Business Requirements Specification - California ISO

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Transcript of Business Requirements Specification - California ISO

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Business Requirements Specification

Renewable Integration: Market and Product Review and BCR Mitigation

[PMO Doc Version] 3/27/2013

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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 revise or withdraw all or part of this information at any time at its discretion without notice.

Table of Contents

1. INTRODUCTION ........................................................................................................................................................................ 4

1.1 PURPOSE .................................................................................................................................................................................... 4

2. DETAILS OF BUSINESS NEED/PROBLEM .......................................................................................................................... 4

2.1 DESCRIPTION.............................................................................................................................................................................. 4

3. BUSINESS PROCESS IMPACTS .............................................................................................................................................. 5

3.1 HIGH LEVEL BUSINESS PROCESS ............................................................................................................................................... 5

3.1.1 Description ...................................................................................................................................................................... 5

3.1.2 Pros .................................................................................................................................................................................. 5

3.1.3 Cons ................................................................................................................................................................................. 5

3.2 JUSTIFICATION ........................................................................................................................................................................... 5

4. BUSINESS REQUIREMENTS ................................................................................................................................................... 6

4.1 BUSINESS PROCESS: < DAY AHEAD AND REAL TIME PROCESS > ............................................................................................... 6

4.1.1 Business Requirements .................................................................................................................................................... 6

4.2 BUSINESS PROCESS: < MANAGE BILLING AND SETTLEMENTS > ................................................................................................ 6

4.3 BUSINESS REQUIREMENTS ......................................................................................................................................................... 6

4.3.1 Business Requirements .................................................................................................................................................... 6

4.4 BUSINESS PROCESS: < INTEGRATION BUSINESS REQUIREMENT > ............................................................................................ 17

4.4.1 Business Requirements .................................................................................................................................................. 17

4.5 BUSINESS PROCESS: < MANAGE REPORTING > ........................................................................................................................ 18

4.5.1 Business Requirements .................................................................................................................................................. 18

4.6 BUSINESS PROCESS: METRICS AND PERFORMANCE CRITERIA.................................................................................................. 19

4.6.1 Business Requirements .................................................................................................................................................. 19

4.7 BUSINESS PROCESS: MARKET MONITORING AND REPORTING ................................................................................................. 19

4.7.1 Business Requirements .................................................................................................................................................. 19

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4.8 BUSINESS PROCESS: PROACTIVE MONITORING (PAM) REQUIREMENTS .................................................................................. 19

4.8.1 Business Requirements .................................................................................................................................................. 19

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1. Introduction

1.1 Purpose

The purpose of this document is to capture and record a description of what the Users and Business Stakeholders of the project between the initiators and implementers of the project. The information in this document serves as input to determining the scope of Information Systems projects and to all Business Process Modeling and System Requirements Specifications efforts.

These requirements are intended for submission to the Information Technology Services (ITS) department and will serve as the initial set of business unit requirements for the appropriate software application/systems development effort. It is understood that ITS will perform additional requirements and systems analysis and may produce “To Be” Business Process Models, System Requirements Specifications, and Use Cases to serve as the set of requirements documents used by the ITS development teams to buy, modify, or build the necessary software and hardware systems. The Business Unit(s) involved in the project will have an opportunity to review and approve all ITS requirements documentation produced.

2. Details of Business Need/Problem

2.1 Description

The ISO began the Renewable Integration – Market and Product Review (RI-MPR) in September, 2010. There are two phases for this project. While Phase 2 considers the mid-term and longer term solutions, the purpose of the Phase 1 initiative is to identify short-term solution for integrating renewable resource into the grid. The scope of the Phase 1 is comprised of two market design changes:

Reduced the energy bid floor: The ISO will lower the energy bid floor from the current -$30/MWh to -$150/MWh for the first year and to -$300/MWh in the following year. The objective is to provide additional incentive for market participants, including variable energy resource (VER), to submit decremental (DEC) bids enabling the ISO to manage over-generation and congestion more efficiently and transparently. In particular, the bid floor is intended to account for the opportunity cost of curtailment faced by wind and solar resources and the scheduling coordinators that bid them into the market.

Change Bid Cost Recovery (BCR) rules: Change the bid cost recovery netting methodology so that the bid cost recovery amounts calculated for the day-ahead and real-time markets, respectively, are not netted together.

In the first half of 2011, the ISO made two emergency filings with the Federal Energy Regulatory Commission (FERC) to mitigate observed adverse market behavior involving several strategies aimed at inflating bid cost recovery payments. On August 28, 2012 the ISO made a filing with FERC to address residual imbalance energy as well as price mitigation for certain exceptional dispatches. In the initial March 25, 2011 filing, the ISO committed to “conduct a stakeholder process to provide stakeholders an opportunity to comment and raise any further change or refinements to the ISO’s proposal tariff amendments”.

Based on the issues raised and stakeholder feedback during the Post-Emergency Bid Cost Recovery Filing Review stakeholder process, as well as the effort of RI-MPR Phase 1, the ISO identified a need to:

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Develop a number of bid cost recovery mitigation measures to address the potential adverse market behavior that may be exacerbated by the separation of the netting of the day-ahead and RUC/real-time bid cost recovery calculations.

3. Business Process Impacts

3.1 High Level Business Process

3.1.1 Description

There is no business process impacts related to this initiative. All changes are being made to our IFM/RTM, MQS and Settlements software.

3.1.2 Pros

Lowering the energy bid floor will provide additional incentives for market participants including variable energy resources to submit decremental bid, enabling ISO to manage the over-generation and congestion more efficiently and transparently;

Separating the netting of day ahead and real time market bid cost recovery calculation will help align incentive to provide economic bids in the real time market which is vital to managing the grid reliably as more variable generation resources come into the ISO control area’s fleet of generating resources.

Implementing a number of changes and mitigation measures in the bid cost recovery calculation will preserve and enhance the incentive to provide economic bid into the real time market, enable eligible resources to appropriately recover bid costs and remove the incentive for adverse market behavior to inflate the uplift payment.

3.1.3 Cons

N/A

3.2 Justification

The ISO believes this project will preserve and increase the incentive for market participants including variable energy resources to submit more economic bids and less self-schedules to the real time markets so that the ISO is able to manage the over-generation and congestion more efficiently and transparently. Also, the project will enable eligible resources to appropriately recover their bid costs and remove the incentives for adverse market behavior to increase uplift payment.

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4. Business Requirements

The sections below describe the Business Processes and the associated Business Requirements involved in the project. These may represent high level functional, non-functional, reporting and/or infrastructure requirements. These business requirements directly relate to the high level scope items determined for the project.

4.1 Business Process: < Day Ahead and Real Time Process >

4.1.1 Business Requirements

ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0001

The energy bid floor shall be lowered from the current -$30/MWh to -$150/MWh. If one bid has a price that is below the bid floor, the bid shall be rejected.

With lowering the bid floor from -$30/MWh to -$150/MWh, the impacted penalty price shall be adjusted correspondingly to maintain the appropriate hierarchy.

Note: CAISO will lower the bid floor further to -$300/MWh after the first year unless CAISO makes a filing with the Commission showing that its markets are non-competitive and the Commission supports this assessment.

PSTD, MDSC

4.2 Business Process: < Manage Billing and Settlements >

4.3 Business Requirements

4.3.1 Business Requirements

ID# Business Feature Business Unit(s) Affected

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0002

The day ahead and real time market bid cost recovery calculations shall be separated, i.e. the bid cost recovery amounts calculated for the day ahead and RUC/real time markets, respectively, shall not be netted together. Any RUC bid cost and revenues shall be moved to real-time and RUC BCR shall be netted together with Real-time BCR.

Furthermore, current allocation of bid cost recovery uplift will remain to be the same. Therefore calculation of IFM, RUC and Real-time BCR amount separately for allocation purpose is necessary.

Market Settlement Design and Configuration

RIMPR-

BRQ0003

The day ahead metered energy adjustment factor (MEAF) shall be modified as the following formula:

{ |

|}

Were is the total expected energy.

When applying the modified day ahead metered energy adjustment factor, the same tolerance band specified in RIMPR-BR0013 and RIMPR-BR0014 used in the real time performance metric shall also be used for the day ahead energy bid cost recovery.

When denominator equals zero, the DA MEAF shall be one if the numerator is also zero and shall be zero if the numerator is non zero.

Market Settlement Design and Configuration

RIMPR-

BRQ0004

When the modified day ahead MEAF is applied to the day ahead bid cost recovery calculation components listed below, these quantities shall be multiplied by the modified MEAF:

If the Costs (day ahead energy bid costs) are positive/zero and Revenues (revenues for the day ahead schedule above minimum load) are positive/zero, the MEAF shall be applied to the Costs.

If the Costs are positive and Revenues are negative, the MEAF shall be applied to both.

If the Costs are negative and Revenues are positive/zero, the MEAF shall not be applied.

If the Costs are negative and Revenues are negative, the MEAF shall be applied to Revenues.

Market Settlement Design and Configuration

RIMPR-

BRQ0005

The modified day ahead MEAF shall not impact the day ahead minimum load costs, start-up costs, and multi-stage generators’ transition costs. They shall be subjected to the same current rules.

Market Settlement Design and Configuration

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ID# Business Feature Business Unit(s) Affected

RIMPR-

BRQ0006

When applying the modified day ahead metered energy adjustment factor (MEAF), the same tolerance band specified in RIMPR-BR0012 and RIMPR-BR0013 used in the real time performance metric shall also be used for the day ahead energy bid cost recovery.

Market Settlement Design and Configuration

RIMPR-BRQ0007

The real-time performance metric (PM) shall be calculated for each resource (including pumped storage and demand response resource) in each settlement interval by the following formula

{ |

|}

Also,

If an incremental instruction is issued and the resource deviates downward from its day-ahead schedule, the PM shall be zero.

If a decremental instruction is issued and the resource deviates to a level above its day-ahead schedule, the PM shall be zero.

If the total expected energy is equal to day ahead energy:

o If the metered energy minus the regulation energy is equal to the day-ahead energy, then PM shall be 1.

o If the metered energy minus the regulation energy is not equal to the day ahead energy, then the PM shall be 0.

Market Settlement Design and Configuration

RIMPR-BRQ0008

The real time PM shall be applied to residual unit commitment or real time minimum load costs in addition to the energy portion of the real time bid cost recovery calculation.

Market Settlement Design and Configuration

RIMPR-BRQ0009

The real time PM shall be also applied to day ahead minimum load costs only in the case that a resource is committed by the ISO in day ahead and is decommitted by the ISO in real time. For MSG resource, the real time PM shall also be applied to the day ahead minimum load cost if the MSG resource is committed in day ahead by the ISO at a higher configuration and committed by the ISO in real time at a lower configuration.

Market Settlement Design and Configuration

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0011

The real time PM shall not be applied during the startup, shutdown, MSG transition periods, or during crossing periods over a forbidden operating region as long at the resource is in fact in the instructed operation.

A startup time period is from the (on-line time – the startup ramp time – 15 minutes) to the on-line time;

A MSG transition period is from the (on-line time of the to-configuration – the transition ramp time – 15 minutes) to the on-line time of the to-configuration;

A unit is considered within the forbidden region for the period in which the DOPs are within or crossing the forbidden region.

MQS will need to figure out the time period and publish to both Settlement and CMRI. Settlement will not apply the real-time PM for those identified periods.

The applicable time period shall also be posted on CMRI for settlement validation purpose.

Market Settlement Design and Configuration

RIMPR-BRQ0012

When the real time PM is applied to the bid cost recovery calculation component listed below, these quantities shall be multiplied by the PM:

If the Bid costs are positive/zero and Revenues are positive/zero, PM shall be applied to the Costs.

If the Costs are positive/zero and Revenues are negative, the PM shall be applied to both.

If the Costs are negative and Revenues are positive/zero, PM shall not be applied.

If the Costs are negative and Revenues are negative, PM shall be applied to Revenues.

Bid costs shall include real time market energy bid costs, RUC/real time market minimum load costs, day-ahead minimum load cost when applicable. Revenue shall include the energy revenue corresponding to the instructed energy relevant to the bid cost. Specifically, in case of minimum load cost, the relevant revenue for minimum load energy in day-ahead or real-time shall be adjusted based on rules above.

Market Settlement Design and Configuration

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0013

In order not reduce the real time market bid cost recovery payments for small deviations from dispatch that may legitimately due to ramping constraints or other such operational constraints, a real time PM tolerance band shall be calculated as followings:

{

}

Market Settlement Design and Configuration

RIMPR-BRQ0014

MQS shall calculate the ramping tolerance per resource per settlement interval as followings:

| |

Market Settlement Design and Configuration

RIMPR-BRQ0015

If

| | <= PM tolerance Band that is specified in RIMPR-0013, then the real time bid cost recovery payment reduction by PM as described in RIMPR-BRQ0012 is not applied.

Market Settlement Design and Configuration

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0016

The Persistent Deviation Metric evaluates a resource’s change in output between settlements intervals relative to the amount the ISO dispatch it down between settlement intervals. The Persistent Deviation Metric shall be calculated for each resource for each settlement interval as followings:

( ) ( )

( ) ( ) (( )

where t is the settlement interval being evaluated.

The Persistent Deviation Metric shall be only calculated under each of the following four conditions and the interval shall be flagged for that resource with its corresponding threshold,

In following conditions,

( ) ( ) ( )

( ) | ( ) ( )|

1. Case 1: EE (t) > DA Energy (t) and Metered Energy(t) > EE(t) and Metered Energy(t-1) < EE(t):

Interval t is flagged if the deviation is greater than 10% of the 10-minute ramp capability and the persistent deviation metric is greater than 110%;

2. Case 2: EE (t) > DA Energy (t) and Metered Energy (t) > EE(t) and Metered Energy (t-1) > EE(t):

Interval t is flagged if the deviation is greater than 10% of the 10-minute ramp capability and the persistent deviation metric is less than 90%;

3. Case 3: EE(t) < DA Energy (t) and Metered Energy(t) < EE(t) and Metered Energy (t-1) < EE(t):

Interval t is flagged if the deviation is greater than 10% of the 10-minute ramp capability and the persistent deviation metric is less than 90%;

Market Settlement Design and Configuration

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ID# Business Feature Business Unit(s) Affected

4. Case 4: EE (t) < DA Energy (t) and Metered Energy(t) < EE(t) and Metered Energy (t-1) > EE(t)

Interval t is flagged if the deviation is greater than 10% of the 10-minute ramp capability and the persistent deviation metric is greater than 110%;

RIMPR-BRQ0017

The following persistent metric evaluation criteria shall be employed to determine a resource has persistently deviates a manner that inflates bid cost recovery payments. Each hour the persistent deviation metric shall be evaluated for the 12 ten-minute settlement intervals that comprise the previous and current hours, i.e. the evaluation window is a rolling two hours and incrementing in hourly intervals:

Rule 1: If 3 or fewer intervals of these 12 intervals are flagged as exceeding the persistent deviation metric threshold as described in RIMPR-BRQ0016, then the bid basis for optimal energy for real time bid cost recovery shall be the final energy bid after mitigation.

Rule 2: If 4 or more intervals of these 12 intervals are flagged as exceeding the persistent deviation metric threshold as described in RIMPR-BRQ0016, then for all these 12 intervals in the window, then the bid basis for optimal energy for real time bid cost recovery shall be :

o Min { default energy bid, energy bid} for incremental energy above day ahead schedule

o Max { default energy bid, energy bid} for decremental energy below day ahead schedule

Rule 3: Once an interval is flagged as exceeding the persistent deviation metric threshold as described in RIMPR-BRQ0016, it shall remain so when it is considered in the evaluation of the following evaluation window.

Market Settlement Design and Configuration

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0018

The same rules specified in RIMPR-BRQ0017 shall also be applied to the residual imbalance energy payments:

Rule 1: If 3 or fewer intervals of the previous 12 intervals are flagged as exceeding the persistent deviation metric threshold as described in RIMPR-BRQ0017, then the bid basis for residual imbalance energy shall be the reference hour bid. When reference hour bid is null the LMP shall be used.

Rule 2: If 4 or more intervals of the previous 12 intervals are flagged as exceeding the persistent deviation metric threshold as described in RIMPR-BRQ0017, then for all the previous 12 intervals in the window, the bid basis for residual imbalance energy shall be :

o Min { default energy bid, reference hour energy bid, LMP} for incremental energy above day ahead schedule

o Max { default energy bid, reference hour energy bid, LMP} for decremental energy below day ahead schedule

Rule 3: Once an interval is flagged as exceeding the persistent deviation metric threshold as described in RIMPR-BRQ0017, it shall remain so when it is considered in the evaluation of the following evaluation window.

Market Settlement Design and Configuration

RIMPR-BRQ0019

For both RIMPR-BRQ0017 and RIMPR-BRQ0018, once an interval’s bid basis has been determined by Rule 2, its bid basis shall not be changed in later evaluation. However, if an interval’s bid basis is determined by Rule 1 in a previous evaluation, it shall be re-determined by Rule 2 in the next evaluation.

Market Settlement Design and Configuration

RIMPR-BRQ0020

To support both RIMPR-BRQ0017 and RIMPR-BRQ0018,

MQS shall calculate the real time expected energy allocation for default energy bid. This is in addition to the current allocation based on mitigated bid curve.

MQS shall also associate the residual energy with the default energy bid curve from the current hour. This is in addition to the current association of energy bid prices from the reference hour.

PSTD

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0021

For non-MSG resources with the same day-ahead and real-time commitment decisions and MSG resources with the same day ahead and real time configuration, the minimum load costs shall be calculated based on the current set of rules. For MSG resources with different day ahead and real time configurations, the real time minimum load cost (MLC) shall be calculated as the difference in the minimum load costs between day ahead and real time:

Note that could be negative.

Market Settlement Design and Configuration

RIMPR-BRQ0022

If a resource is completely de-committed to offline in the real time from its day ahead schedule, the negative minimum load cost shall be accounted for the energy between Pmin and zero in the real time bid cost recovery calculation. This rule shall be applied to both MSG and non-MSG resources.

For a MSG resource, it can be de-committed from a day-ahead higher configuration to a real-time lower configuration (RIMPR-BRQ0021). A negative RT minimum load cost will appear in this case and it shall be included in the real-time bid cost recovery at the cost side along with associated energy revenue at the revenue side.

Market Settlement Design and Configuration

RIMPR-BRQ0023

When the short-start unit is committed by ISO in real time but begins later than the day ahead ISO commitment and the two commitment periods overlap, the qualification of start up costs shall be evaluated by comparing the meter data with Pmin within the real time commitment period. If the start up is qualified, then its entire qualified start up cost amount shall be included in the day ahead bid cost recovery calculation. (This does require settlement rule change)

In the event that there are more than one RT ISO commitment periods overlapping with the day-ahead ISO commitment period, use the rule above to qualify the first RT SUC in DA. Qualify the other RT SUC in the relevant RT ISO commitment periods using existing rules. (This does require MQS commitment cost rule change)

Market Settlement Design and Configuration

RIMPR-BRQ0024

For all intervals with full downward ramp, the residual imbalance energy should be paid at the bid price for the interval from which the resource is being dispatched down at full ramp. This requires a MQS expected energy and allocation algorithm change.

Market Settlement Design and Configuration

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0025

During the interval of ramping down from the exceptional dispatch or interval of ramping up to the exceptional dispatch, the bid cost basis for relevant optimal energy in the bid cost recovery or the bid base for relevant residual energy calculation shall be same as is used for the exceptional dispatch: For example,

If exceptional payment is mitigated, bid basis shall be min { default energy bid, final bid};

If exceptional dispatch is not mitigated, bid basis shall be final bid. The final bid is the bid after the LMPM process.

This requires a MQS expected energy and allocation algorithm change. As a pre-requirement to this rule, the existing MAPP process to deal with exceptional dispatch energy change will need to be incorporated into MQS expected energy allocation in order to facilitate this.

Market Settlement Design and Configuration

RIMPR-BRQ0026

For the settlement of relevant optimal energy going into and out of a minimum load re-rate, the LMP, instead of the energy bid, shall be used for the optimal energy.

This requires a MQS expected energy and allocation algorithm change.

Market Settlement Design and Configuration

RIMPR-BRQ0027

When the minimum load re-rate ends the end of an hour, the relevant residual imbalance energy during the period of ramping up to the minimum load re-rate and the period of ramping down from the minimum load re-rate shall be paid at the LMP

Market Settlement Design and Configuration

RIMPR-BRQ0028

The real-time market application RTPD process shall record and send out to MQS/settlement the indication of whether there is an advisory shutdown per resource and RTPD run. This flag shall be identified by the RTPD advisory energy schedule being zero MW within the real-time dispatch (RTD) time horizon in the current RTPD run. This flag shall then be used by settlement to track the shutdown state variables.

RTPD shall also send all 15-minute based resource level advisory energy schedules including current and next hour in the horizon from all RTPD runs for external reporting (at CMRI). This is to support the settlement validation.

PSTD

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0029

A shutdown instruction state variable shall be calculated to keep track of positive uninstructed imbalance energy for the intervals that have consecutive flags set for advisory shutdown.

As soon as the first advisory shutdown from RTPD is issued, this shutdown state variable shall begin accumulating uninstructed imbalance energy. The state variable shall continue accumulating the uninstructed imbalance energy as long as

The advisory shutdown flag is set, AND

The unit is online, AND,

The unit is not following the dispatch (if | | > PM tolerance Band that is specified in RIMPR-0013, then the unit is considered to be not following its dispatch instruction)

Meanwhile, the 5-minute interval t at which

(The total expected energy at interval t - the state variable that has accumulated uninstructed imbalance energy up to interval t) is equal or less than Pmin/12 shall be determined.

From this time point forward, the minimum load cost shall be disqualified from the bid cost recovery calculation. And if the resource is committed in the day ahead, the minimum load costs shall be disqualified from the day ahead bid cost recovery calculation.

The state variable shall be reset to zero and the process shall be stopped as soon as the advisory shutdown flag is no longer set, or the generator is offline, or the unit follows its dispatch instruction.

Market Settlement Design and Configuration

RIMPR-BRQ0030

In the event that ADS issues a binding shutdown instruction, the resource shall not be eligible for recovery of minimum load costs from the point of the shutdown instruction forward for the maximum of the duration of the resource’s registered minimum down time.

If the resource ignores the binding shutdown instruction issued by ADS and it has a day ahead schedule, it shall not be eligible for minimum load cost recovery in the day ahead bid cost recovery calculation for the minimum of the resource’s minimum down time and the day ahead ISO commitment period.

Market Settlement Design and Configuration

RIMPR-BRQ0031

A period in which a resource starts up without an ISO instruction to do so shall not be considered an ISO commitment period and thus the resource shall not be eligible for cost recovery.

MQS Commitment Cost logic change is required.

Market Settlement Design and Configuration

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0032

In order to fulfill the RIMPR1 requirements, a current implementation gap has to be closed. Settlement will need to ensure that there is an actual startup event to qualify for a startup cost (non MSG and MSG) and an actual transition event to qualify for a transition cost (MSG only).

For Startup Cost

MQS determines an ISO commitment period with startup cost allocated for time period T2 to T3 and the period before that T1 to T2 is offline (T1 = T2 – Startup Notification Time – 15 minutes). Then, settlement will do the following,

1. First detect whether there is an interval within the T2 and T3 that the meter is on or above Pmin (existing rule);

2. Detect whether there is an interval within T1 to T2 that meets the condition:

Revenue meter <= (Pmin / 6 – Pmin tolerance band) / 2 (Pmin tolerance used for minimum load cost tolerance band); 3. For the case where T2 is the beinging of a trading day, ensure that unit

is offline at the last settlement interval of the prior trading day;

If all conditions are met, there is an actual startup. So the entire startup cost for period of T2 to T3 is qualified.

For Transition Cost C1 to C2,

MQS determines an ISO commitment period with transition cost with C2 allocated for period T2 to T3 and the period before that T1 to T2 is C1 (T1 = T2 – Transition Notification Time – 15 minutes),

Then, we will do the following,

1. Detect ALL intervals within the T2 and T3 that the meter is between C2 Pmin and Pmax (same tolerance band applies like existing rule);

2. Detect at least one interval within T1 and T2 in which the meter is between C1 Pmin and Pmax;

If both conditions are met, an actual transition happens. Qualify each identified interval TC in item 1.The startup and transition time periods shall also be posted on CMRI for settlement validation purpose.

Market Settlement Design and Configuration

4.4 Business Process: < Integration Business Requirement >

4.4.1 Business Requirements

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ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0033

The real time market RTM shall publish all advisory schedules including current and next hour in the horizon for all real time pre-dispatch (RTPD) runs to CAISO Market Result Interface (CMRI).

PTSD and Market Service

RIMPR-BRQ0034

MQS shall retrieve the advisory shutdown flag from RTPD and publish to settlement.

PTSD

RIMPR-BRQ0035

MQS shall publish the ramping tolerance for settlement to use. MQS shall also publish the relevant time period before a startup or transition events to indicate the startup or transition time periods calculated based on RIMPR-BRQ0011 and RIMPR-BRQ0032.

There will be other data elements published from MQS to Settlement pending further design discussion. These publication requirements need to be in the SRS.

Market Settlement Design and Configuration and PTSD

4.5 Business Process: < Manage Reporting >

4.5.1 Business Requirements

ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0036 CMRI shall post all advisory schedules within its horizon for all real time pre-dispatch (RTPD) runs (RIMPR-BRQ0028).

Market Operation

RIMPR-BRQ0037 CMRI shall post the relevant startup or transition time period (notification time period) for each startup cost or transition cost period from MQS in the commitment cost report (RIMPR-BRQ0032);

CMRI shall also post the relevant startup ramp time or transition ramp time periods from MQS in a new report (RIMPR-BRQ0011).

CMRI shall also post the energy allocation based on the default energy bid (in addition to the existing report of the energy allocation based on energy bid)

Market Operation

Doc ID: GNFDMDEHU6BB-46-53 Page 19 of 20

Technology

Template Version: 2.8

Document Version: 1

Renewable Integration: Market and Product Review and BCR Mitigation

Business Requirements Specification - Planning Date Created: 3/27/2013

4.6 Business Process: Metrics and Performance Criteria

4.6.1 Business Requirements

ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0038 Settlement system with the new bid cost recovery and residual imbalance energy payment calculation rules must meet the same settlement timeline.

Market Settlement Design and Configuration

4.7 Business Process: Market Monitoring and Reporting

4.7.1 Business Requirements

ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0039 Monitor, evaluate, and produce report on the market performance and effectiveness of the market rule changes and any potential market participant adverse behavior

Market Analysis

4.8 Business Process: Proactive Monitoring (PAM) Requirements

4.8.1 Business Requirements

ID# Business Feature Business Unit(s) Affected

Doc ID: GNFDMDEHU6BB-46-53 Page 20 of 20

Technology

Template Version: 2.8

Document Version: 1

Renewable Integration: Market and Product Review and BCR Mitigation

Business Requirements Specification - Planning Date Created: 3/27/2013

ID# Business Feature Business Unit(s) Affected

RIMPR-BRQ0040 Monitor and evaluate the effectiveness of the changes to provide the guidance any future decision and enhancement.

Customer Service Group