh

Version 2 Last Revised: July 23, 2009 Page J-2 CAISO Business Practice Manual BPM for Compliance Monitoring

J.2 Undelivered RUC charges.

For each Settlement Interval in which the total metered output for a Generating Unit, Participating Load, System Unit or System Resource is less than real-time Expected Energy by more than the Tolerance Band (Max (5 MW, 3% unit's Pmax)/6) and less than the RUC Schedule, the RUC capacity for that Settlement Interval will be rescinded.

Exhibit J-: Undelivered RUC Example

Assumptions:

Unit Data MW MWh P-Max 100 RTMA Data MW MWh Energy 40 DOP 70 RUC Capacity 60 10 Expected Energy 11.67 RUC Schedule 100 16.67 Tolerance Factor 5 0.83 Meter 50 8.33

Step 1: Calculate Undelivered RUC Capacity

If Metered Energy + Tolerance Factor < Expected energy 8.33 MWh + 0.833 MWh < 11.67 MWh

If Metered Energy < RUC Schedule/6 8.33 MWh < 16.67 MWh

Undelivered RUC Capacity = Total RUC Capacity Undelivered RUC Capacity = 60 MW (10 MWh)

Step 2: Calculate Billable Quantity

RUC Bid Capacity Rescission Billable Quantity [MWh] = max(0,(Undispatchable RUC Bid Capacity,Undelivered RUC Bid Capacity)) RUC Bid Capacity Rescission Billable Quantity [MWh] = max(0,(1.67,10)) RUC Bid Capacity Rescission Billable Quantity [MWh] = 10 MWh

J.3 Ineligible RUC Bid charges.

Resource Adequacy Resources not qualified for a Resource Adequacy obligation must bid in RUC at a $0/MW proxy Bid for capacity up to the Resource Adequacy Capacity as reported in the monthly Supply Plans. A resource not qualified for a Resource Adequacy obligation that bids non-zero RUC Capacity before committing at least the amount of its Resource Adequacy Capacity at a $0/MW price will have the RUC Capacity payment rescinded.

Exhibit J-3: Ineligible RUC Bid Example

Assumptions:

Unit Data MW

P-Max 200 Energy Schedule 45 RUC Bid Capacity 80

RUC RA Capacity 75

Total RUC Capacity 155

RA Capacity 200

Undispatchable RUC Bid 0 Capacity

200 MW

RA RUC 45 MW

Energy Schedule

Step 1: Calculate Day-Ahead Committed Capacity

DA Committed Capacity = MAX(DA Energy Schedule, Minimum Load Dispatch) + DA Total Spin Schedule + DA Total Non-Spin Schedule + DA Regulation Up Schedule + RA RUC Capacity DA Committed Capacity = MAX(45,0) + 0 + 0 + 0 + 75 DA Committed Capacity = 120 MW

Step 2: Calculate Ineligible RUC Bid Capacity

Ineligible RUC Bid Capacity = MIN(RUC Bid Capacity/6, RUC Bid Capacity/6 – Undispatchable RUC Bid Capacity, MAX(0, Resource Adequacy Capacity – DA Committed Capacity)/6)

Ineligible RUC Bid Capacity = MIN(80/6, 80/6 – 0, MAX(0, 200 – 120)/6) Ineligible RUC Bid Capacity = MIN(13.33, 13.33, 13.33) Ineligible RUC Bid Capacity = 13.33 MWh

Attachment K

Settlements Bill Determinant Name Cross Reference CAISO Business Practice Manual BPM for Compliance Monitoring

K.Settlements Bill Determinant Name Cross Reference K1. Settlements Bill Determinant Name Cross Reference

Charge Code BPM for Compliance Monitoring Bill Determinant BA_10M_RSRC_NEGUDP_ADJ_SLIC_ENGY_QTY Adjusted Derate Energy 4470, 4480 BA_10M_RSRC_POSUDP_ADJ_SLIC_ENGY_QTY BA_10M_RSRC_NEGUDP_ADJ_DOPD_QTY Adjusted DOPD 4470, 4480 BA_10M_RSRC_POSUDP_ADJ_DOPD_QTY 6124, 6224 Available Operating Reserve BA_10M_RSRC_NO_PAY_OP_RSRV_INC_AVAIL_QTY 1407, 2407 CAISO Expected Reg Down Energy BA_10M_RSRC_MSS_REGDOWN_COMPL_SUPP_DATA_QTY 1407, 2407 CAISO Expected Reg Up Energy BA_10M_RSRC_MSS_REGUP_COMPL_SUPP_DATA_QTY 6124, 6224, 6824 DA Energy Schedule BA_HRLY_RSRC_NO_PAY_DA_ENGY_SCHD_QTY BA_10M_RSRC_NEGUDP_HRLY_DA_SCHD_QTY Day-Ahead Energy Schedule (UDP) 4470, 4480 BA_10M_RSRC_POSUDP_HRLY_DA_SCHD_QTY 1407, 2407 Day Ahead MSS/MSSA Sales/Purchases BA_10M_RSRC_MSS_SALE_PURCH_COMPL_SUPP_DATA_QTY 6224 Declined Non-Spin Capacity BA_10M_RSRC_NO_PAY_NSPN_DECLINED_CAP_QTY 6124 Declined Spin Capacity BA_10M_RSRC_NO_PAY_SPIN_DECLINED_CAP_QTY BA_10M_RSRC_NEGUDP_DOPD_QTY DOPD 4470, 4480 BA_10M_RSRC_POSUDP_DOPD_QTY 6124, 6224 DOT BA_10M_RSRC_NO_PAY_DOT_QTY BA_10M_RSRC_NEGUDP_EFF_REG_DOWN_LIMIT_QTY Effective Downward Regulation Limit 4470, 4480 BA_10M_RSRC_POSUDP_EFF_REG_DOWN_LIMIT_QTY BA_10M_RSRC_NEGUDP_EFF_REG_UP_LIMIT_QTY Effective Upward Regulation Limit 4470, 4480 BA_10M_RSRC_POSUDP_EFF_REG_UP_LIMIT_QTY BA_10M_RSRC_NEGUDP_EXEMPTION_CODE Exemption Energy Reason 4470, 4480 BA_10M_RSRC_POSUDP_EXEMPTION_CODE 6124, 6224, 6824 Expected Energy BA_10M_RSRC_NO_PAY_EXPECTED_ENGY_QTY BA_10M_RSRC_NEGUDP_EXPECTED_ENGY_QTY Expected Energy (UDP) 4470, 4480 BA_10M_RSRC_POSUDP_EXPECTED_ENGY_QTY 6124, 6224, 6824 Maximum ex-post capacity BA_10M_RSRC_NO_PAY_REPORT_MAX_AVAIL_QTY BA_10M_RSRC_NEGUDP_OUTPUT_QTY Metered Energy (UDP) 4470, 4480 BA_10M_RSRC_POSUDP_OUTPUT_QTY 6124, 6224, 6824 Meter Data BA_10M_RSRC_NO_PAY_METER_QTY 1407, 2407 Metered Demand BA_10M_RSRC_METER_LOAD_COMPL_SUPP_DATA_QTY 6124, 6224 Minimum ex-post capacity BA_10M_RSRC_NO_PAY_REPORT_MIN_AVAIL_QTY 1407, 2407 MSS expected IIE BA_10M_RSRC_MSS_EXPECTED_ENGY_COMPL_SUPP_DATA_QTY 6224 Non-Spin IIE BA_10M_RSRC_NO_PAY_NSPN_IIE_QTY No Pay Bid Awarded Non-Spin Billable 6224 Quantity BA_10M_RSRC_NO_PAY_NSPN_AWARD_BID_QTY

Version 2 Last Revised: July 23, 2009 K-1 CAISO Business Practice Manual BPM for Compliance Monitoring

6124 No Pay Bid Awarded Spin Billable Quantity BA_10M_RSRC_NO_PAY_SPIN_AWARD_BID_QTY 6224 No Pay Non-Spin Billable Quantity BA_10M_RSRC_NO_PAY_NSPN_TOT_QTY No Pay Self-Provision Non-Spin Billable 6224 Quantity BA_10M_RSRC_NO_PAY_NSPN_SELFP_QTY 6124 No Pay Self-Provision Spin Billable Quantity BA_10M_RSRC_NO_PAY_SPIN_SELFP_QTY 6124 No Pay Spin Billable Quantity BA_10M_RSRC_NO_PAY_SPIN_TOT_QTY BA_10M_RSRC_REGUP_CONSTRAINT_LIM_MINUTE_COUNT 6524, 6624 number of minutes constrained BA_10M_RSRC_REGDOWN_CONSTRAINT_LIM_MINUTE_COUNT BA_10M_RSRC_REGUP_COMMUNICATION_ERROR_MINUTE_COUNT 6524, 6624 number of minutes of Communication Error BA_10M_RSRC_REGDOWN_COMMUNICATION_ERROR_MINUTE_COUNT BA_10M_RSRC_REGDOWN_CONSTRAINT_LIM_MINUTE_COUNT 6524, 6624 number of minutes off control BA_10M_RSRC_REGDOWN_OFF_CONTROL_MINUTE_COUNT BA_10M_RSRC_REGUP_OUT_OF_RANGE_MINUTE_COUNT 6524, 6624 number of minutes out-of-range BA_10M_RSRC_REGDOWN_OUT_OF_RANGE_MINUTE_COUNT BA_10M_RSRC_NEGUDP_PMAX_QTY Pmax 4470, 4480 BA_10M_RSRC_POSUDP_PMAX_QTY 6824 RA RUC Capacity BA_HRLY_RSRC_NO_PAY_RUC_RA_CAP_QTY 6624 Regulation Down Bid Billable Quantity BA_10M_RSRC_REGDOWN_AWARD_BID_NON_COMP_QTY 6624 Regulation Down Communication Error MW BA_10M_RSRC_REGDOWN_COMMUNICATION_ERROR_QTY 6624 Regulation Down Constrained MW BA_10M_RSRC_REGDOWN_CONSTRAINT_LIM_QTY 6624 Regulation Down Off Control MW BA_10M_RSRC_REGDOWN_OFF_CONTROL_QTY 6624 Regulation Down Out-of-Range MW BA_10M_RSRC_REGDOWN_OUT_OF_RANGE_QTY Regulation Down Self-Provided Billable BA_10M_RSRC_REGDOWN_SELFP_NON_COMP_QTY 6624 Quantity 6524 Regulation Up Bid Billable Quantity BA_10M_RSRC_REGUP_AWARD_BID_NON_COMP_QTY 6524 Regulation Up Communication Error MW BA_10M_RSRC_REGUP_COMMUNICATION_ERROR_QTY 6524 Regulation Up Constrained MW BA_10M_RSRC_REGUP_CONSTRAINT_LIM_QTY 6524 Regulation Up Off Control MW BA_10M_RSRC_REGUP_OFF_CONTROL_MINUTE_COUNT 6524 Regulation Up Out-of-Range MW BA_10M_RSRC_REGUP_OUT_OF_RANGE_QTY Regulation Up Self-Provided Billable BA_10M_RSRC_REGUP_SELFP_NON_COMP_QTY 6524 Quantity BA_10M_RSRC_NEGUDP_MAX_AVAIL_QTY Reported Maximum Availability 4470, 4480 BA_10M_RSRC_POSUDP_MAX_AVAIL_QTY BA_10M_RSRC_NEGUDP_MIN_AVAIL_QTY Reported Minimum Availability 4470, 4480 BA_10M_RSRC_POSUDP_MIN_AVAIL_QTY 6824 RUC Bid Capacity BA_HRLY_RSRC_NO_PAY_RUC_BID_CAP_QTY RUC Bid Capacity Rescission Billable 6824 Quantity BA_10M_RSRC_NO_PAY_RUC_BID_QTY RUC RA Capacity Rescission Billable 6824 Quantity BA_10M_RSRC_NON_COMPL_RUC_RA_QTY 6124 Spin IIE BA_10M_RSRC_NO_PAY_SPIN_IIE_QTY Sum of Day Ahead Final External 1407, 2407 Generation Schedules BA_10M_RSRC_METER_GEN_COMPL_SUPP_DATA_QTY Sum of Day Ahead Final Internal 1407, 2407 Generations Schedules Sum of Day Ahead Submitted Export 1407, 2407 Schedules BA_10M_RSRC_EXP_COMPL_SUPP_DATA_QTY Sum of Day Ahead Submitted Import 1407, 2407 Schedules BA_10M_RSRC_IMP_COMPL_SUPP_DATA_QTY Sum of Day Ahead Submitted SC-to-SC 1407, 2407 Trades into the MSS/MSSA BA_10M_RSRC_DA_TRADE_IN_COMPL_SUPP_DATA_QTY Sum of Day Ahead Submitted SC-to-SC 1407, 2407 Trades out of the MSS/MSSA BA_10M_RSRC_DA_TRADE_OUT_COMPL_SUPP_DATA_QTY

Version 2 Last Revised: July 23, 2009 K-2 CAISO Business Practice Manual BPM for Compliance Monitoring

BA_10M_RSRC_NEGUDP_TOL_BAND_QTY Tolerance Band 4470, 4480 BA_10M_RSRC_POSUDP_TOL_BAND_QTY BA_10M_RSRC_NEGUDP_EXEMPTION_ENGY_QTY Total Exemption Energy 4470, 4480 BA_10M_RSRC_POSUDP_EXEMPTION_ENGY_QTY 6124, 6224, BA_10M_RSRC_NO_PAY_NSPN_TOT_BID_SCHD_QTY Total Non-Spin Schedule 6824 BA_10M_RSRC_NO_PAY_NSPN_TOT_SELF_SCHD_QTY 6524, 6624 Total Regulation Down Schedule BA_10M_RSRC_REG_SCHD_QTY 6524, 6624 Total Regulation Down Unavailable Minutes BA_10M_RSRC_REGDOWN_UNAVAIL_MINUTE_COUNT 6524, 6624 Total Regulation Down Unavailable MW BA_10M_RSRC_REGDOWN_UNAVAIL_QTY 6524, 6624 Total Regulation Up Schedule BA_10M_RSRC_REG_SCHD_QTY 6524, 6624 Total Regulation Up Unavailable Minutes BA_10M_RSRC_REGUP_UNAVAIL_MINUTE_COUNT 6524, 6624 Total Regulation Up Unavailable MW BA_10M_RSRC_REGUP_UNAVAIL_QTY 6124, 6224, BA_10M_RSRC_NO_PAY_SPIN_TOT_BID_SCHD_QTY Total Spin Schedule 6824 BA_10M_RSRC_NO_PAY_SPIN_TOT_SELF_SCHD_QTY 6224 Unavailable Non-Spin Capacity BA_10M_RSRC_NO_PAY_NSPN_UNAVAIL_QTY 6124 Unavailable Spin Capacity BA_10M_RSRC_NO_PAY_SPIN_UNAVAIL_QTY 6224 Undelivered Non-Spin BA_10M_RSRC_NO_PAY_NSPN_UNDELV_QTY 6824 Undelivered RA RUC Capacity BA_10M_RSRC_NO_PAY_RUC_UNDELV_RA_QTY 6824 Undelivered RUC Bid Capacity BA_10M_RSRC_NO_PAY_RUC_UNDELV_BID_CAP_QTY 6124 Undelivered Spin BA_10M_RSRC_NO_PAY_SPIN_UNDELV_QTY 6224 Undispatchable Non-Spin Capacity BA_10M_RSRC_NO_PAY_NSPN_UNDISP_QTY 6824 Undispatchable RA RUC Capacity BA_10M_RSRC_NO_PAY_RUC_UNDISP_RA_CAP_QTY 6824 Undispatchable RUC Capacity BA_10M_RSRC_NO_PAY_RUC_UNDISP_CAP_QTY 6824 Undispatchable RUC Bid Capacity BA_10M_RSRC_NO_PAY_RUC_UNDISP_BID_CAP_QTY 6124 Undispatchable Spin Capacity BA_10M_RSRC_NO_PAY_SPIN_UNDISP_QTY Unsynchronized Non-Spinning Reserve 6224 Billable Quantity BA_10M_RSRC_NO_PAY_NSPN_UNSYNC_QTY Unsynchronized Spinning Reserve Billable BA_10M_RSRC_NO_PAY_SPIN_UNSYNC_QTY 6124 Quantity

Version 2 Last Revised: July 23, 2009 K-3