Settling the Day-Ahead Market - California ISO · Settling the Day-Ahead Market Charge Codes included in this training: 6011, 6800, 6700, 6301 . ... Trade Day and is closed at 10am

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Settling the Day-Ahead Market Charge Codes included in this training:

6011, 6800, 6700, 6301

.

EXTERNAL


Disclaimer

All information contained in this document is provided for educational purposes, in summary

form and is provided “as is” without representation or warranty of any kind, included without

limitation, accuracy, or completeness. For further detail and reference, refer to the CAISO

Tariff and the appropriate Business Practice Manual. CAISO assumes no responsibility at

any time for consequences of errors, omissions or misinterpretations of summarized

materials.


Version Date Description Owner

1.0 November 2007 Initial Version MRTU Training Team

2.0 December 2008 Complete Revision Lynn Rasmussen

2.1 June 2009 Revision and Edits J. Buglino-Pedersen


Table of Contents

COURSE OVERVIEW.................................................................................................................................................. 6

WHO SHOULD TAKE THIS COURSE ............................................................................................................................... 6 WHY THIS COURSE IS IMPORTANT................................................................................................................................ 6 OBJECTIVES .................................................................................................................................................................. 6 PREREQUISITES ............................................................................................................................................................. 6 COURSE STRUCTURE..................................................................................................................................................... 6 REFERENCES ................................................................................................................................................................. 7

DAY-AHEAD MARKET OVERVIEW ....................................................................................................................... 8

DAY-AHEAD MARKET OVERVIEW................................................................................................................................ 9 SETTLEMENT REVIEW : ............................................................................................................................................... 10 DAY AHEAD CHARGE CODE CHEAT SHEET ................................................................................................................ 11

CC 6011: DAY-AHEAD ENERGY, CONGESTION AND LOSSES ..................................................................... 12

INTEGRATED FORWARD MARKET - OVERVIEW:.......................................................................................................... 13 FORMULA – DA CC 6011 ........................................................................................................................................... 15 EXAMPLE – DAY AHEAD ENERGY SETTLEMENT CC 6011.......................................................................................... 16 DAY AHEAD MARKET EXERCISE #1 ........................................................................................................................... 20 FORMULA – DA CC 6011 ........................................................................................................................................... 21 WHERE DO I FIND……. DAY-AHEAD QUANTITIES ..................................................................................................... 22 WHERE DO I FIND……DAY AHEAD PRICING.............................................................................................................. 22 TOOLS TO VALIDATE:.................................................................................................................................................. 23 BILLING DETERMINANTS MATRIX: ............................................................................................................................. 24 BILLING DETERMINANTS USED IN THIS CALCULATION:............................................................................................... 25 DAY AHEAD ENERGY SETTLEMENTS – ETC/TOR/CVR............................................................................................. 25 DAY-AHEAD ENERGY - MSS:..................................................................................................................................... 26 EXPECTED ENERGY REPORT: ...................................................................................................................................... 26 INTERTIE TAGGING AND THE EFFECTS ON SETTLEMENT TAGS: ................................................................................... 26 DIFFERENCES BETWEEN PLACES TO VALIDATE INSTRUCTIONS.................................................................................... 26 MARKET POWER MITIGATION – RELIABILITY REQUIREMENTS DETERMINATION - OVERVIEW:.................................. 27 MPM AND RELIABILITY MUST RUN UNITS: ............................................................................................................... 28 ADDITIONAL CALCULATIONS PERFORMED IN CC 6011:.............................................................................................. 28 VALIDATION – DAY AHEAD ENERGY CC 6011........................................................................................................... 28 DAY AHEAD MARKET EXERCISE #1 ........................................................................................................................... 30

CC 6800: RESIDUAL UNIT COMMITMENT........................................................................................................ 31

RESIDUAL UNIT COMMITMENT (RUC): ...................................................................................................................... 32 CC 6800 – RESIDUAL UNIT COMMITMENT ................................................................................................................. 33 FORMULA – CC 6800 – RESIDUAL UNIT COMMITMENT.............................................................................................. 33 EXAMPLE – CC 6800 RESIDUAL UNIT COMMITMENT ............................................................................................... 33 CMRI RUC REPORTS:................................................................................................................................................. 34 VALIDATION – CC 6800 REAL TIME INSTRUCTED ...................................................................................................... 35

CC 6301: INTER-SC TRADES................................................................................................................................... 37

CC 6301 – INTER-SC TRADES FOR DAY AHEAD ENERGY........................................................................................... 38 CC 6301– DAY AHEAD INTER-SC TRADE .................................................................................................................. 38 FORMULA – DAY AHEAD INTER-SC TRADES FOR ENERGY CC 6301.......................................................................... 39 EXAMPLE: AGGREGATE PRICE NODE TRADE ............................................................................................................. 40 WHAT YOU SEE ON YOUR SETTLEMENT STATEMENT................................................................................................... 41

BAHrlyTradePlaceDAInterSCTradeAmount = ..................................................................................................... 41


BAHrlyTradePlaceDAFromInterScTradeAmount + ............................................................................................. 41 BAHrlyTradePlaceDAToInterSCTradeAmount..................................................................................................... 41

VALIDATION – REAL INTER-SC TRADE - 6301 ........................................................................................................... 42

CC 6700: CONGESTION REVENUE RIGHTS ....................................................................................................... 44

CONGESTION REVENUE RIGHTS (CRR) - OVERVIEW.................................................................................................. 45 CC 6700 – HOURLY SETTLEMENT OF CONGESTION REVENUE RIGHTS ....................................................................... 45


Course Overview This course will provide an understanding of Settlements that come from the Day-Ahead Market.

Who Should Take This Course All audiences that need to understand the details of the Day-Ahead Settlements process. Why This Course is Important This course will teach the Day-Ahead Charge Codes to persons involved in the validation of

Settlement Statements. This is a required course for SC Certification.

Objectives

This training workbook was designed to be used in conjunction with the Day-Ahead Market Charge

Codes computer-based training module. The course objectives of this Settlements module are to

present information related to the main charge codes associated with the Settlement and Billing of the

Day-Ahead Market. At the completion of this training module, the participant will be able to:

Identify the inputs and outputs of the settlement calculation process;

Explain how to validate the output of the settlement calculation process.

Prerequisites

Settlements: Market Overview

Settlements: Process Overview

Course Structure

This document is intended to be used in conjunction with the Computer Based Training Module

entitled, “Day-Ahead Market Charge Codes”. Together, these training materials will familiarize

market participants with the settlement calculations relating to Day-Ahead Energy Settlement in the

Settlements and Billing process.


References

CAISO Tariff – Section 11

Business Practice Manual (BPM) for Settlements and Billing - Attachment E

Business Practice Manual (BPM) for Market Operations – Section 7, Attachment C


Section 1

Day-Ahead Market Overview


Day-Ahead Market Overview The Day-Ahead Market includes the Market Power Mitigation and Reliability Requirements

Determination (MPM-RRD) process, the Integrated Forward Market (IFM) process, and the Residual

Unit Commitment (RUC) process. The Day-Ahead Market opens seven days in advance of any

Trade Day and is closed at 10am the day before the Trade Day.

The Day-Ahead Market accepts Bids for Energy from Imports, Exports, Participating Demand, Non-

Participating Demand and Generation. The Day-Ahead Market also accepts Bids for Ancillary

Services and Residual Unit Commitment capacity. The settlement validation of Ancillary Services

capacity products will be discussed in a separate module.

Day Ahead Settlements may occur in the following processes:

o The Integrated Forward Market will clear Bid-in Supply with Bid-in Demand, procure

100% of the Ancillary Service Requirement, and will produce financially binding

Energy Schedules and Ancillary Service Awards.

o The Residual Unit Commitment process will procure additional capacity as necessary

to meet the forecasted Demand and may create settlements.

o The Congestion Revenue Rights owners will have an hourly settlement based on the

congestion prices produced by the Integrated Forward Market.

o An Inter-SC Trade (IST) is a financial tool made available by the CAISO to help offset

the potential double settlements associated with bilateral contracts. IST’s for Energy

will be settled using the LMP’s from the IFM.

Reference Document: See Market Operations BPM, Section 6 and the Settlements: Market

Operations course for more details on how the Day-Ahead Market works.


Settlement Review :

Settlement files can be found in the Business Associate Portal Interface (BAPI). There will be two

BA specific files for each trade day:

Settlement Statement File– in general, will show the total amount, by charge code, by

settlement interval assessed to the BA. The level of detail show in the settlement statement varies by

charge code.

Billing Determinant File – will show the individual billing determinants used to calculate the

settlements for each charge code.

For every charge code there is a BPM configuration guide that shows how each charge is calculated

and the billing determinants used. Attachment E of the Billing and Settlements BPM shows a

comprehensive list of all CAISO charge codes and links to each configuration file. This training used

the BPM configuration guide exclusively to demonstrate these charge codes. When you see this

symbol: Key Documentation: this will tell you from which configuration guide the formula

was taken.

Most of the time, the attributes have been left off the billing determinants in this training for clarity.

The BPM will show you the entire billing determinant with all the attributes.

Challenge of BPM Configuration Guide vs. BAPI statement:

The Billing Determinant names in the BPM Configuration Guide are NOT the same as the name used

in the BAPI statements. You will need to use the Billing Determinant Matrix to correlate the two

documents. A link to the Billing Determinant matrix can also be found in Attachment E of the

Billing and Settlement BPM.


Day Ahead Charge Code Cheat Sheet

The following is a table of the charge codes that will be covered in this workbook.

In General:

CC Who Dispatch Granularity

Settlement Granularity

WHY

6011 DA Energy, Congestion and Losses

All Resources Hourly Hourly Instructed in DA Market

6800: Residual Unit Commitment

All non-RA resources

Hourly Hourly Instructed in DA Market

6700 – Congestion Revenue Rights Hourly settlement

CRR Holder Hourly Hourly Owner of CRR

6301 Inter-SC Trade for Energy

All Valid Trades Hourly Hourly Engaged with other party with Valid trade


Section 2

CC 6011: Day-Ahead Energy, Congestion and Losses


Integrated Forward Market - Overview:

What is it?

The Integrated Forward Market is the work horse of the Day-Ahead Market. This is the process that

uses the Bid pool created by the MPM process and clears Bid-in Supply with Bid-In Demand. As a

result of the clearing process, Energy Schedules are created for both Supply and Demand. Ancillary

Services are also procured in this process but covered in the Ancillary Service Workbook.

Can I bid just for congestion?

No, the Bid you submit will be for energy. If the CAISO has to re-dispatch the energy to solve for

congestion, we will use the Energy Bids to determine how, and in what order to re-distribute the

energy.

Why would a resource receive this Charge Code (6011)?

In general all resources that offer or schedule energy into the Day Ahead Market – be it a Bid curve

or a self schedule and are accepted in the Integrated Forward Market process will receive a settlement

in Charge Code 6011.

How would a resource receive a notification of a Day Ahead Energy Schedule?

If a Bid or Schedule is submitted into the Market, the resource will receive a Day-Ahead Schedule

report in CMRI (even if all the values are zero). If the resource receives an instruction, the report will

have a non-zero value in the appropriate schedule report.

What if my resource does not follow the Day-Ahead Schedule?

The Day-Ahead Market will still settle as price x quantity. The Real Time charge codes will take into

account deviations from the Day Ahead Schedule

How do I validate my instructions?

Schedules:

o CMRI – Day Ahead Market Results

Day Ahead Demand Market Results


Day Ahead Generation Market Results

Day Ahead Import Export Schedules

Prices:

o OASIS

o CMRI – Day-Ahead Market Results

Day-Ahead Demand Commodity Prices

Day-Ahead Generation Commodity Prices

Day-Ahead Import-Export Commodity Prices

Key Inputs for Calculation:

(NOT COMPREHENSIVE – for a complete list see Settlements and Billing BPM, Attachment E

Configuration Guide 6011)

Day-Ahead instruction quantity

LMP at appropriate node

Key Documentation:

Settlements & Billing, BPM Configuration Guide: DA Energy, Congestion and Loss Settlement, CC

6011.

In addition to the 6011 Configuration guide, the following pre-calculation documents are used to

validate/create settlements for 6011:

ETC/TOR – determines the balanced ETC/TOR/CVR schedules.


MSS Netting – determines which schedules are associated with an MSS are to be treated

as net settlement vs. gross settlement.

http://www.caiso.com/1b6a/1b6aa2486c700.doc

Day Ahead Settlements does not take into account if the

resource followed direction. Deviations from the Day Ahead Schedule are assessed in the Real-Time

Market.

Formula – DA CC 6011

In simple terms: The Day Ahead Energy is broken down into 4 components:

Day Ahead Energy Amounts not associated with an ETC/TOR/CVR schedule

PLUS

Day Ahead Energy Amounts associated with ETC/TOR/CVR schedules

PLUS

Congestion Credit for any ETC/TOR/CVR Schedule

(Marginal Cost of Congestion at the contract node times the Schedule)

PLUS

Loss Credit for certain TOR Schedules

(Marginal Cost of Losses at the contract node times the Schedule)

= (-1) * [(DA Non-Contract Schedule) * DA LMP) + (Contract Self Schedule * DA LMP)] + (MCC * Contract Schedule) + (MCL * TOR Contract Schedule)


Example – Day Ahead Energy Settlement CC 6011

Day Ahead Energy, Congestion, and Loss Pre- Settlement (CC 6011) is hourly and settled by

resource as follows:

DATA:

Generator 1: Cab_Unit_1 HE 14

DA Schedule: 100 MW

DA Schedule w/o contract 100 MW

ETC/TOR/CVR Schedule 0 MW

LMP at Price Node $73.78

MCC at Price Point -$2.26

MCL at Price Point -$0.63

= (-1) *[((DA Energy Schedule – Contract schedule) * DA LMP)) + (Contract Self Schedule * DA LMP)] + Cong. Credit + TOR Loss Credit

= (-1) * [((100 MW – 0 MW) *$73.78*) + (0 MW * $73.78)] + 0 + 0

= -$7378.00 Payment to SC

If this was the only resource in the portfolio, the settlement for 6011 will be -$7378.00 for HE 14

Suppose we use the same resource except 20 MW is scheduled as a balanced ETC. Day Ahead

Energy, Congestion, and Loss Pre- Settlement (CC 6011) is hourly and settled by resource as follows:


DATA:

Generator 1: Merlot_Unit_1 HE 14

DA Schedule: 120 MW



LMP at Price Node $70.52

MCC at Price Point -$2.10

MCL at Price Point -$4.05

= (-1) * (DA Energy Schedule – Contract schedule) * DA LMP)) + (Contract Self Schedule * DA LMP) + Cong. Credit + TOR Loss Credit

= (-1) * [((120 MW -20 MW)*$70.52 *) + (20 MW * $70.52) + (20 MW * -$2.10)] + 0

= -$8420.40 Payment to SC (amount BD)

Suppose we have a Non-Participating Demand Schedule of -100 MW. The Day Ahead Energy,

Congestion, and Loss Settlement (CC 6011) is hourly and settled by resource as follows:

NOTE: Demand and Export schedules are shown as negative in the settlements system

DATA:

Demand Resource: DLAP_PGAE_LTR1 HE 14

DA Schedule: -100 MW

DA Schedule w/o contract -100 MW


LMP at Default LAP $81.49

MCC at Default LAP $2.34

MCL at Default LAP $2.48



= (-1) * [((-100 MW- 0 MW) * $81.49) + (0 MW * $81.49)] + 0 + 0

= $8149.00 Charge to SC

Next, let’s look at a Demand resource schedule in the Day Ahead Market, part of which is scheduled

as a balanced TOR schedule of 20 MW

DATA:

Demand Resource: DLAP_SCE_LTR1 HE 14

DA Schedule: -125 MW

DA Schedule w/o contract -105 MW

ETC/TOR/CVR Schedule -20 MW

LMP at Default LAP $72.65

MCC at Default LAP $-2.02

MCL at Default LAP $-2.00


= (-1) * [((-125 MW – -20 MW) * $72.65) + (-20 MW * $72.65)] + (-20 MW*$-2.02) + (-20

MW * $-2.00)


Special Note for Contract Schedules: CMRI will only report the self schedule quantity. SIBR will

report out the Balanced MW associated with a contract


Day Ahead Energy, Congestion, and Loss Settlement (CC 6011) is hourly and settled by resource as

follows:

DATA:

System Resource 1:

LTR1_Malin500_F_I_001

HE 14

DA Schedule: 120 MW



LMP at Scheduling Point $58.64

MCC at Scheduling Point $-10.57

MCL at Scheduling Point $-7.44


= (-1) * [((120 MW – 0 MW) * $58.64) + (0 MW * $58.64)] + 0 + 0

= -$5864.00 Payment to SC


DA Energy, Congestion, and Loss Settlement (CC 6011) is hourly and settled by resource as follows:

DATA:

System Resource 1:

LTR1_NGILA_F_E_001

HE 14

DA Schedule: 120 MW



LMP at Scheduling Point $50

MCC at Scheduling Point $-21.83

MCL at Scheduling Point $-4.83


= (-1) * [((-120 MW – 0 MW)* $50.00) + (0 MW * $50.00)] + 0 + 0


NOTE: The calculation is the same as the import – the only difference Settlements receives is the

quantity for Exports as a negative value.

Day Ahead Market Exercise #1

Pulling it all together: if the resources in examples 1,2,3, and 4 were all in the same portfolio what

would be the amount shown on the settlement statement for 6011?

Click HERE for the Answer


ANSWER: $1486.85 (CHARGE)

$-7378.00 (from example 1) + $-8420.40 (from example 1a) + $8149.00 (from example 2) +

$90003.25 (from example 2a) + $-5861.00 (from example 3) + $6000.00 (from example 4

Formula – DA CC 6011

In order to validate the settlement statement, you will need to use the billing determinants. Below is

the simplified formula

= (-1) * [(DA Energy Schedule – Contract schedule) * DA LMP) + (Contract Self Schedule * DA LMP)] + (MCC * Contract Schedule) + (MCL * TOR Contract Schedule)

Below is the formula using the billing determinants

If you’re trying to validate your statement, you can cut and paste the following billing

determinants into the search feature of whatever program you downloaded your statement into to find

the value. Remember the rule of thumb: Schedules show up in BAPI as @ Quanity, Prices as @

Price and Price * quantity as @Amount

= (-1)*[( BA_HRLY_RSRC_DA_ENGY_SCHD@QUANTITY * RSRC_HRLY_DA_ENGY_LMP@PRICE

= RSRC_HRLY_DA_ENGY_LMP_NON_CONTRACT@AMOUNT) +

* (BA_HRLY_RSRC_DA_BAL_TOT_CONTRACT_USAGE@QUANTITY * RSRC_HRLY_DA_ENGY_LMP@PRICE

=BA_HRLY_RSRC_DA_ENGY_LMP_CONTRACT@AMOUNT)] +

(BA_HRLY_RSRC_DA_BALANCE_CONTRACT_SCHD@QUANTITY * HRLY_DA_ENGY_CONTRACT_FNODE_MCC@PRICE =

BA_HRLY_RSRC_DA_ENGY_CONTRACT_CONG_CREDIT@AMOUNT) +

(BA_HRLY_RSRC_DA_BALANCE_CONTRACT_SCHD@QUANTITY * HRLY_DA_ENGY_CONTRACT_FNODE_MCL@PRICE=BA_HRLY_RSRC_DA_ENGY_CONT

RACT_LOSS_CREDIT@AMOUNT)

On the settlement statement, a total for all resources for each hour will be shown


The Billing Determinant file will contain all the individual resources by billing determinant, by

resource.

For simplicity purposes, these examples do not provide all detail calculations behind each Billing

determinant. For detail calculations and for Charge Codes that are not described through examples,

please refer to the BPM for Settlements and Billing, Attachment E, Configuration Guide for 6011, for

detailed descriptions and formulas.

Where do I find……. Day-Ahead Quantities

Day Ahead Energy Schedules can be found in CMRI, in the Day Ahead Schedule reports statement.

The settlement statement and CMRI Post Market Results – Expected Energy report should match.

The following example is for a generator for the first 8 hours of the day – the report covers all 24

hours. Imports look the same.

Day-Ahead Generation Market Results for 12/11/2008

Scheduling Coordinator: LTR1

Resource Product Schedule Type

HE01 HE02 HE03 HE04 HE05 HE06 HE07 HE08

[MW] [MW] [MW] [MW] [MW] [MW] [MW] [MW]

CAB_7_UNIT 1 Energy Market 100.00 100.00 50.00 50.00 50.00 100.00 150.00 175.00

CAB_7_UNIT 1 Energy Self 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Important Note: The CMRI Demand report shows the MW as POSITIVE, but the settlement system

reports Demand and Exports as NEGATIVE.

Where do I find……Day Ahead Pricing

The Day Ahead LMP is a reported for all Pricing Nodes on the network.

o Generators will settle at the LMP at the node where they reside

o Non-Participating Demand will settle at the LMP at the Default LAP where the Load

is served.

o Imports and Exports are settled at the Schedule Point


o Participating Demand will settle at the LMP where the Demand resides

Day-Ahead Generation Commodity Prices for 12/11/2008


Resource Product Price Type HE01 HE02 HE03 HE04 HE05 HE06 HE07 HE08

[$] [$] [$] [$] [$] [$] [$] [$]

CAB_7_UNIT 1 Energy LMP 50.14 44.17 37.19 35.96 36.52 43.92 35.11 49.21

CAB_7_UNIT 1 Energy Energy 52.87 56.25 46.97 45.87 45.67 52.93 35.11 51.60

CAB_7_UNIT 1 Energy Congestion -1.31 -10.25 -8.05 -8.21 -7.50 -6.68 0.00 -1.35

CAB_7_UNIT 1 Energy Loss -1.42 -1.83 -1.72 -1.70 -1.65 -2.33 -0.01 -1.04

NOTE: The Congestion Credit for ETC/TOR/CVR schedules is calculated at the contract node. If

the contract node is different than the scheduling node, you will see a difference in the price in the

Marginal Cost of Congestion. The same applies for the loss credit for certain TOR’s.

Tools to validate:

The following reports will help illustrate Charge Codes for the Day Ahead Energy, Congestion, and

Loss Settlement and acquire the proper data to create a shadow settlement

To calculate and verify you will need:

CMRI Day Ahead Generation/Demand/Import and Export Schedule report, Trade Hour, and

specific resource

OASIS LMP from OASIS or CMRI

BAPI

o Settlement Statement (for the Total amount by BA and Total amount by BA per

interval


o Billing Determinant File (for all the billing determinants used in the calculation by

resource and interval)

o BPM for Settlements and Billing, Attachment E, Configuration Guide for 6011

Billing Determinants Matrix:

This guidebook is based on the formulas available in the BPM Configuration Guides. The billing

determinants used in these guides are not the same as used in the settlement files. The Billing

Determinant Matrix provides the link between the BPM’s and the settlement files. The Billing

Determinant Matrix can be found at the beginning of Attachment E in the Billing and Settlements

BPM.


Billing Determinants used in this calculation:

This Workbook

Billing Determinant Name in Billing Determinant file

Configuration Guide in BPM

Total Energy Amount w/o Contracts

RSRC_HRLY_DA_ENGY_LMP_NON_CONTRACT@AMOUNT

BAHourlyDAEnergyNetOfContractAmt

Total Energy Amount of Contract

BA_HRLY_RSRC_DA_BAL_TOT_CONTRACT_USAGE@QUANTITY

BAHourlyDAEnergyContractAmt

Quantity of Energy w/o Contracts

BA_HRLY_RSRC_DA_ENGY_SCHD@QUANTITY

BAHourlyDAEnergyCongestionCredit

Quantity of Energy with contracts

BA_HRLY_RSRC_DA_BAL_TOT_CONTRACT_USAGE@QUANTITY

BAHourlyDAEnergyTotalContractsLossCredit

LMP RSRC_HRLY_DA_ENGY_LMP@PRICE HourlyDAEnergyResourceLMP

Total Congestion Credit amount

BA_HRLY_RSRC_DA_ENGY_CONTRACT_CONG_CREDIT@AMOUNT

BAHourlyResourceDAEnergyContractCongestionCreditAmount

Total Loss Credit amount

BA_HRLY_RSRC_DA_ENGY_CONTRACT_LOSS_CREDIT@AMOUNT

Total Contract Quantity

BA_HRLY_RSRC_DA_BALANCE_CONTRACT_SCHD@QUANTITY

HourlyResourceDABalancedContractScheduleEnergy

Marginal Cost of Congestion

HRLY_DA_ENGY_CONTRACT_FNODE_MCC@PRICE

HourlyDAContractNodeMCC

Marginal Cost of Losses

HRLY_DA_ENGY_CONTRACT_FNODE_MCL@PRICE

Day Ahead Energy Settlements – ETC/TOR/CVR Some important notes about ETC/TOR/CVR

The balanced portion of any ETC/TOR/CVR will receive the congestion credit

The MCC is at the financial node of the contract – that may not be the same node where the resource

was scheduled.

Only certain TOR contracts are eligible for Loss credit. These contracts must be identified in the

TRTC process.


Day-Ahead Energy - MSS: MSS with gross settlement election:

Energy, congestion and losses will be treated the same as all other non-MSS resources with

respect to 6011 settlement.

MSS with a net settlement election:

CC 6011 will depend on if the net quantity in the MSS: is the MSS short or long.

If the MSS is long (meaning excess supply) the net quantity will be paid the MSS price that is the

weighted average of the generation in the MSS.

If the MSS is short (meaning excess Demand) the net quantity will be charged the MSS Price which

is based on the weighed average of the load nodes within the MSS

Expected Energy Report:

Most of the settlements pre-validation will have quantities shown in the Expected Energy Report

within CMRI. This report is produced daily, the day after each trade day. Each Resource will have

its instructions broken down to the type of instruction it receive.

Reference Document: The Market Operations BPM, Attachment C, provides a

comprehensive list of Expected Energy types. That Attachment will be used in conjunction with this

training – keep it handy.

Intertie Tagging and the effects on Settlement tags: All Intertie schedules must have an e-tag in Real Time but that will not affect the Day Ahead Energy

settlement. If an instruction does not have an e-tag, the financial ramifications will be accounted for

in Real Time charge codes (CC6470), not Day Ahead 6011

Differences between places to validate instructions

CMRI – Day Ahead

Market Results

This report will be available after 1 pm every day. There are

two reports available for each type of resource: Price and


schedule

CMRI – Post Market

Results - Expected Energy

Most Accurate of CAISO documentation – should reflect the

Day Ahead Schedule but is reported in 10 minute increments

(DA schedule / 6)

OASIS

Will provide prices

Market Power Mitigation – Reliability Requirements Determination - Overview:

What is it?

The Market Power Mitigation process is the first process that is run in the Day Ahead Market. The

purpose is to if a Unit is able to exercise market power due to where it resides on the network. This

What does it mean to me?

If your Unit is mitigated, the submitted bid may not match the Bid used in the integrated Forward

market

What charge code will I see the MPM settlement in?

Technically you won’t. That is to say, no direct settlement will occur in the MPM process. What

does happen is if a Unit is mitigated, a mitigated bid curve will be used in the IFM. The unit will

receive a schedule, based on the results of the Integrated Forward Market run and will paid the DA

LMP.

How would a resource know if it has been mitigated?

A mitigated bid curve will be posted to CMRI in the Day-Ahead Market section under Market Power

mitigation report. If the Unit was not mitigated, the report will be blank.

What’s the RRD portion mean?

It is the Reliability Requirements Determination section. This is the process that determines if an

RMR unit has a Day-Ahead Schedule that is considered an RMR Dispatch.


MPM and Reliability Must Run Units:

The MPM process has two different runs. The first run is called the Competitive Constraint Run

(CCR). The program matches supply with forecasted Demand using a network model with only the

competitive constraints activated. The next run is called the All Constraints Run (ACR). In this step,

the program runs again to match supply with forecasted Demand – the difference being all the

constraints are turned on. If an RMR unit is increased between the CCR and the ACR run, the Unit

will be under an RMR dispatch.

• MW up to the CCR level, are Hybrid. Unit will keep market payments and receive no

additional contract payment.

• When ACR > CCR MW above CCR up to IFM, are Billable. Unit will be paid contract value

and credit back market payments on RMR Invoice.

• In Real time, MW above the Day Ahead IFM schedule up to the CCR level are Hybrid. Unit

will keep market payments and receive no additional contract payment.

• In Real Time, when RT ACR > RT CCR, MW from the RT CCR level up to the ADS

Dispatch, are Billable. Unit will be paid the RMR Contract value and credit back market

payments on RMR Invoice.

Additional Calculations performed in CC 6011:

Additional Information calculated in this Charge code will be used in CC 6700:

Total Congestion Charges are used in the Congestion Revenue Account.

Validation – Day Ahead Energy CC 6011

CALCULATION COMPONENT

WHERE TO VERIFY

Amount (Billable Quantity * Price)

BAPI Bill Determinant Names: BA_HRLY_DA_ENGY@AMOUNT = (BA_HRLY_RSRC_DA_SCHED_NET_CONTRACT_QTY +BA_HRLY_RSRC_DA_ENGY_SCHD@QUANTITY


Billable Quantity (MW) Day Ahead Market Schedule, Self Schedule for Generators Day Ahead Market Schedule, Self Schedule for Imports/Exports Day Ahead Market Schedule, Self Schedule for Demand Expected Energy Qty Price ($) LMP Price for Generators LMP Price for Demand LMP Price for Imports/Exports

+BA_HRLY_RSRC_DA_BAL_TOT_CONTRACT_USAGE@QUANTITY) * HRLY_RSRC_DA_LMP PRICE CMRI - Day Ahead Generation Market Results

Select Market Results>Day-Ahead Market Results>Day-Ahead Generation Market Results

CMRI – Day-Ahead Import/Export Schedules

Select Market Results>Day-Ahead Market Results>Day-Ahead Import/Export Market Results

CMRI – Day Ahead Demand Market Results

Select Market Results>Day-Ahead Market Results> Day-Ahead Demand Market Results

CMRI – Gen-Demand-Imports-Exports Market Results>Post Market Results>Expected Energy CMRI - Day Ahead Generation Commodity Prices Select Market Results> Day-Ahead Market Results>Day-Ahead Generation Commodity Prices

CMRI - Day Ahead Demand Market Results

Select Market Results>Day-Ahead Market Results> Day-Ahead Demand Market Results

CMRI - Day Ahead Import -Export Commodity Prices Select Market Results>Day-Ahead Market Results>Day-Ahead Import-Export Commodity Prices


LMP Price

OASIS – Select Locational Marginal Prices Report> Market/Node

BAPI – HRLY_RSRC_DA_LMP PRICE (Currently, we have this BD in the CAISO Bill Determinant File. ISO will fix this issue).

Day Ahead Market Exercise #1

Pulling it all together: if the resources in examples 1, 2, 3, and 4 were all in the same portfolio what

would be the amount shown on the settlement statement for 6011?

If the resources in examples 1, 2, 3, and 4 were all in the same portfolio what would be the amount

shown on the settlement statement for 6011?

ANSWER: $1486.85 (CHARGE)

$-7378.00 (from example 1) + $-8420.40 (from example 1a) + $8149.00 (from example 2) +

$90003.25 (from example 2a) + $-5861.00 (from example 3) + $6000.00 (from example 4

Click HERE to return to the section


Section 3

CC 6800: Residual Unit Commitment


Residual Unit Commitment (RUC):

What is it?

The Residual Unit Commitment is the last process in the Day Ahead Market. Since the Integrated

Forward Market clears Bid-in Supply with Bid-in Demand, there may not be enough Supply

scheduled to meet the forecasted Demand. The Residual Unit Commitment process is run to ensure

there is enough available capacity to meet the forecasted Demand in Real-Time.

What is the difference between RUC Award and RUC Capacity?

Payment. Resources under Resource Adequacy (RA) contracts are required to bid into RUC but are

not eligible for payment.

Why would a resource receive this Charge Code (6800)?

They received a RUC Award. (RUC capacity will NOT get paid).

How would my resource receive instructions?

If a Bid or Schedule change is accepted by the Market, the resource will receive a RUC award. This

award will be found in CMRI as a RUC Schedule. In the Day-Ahead Market Residual Unit

Commitment (RUC) Report, the award verses self is broken out. Award is eligible for payment, self

is not.

Will RUC show up in a Real-Time charge code?

NO. RUC capacity will ensure the resource will submit a bid in the Real Time market. SIBR will do

all the validation. Once the resource has a valid Real Time Bid, any association with RUC has been

completed.

How do I validate my instructions?

Schedules:

o CMRI: Generation or Import-Export Schedules

o Day-Ahead Residual Unit Commitment (RUC) Capacity


Prices:

OASIS

CMRI




RUC Market in CMRI

RUC Price

CC 6800 – Residual Unit Commitment

The Residual Unit Commitment process will commit additional capacity as needed to meet the

Demand Forecast. Resources under Resource Adequacy contracts are not eligible for RUC payment.

Formula – CC 6800 – Residual Unit Commitment

RUC Availability Settlement Amount = (-1) * (RUC Awarded Qty) * (RUC

Price)

Or using the Billing Determinants found in BAPI:

BA_HRLY_RSRC_RUC_AVAIL_STLMT@AMOUNT =

(-1) BA_HRLY_RSRC_RUC_AWARD_BID_QTY * HRLY_RSRC_RUC_PRC

Only RUC Awards will settle

Example – CC 6800 Residual Unit Commitment

The following example will illustrate Charge Code 6800 Residual Unit Commitment.


Data

Generator 1: Cab_Unit_1 HE 14

RUC Award: 100 MW

RUC Price $8.75

To determine the settlement amount:

BA_HRLY_RSRC_RUC_AVAIL_STLMT@AMOUNT =

(-1) BA_HRLY_RSRC_RUC_AWARD_BID_QTY * HRLY_RSRC_RUC_PRC

(-1) * (100 MW) * ($8.75)

= -$ 875.00

CMRI RUC reports:

In the Day Ahead Residual Unit Commitment (RUC) Capacity report, the RUC capacity is broken

out between Award (which will receive a settlement) and Capacity (which will NOT receive a

settlement)

Day-Ahead Residual Unit Commitment (RUC) Capacity for 12/09/2008


Resource Resource

Type Product HE14 HE15 HE16 HE17 HE18

[MW] [MW] [MW] [MW] [MW]

CAB_7_Unit1 Generator RUC Award 0.00 1.37 23.16 22.17 0.00

CAB_7_Unit1 Generator RUC Capacity

405.00 13.92 35.16 34.17 12.00


In the Day Ahead Generation Market Results report, the RUC capacity is NOT broken out between

Award and Capacity. You can not use this report to build a shadow settlement.

Day-Ahead Generation Market Results for 12/09/2008


Resource Product Schedule Type

HE14 HE15 HE16 HE17 HE18

[MW] [MW] [MW] [MW] [MW]

CAB_7_Unit1 RUC Capacity Market 405.00 13.92 35.16 34.17 12.00

Validation – CC 6800 Real Time Instructed

This workbook Billing Determinant Name in Billing Determinant File


Total Amount BA_HRLY_RSRC_RUC_AVAIL_S

TLMT@AMOUNT

RUCAvailabilitySettlementAmount

Quantity BA_HRLY_RSRC_RUC_AWARD

_BID_QTY

RUCAwardedQty BrtuT’I’M’hi

Price HRLY_RSRC_RUC_PRC RUCPrice BrtM’hi

Calculation Component

How/Where to verify

Settlement Amount

($)

BAPI - BA Specific Statement File:

For each charge code statement file provides:

CHARGE_CODE_SUMMARY – Net settlement amount for the day

under each charge code.

CHARGE_CODE_INTERVAL_TOTAL – Total settlement amount

for each interval for each charge code.

CHARGE_CODE_INTERVAL_DETAIL – Provides the settlement

details for each resource for each interval.


BAPI - BA specific Bill Determinants File: (Provides all SC specific bill

determinants that are needed for charge code validation.)

BA_HRLY_RSRC_RUC_AVAIL_STLMT@AMOUNT

Billable Quantity

(MW)

CMRI – Expected Energy Report

BAPI - BA specific Bill Determinants File:

BA_HRLY_RSRC_RUC_AWARD_BID_QTY

Prices

($)

OASIS/CMRI -


HRLY_RSRC_RUC_PRC


Section 4

CC 6301: Inter-SC Trades


CC 6301 – Inter-SC Trades for Day Ahead Energy

What are they?

Inter-SC Trades are a financial tool that can be used by two SC’s to offset a possible double

settlement associated with a bilateral contact.

Why would an SC receive this Charge Code (6301)?

Two parties must to agree to a type of trade and a trade location and submit that trade into SIBR.

Will any of my resources receive instructions?

No resources will receive instructions from this financial transaction. This is a financial option only.

The Aggregate Price Node Trades (APN) will be between to parties at one of the 6 aggregated price

nodes: either one of the three default LAP’s or one off the three trading hubs.

For a PHY trade, a resource may be named but the location of the resource will determine the price

the trade will settle at – nothing else.

What happens if the trade is not submitted on time?

The financial transaction of the trade will not flow through to settlements.




Inter-SC trade from SIBR

DA LMP at appropriate location

CC 6301– Day Ahead Inter-SC Trade

There are three types of Inter-SC trades

APN – Aggregate Price Node - location will be at one of the 6 Aggregate Price Node

PHY – Physical Inter-SC Trade – location will be at a Generator node

CPT – Converted Physical Trade – location will be at one of the 3 EZ Generation Hubs


SC’s can only submit trades for APN and PHY. A CPT is a by-product of a PHY trade that

does not exit the Day Ahead Market with a schedule to support the PHY trade.

The FROM SC will be charged the LMP

The TO SC will be paid the LMP.

An SC is allowed one APN Trade, per trading partner, per location, per

direction, per hour.

For example, SC1 can have one APN Trade with SC2 at EZGen Hub SP15 as the FROM and as the

TO, only

Formula – Day Ahead Inter-SC Trades for Energy CC 6301

For the FROM SC

BA Hrly Trade Place DA From Inter Sc Trade Amount = BA Hrly Trade Place DA From InterSC

Trade Qty * DA Inter SC Trade LMP

For the TO SC

BA Hrly Trade Place DA To InterSC Trade Amount = (-1) * BA Hrly Trade Place DA To

InterSC Trade Qty * DA Inter SC Trade LMP


Example: Aggregate Price Node Trade

SC1 Engages in an Inter-SC Trade with SC2. SC1 is the FROM and SC2 is the TO SC

Data:

HE 14

Type APN

Trade Place EZGen_SP15

Counter BA SC2

MW 10

Price $84.75

BA Hrly Trade Place DA From InterSC Trade Amount = BA Hrly Trade Place DA From InterSC

Trade Qty * DA InterSC Trade LMP

= 10 MW * 84.75

SC1 will see a CHARGE of $847.50 in their Billing Determinant file for this transaction

BA Hrly Trade Place DA To InterSC Trade Amount = (-1) * BA Hrly Trade Place DA To InterSC Trade Qty * DA InterSC Trade LMP

= (-1)10 MW * $84.75


SC2 will see a PAYMENT of -$847.50 in their Billing Determinant file for this transaction

Settlement statements:

What you see on your settlement Statement

All Inter-SC Trades are summed up BY LOCATION, by Counter BA per hour.

The above example show you how the settle individual trades, below are the billing determinants

used to sum up trades on the Settlement Statement.

BAHrlyTradePlaceDAInterSCTradeAmount =

BAHrlyTradePlaceDAFromInterScTradeAmount +

BAHrlyTradePlaceDAToInterSCTradeAmount



BA Hrly Trade

Place DA From

InterSC Trade

Amount

BA_HRLY_DA_IST_FROM@AMO

UNT

BAHrlyTradePlaceDAFromInterScTra

deAmount

BA Hrly Trade

Place DA To

InterSC Trade

Amount

BA_HRLY_DA_IST_TO@AMOUN

T

BAHrlyTradePlaceDAToInterSCTrade

Amount

BA Hrly Trade

Place DA From

InterSC Trade

BA_HRLY_TRADEPL_DA_FROM

_IST_QTY

BAHrlyTradePlaceDAFromInterScTrade

Qty




Qty

BA Hrly Trade

Place DA To

InterSC Trade

Qty

BA_HRLY_TRADEPL_DA_FROM

_IST_QTY

BAHrlyTradePlaceDAToInterSCTrade

Qty

DA InterSC

Trade LMP

TRADEPL_HRLY_DA_IST_PRC DAInterSCTradeLMP

Validation – Real Inter-SC Trade - 6301

Calculation Component

How/Where to verify

Settlement Amount

($)

BAPI - BA Specific Statement File:

For each charge code statement file provides:

CHARGE_CODE_SUMMARY – Net settlement amount for the day

under each charge code.

CHARGE_CODE_INTERVAL_TOTAL – Total settlement amount for

each interval for each charge code.

CHARGE_CODE_INTERVAL_DETAIL – Provides the settlement

details for each resource for each interval.

BAPI - BA specific Bill Determinants File: (Provides all SC specific bill

determinants that are needed for charge code validation.)

Billable Quantity

(MW)

SIBR



Prices

($)



Section 4

CC 6700: Congestion Revenue Rights


Congestion Revenue Rights (CRR) - Overview

What are Congestion Revenue Rights (CRR)?

CRR’s are a financial tool that can be used to offset congestion charges in the Day Ahead or just as a

financial instrument to provide a revenue stream.

How do I get a CRR?

Yearly, the CAISO will hold an allocation and auction process. In the yearly process, 75% of the

transmission system will be available on a seasonal basis. Monthly the CAISO run the auction and

allocation process again for the remaining transmission capacity.

Can I buy a CRR in the Day Ahead Market?

No, CRRs are only available through the ISO in the yearly and monthly auction and allocation

process.

What is the Day Ahead settlement of CRR?

Owners of CRRs will be assess (either paid or charged) the Marginal Cost of Congestion (MCC) at

the sink minus the MCC at the source. The MCC will be a result of the Day Ahead Market as part of

the LMP.

Do I have to schedule on the grid/path to get my assessment?

No, assessment will happen every day for the period of the CRR

What about Real Time?

CRR’s are only assessed in the Day Ahead Market

CC 6700 – Hourly settlement of Congestion Revenue Rights

Additional information will be added to this section a later date.

Documents

Settling the Day-Ahead Market - California ISO · Settling the Day-Ahead Market Charge Codes included in this training: 6011, 6800, 6700, 6301 . ... Trade Day and is closed at 10am