Business Requirements Specification

External Business Requirements Specification Version 2.0

September 1, 2011 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011

Disclaimer All information contained in this draft Business Requirements Specification (BRS) as provided by the California Independent System Operator Corporation (ISO) is prepared for discussion and information purposes only. The draft BRS is provided “as is” without representation or warranty of any kind, including, without limitation, a representation or warranty as to accuracy, completeness, or appropriateness for any particular purpose. The draft BRS shall be revised as the development and review of the business requirements progresses. The ISO assumes no responsibility for the consequences of any errors or omissions. The ISO may revise or withdraw all or part of this information at any time at its discretion without notice.

Path to file: Page 2 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011

Table of Contents

1. INTRODUCTION...... 4

1.1 PURPOSE...... 4 2. DETAILS OF BUSINESS NEED/PROBLEM...... 5

2.1 DESCRIPTION OF RAMPING CONSTRAINT PROBLEM...... 5 2.2 PROPOSED SOLUTION...... 6 2.2.1 Min On-line Upward and Downward Ramping Capacity Requirements...... 6 2.2.2 Min On-line Upward and Downward Ramping Capacity Procurement Constraints...... 6 2.2.3 Min On-line Upward and Downward Ramping Capacity Time Domain Constraints...... 7 2.2.4 Min On-line Upward and Downward Resource Capacity Constraints...... 7 2.2.5 Ramp Up and Down Limits...... 7 2.2.6 Objective Function...... 8 2.2.7 Global Min On-line Ramping Capacity Constraints Enforcement...... 8 3. BUSINESS PROCESS IMPACTS...... 9

3.1 HIGH LEVEL BUSINESS PROCESS...... 9 3.1.1 Description...... 9 3.2 RISKS AND MITIGATION...... 9 3.3 ASSUMPTIONS & CONSTRAINTS...... 9 3.4 JUSTIFICATION...... 9 4. BUSINESS REQUIREMENTS...... 11

4.1 BUSINESS PROCESS: OPERATE REAL TIME MARKET AND GRID...... 11 4.1.1 Business Requirements – IFM and RTPD...... 11 4.2 RAMP FLEXING BUSINESS RULES...... 19 4.3 MARKET MONITORING PROCEDURES...... 20

Path to file: Page 3 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 1. Introduction

1.1 Purpose

The purpose of this document is to describe the business rules and requirements to implement the ability to designate the MW amount of flexible capacity (capacity capable of being dispatched on a 5 minute basis) required to meet the load forecast and foreseeable deviations from forecast or system conditions.

Path to file: Page 4 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 2. Details of Business Need/Problem

2.1 Description of Ramping Constraint problem

The Integrated Futures Market (IFM) and Real-Time Pre-Dispatch (RTPD) optimize resources based on a single imbalance amount for an entire hour or 15-minute interval, respectively, expecting perfect load forecast and constant conditions over the interval. There are times when IFM and RTPD optimize resources so efficiently that they leave no on-line available, unscheduled capacity for Real-Time Dispatch (RTD) to dispatch for any variability between the constant conditions assumed in IFM/RTPD and what is occurring in real time and must be managed through the 5-minute RTD. The IFM especially in the peaks and valleys can optimize resources to meet the load forecast for the hour but not necessarily meet imbalance for every five minutes in that hour. RTPD does the same thing by committing or de-committing resources well enough to meet the load forecast at the time of RTPD run for a single load forecast but not necessarily well enough for RTD to meet changes between the time RTPD ran and the time RTD runs. In addition, RTPD dispatches units to meet the 15 minutes but not necessarily well enough to meet every 5 minute interval within every 15 minutes. Changes for the RTD after RTPD runs are many and could trigger price volatility especially at peaks and valleys for very small amounts of ramp needed but not available to RTD. When this occurs, biasing and/or Exceptional Dispatch are the only tools left for the operator to deal with this issue. This variability will increase in the future as more intermittent renewable resources are integrated into the ISO system.

To help the operators manage ramping inflexibility in RTD, an additional constraint will be introduced in the optimization of IFM, RTPD and RTD software, referred to as upward and downward System Ramping Constraints (RRC). These new constraints will ensure that the optimization solution in IFM, RTPD, and RTD leaves some un-loaded capacity below Pmax (that can be dispatched up) and some loaded capacity above Pmin (that can be dispatched down) on the scheduled internal ramp limited resources. These constraints will effectively reserve unloaded capacity on resources to be dispatched as energy in RTD to cope with the variability caused by the changing system conditions and various numerical and forecasting model errors between the IFM/RTPD and the corresponding RTD that occurs starting roughly 15 minutes later.

This document reflects the full scope of enhancements to the ISO functionality. However, the ISO’s current policy development as specified in the documents in support of its current stakeholder initiave: http://www.caiso.com/informed/Pages/StakeholderProcesses/FlexibleRampingConstraint.aspx. Please see also the ISO’s proposal to its board of governors as approved on August 25, 2011.: http://www.caiso.com/Documents/Board%205)%20Decision%20on%20flexible%20ramping%20constraint %20compensation.

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2.2 Proposed Solution

Add min on-line upward and downward ramping capacity constraints to the optimization problem that leaves enough ramping room UP and DOWN for a MW amount to handle load variations within the hour. These constraints will ensure that the required room up and down MW amounts can be feasibly dispatched taken into consideration individual resource’s ramping capability, AS procurements, SLIC derate/rerates, and OOS instructions.

Note: The ISO plans to implement the capability for a Downward System Ramping Constraint, but will not initiate the downward constraint in the current phase (5/31/2011 release). In particular, neither upward not downward ramping constraints shall be enforced in the Day-Ahead (DAM). Upward Ramping constraints shall be enforced in the RTPD and RTD. The first interval in the RTD horizon shall not be binding. The Downward Ramping Constraint may be activated in the future or during a second phase after performing analyses.

2.2.1 Min On-line Upward and Downward Ramping Capacity Requirements

The minimum on-line ramping upward capacity MRUC(t), and minimum on-line ramping downward capacity MRDC(t) requirements for each time interval are calculated based on the following equations and shall be overridden by user enterable values per interval: MRUC(t)  RUF  PUC *Max(LF(t 1)  LF(t), LF(t)  LF(t 1),0)

MRDC(t)  RDF  PDC *Max(LF(t 1)  LF(t), LF(t)  LF(t 1),0)

Where, RUF: Room Up as a Fixed constant set to 200 MW default. RDF: Room Down as a Fixed constant set to 200 MW default. PUC: Participating Up constant set to a number between 0 and 1.0 and defaults to 0.25 PDC: Participating Down constant set to a number between 0 and 1.0 and defaults to 0.25 LF(t): Load Forecast MW for the interval t

2.2.2 Min On-line Upward and Downward Ramping Capacity Procurement Constraints

The min on-line upward and downward ramping capacity requirements among resources certified for this service shall be formulated as follows: PR (t)  K (t)* MRUC(t)  u,i up iOnline Gen

Path to file: Page 6 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 PR (t)  K (t) * MRDC(t)  d ,i dn iOnline Gen Where,

PRu,i(t): Upward flexible ramping capacity of a given resource i at time t

PRd,i(t): Downward flexible ramping capacity of a given resource i at time t MRUC(t) : Min on-line upward ramping capacity requirement at time t, e.g. 200MW MRDC(t) : Min on-line downward ramping capacity requirement at time t, e.g. 200MW

Kup(t) , Kdn(t): are smoothing coefficients for the Min on-line ramping up and down capacity requirement, respectively, for interval t ; and shall be user enterable per each time interval.

2.2.3 Min On-line Upward and Downward Ramping Capacity Time Domain Constraints

The min on-line upward and downward ramping capacity time domain constraints for resources certified for this service shall be constrained as follows:

PRu,i (t)  PRU i (t)

PRd ,i (t)  PRDi (t)

Where,

PRUi (t): Upward available ramping capacity of a given resource i at time t

PRDi(t): Downward available ramping capacity of a given resource i at time t The upward/downward ramping capacity shall be calculated from the Energy schedule of the resource and the applicable ramp rate function over the time domain of the min on-line upward and downward ramping capacity, which shall be configurable in each application.

2.2.4 Min On-line Upward and Downward Resource Capacity Constraints

The upward and downward flexible ramping capacity at each interval shall be bounded by the available on-line unloaded resource capacity based on the following equations:

P (t)  AS (t)  PR (t)  PMAX (t) i  upward ,i u,i i

Path to file: Page 7 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 P (t)  AS (t)  PR (t)  PMIN (t) i  downward ,i d ,i i

Where:

Pi(t): Energy MW for resource i at time t. ∑AS(t): sum of resource i upward/downward Ancillary Service components at interval t.

PMAXi(t): Effective max MW limit for resource i at time t adjusted for SLIC, OOS de-rates.

PMINi(t): Effective min MW limit for resource i at time t adjusted for SLIC, OOS re-rates. Note that the Upper/Lower Regulating Limits shall be used instead of the Upper/Lower Operating Limits when the resource is on Regulation. Also, Spinning and Non-Spinning Reserve could overlap with Regulation Up and the Min On-line Upward Ramping Capacity based on a configuration option.

2.2.5 Ramp Up and Down Limits

Ramp up limit (RLU) and Ramp down limit (RLD) constraints for resource i determine the rate at which ramping can occur over one time interval. These upward and downward ramping limits shall not be considered part of the Objective Function, but rather a primary non-economic constraint. The RLU and RLD constraints are modified to take into account the upward and downward ramping capacity, respectively as follows: 1 1 *[P (t 1)  P (t 1)]   * PR (t)  *[RLU (t 1)  RLU (t)] 2 i i u,i u,i 2 i i

1 1 *[P (t 1)  P (t 1)] * PR (t)  *[RLD (t 1)  RLD (t)] 2 i i d ,i d ,i 2 i i

Where:

Pi(t): Energy MW for resource i at time t. PRu,i(t), PRd,i(t) : Upward or downward online ramping capacity of resource i at time t

RLUi(t), RLDi(t): ramp up limit and ramp down limit for resource i at time t.

αu,i , αd,i , are factors to adjust the resource’s ramping up/down capacity participating in the ramp up/dn limit constraints, default values are 1.0 for both, but these factors shall be separate and user enterable per resource i.

2.2.6 Objective Function

Upward and downward ramping, if modeled as a market product, can have price curves similar to that of other Ancillary Services, and their impact shall be included in the Objective Function and co-optimized with energy and other A/S products. An operator-enterable flag shall be used to activate the minimum online ramping feature with and without the impact on the objective function, i.e. partial or full activation, or operator may

Path to file: Page 8 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011

disable the minimum online ramping feature altogether. In case of full activation, the procured ramping capacity from higher level markets will be protected on a resource level, using lower priority than regulation and other operating reserves. The protection priority shall be user-enterable in the database and shown on the User Interface. Loss of opportunity cost due to the Flexible Ramp feature shall be calculated and displayed by the software. Please note that the full activation functionality and the calculation of opportunity cost is not part of the Phase 1 scope. It is just mentioned here to set the stage for later developments and possible guidance for some design decisions during Phase 1 development.

2.2.7 Global Min On-line Ramping Capacity Constraints Enforcement

Flexibility is needed to turn on and off on-line system upward and downward ramping constraints as a global constraint enforcement flag, i.e. user shall be able to enable/disable Flexible ramp feature by checking/un- checking a display Flag. A separate activation flag shall be used for Interval RTD and Contingency Dispatch. In addition, separate smooth coefficients for min On-line ramping capacity requirement for both up and down (separate coefficients) per each time interval is needed. The enforcement and smooth coefficients of these constraints is independent across functions, thus in a given time period a constraint may be enforced in RTPD but not in RTD, and vice versa.

The proposed default set up for the enforcement of these constraints is NOT to enforce min on-line ramping up and down constraints in the financially binding time interval of the market run, hence is no impact on settlement.

Path to file: Page 9 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011

3. Business Process Impacts

3.1 High Level Business Process

3.1.1 Description

This feature will allow the operators the ability to include additional dispatchable MW to any financially non- binding time interval in either the up or the down directions, or both by designating a margin (in MW) that must be available for each period.

This feature provides flexibility in the event the load is higher than forecast or supply is not responding as expected/instructed. By designating ramping capacity, the need to bias the HASP run will be greatly reduced, if not eliminated. By designating capacity to be available, a more accurate price signal is sent in RTD as opposed to using biasing to procure additional MW.

3.2 Risks and Mitigation

 To minimize the complexity of implementing of this feature, the problem formulation is developed in a manner that utilizes existing optimization variables to reduce development and testing efforts.

3.3 Assumptions & Constraints

1 Siemens Resource availability constraints knowing all on-going activities on MSG, CB and other Map and Production projects 2 Availability of Testing Environment 3 Availability of functional Testers 4 SIBR and other systems impacts are not part of this BRS 5 IFM as referred to in this document corresponds to all applications running in the Day-Ahead market including MPM, IFM, and RUC. 6 RTPD as referred to in this document corresponds to all 15-min RTUC applications including HASP, STUC, RTPD. 7 RTD as referred to in this document corresponds to real-time market applications including Interval RTD, and Contingency.

3.4 Justification

This project is being proposed to smooth out real time price volatility as well as provide operating personnel more flexibility in anticipating situations on the grid where additional available capacity has historically been required but not procured.

Path to file: Page 10 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011

This project should greatly reduce the biasing that occurs in HASP. This implementation will reduce the reliance on regulation when prices hit certain measures during ramp shortage conditions.

This implementation will also benefit the near-future non generating resource project to implement feeding regulating usage into the imbalance equations of future intervals.

Path to file: Page 11 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 4. Business Requirements

The sections below describe the Business Processes and the associated Business Requirements involved in implementing the Real Time Ramping Flexibility project.

4.1 Business Process: Operate Real time Market and Grid

4.1.1 Business Requirements – IFM and RTPD

Requiremen Application(s) ID# Business Feature t Type Impacted

RF- Min online upward and downward ramping capacity constraints Core IFM, RTPD, BRQ001 (MRUC, MRDC) must be available in IFM, RTPD, and RTD and RTD activated/deactivated using a user enterable Flag. RF- MRUC, MRDC Ramping constraints requirements are calculated Core IFM, RTPD, BRQ002 independently per each time interval based on empirical formula RTD provided by CAISO. A smoothing coefficients for the requirements are also required per each time interval per up and down requirement. The smoothing coefficient shall range from 0.0 to 1.0 where 0 provides no smoothing and 1 provides full smoothing. RF- User shall have the capability to override the calculated MRUC Core IFM, RTPD, BRQ003 and MRDC values. RTD RF- Calculated flex Ramping MW shall be displayed per time interval Core IFM, RTPD, BRQ004 per individual generator, and per time interval for system wide. RTD

Path to file: Page 12 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 ID# Business Feature Requiremen Application(s) t Type Impacted BRQ005 Core IFM, RTPD, Implement the following constraint into IFM, RTPD, and RTD: RTD

The min on-line upward and downward ramping capacity constraints may be formulated as follows: PR (t)  K (t) * MRUC(t)  u,i up iOnline Gen PR (t)  K (t) * MRDC(t)  d ,i dn iOnline Gen

Where,

PRu,i(t): Upward flexible ramping capacity of a given resource i at time t

Kup(t) , Kdn(t): are smoothing coefficients for the Min on-line ramping up and down capacity requirement, respectively, for interval t ; and shall be user enterable per each time interval.

Path to file: Page 13 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 ID# Business Feature Requiremen Application(s) t Type Impacted RF- The MRUC(t) and MRDC(t) requirements for each time interval Core IFM, RTPD, BRQ006 are calculated based on the following equations and shall be RTD overridden by user enterable values per interval:

Note:  The absolute value of load forecast change shall be used in the flex ramp calculation.  The Load Forecast Bias shall not be included in the flex ramp requirement calculation RF- Min on-line upward and downward ramping capacity constraints Core IFM, RTPD, BRQ007 shall have lower priority than typical constraints such as energy RTD balance, inter-tie scheduling, transmission constraints, nomogram constraints, AS requirements constraints. RF- The upward and downward ramping capacity at each interval Core IFM, RTPD, BRQ008 shall be bounded by the available on-line unloaded resource RTD capacity based on the following equations:

P (t)  AS (t)  PR (t)  PMAX (t) i  upward ,i u,i i P (t)  AS (t)  PR (t)  PMIN (t) i  downward ,i d ,i i

Where:

Pi(t): Energy MW for resource i at time t. ∑AS(t): sum of resource i upward/downward Ancillary Service components at interval t.

PMAXi(t): Effective max MW limit for resource i at time t adjusted for SLIC, OOS de-rates.

PMINi(t): Effective min MW limit for resource i at time t adjusted for SLIC, OOS re-rates..

Path to file: Page 14 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 ID# Business Feature Requiremen Application(s) t Type Impacted RF- Ramp up limit (RLU) and Ramp down limit (RLD) constraints for Core IFM, RTPD, BRQ009 resource i determine the rate at which ramping can occur over RTD one time interval. The RLU and RLD constraints are modified to take into account the upward and downward ramping capacity, respectively as follows: 1 1 *[P (t 1)  P (t 1)]   * PR (t)  *[RLU (t 1)  RLU (t)] 2 i i u,i u,i 2 i i 1 1 *[P (t 1)  P (t 1)]   * PR (t)  *[RLD (t 1)  RLD (t)] 2 i i d ,i d ,i 2 i i Where:

Pi(t): Energy MW for resource i at time t. PRu,i(t), PRd,i(t) : Upward or downward online ramping capacity of resource i at time t

RLUi(t), RLDi(t): ramp up limit and ramp down limit for resource i at time t.

αu,i , αd,i , are factors to adjust the ramping up/dn capacity participating in the ramp up/dn limit constraints, default values are 1.0 for both but these factors shall be user enterable per resource i. RF- Flexibility is needed to turn on and off on-line system upward Core IFM, RTPD, BRQ010 and downward ramping constraints as a global constraint RTD enforcement flag, i.e. user shall be able to enable/disable Flexible ramp feature by checking/un-checking a display Flag. A separate activation flag shall be used for Interval RTD and Contingency Dispatch. In addition, separate smooth out coefficients for min On-line ramping capacity requirement for both up and down (separate coefficients) per each time interval is needed. The enforcement and smooth coefficients of these constraints is independent across functions, thus in a given time period a constraint may be enforced in RTPD but not in RTD, and vice versa. RF- The proposed default set up for the enforcement of these Core IFM, RTPD, BRQ011 constraints is NOT to enforce min on-line ramping up and down RTD constraints in the financially binding time interval of the market run, hence there is no impact on settlement.

RF- User Interface and displays shall be added /modified to present Core IFM, RTPD, BRQ012 all information related to these min on-line constraints including RTD required input data as well as results showing the amount of available upward and downward ramping per resource per time interval; and on system level per time interval. In addition, the lost opportunity cost shall be displayed per resource per time interval. Shadow price of these constraints shall also be recorded in the emm_scuc_output_bind_constr when they are binding in either scheduling or pricing runs. Path to file: Page 15 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 ID# Business Feature Requiremen Application(s) t Type Impacted RF- Shadow price of min online upward and downward ramping Core IFM, RTPD, BRQ013 capacity requirement constraints shall be recorded in the RTD emm_scuc_output_bind_constr when they are binding in either scheduling or pricing runs. RF- The User Interface / Application shall display whether or not the Core IFM, RTPD, BRQ014 Ramp Flex Requirement was met successfully. An indication of RTD Ramp Flex Requirement infeasibility shall be determined and reported. RF- Upward and downward ramping, if modeled as a market Optional IFM, RTPD, BRQ015 product, can have price curves similar to that of other Ancillary RTD. SIBR and Services, and their impact shall be included in the Objective other systems Function and co-optimized with energy and other A/S products. impacts are not part of this BRS RF- An operator-enterable flag shall be used to activate the Optional IFM, RTPD, BRQ016 minimum online ramping feature with and without the impact on RTD. SIBR and the objective function, i.e. partial or full activation. This other systems requirement is in addition to the enable/disable feature required impacts are not under BRQ010. (The functionality behind the full activation is not part of this part of Phase 1 development) BRS

RF- In case of full activation, the procured ramping capacity from Optional IFM, RTPD, BRQ017 higher level markets will be protected on a resource level, using RTD. SIBR and lower priority than regulation and other operating reserves. The other systems protection priority shall be user-enterable in the database and impacts are not shown on the User Interface. (not part of Phase 1 development) part of this BRS RF- Loss of opportunity cost due to the Flexible Ramp feature shall Optional IFM, RTPD, BRQ018 be calculated and displayed by the software.(not part of Phase 1 RTD. SIBR and development) other systems impacts are not part of this BRS RF- New Resource attributes, similar to the AS certification flags, Core Master File BRQ019 shall indicate the eligibility of resources to provide Min On-line Upward and Downward Ramping Capacity. IFM/RTM shall consume these flags via the Master File Transfer Script.

If a resource has been changed using the Flex Ramp UI in the Market Application to be set to ‘Not Eligible’ for Flex Ramp awards (from YES to NO), it should NOT be automatically reset daily at midnight (MF refresh time). Instead, the operator shall reset the resource back once the resource is available to provide Flex Ramp.

Path to file: Page 16 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 ID# Business Feature Requiremen Application(s) t Type Impacted RF- A system-wide Ramp Up MW and Ramp Down MW shall be Core IFM/RTN BRQ020 calculated and saved for publishing for each of the following market intervals: IFM, HASP, RTPD, and RTD. System- Ramp Ramp Wide Up MW Down MW IFM x x HASP x x RTPD x x RTD x x

RF- A System-wide Shadow Cost (or Shadow Price) shall be Core IFM/RTN BRQ021 calculated and saved for publishing for each of the following market intervals: IFM, HASP, RTPD, and RTD. System- Shadow Price / Wide Shadow Cost IFM x HASP x RTPD x RTD x

RF- OASIS shall save and publish the following information: Core OASIS BRQ022 System-Wide Ramp Up MW and Ramp Down MW for IFM, HASP, RTPD, and RTD markets (as detailed in BRQ020)

OASIS shall have the ability to consume and publish corrected Ramp Up MWs.

Note: Corrected Ramp Up MWs are necessary in RTPD only due to resource-level Ramp Up in RTPD. Ramp Down MW and corrections shall not be included in OASIS publication. RF- OASIS shall save and publish the following information: Core OASIS BRQ023 System-Wide Shadow Price/Shadow Cost for IFM, HASP, RTPD, and RTD markets (as detailed in BRQ021).

OASIS shall have the ability to consume and publish corrected shadow prices.

Note: Ramp Down Shadow Price and corrections shall not be included in OASIS publication.

Path to file: Page 17 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 ID# Business Feature Requiremen Application(s) t Type Impacted RF- Ramp flexing data shall be recorded as part of the save case in Core EDR BRQ024 a data repository for future evaluation and study. Data includes: 1. Quantity of up and down requirements by interval by market 2. Quantity of up and down available in the solution by interval by market 3. Flag if flexi-ramp constraint is enforced by market 4. Shadow price (if any) for the up / down constraint by interval by market RF- The flex ramping time horizon shall be configurable, defaulting Core IFM/RTM BRQ028 to 10 minutes. RF- Ramping Constraint penalties shall be defined by Market Core IFM/RTM BRQ029 Analysis & Development. Penalties shall default to $250.

RF- Per resource, the Resource-Level Ramp Up MW, Ramp Down Core IFM/RTM BRQ030 MW, and resource-level shadow price shall be calculated and saved for the binding RTPD intervals. The resource level shadow price will be set to the system level shadow price. Note: This is to prepare the future in which we do have individual resource level ramping capacity prices. Note: this shall affect the RTPDBindingResourceAward payload. RF- CMRI shall consume from RTM, display and publish the Core CMRI BRQ031 Resource-level Ramp Up MW(similar to Spin/Non-Spin). Ramp Down and shadow price do not need to be published. Only binding RTPD intervals for resource-level Ramp Up MW shall be published. RF- Settlements shall calculate a new ramping capacity payment on Core SaMC, BRQ032 the Ramp Up MWs: IFM/RTM

Settlements-based Ramping Capacity Payment = (Resource Ramp Up MW * Resource-Level Shadow Price) / 12 for the first 5 minute + (Resource Ramp Up MW * Resource-level Shadow Price) / 12 for the second 5-minute interval.

Note: This separation is necessary since ramping capacity and prices are determined on a 15-minute basis, while settlement is on a 10-minute basis. Note: Our current ramping policy has determined that there is no need for No Pay logic in this calculation.

Path to file: Page 18 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 ID# Business Feature Requiremen Application(s) t Type Impacted RF- The RTD flex ramp enforcement shall be based on a flag Core IFM/RTM BRQ033 construct. The following conditions shall dictate enforcement:

 If RTD Flex Ramp Enforcement Flag is set to true (YES), the RTD flexible ramp system requirement shall be set to be equal or less than the effective cleared RTPD system flexible ramping constraint.  If RTD Flex Ramp Enforcement Flag is set to false (NO), the RTD flexible ramp system requirement will be set to effective cleared RTPD system flex ramp unless the RTD effective operator override MW (smoothing coefficient applied) is lower than that value.

Note: The Flexible Ramping Constraint is a 10 minute commodity in RTPD and 5 minute commodity in RTD. Hence: Effective Cleared RTPD System Flex Ramp to be used in RTD = Cleared RTPD system flex ramp * Ramping time in RTD/Ramping time in RTPD shall be used. RF- Per RTD interval, System-Level and Resource-level RTPD/RTD Core IFM/RTM BRQ034 cleared flex ramp awards shall be calculated, saved, and displayed. In addition, at the system-level, RTD dispatch control screen which is used by operators shall reflect the RTD cleared flex ramp MW.

Note: This functionality has already been implemented. RF- All Flex Ramp data elements (including but not limited to Ramp Core MQS/IFM/RTM BRQ035 Up MW, Ramp Down MW on a resource-level, and System- Wide / Resource-Level Shadow Prices) required for settlements and reporting shall be provided to MQS via the HIS tables and HIS transfer mechanisms. RF- MQS shall have the ability to publish corrected FlexRamp data Core MQS, OASIS, BRQ036 including but not limited to: CMRI, SAMC  System-Wide / Resource-Level Shadow Price,  Resource-Level Ramp Up MW,  Resource-Level Ramp Down MW (currently no recipient),  System-Wide Ramp Up MW,  System-Wide Ramp Down MW (currently not needed) for consumption by downstream systems.

Note: Price corrections are only needed in the RTPD. Price corrections are not necessary in DA/IFM, HASP, or RTD.

Path to file: Page 19 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011 ID# Business Feature Requiremen Application(s) t Type Impacted RF- Settlements shall calculate a new allocation to the ramping Core SAMC BRQ037 capacity payment. This allocation shall be based on measured demand.

4.2 Ramp Flexing Business Rules

BRL ID Business Rule Description RF-BRL100 Per resource level, RTD shall not enforce more than the awarded flex ramp capacity procured in the RTPD for the intervals where flex ramp constraint is enforced. (see RF-BRQ033) RF-BRL110 RTD may only enforce the same or less the system level ramping capacity requirement from the RTPD capacity requirement as procured. (see RF-BRQ033) RF-BRL120 In addition to other resources, Ramp Up MW applies to MSG resources. RF-BRL130 Intentionally Left Blank RF-BRL140 Intentionally Left Blank RF-BRL150 Intentionally Left Blank

4.3 Market Monitoring Procedures

This section highlights potential market monitoring steps that may be taken to mitigate market power scenarios, and highlight Ramp Flexing effects on the market.

Path to file: Page 20 of 21 Review Date: Flex RampingFlex Ramping Policy No.: Version No.: 2.0 Business Requirements Specification: Ramp Rate Flexibility Effective Date 9/1/2011

Market Market Monitoring Procedure Description Monitoring ID RF-MM100 To reserve Ramp Flex capacity, RTPD may commit additional resources to meet Ramp Flex margins. The Market Analysis and Development team (MAD) may identify incremental RTPD commitment due to Ramp Flex. MAD may quantify the commitment cost for resources committed to meet Flex Ramp constraint and compare to real-time historical commitment costs. RF-MM110 Flex Ramp capacity reservation in RTD non-binding intervals may contribute to increased congestion cost by limiting a resource’s ability to mitigate congestion in the RTD binding interval. In cases where congestion constraint is greater than $100 in RTD binding intervals and there is a resource flagged under MM190, the department of Market Analysis and Development (MAD) may re-run selective scenarios to determine Flex Ramp’s contribution to congestion in the RTD without flexi-ramp constraint enforced in non-binding RTD intervals for comparison. RF-MM120 The Market Analysis and Development team may target market intervals that have a relaxed the power balance constraint. RF-MM130 The Market Surveillance Committee (MSC) may provide opinions regarding behavioral or price changes due to the Flex Ramp constraint. The MAD may trend the average bid price with the cleared ASMP price in RTPD to determine Flex Ramp’s effect on prices in the market. RF-MM140 The MSC may provide opinions regarding procurement patterns and shadow prices for non- binding RTD intervals where a high Flex Ramp price exists. RF-MM150 The Market Information Department may track the two Flex Ramp charge codes (one for paying the generating entity, another for charging the load) to determine Flex Ramp cost in specified time interval(s). This metric may explain Flex Ramp’s effect on the overall market. RF-MM160 The MAD may monitor the System-Wide Flex Ramp set point and any manual adjustment made by operators in RTPD. RF-MM170 The MAD may monitor the quantity of ramp capability in RTD binding interval and compare it to the quantity of Flexi-ramp capability procured in RTPD for: 1. In RTD, based on the initial conditions of resource procured for flexi-ramp in RTPD, we calculate the maximum ramping capability that they can provide in RTD from initial condition to binding interval. This measures the amount of ramping capability that has already been used up prior to the time for providing the ramping capability.

2. One step further, using the actual dispatch of binding interval, we determine how much ramping is actually utilized when flexible ramp constraint is binding is subsequent RTD intervals. This determines the limitation effect on the binding interval dispatch due to enforcement of flexi-ramp constraints at subsequent RTD intervals.

Note: This metric will help determine if ISO needs to make refinements/changes on how Flex Ramp is used and protected in RTD. RF-MM180 The MAD shall analyze resources that are in a congested area indicated by positive congestion component in the LMP. Check using step 2 of RF-MM170 that their dispatch has been constrained / limited by the imposed Flex Ramp constraint in the subsequent intervals.

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