Opportunity Cost Calculator Member Impacting Project Overview

Transcription

1 Opportunity Cost Calculator Member Impacting Project Overview 5/20/2014 Page 1

2 Table of Contents Version Control... 2 Document Purpose... 2 Executive Summary... 4 Business Impact... 4 Users Impacted... 5 Business Functions Impacted... 5 Technical Impact... 5 OCC Inputs... 5 Resource-level records... 6 Unit Characteristics... 6 OCC Input data precision and validation... 7 Fuel Characteristics... 9 OCC Inputs Notice of Disclaimer OCC Results OCC Results Notice of Disclaimer SPP Systems/Processes Impacted Anticipated Member Systems/Processes Impacted Member Requirements Testing Training Summary of Timeline Project Assumptions... Error! Bookmark not defined. Risks Additional Documentation Communication Plan Liaisons Next Steps FAQs More Information Version Control Version Date Author Change Description 1.0 5/12/14 Kirk Anderson Initial Draft Document Purpose This template should be used to provide initial and ongoing communication of member impacting projects to the CWG and membership. The Project Manager should provide the MIPO with an initial review period. The CWG Representative should review the MIPO and provide feedback and response, including request for a MIPO review meeting, during the comment period. 5/20/2014 Page 2

3 All MIPO updates will be red-lined, and that version will be saved as MIPO_<PR#_NAME_V#.R#> where V# is the version number associated with the touch point, and R# is the release within that touch point. The latest version will have accepted redline from the previous version, and any new changes redlined. The CWG and/or project liaison will be notified of any MIPO change. 5/20/2014 Page 3

4 Executive Summary The purpose of this project is to implement a standalone Opportunity Cost Calculator (OCC) that may be used by applicable Market Participants to aid in establishing an adder for mitigated offers. The applicable units will be those with run time restrictions approved by the Market Monitoring Unit under the provisions in Attachment AF, Section 3.2 of the SPP OATT. The valid justifications for including an opportunity cost in the mitigated energy offer curve include: 1. Environmental run-time restrictions 2. Physical equipment limitations 3. Fuel supply limitations These run time limited resources have a need for an opportunity cost adder in the energy offer to manage limited availability, making the resource available when it is most valuable to the market. The market participant will submit the necessary resource parameters and costs to the Opportunity Cost Calculator, and SPP will provide the necessary market data. The OCC will compute the opportunity cost adder off-line overnight in accordance with the guidelines specified in Section 11 of Appendix G of the Marketplace Protocols. The MMU will monitor the inputs for accuracy and the use of the output in the mitigated offer. Business Impact Market Participants will be responsible for identifying run time limited resources to the Market Monitoring Unit and providing adequate documentation for the MMU to verify the validity of the limitation. On a daily or weekly basis, depending on the length of the run time limitation, the Market Participant will take the following steps: 1. gather the necessary input data, resource parameters and costs, 2. submit the inputs to the OCC, and 3. retrieve the results the next day. The Market Participant will assess the output and apply an opportunity cost adder, as appropriate, to the Mitigated Energy Offer Curve. The application of an opportunity cost adder to the Day Ahead Market and RTBM Energy Offer Curves is at the Market Participant s discretion 1. OCC Data Operations Timing The following is a representative timeline of when the calculation operations will be executed. These times are subject to change as the process and infrastructure are developed. Time (CPT) Process Step 12:00 AM SPP MMDD users must submit OCC Input data. (midnight) 2:00 AM The OCC Engine calculation process is kicked off. Prior day s OCC Results and OCC Inputs delivered to SPP via XML. 8:00 AM Successfully calculated Opportunity Cost values are posted to OCC Results page in MMDD. 1 See disclaimer below. 5/20/2014 Page 4

5 The OCC Calculator design will require robust inputs provided by the user, from SPP, and from external data sources such as Platts or CME. In the event that critical data is missing, the Calculator Engine will fail to calculate an opportunity cost, and will provide the user with an error message. Users Impacted Market Participants operating applicable generation resources that meet Tariff provisions and are approved by the MMU. Business Functions Impacted Offer Development / Marketplace Operations Technical Impact The OCC is a new module for the Market Monitoring Data Depository and as such will be accessible through that tool following the same confidentiality and security as the MMDD. The Market Monitoring Data Depository Local Security Administrator ( MMDD LSA ) will designate OCC users for each applicable Asset Owner. The Opportunity Cost Calculator (OCC) will consist of: A market participant OCC Input (OCCI) data module (a tab in the OCC module) in MMDD, in which users can provide details of their generator operations and constraints as inputs to the opportunity cost calculation. o One OCCI screen will display an input form for each MMU-approved OCC resource owned by the Asset Owner. It is assumed that each resource will be allowed a single Opportunity Cost calculation for each day. Multiple OCC scenarios for each unit are not supported by the proposed architecture. It is assumed that a small quantity of resources will participate in the OCC process, so the system will display only those resources for which the OCC will apply, rather than having all resources displayed by default. OCC Inputs The OCC Inputs screen will capture all of the user inputs required for the OCC calculation on one screen, with multiple segments, detailed below. The OCC Inputs screen appears as follows: 5/20/2014 Page 5

6 Resource-level records The OCC Inputs screen will allow the user to select the resource and expand the OCC Input screen for that resource. This is only allowed for those resources specified as OCC resources, as authorized by the SPP MMU. If the OCC Resource designation is removed, the resource will no longer be available in the OCC Inputs screen, whether or not the record has been created in the past. For each OCC Resource, a single OCC Input record can be created, saved, and submitted for calculation each day. Clicking on the arrow to the left of an OCC input record row expands the row to reveal the OCC Input screen. Resource Characteristics 5/20/2014 Page 6

7 OCC Input data precision and validation For each data element, the following table specifies the precision and data validations required of the input data. Any additions or changes to data validations will be reviewed by the SPP MMU prior to development. No data will be pulled from the other MMDD modules all data should be provided by the user requesting the opportunity cost calculation. Data Element Validation Precision Non-Rolling Reset Date Date can only specify a value for one of Period Ending, Rolling Days or Rolling Months. Calendar driven Rolling Days Integer, non-negative Integer 5/20/2014 Page 7

8 Rolling Months can only specify a value for one of Period Ending, Rolling Days or Rolling Months. Integer, non-negative can only specify a value for one of Period Ending, Rolling Days or Rolling Months. Integer Run Limit (MWh) Used to Date (MWh) Economic Max (MW) Minimum Run Time (HHHHH:MM) Non-negative, allows decimals, can be a large number Must be more than Used to Date (MWh) Non-negative, allows decimals, can be a large number Must be less than Run Limit (MWh) Decimal Decimal Decimal, max 9, MW Non-negative 5 digit hours, 2 digit minutes, separated by colon. Minimum Off Time* Non-negative 5 digit hours, 2 digit minutes, separated by colon. Startup Costs ($) Dollars, cents. Non-negative Two decimal VOM ($/MWh) Any limits Two decimal Full Load Average Summer Heat Rate (mmbtu/mwh) (Not Incremental Heat Rate) Full Load Average Winter Heat Rate (mmbtu/mwh) (Not Incremental Heat Rate) NOx Emission Rate (lbs/mmbtu) Non-negative Non-negative Any limits 6 decimal By Fuel Type 6 decimal By Fuel Type 6 decimal By Fuel Type Note: this data is being 5/20/2014 Page 8

9 SO2 Emission Rate (lbs/mmbtu) Any limits Opportunity Cost Calculator PR reported in Tons/MWh elsewhere in MMDD 6 decimal By Fuel Type CO2 Emission Rate (lbs/mmbtu) Forward Fuel Index Fuel Percentages Contract Price ($/mmbtu) Delivery Charge ($/mmbtu) Any limits Uses Index name (Platts or CME) Non-negative, percent between 0% - 100% Sum across all fuels for each month must add to 100% sum across Spot vs. Contract for a given fuel and month must add to 100%. Note: this data is being reported in Tons/MWh elsewhere in MMDD 6 decimal By Fuel Type Note: this data is being reported in Tons/MWh elsewhere in MMDD By Fuel Type 6 decimal By Fuel Type, by Month Dollars and cents By Fuel Type, by Month Dollars and cents By Fuel Type, by Month * SPP anticipates the addition of a minimum off time parameter, which will be the sum of the Minimum Down Time, Sync to Min Time, and Min to Off Time, as defined in the SPP Integrated Marketplace Protocols. Fuel Characteristics For dual fuel units or units that will use a blend of multiple fuels over the selected OCC period, the OCC Inputs screen will allow the user to specify a combination of five fuels (Fuels A E). For each fuel specified, the user will specify the Full Load Summer Heat Rate, the Full Load Winter Heat Rate, and the NOx, SO2 and CO2 Emissions rates. For each fuel for each month in the selected OCC period, the user will specify the percentage of that fuel that is expected to be consumed. 5/20/2014 Page 9

10 For each fuel, for each month in the selected OCC period, the user will specify the percentage of that fuel that is expected to be purchased in the spot market vs. under a contract. For each fuel, for each month in the selected OCC period, the user will specify the price and the delivery charges ($/mmbtu) associated with the contract purchases of that fuel. Outage Information The module will also allow the user to provide outage information similar to that shown below. 5/20/2014 Page 10

11 Run Hour Data The OCC Inputs module will require the user to enter the total permissible run hours (MWh) allowed by the physical or environmental constraint. The OCC Inputs module will have a field for the user to report the total number of hours (MWh) that the unit actually ran in the period as of the prior day. OCC Inputs Notice of Disclaimer On the OCC Inputs screen, there will be a message of disclaimer that reiterates that the inputs to the Opportunity Cost Calculator are the responsibility of the user, and that Monitoring Analytics and Southwest Power Pool, Inc. are not responsible for the appropriateness of the use of the OCC results in any market. The following language will be displayed: By using this Opportunity Cost Calculator, the user acknowledges and agrees to the following: This Opportunity Cost Calculator is made available solely as a convenience to the user, and its use is entirely optional. The existence of this tool in no way relieves a Market Participant of its obligations under the Southwest Power Pool, Inc. (SPP) Tariff, including, without limitation, the obligation to provide accurate Opportunity Cost calculations. Users assume sole responsibility for offers submitted into SPP markets, and Monitoring Analytics, LLC and SPP make no claim or guarantee of the accuracy of this tool's Opportunity Cost calculation or of the appropriateness of its use in any market. Market Participants should only submit or otherwise use Opportunity Cost calculations that Market Participants have independently reviewed and confirmed to be accurate. Market Participant and/or user hereby waives all claims of liability against Monitoring Analytics, LLC and SPP associated with the use of or reliance on this Opportunity Cost Calculator or its results. 5/20/2014 Page 11

12 A market participant Opportunity Cost Calculator Results (OCCR) tab in the OCC module in MMDD in which the output calculated opportunity cost of the OCC Engine (Engine) will be presented to the user. o One screen with all Asset Owner s resources that have had OCC calculated shown with Opportunity Costs calculated for each unit (Results not displayed with the Input screen) o Lists all historical OCC results for the resource, sorted by date so the user sees the most recent results at the top, separated the current date visually. OCC Results The output screen will present the OCC Engine calculated opportunity cost in a unit grid similar to that shown below. Resource Name Last Update Date Calculated OCC Adder ($/MWh) Unit :20 CST Unit :20 CST 7.58 Unit :20 CST 7.52 Unit :20 CST 9.77 Comment OCC results data will be loaded directly into the database using Monitoring Analytics automated process. No cache management will be required results data loaded will be available to the user without requiring service restart. OCC Results Notice of Disclaimer On the OCC Results screen, there will be a message of disclaimer that reiterates that the results of the Opportunity Cost Calculator are the responsibility of the user, and that Monitoring Analytics and Southwest Power Pool, Inc. are not responsible for the appropriateness of the use of the OCC results in any market. The following language will be displayed: The use of the Opportunity Cost Calculator results is the responsibility of the user. Users assume sole responsibility for offers submitted into Southwest Power Pool, Inc. (SPP) markets. Monitoring Analytics and SPP make no guarantee of the accuracy of the Opportunity Cost calculation or of the appropriateness of its use in any market. Market Participants should only use or rely on the Opportunity Cost Calculator results in any market if the Market Participant agrees with the calculated results, and waives all claims of liability against Monitoring Analytics and SPP associated with the use of or reliance on the results. SPP Systems/Processes Impacted ETL interfaces to support input and output data from the OCC Engine: Inputs Market data from SPP (FTP interface) Resources identified by MMU Outputs Computed adders 5/20/2014 Page 12

13 Anticipated Member Systems/Processes Impacted Opportunity Cost Calculator PR Member systems will not be impacted. Members will need to insert and update data as needed on an ongoing basis for the duration of their interaction with the OCC. Member Requirements No member requirements have been identified at this time. Testing No member testing will be required. A sandbox environment will be made available to allow impacted Market Participants to become familiar with the website. Training A Training Webinar and Users Guide will be provided as necessary. Summary of Timeline Date Responsible Party Action 02/28/14 Project Team Requirements 3/14/14 Monitoring Analytics 3/28/14 Monitoring Analytics Design Build 5/5/14 SPP SPP Acceptance Testing 6/5/14 SPP Functional Integration Testing 6/6/14 Monitoring Analytics 6/13/14 SPP / Monitoring Analytics 6/20/14 SPP / Monitoring Analytics 7/4/14 SPP / Monitoring Analytics 7/11/14 SPP / Monitoring Analytics User Guide Complete User Training begins Sandbox opens Sandbox and user training close Go-live 5/20/2014 Page 13

14 Risks No Risks have been identified at this time. Additional Documentation A Users Guide will be provided. The Users Guide and other subsequent documentation will be hosted on the Market Monitoring Data Depository website. Communication Plan All project communication and information will be posted to the SPP Change Working Group Project Documentation folder. This MIPO will be updated upon change or with any new information, and according to the Member Project Touch Points and Deliverables. With any update, a redline version is posted to the project documentation folder, and the CWG is notified. Liaisons The project requests Project Liaisons to perform the following functions during the project timeline: Review project documentation and provide feedback Assess milestones and deliverables for feasibility Serve as the main point of contact between SPP and Member organization Facilitate member review of MIPOs and Information Session presentation materials Provide feedback on and approval of MIPOs Review project status and provide your organization s status Coordinate member implementation and testing efforts Represents SPP and the members interest on the project team Next Steps Action Assignee Status & Due Date Provide Initial MIPO MPs unsure of their qualification status for the OCC to contact the SPP MMU CWG Staff Secretary Market Participants In Progress 5/16/14 5/30/14 FAQs These FAQs are added to the RMS Knowledge Base. Frequently asked questions will be added to the document as identified or necessary, as well as adding to the RMS Knowledge Base, located here: More Information At any time, Members can ask questions or get more information by completing an RMS ticket using this project s quick pick option. RMS link: If a new user ID is needed for RMS, click on that link and follow the directions for Register Now. Use quick pick for Market Monitoring Unit. 5/20/2014 Page 14