BPM - CG CC 1407 MSS Positive Deviation Penalty

Settlements and Billing

BPM Configuration Guide: BPM - CG CC 1407 MSS Positive Deviation Penalty

CC 1407

Version 5.21 Settlements and Billing Version: 5.21 Configuration Guide for: CC 1407 - BPM - CG CC 1407 MSS Positive Deviation Date: 1104/150/132 Penalty

Table of Contents

1. Purpose of Document 3

2. Introduction 3 2.1 Background 3 2.2 Description 4

3. 3. Charge Code Requirements 4 3.1 Business Rules 4 3.2 Predecessor Charge Codes 5 3.3 Successor Charge Codes 5 3.4 Inputs – External Systems 5 3.5 Inputs - Predecessor Charge Codes or Pre-calculations 6 3.6 CAISO Formula 6 3.7 Output Requirements 7

4. Charge Code Effective Date 8

ÓCAISO, 2018 Page 2 of 10 Settlements and Billing Version: 5.21 Configuration Guide for: CC 1407 - BPM - CG CC 1407 MSS Positive Deviation Date: 1104/150/132 Penalty

1. Purpose of Document

The purpose of this document is to capture the requirements and design specification for a SaMC Charge Code in one document.

2. Introduction

2.1 Background

The Metered Subsystem (MSS) Positive and Negative Deviation Penalty (DP) Settlement charges (CC 1407 and 2407 respectively) are intended to discourage Load Following Metered Subsystems from deviating from their forward schedules and/or any CAISO instructions. These charges should result in increased predictability of MSS Generators and improved operational stability of the CAISO.

The MSS Operator may elect to operate a System Unit, or Generating Units in the MSS to follow its Load, provided that:

(a) the Scheduling Coordinator for the MSS Operator shall remain responsible for purchases of Energy in accordance with the CAISO Tariff if the MSS Operator does not operate its System Unit or Generating Units and schedule imports into the MSS, to match the metered Demand in the MSS and exports from the MSS; and

(b) if the deviation between Generation and imports into the MSS and Metered Demand and exports from the MSS exceeds the MSS Deviation Band then the Scheduling Coordinator for the MSS Operator shall pay the additional amounts as indicated below.

The Scheduling Coordinator for a Load-following MSS Operator shall pay amounts for:

(a) excess MSS Generation supplied to the CAISO Markets and

(b) excess MSS Load relying on CAISO Markets and not served by MSS generating resources.

Where an MSS has elected net Settlement, where all resources inside the MSS are Load following, the Load following resources in an MSS aggregation but outside the MSS are subject to the rules for all Load following resources and settled in CC 1407 and 2407. If there are any Non-Load following resources in an MSS aggregation but outside the MSS, these resources are not subject to the resource-specific Uninstructed Deviation Penalty (UDP) calculated under CC 4480 and CC 4470CC 1407 and CC 2407 penalty charges. Likewise, Ffor elections of gross Settlement, where some resources within the MSS are not Load following, the Non-Load following resources are subject to resource specific UDP calculated under CC 4480 and CC 4470not subject to CC 1407 and CC 2407 penalty charges. Therefore, whether net or gross Settlement is elected by

the MSS Operator, only MSS Load following resources are exempt from the resource- specific UDPsubject to CC 1407 and CC 2407 penalty charges.

If the MSS has elected not to follow Load, the CC 1407 MSS Positive Deviation Penalty and CC 2407 MSS Negative Positive Deviation Penalty Charge Codes do not apply, and all resources under the MSS are subject to CC 4480 and CC 4470 Uninstructed Deviation Penalties like any other resource.

Regardless of the election of net or gross Settlement, the CAISO Settlements calculates both the positive and negative deviation Billable Quantities for each MSS that has elected (annually) to follow Load in accordance with their MSS agreement and CAISO Tariff, as specified in the Settlement BPM “Pre-calculation MSS Deviation Penalty Quantity”. The calculations for those Billable Quantities are detailed in the BPM for Compliance Monitoring.

Revenues collected from the MSS Deviation Penalty (DP) Charge Codes are used as an off-set to the CAISO’s Grid Management Charge. Accounting and tracking of this amount is accommodated by a CAISO MSS DP Trustee Account

2.2 Description

If metered Generation and imports into the MSS exceed the metered Demand and exports from the MSS as well as the Energy excepted to be delivered by more than the MSS Deviation Band, then the payment for excess Energy outside of the MSS Deviation Band is rescinded. This rescinded amount is the MSS Positive Deviation Penalty Settlement charge. The amount is calculated by the Settlements System on a 10-minute Settlement Iinterval basis against a single identifier that represents the portfolio of Load Following MSS resources.

The CAISO Settlements calculates the positive deviation Billable Quantity by means of the predecessor configuration MSS Deviation Penalty Quantity Pre-Calculation. Tand the penalty Settlement Amount is then calculated as the product of a MSS-specific Penalty Price for positive deviations, which is the highest Settlement Interval Real-Time LMP paid to the MSS Operator for its Generation in the Settlement Interval, and the positive deviation Billable Quantity. Penalty amounts are summed to the Business Associate total level for presentation on the Settlement Statement.

3. 3. Charge Code Requirements

3.1 Business Rules

Bus Business Rule Req ID The Settlements System automatically calculates the MSS Positive 1.0 Deviation Penalty Settlement Amounts on a 510-minute Settlement iInterval basis. The MSS Positive Deviation Penalty Settlement Amounts are calculated at 2.0 a System Unit level. the MSS level for athe specific MSS Operator. The MSS Positive Deviation Penalty Settlement Amounts are summed to 3.0 the Business Associate that is the MSS Operator for the Settlement Statement. No Settlement Amount will be calculated if the maximum Settlement 4.0 Interval Real-Time LMPs paid to the MSS Operator results in a negative Penalty Price. The MSS Positive Penalty Price is determined as maximum of 0 or the 5.0 highest Settlement Interval Real Time LMP paid to the MSS Operator for its Generation in the Settlement Interval. In the calculation of the MSS Positive Price, only those Settlement Interval 5.1 Real Time LMPs for Load Following Generators associated with a given MSS Operator are considered. The CAISO Settlements applies all applicable exemptions, other than 6.0 those specifically stated in the exemptions document. For adjustments to the Charge Code that cannot be accomplished by 7.0 correction of upstream data inputs/recalculation or operator override Pass Through Bill Charge logic will be applied.

3.2 Predecessor Charge Codes

Charge Code/ Pre-calc Name RT Price Pre-calculation MSS Deviation Penalty Quantity Pre-Calculation

3.3 Successor Charge Codes

Charge Code/ Pre-calc Name < None >

3.4 Inputs – External Systems

Row # Variable Name Description In Standing Data, a multiplier used to determine the degree of penalty 1 MSSDPPositiveFactor md associated with Positive Deviations for a MSS. This value is currently equal to 1.0 2 NullException In Standing Data as exception data, the input = 0 with values for all attribute positions missing (NULL). The input will result in an exception being raised (precluding a calculation in which it is used from occurring) for variables with a matching (NULL) attribute combination over all consumed attribute positions. For instance in the formula MSSPositivePenaltyPrice M’mdhcif = GETMAXBYATTR [MSSLAPPositiveDeviationPositivePric e BrtM’mdhcif ], where GETMAXBYATTR is a function that returns the maximum value of the function’s argument over all of its attributes other than attribute M’, all attributes other than M’ are consumed in the function’s calculation, and if they are all NULL, the associated value for

Row # Variable Name Description MSSLAPPositiveDeviationPositivePrice BrtM’mdhcif will not be used in the calculation. PTBChargeAdjustmentMSSN egativeDeviationSettlementA mount PTB adjustment variable for this charge 32 PTBChargeAdjustmentMSSP code, as an amount (in $) for a ositiveDeviationSettlementAm givenper BAA B. ($). ount BJmdhcif

3.5 Inputs - Predecessor Charge Codes or Pre-calculations

Row Predecessor Charge Code/ Pre- Variable Name # calc Configuration 1 MSSPenaltySettlementIntervalR RT Price Pre-calculation ealTimeLMP BrtM’mdhidhcif 2 BA10MMSSPositiveDeviationQu antityBASettlementIntervalMSS MSS Deviation Penalty Quantity Pre- PositiveDeviationQuantity Calculation BM'mdhidhcif

3.6 CAISO Formula

The ISO formula for each MSS System Unit is as follows:

MSSPositiveDeviationPenaltySettlementAmount BM’mdhidhcif = BA10MMSSPositiveDeviationQuantityBASettlementIntervalMSSPositiveDeviationQuantity

BM'mdhidhcif * MSSPositivePenaltyPrice M’mdhidhcif

MSSPositivePenaltyPrice M’mdhcif =And

MSSPositivePenaltyPrice M’mdhi = GETMAXBYATTR [MSSLAPPositiveDeviationPositivePrice BrtM’mdhidhcif ]

Note: The GETMAX function will select the highest LMP for MSS Subgroup M’ for each Settlement Interval. Use null exception bill determinant to make GETMAX function to work; the null exception bill determinant will be applied in the calculation to all attributes other than attribute M’.

MSSLAPPositiveDeviationPositivePrice BrtM’mdhidhcif =

(max(0,MSSPenaltySettlementIntervalRealTimeLMP BrtM’mdhidhcif )) * MSSDPPositiveFactor md

3.7 Output Requirements

Row # Name Description In addition to any outputs listed below, allinputs shall be included as outputs. 1 MSSPositiveDeviationPenaltySettlement The amount (in $),in dollars

Amount BM’mdhidhcif that for the Business Associate B for a MSS Subgroupgiven Settlement Interval and MSS Subgroup, that is chargedM’ must pay for positive MSS deviations outside of the associated

Row # Name Description MSS Deviation Tolerance Band. The price (in $/MWh) charged for positive MSS Deviation,Penalty Price by Business Associate Id B, 2 MSSPositivePenaltyPrice M’mdhidhcif Resource Id r, Resource Type t, for a given MSS Subgroup M’ forand Settlement Interval i. MSS LAP Positive Deviation Positive Price (in $/MWh as a decimal number >=0) for MSSLAPPositiveDeviationPositivePrice a given Settlement Interval 3 and resource of a by BrtM’mdhidhcif Business Associate Id B, Resource Id r, Resource Type t for a MSS Subgroup M’ in Settlement Interval. i

4. Charge Code Effective Date

Charge Code/ Document Effective Effective Version Update Type Pre-calc Name Version Start Date End Date CC 1407 – MSS Documentation Edits Positive Deviation 5.0 04/01/09 09/30/12 Only Penalty CC 1407 – MSS Documentation Edits Open03/31/ Positive 5.1 10/01/12 and Configuration 14 Deviation Penalty Impacted CC 1407 – MSS Positive Deviation 5.2 04/01/14 Open Configuration Impacted Penalty

ÓCAISO, 2018 Page 10 of 10