CAISO Business Practice Manual BPM for Market Operations MARKET OPTIMIZATION

Transcription

1 BPM for Maret Operations MARKET OPTIMIZATION

2 BPM for Maret Operations Tis information will be provided at a later date in te form of a tecnical bulletin. Version 17 Last Revised: April 1, 2011 Page A-1

3 BPM for Maret Operations Attacment A MARKET INTERFACES

4 BPM for Maret Operations A. Maret Interfaces Tis Maret Interfaces attacment presents te data excange between Maret applications. Refer to Section 3.3, Maret Interfaces, wic sows te inter-relationsips of tese applications. A.1 Sceduling Infrastructure & Business Rules (SIBR) System Te SIBR system performs te following tass: Provides an SC interface to submit Bids and Inter-SC Trades Applies business rules to validate and process submitted Bids and Inter-SC Trades Applies business rules to generate DAM Bids for Generating Units under te must offer obligation (Generating Unit adequacy requirement) and Real-Time Maret Bids for Generating Units wit Day-Aead AS or RUC Awards, if tese Generating Units do not ave valid Bids Provides SCs wit information about teir Bid and trade validation and processing Forwards te final (clean) Bids and trades to te relevant Maret applications and to te SC Stores information for auditing purposes A.2 Sceduling & Logging of Outages (SLIC) SLIC only applies to Generating Units and allows Maret Participants to notify CAISO wen a Generating Unit s properties cange due to pysical problems. Users can modify te maximum and minimum output of a unit, as well as te Ramping capability of te unit. Tis data is accessed directly by te Real-Time processes to override some of te Master File data. Te BPM for Outage Management provides furter details on sceduling and maintaining facility Outages. A.3 Automated Demand Forecasting System (ALFS) Te elements of ALFS are described in tis section. A.3.1 Integrated Forward Maret (Full Networ Model) Requires Day-Aead and two Days-Aead Demand Forecasts, in increments of one our for te following: Version 17 Last Revised: April 1, 2011 Page A-1

5 BPM for Maret Operations Metered Subsystems (MSSs) Load forecasts for Load-following MSSs are required. In addition, if te oter MSSs do not provide teir own Load forecasts, CAISO provides one. Calculated Forecasts Presently some IOU forecasts include te MSSs. Once te MSS forecasts become available, te IOU Load forecasts witout te MSSs in teir area are used. Tis is accomplised witin ALFS, using software from Itron. Oter Control Areas Load forecasts for some control areas are necessary because teir detailed networs are included in te Full Networ Model. In order to provide te most accurate forecast, te non-conforming Pumping Load is forecasted separately from te temperature-sensitive conforming Load. Load forecast for CFE is desirable, since it is part of te California-Mexico Reliability Coordination Area. IID as recently joined te WECC Desert Reliability Coordination Area and tus is not a liely candidate for Load forecasting. Congestion Zones In IFM, Congestion zones are not needed except for financial trades. However, for Ancillary Services, an additional Load forecast is required. A.3.2 RMR Prescedule Requires Day-Aead forecasts, in increments of one our for te following: Local Control Areas (LCAs) In order to mae te RMR prescedules consistent wit te IFM, it is desirable to ave te RMR prescedules use te same Load forecasts as IFM. Terefore, forecasts are needed for existing LRAs defined by Operations Engineering. One area Load forecast is currently provided by ALFS. Forecasts for te LRAs may also be used to improve te application of LDFs, since LDFs can be applied to smaller areas. A.3.3 LMP Load Zones Requires Day-Aead forecasts, in increments of one our for te following: LMP Load Zones At tis time, CAISO is not considering LMP for Load forecasting. A.3.4 ALFS Loss of Data Interfaces ALFS updates Load forecasts every 15 minutes. In te event of failure to update data, RTM continues to use te un-updated data. If data does not exist for a particular interval, RTM uses data from te last available interval or from a CAISO Operator enterable data entry point. Version 17 Last Revised: April 1, 2011 Page A-2

6 BPM for Maret Operations RTM alerts te user wen ALFS data as not been updated for 30 minutes (configurable parameter). RTM also alerts te user wen data does not exist for a particular interval. A.4 Master File Te Master File is a general repository of quasi-static data needed to operate and support te CAISO Marets. Te Master File contains data tat remain uncanged for relatively long periods of time. Relevant Master File data includes: SC registration and associated attributes Resource registration, caracteristics, Maret and product certifications, and associated attributes suc as location, SC association, must offer, or RMR status Networ node and branc registration and associated attributes Node aggregation definitions (LAPs, Trading Hubs, AS Regions, RUC zones, designated Congestion areas) Transmission interface definitions TOR and ETC registration Maret parameters suc as Bid caps and MPM tresolds Altoug SCs do not interface directly wit te Master File, tey are obligated to provide accurate data for populating and updating te Master File wit teir applicable Generating Unit caracteristics, suc as minimum and maximum capacity, Forbidden Operating Regions, Ramp Rates, Minimum Run and Down Times, average eat rates or average production costs. Tis requirement is based on Section of te Pro Forma Participating Generator Agreement (Appendix B.2 of te CAISO Tariff). Additional information on te Master File is available on te CAISO web site at: ttp:// A.5 Open Access Same Time Information System (OASIS) Te OASIS provides a Web interface for Maret Participants to retrieve public Maret information, including: Demand forecast AS requirements Aggregate Scedules Transmission interface limits and flows Locational Marginal Prices Regional Ancillary Services Maret Prices Version 17 Last Revised: April 1, 2011 Page A-3

7 BPM for Maret Operations Tis is described in more detail in Section 13 of te BPM for Maret Instruments. A.6 Settlements & Maret Clearing System (SaMC) SaMC receives Maret results from te CAISO Marets and meter data from SCs to perform Settlement according to specific business rules and carge types. Refer to te BPM for Settlements & Billing for furter information. A.7 Energy Management System (EMS) EMS sends control data to units on regulation. It matces electricity Supply and Demand on a four second basis. EMS as an associated database called PI to store te data. As part of tis functionality, EMS gets telemetry and data from te State Estimator, data from most units in te CAISO Control Area, and all of te transmission lines interfacing wit oter control areas. EMS/PI is te source of tis data for te Real-Time processes. EMS is also te source of te base Full Networ Model. EMS receives preferred operating point data, representing te economic Dispatc Instruction, from RTED via te ramp tool. EMS sends tis data to units on regulation as a neutral set point. EMS also receives information on dispatced Ancillary Services, wic is used to calculate Energy reserves for te power system A.7.1 EMS Loss of Data Interfaces EMS updates data every 30 seconds. In te event of failure to update data for five minutes, RTM considers te data obsolete and alerts te user. RTM performs te following actions in te event of eiter obsolete or bad quality EMS data (note tat data manually replaced in EMS is not considered to be obsolete or of bad quality): Mars affected data wit a flag on applicable screens Does not use affected regulating limits from EMS for Ancillary Services and Supplemental Energy allocation. Instead, uses te limits from te Master File according to te next our s allocation. Does not use affected telemetry for te imbalance MW calculations. Instead, assumes tat te Generating Unit attempts to comply wit te DOT starting at te last good telemetry point using te Generating Unit s pysical Ramp Rate. Version 17 Last Revised: April 1, 2011 Page A-4

8 BPM for Maret Operations A.7.2 State Estimator Failure A State Estimator and a full AC power flow are run in te EMS in order to create te system state tat is transferred to te RTM system. Tis information is transferred from te EMS to te RTM system every 5 minutes and on events tat trigger te State Estimator. Tis data is used to initialize te networ model in te RTM system wit te current power system state. Te RTM uses te state of te power system and switc status (switc status received in bot full and incremental modes) to solve te base case power flow. Te RTM uses te most recent SE solution. RTM uses te old solution if a new SE solution (for a user specified number of intervals) as not been received by te RTM system. A DC power flow solution is used in case te full AC power flow does not solve in te RTM system. A.8 Automated Dispatc System (ADS) ADS is an application developed by CAISO to communicate Real-Time Dispatc Instructions to SCs. As a user of ADS, you are able to: Receive and generally respond to in-our Dispatc Instructions in Real-Time Receive confirmation of accepted pre-dispatc Instructions Retain a local record of te transaction Query a database for istorical instructions SCs are able to accept or decline inter-tie dispatces, or may be able to communicate teir ability to respond to te dispatces. SCs can also use ADS to record control area approval of intertie dispatces and to pus accepted intertie instructions to CAS. Te public Internet is te metod of transmitting te instruction and response information between CAISO and te SC. ADS uses 128-bit domestic encryption and Secure Socets Layer (SSL) communications tecnology, combined wit medium assurance digital certificates and smart cards, to create a secure environment. Detailed logs are maintained by CAISO to assist in dispute resolution. A.8.1 ADS Loss of Data Interfaces In te event of loss of connectivity to ADS, or particular ADS tables, or incorrect flags in interface tables, RTM alerts te user of a problem, indicates wat RTM detects as te problem, and allows te user to retry connecting to ADS. Version 17 Last Revised: April 1, 2011 Page A-5

9 BPM for Maret Operations If te user cannot restore te connection before any subsequent dispatces, ten a means is provided to continually display te requested Dispatc so tat CAISO Operators may manually Dispatc te resources, or remove resources from te list. Wen CAISO Operators are finised, tey indicate suc to RTM and ten RTM writes te results to te Dispatc log. RTM also records te event in SIBR so tat Expected Energy can be recalculated later. A.9 Control Area Sceduler (CAS) A detailed description of te intercange transactions and associated tagging is given in Section for DAM and Section for RTM. A.9.1 CAS Loss of Data Interfaces Te CAS updates Scedules every 5 minutes. In te event of loss of data updates, RTM continues to use te un-updated data. If data does not exist for a particular our, RTM uses data from te last available our as proxy for following ours. RTM alerts te user wen CAS data as not been updated for 10 minutes (configurable parameter). RTM also alerts te user wen no data exists for a particular our. A.10 CAISO Maret Results Interface (CMRI) Te CAISO Maret Results Interface or CMRI is te reporting interface tat contains private maret information resulting from te CAISO Maret Processes: MPM, IFM, RUC, and HASP. Tis includes scedules and awards, resource specific prices, default and mitigated bids, unit commitments and instructions. In addition to tose mentioned above, post-maret or after-te-fact information suc as Expected Energy (energy accounting results) and te Conformed Dispatc Notice (commonly nown as te CDN ) can be accessed from te CMRI. Detailed description of tese reports can be found under te BPM Maret Instruments Section 11. A.11 Operational Meter Analysis & Reporting (OMAR) System Te OMAR system performs automated validation of meter readings and puses Settlement Quality Meter Data (SQMD) to Settlements. Te OMAR system notifies te CAISO Operator if uman attention is required, and provides a user interface display were manual observation, intervention, and meter data modification can be performed. Version 17 Last Revised: April 1, 2011 Page A-6

10 BPM for Maret Operations A.12 Electronic Tagging System Te electric tagging system provides te means by wic SCs can enter/cange te e-tag information tat is required for te intercange of Power transactions between te CAISO Control Area and oter Control Areas. See Section for e-tags in te Day-Aead Maret and Section for e-tags in te Real-Time Maret. A.13 Participating Intermittent Resource Program (PIRP) and Eligible Intermittent Resources (EIRs) Tis section is based on CAISO Tariff Sections , 4.8, , Appendix F (Rate Scedules) and Appendix Q (Eligible Intermittent Resources Protocol (EIRP)). All Eligible Intermittent Resources (EIRs) wit Participating Generator Agreements (PGAs) or QF Participating Generator Agreements (QF PGAs) must comply wit te EIRP. Te EIRP also sets fort additional requirements for tose EIRs tat voluntarily elect to become Participating Intermittent Resources (PIRs) under te CAISO s Participating Intermittent Resource Program (PIRP). EIRs are not required to participate in PIRP. PIRP provides participants certain benefits and imposes certain responsibilities. Te main PIR responsibility tat differs from te responsibilities of EIRs generally is tat a PIR must submit a Self-Scedule to te HASP and RTM tat equals te Forecast Service Provider s (FSP s) forecast for te PIR in order to receive te montly netting of positive and negative deviations from te HASP-submitted scedule. In return te PIR receives two primary benefits: Te PIR s Real-Time deviations, altoug traced on an interval basis, are summed over eac calendar mont negative deviation MW are netted against positive deviation MW and te net result is settled at te montly weigted average Real-Time LMP at te PIR s node. Te PIR is exempt from te Uninstructed Deviation Penalty (UDP). Regardless of weter a wind or solar EIR elects to become a PIR, te EIRP imposes on EIRs wit PGAs and QF PGAs various communication and forecasting equipment and forecasting data requirements. Tis section facilitates compliance wit te EIRP by providing additional information for wind EIRs, solar termal (ST) EIRs and potovoltaic (PV) EIRs regarding: Te form of te Letter of Intent (LOI) to become a PIR [EIRP Section 2.2.1(c)]; Version 17 Last Revised: April 1, 2011 Page A-7

11 BPM for Maret Operations Data relevant to forecasting, including operational and meteorological data [EIRP Sections and 3.1]; Monitoring and communications requirements [EIRP Section 3.2]; Forecasting and communication equipment requirements [EIRP Sections 2.2.3, 6, and 6.2]; Objective criteria for accurate and unbiased forecasts [EIRP Section 4]; PIRP Export Fee Exemption Certification Process [EIRP Sections and 5.3.6]; and Forecast Fee [EIRP Section 2.4.1]. A.13.1 Letter of Intent Te pro forma Letter of Intent (LOI) required by te EIRP for an EIR to become a PIR is set fort below. Te LOI includes te requirement tat te proposed PIR submit, as Attacment A to te letter of intent, a copy of te California Energy Commission s Renewable Portfolio Standard (RPS) certification identifying te facility as RPS-eligible. FORM OF LETTER OF INTENT TO BECOME A PARTICIPATING INTERMITTENT RESOURCE [Entity Letteread] [Date] Attn: Project Manager, Model and Contract Implementation California Independent System Operator Corporation 151 Blue Ravine Road Folsom, CA Re: Intent to become a Participating Intermittent Resource: Version 17 Last Revised: April 1, 2011 Page A-8

12 BPM for Maret Operations In accordance wit Section of te California Independent System Operator Corporation s ( CAISO ) Eligible Intermittent Resource Protocol (te Protocol ), tis letter provides [name of Entity] s notice to te CAISO tat it intends to become a Participating Intermittent Resource (te Letter of Intent ). [Name of Entity] requests tat te CAISO initiate te process of operationally certifying its facilities nown as [project name] as a Participating Intermittent Resource. [Name of Entity] agrees tat, prior to te date of suc certification, it will execute a Participating Generator Agreement [or QF Participating Generator Agreement] and a Meter Service Agreement for CAISO Metered Entities as required by Section of te Protocol and tereafter will pay te Forecast Fee as required by Section of te Protocol. Furter, [name of Entity] agrees tat [project name] will remain a Participating Intermittent Resource for a period of at least [insert number of years greater tan or equal to one] year(s) following te date of its certification, over wic time te maximum Forecast Fee sall be as specified in Scedule 4 of CAISO Tariff Appendix F in effect as of te date of tis Letter of Intent, and tat [project name] sall tereafter continue to be a Participating Intermittent Resource unless tis Letter of Intent is cancelled wit tirty (30) days written notice to te CAISO. Finally, attaced to tis Letter of Intent as Attacment A is a copy of te California Energy Commissions Renewable Portfolio Standard (RPS) certification identifying [name of facility] as RPS eligible. Sincerely, [Name of Entity] Version 17 Last Revised: April 1, 2011 Page A-9

13 BPM for Maret Operations A.13.2 Wind Generator Forecasting and Communication Equipment Requirements Te requirements set fort in tis Section A.14.2 apply to EIRs powered by wind wit a PGA or QF PGA, except as oterwise specified below and weter or not te EIR is certified or seeing certification as a PIR. A Pysical Site Data As part of an EIRs obligation to provide data relevant to forecasting Energy from te EIR, eac applicable wind EIR or its Sceduling Coordinator (SC) must provide te CAISO wit accurate information regarding te pysical site location of te EIR. Te information must include (1) te location (latitude and longitude coordinates) and elevation of eac wind turbine ub 1 and (2) te location (latitude and longitude coordinates) and elevation of meteorological collection devices. A Meteorological and Production Data Eac wind EIR wit a maximum rated capacity above 1 MW must install and maintain equipment required by te CAISO to support accurate power generation forecasting and te communication of suc forecasts, meteorological data, and oter needed data to te CAISO. Communication of suc data to te CAISO will be via te Data Processing Gateway (DPG) pursuant to te CAISO s applicable standard for telemetry from a Participating Generator. In accordance wit tis requirement, te EIR must install a minimum of one (1) meteorological station measuring barometric pressure, temperature, and wind speed and direction tat is representative of te microclimate and winds at ub eigt 2 on te prevailing upstream side of te wind farm. A second meteorological station is required for plants wit rated capacity of at least 5 MWs to measure barometric pressure, temperature, and wind speed and direction. Te second 1 Hub eigt is defined as te distance from te ground to te center of te turbine axis. 2 Te station need not actually be located at te ub eigt, only at a eigt were measurements representative of tose at te ub eigt can be taen. Te CAISO recognizes te fact tat turbine ub eigts are beginning to exceed 80 meters, intruding into Federal Aviation Administration (FAA) airspace. A meteorological tower exceeding 80 meters incurs additional costs to comply wit te FAA ligting requirements. Te wind EIRs will need to wor wit te FSP to develop te individual algoritms to calculate te offset of a meteorological tower from te ub eigt. Version 17 Last Revised: April 1, 2011 Page A-10

14 BPM for Maret Operations meteorological station may be co-located on te primary meteorological station tower, and sould be placed at a eigt approximately 30 meters below te average ub eigt. Existing plants will ave 6 monts to comply wit installation of te second station from te effective date of tis section. Tis requirement will not require any EIR wit an existing meteorological station tower(s), or final regulatory approvals to construct a meteorological station tower(s) as of January 2010, to modify te location or configuration of suc meteorological station(s). Were placement of te meteorological station tower(s) in accordance wit tis requirement would cause a reduction in production or violation of a local, state, or federal statute, regulation or ordinance, te CAISO, in coordination wit any applicable Forecast Service Provider, will cooperate wit te EIR to identify an acceptable placement of te meteorological station tower. Te use of SODAR 3 and/or LIDAR 4 equipment may be an acceptable substitute for wind direction and velocity based on consultation and agreement wit te Forecast Service Provider and te CAISO. In addition, te EIR must provide wind velocity measurements from multiple turbines witin te wind-plant site along wit to te measurements from te meteorological tower(s), in accordance wit te following: Definitions: Designated Turbine (DT): A turbine for wic nacelle wind speed is provided. Average Horizontal Spacing (AHS): Te average orizontal distance between a turbine and te turbine closest to it witin te same wind plant. Vertical Distance (VD): Te elevation difference between te eigt of a turbine's base and te eigt of te base of anoter turbine witin te same wind plant. 3 SODAR SOnic Detection And Ranging- a meteorological instrument also nown as a wind profiler wic measures te scattering of sound waves by atmosperic turbulence. 4 LIDAR LIgt Detection And Ranging - a meteorological instrument wic measures te properties of scattered ligt waves caused by atmosperic turbulence. Version 17 Last Revised: April 1, 2011 Page A-11

15 BPM for Maret Operations Requirements: DTs sould be selected suc tat eac turbine witin a wind plant is witin a orizontal distance of 5 x AHS and a vertical distance of approximately 75 meters of a DT. Bot wind speed and real-time production power data must be sent for eac DT, via te Data Processing Gateway (DPG), separate from suc data provided from te meteorological tower(s) and te overall plant MW production data. Te objective of tis guideline is to ensure a dataset tat adequately represents te variability in wind velocity witin te plant. Were individual EIRs ave circumstances tat proibit tem from reasonably satisfying tis requirement, te CAISO, te FSP, and te wind-plant owner will formulate a cost-effective distribution of DTs by mutual agreement tat approximates tis guideline and adequately measures te variability of te wind velocity witin te EIR. EIRs seeing a variance from tis requirement sould do so in te development of teir interconnection agreement or, for tose EIRs tat ave already finalized an interconnection agreement, as part of entering into a Meter Service Agreement. Wind data collected at te nacelle will not represent te true wind value at a plant site, but instead will represent te apparent wind, wic can be correlated to te co-located turbines. Tis requirement will elp ensure: (a) multiple data streams for anemometer information; and (b) accurate representation of te data points to calculate wind energy production at te par. Wind EIRs wit a PGA or QF PGA tat are operating or ave final regulatory approvals to construct as of te effective date of tis section tat ave wind turbines witout nacelle anemometers need not comply wit te DT requirements of tis section. Oter EIRs operating as of te effective date of tis section will ave six monts from tat effective date to comply wit te requirements of tis section. Te meteorological station location requirement may be satisfied by a mutually agreeable saring arrangement(s) between wind EIRs if: One suc EIR ( Host Plant ) meets te requirement; and Version 17 Last Revised: April 1, 2011 Page A-12

16 BPM for Maret Operations Te site of te oter EIR ( Saring Plant ) lies contiguous to or overlaps te site of te Host Plant, or (1) Te site of te Saring Plant is in te same geograpic area as te site of te Host Plant; and (2) te Saring Plant can demonstrate to te CAISO s satisfaction tat te relevant meteorological conditions on its plant site are substantially similar to tose on te Host Plant site. Proof of te agreement between te Host Plant and Saring Plant must be provided to te CAISO. Sould te agreement terminate, te saring EIR must independently demonstrate satisfaction of te meteorological tower requirement specified erein. A Data Collection Units and Accuracy Table 1 details te units and accuracy of measurements to be sent to te CAISO in real time (4 seconds). Measurement Units Accuracy Wind Speed Meters/Second (m/s) +/-1 m/s Wind Direction Degrees from True Nort +/- 5 degrees Ambient Air Temperature Degrees Centigrade ( C) +/-1 degree C Barometric Pressure HectoPascals (HPa) +/-60 Pa Aggregate Resource Generation Megawatts (MW) +/-2% 5 Table 1 5 See, Monitoring and Communication Requirements for Generating Units Providing Only Energy and Supplemental Energy, Section 2.5. Version 17 Last Revised: April 1, 2011 Page A-13

17 BPM for Maret Operations A Data Collecting Device Bacup Power Many sites provide te primary power for te meteorological stations and DPGs by eiter bac feeding from te transmission line or directly from te wind turbine feeders. Eac meteorological station and DPG must ave a bacup power source tat is independent of te primary power source for te station (e.g., station power, battery or solar panel). Te bacup power source must provide power until primary power is restored. Te same bacup source can be used for bot meteorological stations. A Training of Neural Networ Production and meteorological data will be collected for a minimum of sixty (60) days before te EIR can be certified as a PIR. Tis data must be collected in advance in order to train te forecast models (e.g., artificial neural networs) responsible for producing te power production (MW) forecast for eac site. A Maintenance & Calibration Meteorological equipment sould be tested and, if appropriate, calibrated: (1) in accordance wit te manufacturer s recommendations; (2) wen tere are indications tat te data are inaccurate; or (3) wen maintenance as been performed tat may ave interrupted or oterwise adversely impacted te accuracy of te data. A.13.3 Solar Generator Forecasting and Communication Equipment Requirements Te requirements set fort in tis Section A.14.3 apply to ST and PV EIRs wit a PGA or QF PGA, except as oterwise specified below and weter or not te EIR is certified or seeing certification as a PIR. Version 17 Last Revised: April 1, 2011 Page A-14

18 BPM for Maret Operations A Pysical Site Data As part of an EIR s obligation to provide data relevant to forecasting Energy from te EIR, PV and ST EIRs or teir Sceduling Coordinators (SCs) must provide te CAISO wit an accurate description of te pysical site of te EIR. Te following information must be provided for eac EIR, including a EIR tat consists of multiple PV Generating Units aggregated under a single Resource ID, in wic case te requested information must be provided for eac individual PV Generating Unit aggregated under te single Resource ID: (1) te location (latitude and longitude coordinates) and elevation of meteorological collection devices, 6 (2) te location (latitude and longitude coordinates), elevation, and orientation angles of arrays or concentrators, (3) te generation capacity of te Generating Facility or eac Generating Unit aggregated under a single Resource ID, and (4) te type of solar generation tecnology employed at te Generating Facility or eac Generating Unit aggregated under a single Resource ID. A Location of Meteorological Stations For aggregated PV Generating Units, no less tan 1 meteorological station must be placed to cover a 7-10 miles radius for approximately 90% coverage of te solar collection devices for eac Resource ID, as set fort in Example 2 below. Example 2 6 Aggregated PV Generating Units individually less tan 1 MW need not ave meteorological stations collocated wit te PV panels, but eac aggregated PV Generating Unit must provide te relevant information for te meteorological station(s) relied upon to meet te requirements set fort below in te Location of Meteorological Stations section. Version 17 Last Revised: April 1, 2011 Page A-15

19 BPM for Maret Operations Te meteorological station location requirement may be satisfied by a mutually agreeable saring arrangement(s) between PV and/or ST EIRs if: One suc EIR ( Host Plant ) meets te requirement; and Te site of te oter EIR ( Saring Plant ) lies contiguous to or overlaps te site of te Host Plant, or (1) Te site of te Saring Plant is in te same geograpic area as te site of te Host Plant; and (2) te Saring Plant can demonstrate to te CAISO s satisfaction tat te relevant meteorological conditions on its plant site are substantially similar to tose on te Host Plant site. Proof of te agreement between te Host Plant and Saring Plant must be provided to te CAISO. Sould te agreement terminate, te saring EIR must independently demonstrate satisfaction of te meteorological tower requirement specified erein. Te CAISO, in coordination wit its Forecast Service Provider(s), will cooperate wit te EIR to identify an acceptable placement of te meteorological station(s) to tae into account te microclimate of te area. For solar PV or ST central station Generating Facilities wit rated capacities of 5 MW or greater, eac EIR must provide a minimum of 2 meteorological stations wit an independent and bacup power source witin te footprint of te par. For Generating Facilities tat require DNI (direct irradiance) and GHI (global orizontal irradiance) measurements (see Table 2 below), te DNI and GHI measurements may be provided from separate meteorological stations. For example, te first meteorological station may report DNI, wile te second meteorological station may report GHI. All oter meteorological data reporting requirement remain te same for bot stations. For EIRs wit a radius of 7-10 miles or more, no less tan 2 meteorological stations must be placed suc tat 90% of te collection devices on te plant site are witin 7-10 miles of a meteorological station for eac Resource ID. Version 17 Last Revised: April 1, 2011 Page A-16

20 BPM for Maret Operations A Meteorological Data Meteorological data must be provided to te CAISO via te DPG for accurate power generation forecasting. Te minimum required (R) measurement of solar irradiance by eac solar generation device type is sown in Table 2. Additional insolation measurements may be submitted to te CAISO but must not be derived. Table 2 Te CAISO, in coordination wit its Forecast Service Provider(s), will cooperate wit te EIR to identify acceptable radiometry for new tecnology tat may not be outlined in table 2. Direct Irradiance (DNI) Global Diffused (GDiff) Global Horizontal Irradiance (GHI) Global Irradiance / Plane of Array (GPOA) Diffuse Irradiance/ Plane of Array (DPOA) Flat-Plate PV (fixed orizontal /flat roof) R Flat-Plate PV(fixed angle R Flat-Plate PV(fixed angle/azimut tracing R Flat-Plate PV (DNI zenit & azimut tracing) R Flat panel Solar (termal fixed angle mounted) R Flat Panel Solar Termal Collector (azimut tracing) R Concentrated Flat-Plate PV R R Version 17 Last Revised: April 1, 2011 Page A-17

21 BPM for Maret Operations Concentrated Solar Termal (solar troug zenit tracing) Heliostat Power Power(tracing focusing mirrors) Greenouse Power Tower (ot air convection turbine) Stirling Engine (concentrated solar power generation) R R R R R R R A Data Collection Units and Accuracy Table 3 details te units and accuracy of measurements to be sent to te CAISO in real time (i.e., 4 seconds). Element Global Irradiance Plane-of-Array Irradiance (GPOA) Global Horizontal Irradiance (GHI) Table 3 Device (s) Needed Pyranometer or equivalent Pyranometer or equivalent Units Accuracy W/m 2 ±25W/m 2 W/m 2 ±25W/m2 Global Diffused Pyranometer or equivalent W/m 2 ±25W/m 2 Version 17 Last Revised: April 1, 2011 Page A-18

22 BPM for Maret Operations (GDIFF) Diffused Irradiance Plane of Array (DPOA Direct Irradiance (DNI) Bac panel temperature for PV type arrays at te array average eigt 7 Ambient temperature at te array average eigt Pyranometer or equivalent W/m 2 ±25W/m 2 Pyreeliometer or equivalent W/m 2 ±25W/m 2 Temperature probe for bac panel temperature Temperature probe & sield for ambient temp. C ± 1 C ± 1 Barometer Barometric pressure Hecto Pascals HPa ± 60 Pa Wind speed and direction at te average array eigt Anemometer, wind vane and wind mast m/s deg ±1 m/s ± 5 Real-time Generation Transducers -- Current and Potential Transformers MWs Per CAISO telemetry standards Montly Resource Generation MWs +/-2% 8 A Data Collecting Device Bacup Power Eac ST and PV EIR greater tan 1 MW must install a minimum of 1 meteorological station tat as an independent and bacup power source. An independent power source means tat te power for te meteorological station and Data Processing Gateway (DPG) cannot be provided by a bac fed from te transmission system. Te bacup power source must be independent of te primary power source and may be station power, a battery, solar panel etc. Te bacup power source must capable of providing power until primary power is reasonably expected to be restored. Te bacup power source can serve multiple meteorological stations, if more tan one station is required by te standards below. 7 Not required for concentrating type equipment. 8 See, Monitoring and Communication Requirements for Generating Units Providing Only Energy and Supplemental Energy, Section 2.5. Version 17 Last Revised: April 1, 2011 Page A-19

23 BPM for Maret Operations A Training of Neural Networ Te Forecast Service Provider and te CAISO require production and meteorological data for a minimum of sixty (60) days before te PV or ST EIR is eligible to become a PIR. Tis data must be collected in order to train te forecast models (e.g., artificial neural networs) responsible for producing te power production (MW) forecast for eac proposed PIR. A Maintenance & Calibration Meteorological equipment sould be tested and, if appropriate, calibrated: (1) in accordance wit te manufacturer s recommendations; (2) wen tere are indications tat te data are inaccurate; or (3) wen maintenance as been performed tat may ave interrupted or oterwise adversely impacted te accuracy of te data. A.13.4 Forced Outage Reporting Te additional Forced Outage reporting requirements imposed on EIRs under CAISO Tariff Sections and are intended to enance te CAISO s ability to produce accurate forecasts of te EIR output. A.13.5 Objective Criteria for Accurate and Unbiased CAISO Forecasting Te CAISO is responsible for overseeing te development of tools or services to forecast Energy for EIRs. Te CAISO must develop objective criteria and tresolds for unbiased and accurate forecasts to certify EIRs. Tis certification requires validating te forecast by assessing te sufficiency of te forecasting input data. Te objective criteria for ensuring te sufficiency of te data, and terefore te validity of te forecast, are set fort in Sections A for wind resources and A for solar resources. Te criteria are furter supported by te CAISO s use of a contractual incentive plan wit its tird party Forecast Service Provider(s) tat encourages accurate and unbiased forecasting. Version 17 Last Revised: April 1, 2011 Page A-20

24 BPM for Maret Operations A.13.6 Participating Intermittent Resource Export Fee Exemption Certification Process Te provisions governing te Participating Intermittent Resource Export Fee are found at CAISO Tariff, Appendix Q, EIRP Section 5.3 and Appendix F, Scedule 4. In accordance wit tese provisions, te Participating Intermittent Resource Export Fee is carged to all Energy exported from PIRs, except PIRs tat are exempt under one of te following conditions: Te owner of a PIR, as of November 1, 2006, utilizes te Energy generated from te Participating Intermittent Resource to meet its own Native Load outside te CAISO Balancing Autority Area. Te PIR as an export contract wit a starting term prior to November 1, Te PIR as a contract to sell Energy to a Load Serving Entity wit Native Load in te CAISO Balancing Autority Area. Te purpose of tis Section A.14.6 is to describe te steps necessary to submit te certifications described in EIRP Sections and 5.3 required to determine te PIR Export Percentage for applicable PIRs. A Participating Intermittent Resource Export Fee Exemption Certification Required Documentation To complete te requirements set fort in EIRP Sections for a certification for exemption from te Participating Intermittent Resource Export Fee, te following items must be included: 1) Certification Form (see Section A below) must include: a. Name and address of te Participating Intermittent Resource b. Te amount, in MW, for eac exemption category c. Calculation of PIR Export Percentage d. Signature of officer for te Participating Intermittent Resource 2) Copies of all executed contracts, including canges, supporting te exemptions listed in te certification form. Price information may be redacted from te contracts provided, owever, tat te CAISO must be able to determine from te contract te identity of te purcaser, quantity purcased, and te lengt of term of te contract for te PIR. Submittal Address Version 17 Last Revised: April 1, 2011 Page A-21

25 BPM for Maret Operations Send a signed ard copy of te certification form and copies of all relevant contracts to te following address: California ISO Attn: PIRP Project Manager 151 Blue Ravine Road Folsom, CA A CAISO Feedbac Witin 30 days of receipt of te completed certification form and submitted contracts, te CAISO will provide written confirmation tat te Participating Intermittent Resource as satisfied te requirements under EIRP Section Te CAISO will provide te Participating Intermittent Resource wit its PIR Export Percentage and te applicable exemption period ending date tat as been validated based on te contracts submitted. Te PIR Export Percentage will remain valid until te exemption period ending date unless te Participating Intermittent Resource alters te composition of te resource, canges te PMax of te resource, or canges te purcaser, quantity purcased, or lengt of te term of te contracts for te PIR. A Resubmission of Certification Te Participating Intermittent Resource Export Fee exemption certification must be updated by resubmission to te CAISO: 1) Upon a request to modify te composition of te Participating Intermittent Resource under EIRP Section 2.4.2, or 2) Witin ten (10) calendar days of te final execution of a new contract or any cange in counterparty, start and end dates, delivery point(s), quantity in MW, or oter temporal terms for any prior certified contract. All oter contractual canges will not trigger te obligation for recertification. A Example of PIR Export Percentage Calculation A PIR wit a 100 MW PMax as 2 contracts: (1) a contract executed on January 1, 2005 to export 55 MW to a Balancing Autority Area outside te CAISO Balancing Autority Area; (2) a contract executed on January 1, 2007 to sell 20 MW to a load serving entity in te CAISO Balancing Autority Area. Suc facility would fill te table in te certification form as follows: Version 17 Last Revised: April 1, 2011 Page A-22

26 BPM for Maret Operations Portion of Participating Intermittent Resource Capacity (in MW) 0 Table 4 Exemption Category EIRP Section (a): Te owner of a Participating Intermittent Resource, as of November 1, 2006, utilizes te Energy generated from te Participating Intermittent Resource to meet its own Native Load outside te CAISO Balancing Autority Area. 55 EIRP Section (b): Te Participating Intermittent Resource demonstrates an export contract wit a starting term prior to November 1, EIRP Section (c): Te Participating Intermittent Resource demonstrates a contract to sell Energy to a load serving entity wit Native Load witin te CAISO Balancing Autority Area. 75 Total MW eligible for Participating Intermittent Resource Export Fee exemption Te PIR Export Percentage would be calculated as follows: PIR Export Percentage = (PMax of PIR Total MW eligible for Participating Intermittent Resource Export Fee exemption) / PMax of PIR For example, if PMax of PIR = 100 MW, Total MW eligible for Participating Intermittent Resource Export Fee exemption = 75 MW ten PIR Export Percentage = (100-75)/100 = 25% A Annual Certification EIRP Section provides tat by December 31 of eac calendar year, eac Participating Intermittent Resource sall confirm on te form set fort in a BPM, signed by an officer of te Participating Intermittent Resource, tat te operations of te Participating Intermittent Resource are consistent wit any certification(s) provided to te CAISO under EIRP Section Te certification form to be submitted to meet tis requirement is set fort in Section A Version 17 Last Revised: April 1, 2011 Page A-23

27 BPM for Maret Operations A CERTIFICATION FORM FOR THE PARTICIPATING INTERMITTENT RESOURCE EXPORT FEE EXEMPTION Company letteread Date Participating Intermittent Resource Name: CAISO Resource ID: Address of principal place of business Street: City: State: Zip Code: In accordance wit Section [and/or 5.3] of te California ISO s Eligible Intermittent Resources Protocol ( EIRP ), tis letter provides certification tat PIR NAME is eligible for te following Participating Intermittent Resource Export Fee exemptions: Portion of Participating Intermittent Resource Capacity (in MW) [0] Table 5 Exemption Category EIRP Section (a): Te owner of a Participating Intermittent Resource, as of November 1, 2006, utilizes te Energy generated from te Participating Intermittent Resource to meet its own Native Load outside te CAISO Balancing Autority Area. [0] [0] EIRP Section (b): Te Participating Intermittent Resource demonstrates an export contract wit a starting term prior to November 1, EIRP Section (c): Te Participating Intermittent Resource demonstrates a contract to sell Energy to a load serving entity wit Native Load witin te CAISO Balancing Autority Area. Version 17 Last Revised: April 1, 2011 Page A-24

28 BPM for Maret Operations [0] Total MW eligible for Participating Intermittent Resource Export Fee exemption According to te table above and based on te Participating Intermittent Resource PMax, te estimated PIR Export Percentage is calculated as: (PMax of PIR Total MW eligible for Participating Intermittent Resource Export Fee exemption) / PMax of PIR = % Tis certification must be updated by resubmission to te CAISO (1) upon a request to modify te composition of te Participating Intermittent Resource under EIRP Section or (2) witin ten (10) calendar days of te final execution of a new contract or any cange in counterparty, start and end dates, delivery point(s), quantity in MW, or oter temporal terms for any prior certified contract. All oter contractual canges will not trigger te obligation for recertification. I ereby acnowledge tat I am an officer of te Participating Intermittent Resource wo as sufficient autority to execute tis document on bealf of PIR NAME. Autorized Signature: Name: Title: Version 17 Last Revised: April 1, 2011 Page A-25

29 BPM for Maret Operations A.13.7 Forecast Fee Beginning on te date first operational, a EIR wit a PGA or QF PGA must pay te Forecast Fee for all metered Energy generated. Notwitstanding te foregoing, te following exemption from te Forecast Fee applies: 1. EIRs meeting all of te following criteria: (a) as a Master File PMax of less tan 10 MW, (b) it sold Energy under te terms of a PURPA power purcase agreement before operating pursuant to a PGA or QF PGA, and (c) it is not a PIR. Te amount of te Forecast Fee sall be determined so as to recover te projected annual costs related to developing Energy forecasting systems, generating forecasts, validating forecasts, and monitoring forecast performance, tat are incurred by te CAISO as a direct result of participation by EIRs in CAISO Marets, divided by te projected annual Energy production by all EIRs. Te current rate for te Forecast Fee is $ 0.10 per MW. Version 17 Last Revised: April 1, 2011 Page A-26

30 BPM for Maret Operations Attacment B COMPETITIVE PATH ASSESSMENT

31 BPM for Maret Operations B. Competitive Pat Assessment B.1 Frequency and Scope of Competitive Pat Assessment Te Competitive Pat Assessment (CPA) will be conducted once prior to implementation of MRTU, resulting in a set of Competitive Pat designations to be used in applying Local Maret Power Mitigation (LMPM) beginning on te first day of MRTU. Te study will be repeated, wit resulting Competitive Pat designations taing effect, tereafter wit a frequency consistent wit te Tariff. B.2 Full Networ Model and Constraint Specification Tis section provides an overview description of te Full Networ Model (FNM) and related data to be used in te CPA studies. B.2.1 Baseline Full Networ Model Te basis for te FNM used in te CPA will be te FNM used in te MRTU Day-Aead Maret. Modifications to tis specification of te FNM for purposes of performing te CPA will be done so troug review of current CAISO Operating Procedures and/or coordinated CAISO Operating Engineers. Te FNM will be imported into an LMP simulation tool along wit related data suc as termal branc limits, source and sin names along wit te mapping to te FNM, and corridor and nomogram / interface constraints. Only normal termal branc limits for brances wit bot ends at 60V or above, brances tat reside completely witin te CAISO control area, and tie lines will be enforced in te CPA FNM. Te nomogram / interface constraints are enforced wit te simultaneous flow limits tat te CAISO anticipates enforcing during normal operation. B.2.2 Additional Constraints In addition to te transmission interfaces discussed above, additional transmission constraints will be included in te CPA FNM in a manner consistent wit te MRTU FNM. Tese additional transmission constraints are to be modeled in te CPA simulation model as soft constraints. Some transmission constraints define import/export limits to areas witin existing congestion Version 17 Last Revised: April 1, 2011 Page B-1

32 BPM for Maret Operations zones, suc as te San Francisco, Fresno, and Nort Bay areas, wile oters limit networ flows but do not surround geograpic areas, suc as Miguel substation in San Diego, Vincent substation, and simultaneous flow limits witin te Bay Area. Tis supplemental set of transmission constraints will reflect limits described in CAISO Operating Procedures. B.2.3 Contingencies for Security Constrained Optimization Te CAISO may, at teir discretion, incorporate security constraints into te simulation model. Due to computation times and te number of simulations tat must be performed to complete te CPA, te CAISO may coose to incorporate only a representative subset of MRTU DA IFM security constraints. If security constraints are included, te set of constraints included will be 1. Limited to generator outages and contingencies tat reflect te operation of Special Protection Scemes tat limit flows resulting from branc outages troug automated curtailment of generation, and 2. A subset of tose security constraints used in te CAISO DA IFM tat reflect te most liely binding security constraints as determined by review wit CAISO Operating Engineers. B.3 Identification of Candidate Pats Te competitiveness test is only performed for transmission lines / constraints for wic te candidate tresold is exceeded. Te candidate tresold is 500 ours of congestion in te most recent twelve monts prior to te beginning of te CPA study. Congestion is measured differently, using different data, for maret periods prior to MRTU compared to during te MRTU maret. Tere are tree calculation regimes corresponding to pre-mrtu (Competitive Pat designations made prior to MRTU implementation), te first year of MRTU, and years two forward. Te congestion frequency tresold will be applied only to transmission pats / constraints tat were not existing Branc Groups in te most recent period prior to implementation of MRTU. B.3.1 Pre-MRTU Candidate Pat Identification Prior to te availability of actual MRTU maret data, real time mitigation of intra-zonal congestion will be used to identify frequently congested pats for consideration as candidate pats. In te pre-mrtu period, Real-Time RMR dispatces and Real-Time out-of-sequence Version 17 Last Revised: April 1, 2011 Page B-2

33 BPM for Maret Operations dispatces for local reliability will be used to determine te frequency of Real-Time mitigation of intra-zonal congestion for purposes of identifying candidate pats. B Use of Out-of-Sequence Dispatc Data Execute te following steps for te out-of-sequence component to candidate pat identification: 1. Collect out-of-sequence dispatc data from pre-mrtu maret systems tat include te specific reason for wic te dispatc was made. 2. Reduce tis set of data to only tose dispatces made for intra-zonal congestion management purposes. 3. Use CAISO Transmission Operating Procedures (T-Procedures) to map general OOS reasons to a specific line or set of lines in cases were only a general reason is provided wit te OOS instruction. 4. Calculate, for eac reason given, te number of ours during te twelve monts were intra-zonal congestion on an individual pat was mitigated in Real-Time using out-ofsequence dispatces. Data Requirements for EDE evaluation: 1. All real time out-of-sequence dispatc instructions for te most recent twelve wole monts, including date, time, resource ID, and Operator comment indicating te specific reason for te dispatc. B Use of Real-Time RMR Dispatc Data Individual RMR resources are used, via CAISO Operating Procedure M-401A (Reliability Must- Run References) to relieve local reliability issues in Real-Time in specific locations in te CAISO control area. Execute te following process for identifying ours were specific intra-zonal congestion mitigation occurred troug te use of Real-Time RMR dispatces: 1. Collect Real-Time RMR dispatc data for te most recent wole twelve monts. 2. Use Operating Procedure M-401A to map RMR resource to transmission pats / constraints identified in tat Procedure for intra-zonal transmission issues. 3. For eac transmission pat / constraint identified as aving a real-time RMR dispatc issued for mitigation of tat pat / constraint, count one our of real-time intra-zonal Version 17 Last Revised: April 1, 2011 Page B-3

34 BPM for Maret Operations congestion management for tat pat / constraint if one or more resources were dispatced via real-time RMR dispatc to mitigate tat line (per M401A). B Candidate Pat Identification Using te out-of-sequence data and Real-Time RMR data, calculate te number of ours in te most recent twelve monts were eac pat / constraint experienced Real-Time intra-zonal congestion and was mitigated for tis condition. Any pat / constraint tat as greater tan 500 ours of Real-Time mitigation will be a candidate pat and will be tested for competitiveness in te CPA. B.3.2 First Year MRTU Candidate Pat Identification If any of te most recent twelve monts occur during te pre-mrtu period, use te procedure for calculating congested ours by pat / constraint described in B.3.1 for tose monts occurring prior to implementation of MRTU. For any of te most recent twelve monts tat occur in te MRTU maret period, use te procedure for calculating congested ours by pat / constraint described in B.3.3 for tose monts occurring prior to implementation of MRTU. Use te ours of congestion / congestion management for eac pat / constraint from tese calculations to assess weter any of te pats / constraints experienced Real-Time intra-zonal congestion and was mitigated for tis condition. Any pat / constraint tat as greater tan 500 ours of Real-Time mitigation will be a candidate pat and will be tested for competitiveness in te CPA. B.3.3 Subsequent Year Candidate Pat Identification In subsequent years, tere will be sufficient MRTU maret data to base candidate pat / constraint selection entirely using MRTU maret data. Collect actual pat / constraint limits and flows from MRTU maret data and identify te set of pats / constraints tat experienced congestion in greater tan 500 ours in te most recent twelve monts. Te CAISO may, at its discretion, use a small adjustment factor for congestion tat will count ours were flows were extremely close to limits as congested ours. Te set of pats tat are identified as aving greater tan 500 ours of congestion in te most recent twelve monts will constitute te set of candidate pats for competitiveness testing. Version 17 Last Revised: April 1, 2011 Page B-4

35 BPM for Maret Operations B.4 Internal Resource Caracteristics and Data Internal generators can be broen out into te following categories: Gas-fired Termal generation, nuclear, ydroelectric generation units, pump storage units, and qualifying facilities (i.e. wind, solar, geotermal, biomass, and cogeneration). Determination of internal resource caracteristics will begin wit data contained in te CAISO master file and will be supplemented on an as-needed basis. B.4.1 Gas-fired Generation Data Requirements for gas-fired generation to be collected from CAISO Master FIle: 1. Resource ID and bus ID. 2. Maximum capacity, minimum load, minimum up time, minimum down time. 3. Ramping capability. 4. Heat rates. 5. Start-up cost. 6. Generation owner. For tese units, te bid prices are based on marginal cost as determined by te unit s eat rate, regional natural gas prices, and a $2/MW VOM adder. Bid quantities for gas-fired generation will sum to te unit s maximum capacity. B.4.2 Nuclear Generation Bid quantities for nuclear resources are based on istorical (most recent 12 monts available) metered output. Te bid price for (base load) nuclear resources will be $0/MW. Unit commitment for nuclear resources will be empirical, according to teir metered output for te most recent 12 monts) and will not be determined by te simulation software. Data Requirements for Nuclear Generation: 1. Resource ID and bus ID. 2. Metered output (ourly) for te most recent 12 monts available. 3. Resource Owner. Version 17 Last Revised: April 1, 2011 Page B-5

36 BPM for Maret Operations B.4.3 Hydroelectric Generation Hydroelectric resources are committed and dispatced by te simulation software in te CPA. Bids are determined in two ways for tese resources. First, te resource s final our-aead scedule for te (istorical) simulation date is bid in at a price of $0/MW. Next, te resource s istorical Real-Time offer quantity is used for te second step of te bid curve, wit te bid price calculated as te quantity-weigted average bid price from istorical bids for tat resource for te relevant ydro scenario year. Data for bot segments of te ydroelectric bid is to be taen from te date identified for tat ydro scenario and season (see section on ydro scenario selection). If a ydro unit as neiter our-aead scedule nor real time bids in te istorical data for te identified ydro scenario year, no capacity is offered by tat resource in te simulation. Data Requirements for Hydroelectric Generation: 1. Resource ID and bus ID. 2. Historical ourly data containing final our-aead scedules and Real-Time Energy Bids for years identified for ig normal, and low ydro scenarios. 3. Resource Owner. B.4.4 Pump-load Generation Te generation side of te pump storage units are already included in te ydro units offer quantity/offer prices, as described above. Te load side of te pump storage units is modeled as an energy purcaser in te simulation software, or effectively load resources tat buy energy from te pool. Eac pump storage unit as a 2-step demand curve. For te first step of te demand curve, bid quantity is calculated as te final istorical our-aead load scedule wit a $5,000/MW bid price wic maes tis bid segment a price-taing load bid segment. Te second step of te pump-load bid curve as total Real-Time istorical bid quantity for te quantity portion and te quantity-weigted average bid price for te price component. Similar to ydro units, if a pump storage unit does not ave istorical data for te identified ydro scenario years, tat resource will not be bid into te simulation model. Data Requirements for Pump-load Generation: 1. Resource ID and bus ID. Version 17 Last Revised: April 1, 2011 Page B-6

37 BPM for Maret Operations 2. Historical ourly data containing final our-aead scedules and Real-Time Energy Bids for years identified for ig normal, and low ydro scenarios. 3. Resource Owner. B.4.5 Qualifying Facilities All resources identified as Qualifying Facilities (QF s) will ave teir unit commitment and dispatc determined by istoric metered output from te relevant load scenario year. Data Requirements for Pump-load Generation: 1. Resource ID and bus ID. 2. Historical ourly data containing metered output for years identified for ig normal, and low load scenarios. 3. Resource Owner. B.4.6 Dynamic Scedules Dynamic scedules will be modeled in te same fasion as ydroelectric resources. Data Requirements for Dynamic Scedules: 1. Resource ID and bus ID. 2. Historical ourly data containing final our-aead scedules and Real-Time Energy Bids for years identified for ig normal, and low load scenarios. 3. Resource Owner. B.5 Import/Export Caracteristics and Data Import resources (forward scedules and spot maret bids) are optimized by te simulation model based on istorical sceduled and bid energy, but are not included in a supplier s portfolio wen one or more portfolios are removed from te supply to calculate te FI. Bids for import resources are constructed in a similar fasion as bids for ydroelectric resources, were a single aggregate supplier is constructed for imports over eac individual tie-point, wic connects a node inside te CAISO to a node outside of te CAISO. Eac tie-point s outside node is considered to be bot a generation node (for te purpose of modeling imports to te CAISO) and a load node (for te purpose of modeling exports from te CAISO). Version 17 Last Revised: April 1, 2011 Page B-7

38 BPM for Maret Operations Intertie bids (bot generation and load, as described above) are constructed using istorical data tat are taen from te identified ydro scenario years and are comprised of up to eleven bid segments. Te first segment is te final our-aead sceduled quantity over tat tie point, wit a quantity-weigted average bid price. Additional segments are constructed using real time Energy Bids submitted across an intertie were quantities are determined by real time bid quantities and te bid prices are, again, quantity-weigted average bid prices. Tis is repeated for eac intertie for bot te import (external generation) and export (external load) directions. Data Requirements for Import and Export Bids: 1. Intertie ID and bus IDs for terminus. 2. Historical ourly data containing final our aead import and export scedules by intertie and real time import and export bids by intertie for years identified for ig normal, and low ydro scenarios. B.6 Ancillary Services B.6.1 Maret Structure Te maret structure for procurement in Ancillary Services (AS) will be incorporated in a fasion tat most closely reflects AS procurement in MRTU as allowed by te simulation software. Te procurement of AS will be co-optimized wit energy in te simulation. At a minimum, procurement of all upward AS will be modeled in te simulation. In addition, AS procurement from internal resources will be limited to only tose resources tat are certified to provide te various individual AS products as indicated in te CAISO Master File. B.6.2 Ancillary Services Requirements Ancillary Service requirements for Regulating Reserves will be based on istorical procurement levels (generally 350 MW to 400 MW for Regulation Up and Regulation Down separately) or anticipated procurement levels for te next 12 monts. Operating Reserve requirements will be calculated as 7% of load for eac of Spinning Reserve and Non-spinning Reserve. Operating Reserve requirements may be adjusted downward to account for istorical procurement across te interties if procurement from resources outside te control area is not modeled in te simulation. Version 17 Last Revised: April 1, 2011 Page B-8

39 BPM for Maret Operations B.6.3 Supply of Ancillary Services Internal resources tat are certified to provide specific AS will be modeled to submit $0 capacity bids for te full amount of certified (ramp-constrained) AS capacity. B.7 Identification of Load and Hydro Scenarios Te CPA will evaluate competitiveness across four seasons, tree load scenarios witin eac season, and tree ydro scenarios witin eac season. For any combination of tese system conditions, sets of one, two, and/or tree potentially pivotal suppliers will be witdrawn from te pool of available supply to evaluate te FI index. B.7.1 Load Scenarios Te tree demand scenarios for eac of four seasons are identified as follows. 1. Construct seasonal duration curves consisting of daily pea load for te most recent four wole calendar quarters using actual load data. 2. Witin eac season, coose te day corresponding to te 95 t percentile, 80 t percentile, and 65 t percentile to identify te ig medium, and low load scenario days for tat season. Since te loads calculated from telemetry data are actually te sum of loads plus losses, te estimated losses of 5% are subtracted from te data from te ACTLOAD table to produce local area loads witout losses at te tae-out points. Te total system load is ten allocated to load distribution points by using te fixed load distribution factors from te MRTU FNM. B.7.2 Hydro Scenarios Tree ydro scenarios, ig normal, and low, are identified based on California s istorical ydroelectric production data. To identify te tree ydro scenario years: 1. Collect ydroelectric metered output for te most recent five years. 2. Calculate an annual time-series of montly ydroelectric output from tese data. 3. Coose base years from tese figures tat reflect ig medium, and low ydroelectric years. Version 17 Last Revised: April 1, 2011 Page B-9

40 BPM for Maret Operations Once identified, istoric data on scedules and bids from ydroelectric resources and import / export bids across te inter-ties are used as te basis for constructing bids for tese types of resources to be used in te CPA simulation. B.8 Identification of and Supplier Combinations to Witdraw Te initial set of suppliers tat will be considered potentially pivotal will be NOT FEWER tan te tree largest portfolios of internal generation system-wide, nort of Pat 26, and sout of Pat 26. Tis set of suppliers will ave teir portfolios of internal generation witdrawn from te simulation model in possible combinations (single supplier, two suppliers, or tree suppliers). Te system-wide and zonal portfolios are calculated by summing te installed capacity of eac net supplier aving installed capacity in te CAISO control area and selecting te top tree portfolios at te system and zonal level. Te CAISO will collect information regarding ownersip and contractual relationsips tat transfer control of a resource and adjust te portfolios of te net generators to account for tese relationsips prior to identifying te potentially pivotal net suppliers. Also, in addition to installed capacity, te ISO may adjust supplier portfolios to account for nown generation additions / retirements or transfers of ownersip. Once te CPA simulations tat reflect te initial set of supplier combinations witeld ave been completed, a review is conducted to assess te potential for additional pivotal suppliers given te transmission pats / constraints tat are deemed competitive in te first round of simulations. Sould te CAISO determine tat tere exist additional suppliers tat are potentially pivotal, additional simulations will be performed tat incorporate tese additional suppliers into te combinations of portfolios witdrawn. B.9 Performing Simulation B.9.1 Model and Data Verification Te following items must be verified prior to running simulations for purposes of executing te CPA: 1. Input data for load, internal resources, supplier portfolios, and imports. Version 17 Last Revised: April 1, 2011 Page B-10

41 BPM for Maret Operations 2. FNM specification including termal limits, interface and constraint definition, and contingencies if applicable. 3. FNM verification troug simulation of base case scenarios and reviewing power flow results for consistency wit actual operation of te grid. Lead CPA Analyst sould consult wit Operating Engineers, Grid Operators, and CRR Staff in te event tat base case simulation results deviate from expectations. 4. Appropriate transmission limits applied: soft constraints wit a penalty price of $50,000/MW, ard constraints on grandfatered competitive transmission pats (Branc Groups tat existed most recently prior to implementation of MRTU), load curtailment penalty price of $1,000,000/MW. 5. Simulation software parameter specification. B.9.2 Executing Simulation Runs Te simulation model must be run once for a 24-our simulation period for eac combination of te scenarios listed below. If during te course of running simulations across te various scenarios a point is reaced were all candidate pats ave a calculated negative Feasibility Index (see Section B.10.1) and are consequently deemed uncompetitive, te CAISO as te discretion to cease furter simulation of scenarios. 1. Season: Winter, Spring, Summer, Fall. 2. Load: ig medium, low. 3. Hydro: ig medium, low. 4. Witeld Supplier Portfolios: Base case wit no suppliers removed, all seven single supplier portfolios, all combinations of two out of seven supplier portfolios, all combinations of tree out of seven supplier portfolios. B.9.3 Simulation Result Verification 1. Verify tat 500v transmission system flows (magnitude and direction) in base case simulations for select seasonal scenarios are consistent wit istorical operation. Version 17 Last Revised: April 1, 2011 Page B-11

42 BPM for Maret Operations 2. Spot cec simulation runs wit supplier capacity witeld to verify tat te witeld capacity was not dispatced in te simulation. 3. Review individual days were load curtailment occurred in te simulation to verify te resources, networ topology, and transmission limits are appropriately set. B.9.4 Simulation Data Storage Te following items will be stored for eac CPA performed in a manner tat allows for reproduction of results: 1. All model input files and computer code used to produce tose files. 2. Simulation software model specification file. 3. All simulation output files and any computer code used to combine or manage tose files. 4. All files containing data, calculations, competitive determinations and any computer code used to produce tose files. B.10 Competitive Pat Designations B.10.1 Calculating te Feasibility Index To identify uncompetitive pats a Feasibility Index (FI) is calculated for eac candidate transmission constraint for eac simulated our. Te FI for a candidate pat j is calculated for eac simulated our as: Let Limit (j) = Transmission Limit on Pat j Flow (j) = Simulated Power Flow on Pat j (wit soft limits) Ten FI (j) = [Limit (j) - Flow (j)] / Limit (j). Te values for bot Limit (j) and Flow (j) are taen from te simulation files. Version 17 Last Revised: April 1, 2011 Page B-12

43 BPM for Maret Operations B.10.2 Determining Pat Designations For eac season, construct and populate a table tat contains te following fields: Candidate Pat Name, Number of Hours Wit FI < 0, Seasonal Competitiveness Results. Candidate Pat Name: Values for tis field are establised in te Candidate Pat Identification step described in Section B.3. Number of Hours Wit FI < 0: Values for tis field are a count of te simulated ours witin a given season were te calculated FI for a particular Candidate Pat is less tan zero. Data used in tis calculation are discussed in Section B Seasonal Competitiveness Results: For eac Candidate Pat te value for Seasonal Competitiveness Results is Pass if te number of simulated ours aving a negative FI is zero for tat Candidate Pat. Oterwise, te value is Fail. If a Candidate Pat receives a Fail value for Seasonal Competitiveness Results in any one season, tat Candidate Pat will be deemed Uncompetitive. Oterwise, te Candidate Pat will be deemed Competitive. B.11 Publication of CPA Results Witin one wee after te CPA is completed and a set of competitive pats is identified, tat set of competitive pats will be publised on te CAISO web site and a Maret Notice will be issued notifying Staeolders of te publication. B.12 Incorporating CPA Results into MRTU LMPM Witin one wee after CPA is completed and a set of competitive pats is identified, te entire set of Competitive Pats, including grandfatered pats, will be communicated to te Maret Services department for inclusion into te production MRTU software and utilized in te daily application of LMPM. Te Maret Services department will update te pat designations for use by te production maret software in te day-to-day operation of te energy marets. Version 17 Last Revised: April 1, 2011 Page B-13

44 BPM for Maret Operations Attacment C EXPECTED ENERGY CALCULATION

45 BPM for Maret Operations C. Expected Energy Calculation C.1 Expected Energy Definition Expected Energy is te total Energy tat is expected to be generated or consumed by a resource, based on te Dispatc of tat resource, as calculated by te Real-Time Maret (RTM), and as finally modified by any applicable DOP corrections. Expected Energy includes te Energy sceduled in te Integrated Forward Maret and it is calculated after-te-fact, i.e, after te Operating Day. Expected Energy is calculated for Generating Units, System Resources, Resource-Specific System Resources and Participating Loads (e.g, pumps). Te calculation is based on te Day-Aead Scedule and te Dispatc Operating Point (DOP) trajectory for te tree-our period around te target Trading Hour (including te previous and following ours), te applicable Real-Time LMP for eac Dispatc Interval of te target Trading Hour, and any Exceptional Dispatc Instructions. All Dispatc Intervals are five minutes in duration. For settlements and compliance, Energy over te 5-minute Dispatc Intervals is aggregated later to Energy over te ten-minute Settlement Intervals. Version 17 Last Revised: April 1, 2011 Page C-1

46 BPM for Maret Operations Te following is a list of Expected Energy types and teir general descriptions. How eac are calculated is described in Section D.3, Expected Energy Calculation. Expected Energy Category Day-Aead Sceduled Energy (DASE) Day-Aead Minimum Load Energy (DAMLE) [Tis only includes IFM Min load Energy] Day-Aead Self Sceduled Energy (DASSE) Day-Aead Bid Awarded Energy (DABAE) Day-Aead Pumping Energy Definition Hourly Energy tat corresponds to te flat ourly Day-Aead Scedule (DAS). It is composed of Day-Aead Minimum Load Energy, Day-Aead Self- Sceduled Energy, and Day-Aead Bid Awarded Energy. It does not include te DA Energy tat corresponds to te flat scedule wen resource is committed in DA pumping mode. Expected energy in DA pumping mode is accounted for as DA pumping energy. Day-Aead Sceduled Energy is settled at te IFM LMP as specified in Section of te CAISO Tariff. DASE below te registered Minimum Load; it applies to Generating Units wit non-zero Minimum Load. DAMLE is paid te Day-Aead LMP as reflected in Section of te CAISO Tariff and it is included in Bid Cost Recovery (BCR) at te relevant DA Minimum Load Cost (MLC) as reflected in Section of te CAISO Tariff. DASE above te iger of te registered Minimum Load and below te lower of te Day-Aead Total Self-Scedule (DATSS) or te DAS. Te DATSS is te sum of all Day-Aead Self-Scedules (except Pumping Self-Scedules) in te relevant Clean Bid. DASSE is paid te Day-Aead LMP as reflected in Section of te CAISO Tariff and as indicated in Section of te CAISO Tariff.It is not included in BCR. DASE above te DATSS and below te DAS. DABAE is also indexed against te relevant DA Energy Bid and sliced by Energy Bid price. Te DABAE slices are paid te Day-Aead LMP as reflected in Section of te CAISO Tariff and tey are included in BCR at te cost of te relevant DA Energy Bid prices as sown in Section of te CAISO Tariff. Negative DASE consumed by Pumped-Storage Hydro (PSH) and Pump Resources Sceduled in pumping mode in DA. Wen DAPE is present, tere Publised Enumeration DASE DMLE DSSE DABE DAPE Version 17 Last Revised: April 1, 2011 Page C-2

47 BPM for Maret Operations Expected Energy Category (DAPE) Standard Ramping Energy (SRE) Ramping Energy Deviation (RED) Residual Imbalance Energy (RIE) Definition are no oter DASE subtypes present. DAPE is carged te Day-Aead LMP as reflected in Section of te CAISO Tariff and it is included in BCR at te relevant DA Pumping Cost as demonstrated in Section of te CAISO Tariff. IIE produced or consumed in te first two and te last two Dispatc Intervals due to ourly scedule canges. SRE is a scedule deviation along a linear symmetric 20-min ramp ( standard ramp ) across ourly boundaries. SRE is always present wen tere is an ourly scedule cange, including resource Start-Ups and Sut-Downs. SRE does not apply to Non-Dynamic System Resources (including Resource-Specific System Resources. SRE is not subject to settlement as sown in Section of te CAISO Tariff. IIE produced or consumed due to deviation from te standard ramp because of ramp constraints, Start-Up, or Sut-Down. RED may overlap wit SRE, and bot SRE and RED may overlap wit DASE, but wit no oter IIE subtype. RED may be composed of two parts: a) te part tat overlaps wit SRE wenever te DOP crosses te SRE region; and b) te part tat does not overlap wit SRE. Te latter part of RED consists only of extra-marginal IIE contained witin te ourly scedule cange band and not attributed to Exceptional Dispatc or derates. RED does not apply to Non-Dynamic System Resources (including Resource-Specific System Resources). RED is paid/carged te Real-Time LMP as reflected in Section of te CAISO Tariff and it is included in BCR only for maret revenue calculations as reflected in Section of te CAISO Tariff. Extra-marginal IIE produced or consumed at te start or end of a Trading Hour outside te ourly scedule-cange band and not attributed to Exceptional Dispatc. RIE is due to a Dispatc Instruction in te previous Trading Hour or a Dispatc Instruction in te next Trading Hour. RIE may overlap only wit DASE. RIE does not apply to Non-Dynamic System Resources (including Resource-Specific System Resources. RIE is settled as bid, based on te RT Energy Bid of te reference our, or at te Real-Time LMP if tere is no Bid as Publised Enumeration SRE RED RE Version 17 Last Revised: April 1, 2011 Page C-3

48 BPM for Maret Operations Expected Energy Category MSS Load Following Energy (MSS LFE) Real-Time Pumping Energy (RTPE) Real-Time Minimum Load Energy (RTMLE) Definition reflected in Section of te CAISO Tariff, and it is not included in BCR as reflected in Section of te CAISO Tariff. Te reference our is te previous Trading Hour, if RIE occurs at te start of a Trading Hour, or te next Trading Hour, if RIE occurs at te end of a Trading Hour. IIE, exclusive of SRE, RED, and RIE, produced or consumed due to Load Following by an MSS. LFE is te IIE tat corresponds to te algebraic Qualified Load Following Instruction (QLFI) relative to te DAS. LFE does not coexist wit HASE, and it does not overlap wit SRE, RED, or RIE, but it may overlap wit DASE, Derate Energy, Exceptional Dispatc Energy, Real-Time Self-Sceduled Energy, and Optimal Energy. MSS LFE is paid/carged te Real-Time LMP as reflected in Section of te CAISO Tariff and it is not included in BCR as reflected in Section of te CAISO Tariff. IIE from PSH or Pump Resources, exclusive of SRE, RED, consumed below te DAS wen Dispatced in pumping mode, or produced from pumping operation due to Pumping Level reduction in real time, including pump sutdown. RTPE does not overlap wit any oter Expected Energy type. RTPE is carged or paid te Real-Time LMP as reflected in Section of te CAISO Tariff and it is included in BCR at te relevant pumping Cost as reflected in Section of te CAISO Tariff. IIE, exclusive of SRE, RED, and RIE, produced due to te Minimum Load of a Generating Unit tat is committed in te RUC or te RTM (i.e., witout a Day- Aead Scedule) or a Constrained Output Generator (COG) tat is committed in te IFM wit a DAS below te registered Minimum Load (because COGs are modeled as flexible in te IFM). If te resource is committed in RTM for Load Following, RTMLE is accounted as MSSLFE instead. RTMLE is IIE above te Day-Aead Scedule (or zero if tere is no DAS) and below te registered Minimum Load. RTMLE does not overlap wit any oter Expected Energy type. RTMLE is paid te Real-Time LMP as reflected in Section of te CAISO Tariff and it is included in BCR at te relevant minimum load cost as reflected in Section of te CAISO Tariff. IIE tat is Publised Enumeration MSSLFE RTPE MLE Version 17 Last Revised: April 1, 2011 Page C-4

49 BPM for Maret Operations Expected Energy Category HASP Sceduled Energy (HASE) Derate Energy (DRE) also referred to as SLIC Energy Definition consumed wen a resource tat is sceduled in te DAM is sut down in te RTM is accounted as HASP Sceduled Energy or Optimal Energy and not as RTMLE. IIE from Non-Dynamic System Resource, exclusive of RTPE, and RTMLE, produced or consumed due to ourly sceduling in te HASP. HASE is produced above te iger of te DAS or te Minimum Load, and below te HASP Intertie Scedule, or consumed below te DAS and above te HASP Intertie Scedule. In te latter case, HASE overlaps wit DASE; HASE does not overlap wit RTPE or RTMLE, but it may overlap wit oter IIE subtypes. HASE is indexed against te relevant Energy Bid and sliced by service type, depending on te AS capacity allocation on te Energy Bid, and by Energy Bid price. HASE slices are paid/carged te HASP Intertie LMP as reflected in Section 11.4 of te CAISO Tariff and tey are included in BCR at te cost of te relevant Energy Bid prices as reflected in Section of te CAISO Tariff. Any HASE slice below or above te Energy Bid as no associated Energy Bid price and it is not included in BCR. For Non-Dynamic System Resources tat are designated as MSS Load Following Resources, HASE sould be considered as MSS LFE in Load Following performance assessment. Extra-marginal IIE, exclusive of SRE, RED, RIE, LFE, and RTMLE, produced or consumed due to Minimum Load overrates or Maximum Capacity derates. DRE is produced above te iger of te DAS, te registered Minimum Load, or te HAS, and below te lower of te overrated Minimum Load and te DOP, or consumed below te lower of te DAS or te HAS, and above te iger of te derated Maximum Capacity or te DOP. Tere could be two DRE slices, one for te Minimum Load overrate, and one for te Maximum Capacity derate. DRE does not overlap wit SRE, RED, RIE, RTMLE, Exceptional Dispatc Energy, or Optimal Energy, but it may overlap wit DASE, HASE, and LFE. DRE is paid/carged te Real-Time LMP as reflected in Section of te CAISO Tariff and it is not included in BCR as reflected in Section Publised Enumeration HASE SE Version 17 Last Revised: April 1, 2011 Page C-5

50 BPM for Maret Operations Expected Energy Category Exceptional Dispatc Energy (EDE) Optimal Energy (OE) also referred to as In- Sequence or Optimal Energy of te CAISO Tariff. Definition Extra-marginal IIE, exclusive of SRE, RED, RIE, LFE, RTMLE, and DRE, produced or consumed due to manual (non-economic) Exceptional Dispatc Instructions tat are binding in te relevant Dispatc Interval. Witout MSS Load Following, EDE is produced above te LMP index and below te lower of te DOP or te Exceptional Dispatc instruction, or consumed below te LMP index and above te iger of te DOP or te Exceptional Dispatc Instruction. Te LMP index is te capacity in te relevant Energy Bid tat corresponds to a bid price equal to te relevant LMP. EDE does not overlap wit SRE, RED, RIE, RTMLE, DRE, or Optimal Energy, but it may overlap wit DASE, HASE, and LFE. Exceptional Dispatc Energy is paid/carged at a price tat is specific to its type, eiter as-bid or at te Real-Time LMP if tere is no Bid as reflected in Section of te CAISO Tariff, and it is not included in BCR as reflected in Section of te CAISO Tariff.. Any remaining IIE after accounting for all oter IIE subtypes constitutes OE. OE does not overlap wit SRE, RED, RIE, RTMLE, DRE, and EDE, but it may overlap wit DASE, HASE, and LFE. OE is indexed against te relevant Energy Bid and sliced by service type, depending on te AS capacity allocation on te Energy Bid. OE is also divided into two parts: a) te part of OE tat overlaps wit MSS LFE ( Overlapping OE ), wic is paid/carged te Real-Time LMP as reflected in Section , and it is not included in BCR since it is effectively cancelled by MSS LFE as reflected in Section of te CAISO Tariff; and b) te remaining part ( Non-overlapping OE ), wic is indexed against te relevant Energy Bid and sliced by Energy Bid price. Te Non-overlapping OE slices are paid/carged te Real-Time LMP as reflected in Section of te CAISO Tariff and tey are included in BCR at te cost of te relevant Energy Bid prices as reflected in Section of te CAISO Tariff. Any OE slice below or above te Energy Bid as no associated Energy Bid price and is settled as reflected in Section 11 of te CAISO Tariff and it is not included in BCR as reflected in Section 11of te CAISO Tariff. Publised Enumeration EDE OE Version 17 Last Revised: April 1, 2011 Page C-6

51 BPM for Maret Operations Expected Energy Category Real-Time Self- Sceduled Energy (RTSSE) RMR (RMRE) Energy Definition Te slice of Non-overlapping OE tat corresponds to te Real-Time Total Self- Scedule (RTTSS). Te RTTSS is te sum of all Real-Time Self-Scedules (except Pumping Self-Scedules). Total Expected Energy under RMR Dispatc. Tis energy is calculated irrelevant to oter Expected Energy type and it may overlap wit any oter Expected Energy type. It is used for RMR contract based settlement as provided in Section 11 of te CAISO Tariff. Publised Enumeration RTSSE RMRE Version 17 Last Revised: April 1, 2011 Page C-7

52 BPM for Maret Operations C.2 Expected Energy Calculation Te following section is meant to specify te formulas to calculate various Expected Energy amounts in a deterministic fasion. All te following calculations tae place for eac Dispatc Interval (5-minute) in te target our on resource level base. C Top-level Algoritm Te following notation is used in te algoritm: i Resource index. H Trading Hour index. K Dispatc interval index from te start of te Trading Hour. J Exceptional Dispatc Instruction index. P Resource power output. T Time. T End time of Dispatc Interval in Trading Hour ; T 0 is te start of Trading Hour. S GEN S TIE Set of Generating Units. Set of Resource-Specific System Resources. S IMP Set of Import System Resources; SIMP STIE. S EXP Set of Export System Resources; SEXP STIE. S HPD Set of Non-Dynamic System Resources; SHPD SGEN STIE. S RMR Set of RMR Resources; SRMR SGEN S PSH Set of Pumped-Storage Hydro (PSH) Resources; SPSH SGEN S PUMP Set of Pump (Participating Load) Resources; SPUMP SGEN Version 17 Last Revised: April 1, 2011 Page C-8

53 BPM for Maret Operations S MSS Set of MSS Load Following Resources; SMSS SGEN SIMP, ( S MSS SGEN ) SHPD =. S TG Set of Resource-Specific System Resources; STG SGEN. P MIN P MAX PL DALEL DAUEL RTLOL RTUOL RTLEL RTUEL RTCS RTBP(p) DAS DASE DAMLE DASSE DABAE DAPE HAS DOT DOP(t) S(t) Registered Minimum Load; it is assumed constant. Registered Maximum Capacity; it is assumed constant. Pumping Level for Pumped-Storage Hydro and Pump Resources. Day-Aead Lower Economic Limit; te bottom of te Day-Aead mitigated Energy Bid. Day-Aead Upper Economic Limit; te top of te Day-Aead mitigated Energy Bid. Real-Time Lower Operating Limit; it reflects Minimum Load overrates. Real-Time Upper Operating Limit; it reflects Maximum Capacity derates. Real-Time Lower Economic Limit; te bottom of te mitigated Real-Time Energy Bid. Real-Time Upper Economic Limit; te top of te mitigated Real-Time Energy Bid. Real-Time Commitment Status (0: offline; 1: generating; 1: pumping; for Generating Units; 1 for all oters). Real-Time mitigated Energy Bid function; bid price versus power output. Day-Aead Scedule. Day-Aead Sceduled Energy. Day-Aead Minimum Load Energy. Day-Aead Self-Sceduled Energy. Day-Aead Bid Awarded Energy. Day-Aead Pumping Energy. HASP Intertie Scedule for Non-Dynamic System Resources. Dispatc Operating Target. Dispatc Operating Point function; expected resource power output versus time. DOP Slope Direction function versus time. Version 17 Last Revised: April 1, 2011 Page C-9

54 BPM for Maret Operations SR(t) RTLMP RTLED RTUED ED MIN ED MAX ED FIX ED BND QLFI RS IIE SRE EXME RED ORED NRED RIE TRIE BRIE RTMLE RTPE HASE Standard Ramp function; expected resource sceduled power output, including te 20-min linear ramp across ourly boundaries, if applicable, versus time. Real-Time Locational Marginal Price. HPD resources will still ave te Real-Time LMP (5-min) from RTM in addition to te HASP LMP (ourly sadow prices). MQS needs to mae sure to get te Real-Time LMP to use as RTLMP, not te HASP LMP. Real-Time Lower unconstrained Economic Dispatc based on te LMP and te Energy Bid. Real-Time Upper unconstrained Economic Dispatc based on te LMP and te Energy Bid. Minimum Exceptional Dispatc. Maximum Exceptional Dispatc. Fixed Exceptional Dispatc. Binding Exceptional Dispatc. Qualified Load Following Instruction for non-hpd Load Following Resources. Reference Scedule. Instructed Imbalance Energy. Standard Ramping Energy. Extra-Marginal Energy. Ramping Energy Deviation. Overlapping Ramping Energy Deviation. Non-overlapping Ramping Energy Deviation. Residual Imbalance Energy. Top of te our RIE. Bottom of te our RIE. Real-Time Minimum Load Energy. Real-Time Pumping Energy. HASP Sceduled Energy. Version 17 Last Revised: April 1, 2011 Page C-10

55 BPM for Maret Operations DRE UDRE LDRE MSS LFE EDE OE OOE NOE Derate Energy. Upper Derate Energy due to P max derates. Lower Derate Energy due to P min overrates. MSS Load Following Energy. Exceptional Dispatc Energy. Optimal Energy. Overlapping Optimal Energy. Non-overlapping Optimal Energy. All capacity quantities are in MW, all energy quantities are in MW all prices are in $/MW and time is in sec. Version 17 Last Revised: April 1, 2011 Page C-11

56 BPM for Maret Operations Expected Energy Calculation Algoritm Any absent variables are considered zero. For example, a missing DAS is considered zero. Energy quantities are zero by default wen te relevant conditions in teir formula do not old. One exception to tis rule, given an interval and a resource, if te resource is not committed or witin te Start Up/sutdown period in DA or RT, tere sould be no Expected Energy and allocation calculated. Tis is to avoid a lot of zero Expected Energy being calculated. Te following formula is assuming a principle of No DOP No Expected Energy. Te Total Self-Scedule is te sum of all self-scedules except pumping self-scedules. Te Energy Bid, and tus te Lower/Upper Economic Limits are relative to te Total Self-Scedule. Te Lower Economic Limit is equal to te iger of te Total Self-Scedule or te Minimum Load. Te Upper Economic Limit is equal to te top of te Energy Bid. If tere is no Energy Bid, te Upper Economic Limit is equal to te Lower Economic Limit. Te Lower Operating Limit is greater tan or equal to te Minimum Load and it reflects Minimum Load overrates. Te Minimum Load and te Lower Operating Limit for System Resources are bot zero. Te Upper Operating Limit is less tan or equal to te Maximum Capacity and it reflects Maximum Capacity derates. Te Maximum Capacity and te Upper Operating Limit for System Resources are bot infinite. In MQS 2.0, te following assumptions are also made to a pump or pump storage resource in pumping mode: 1. Tere will be no operating mode switc between HASP and RTM. If a resource is committed in pumping mode in HASP, it can not cange to any oter mode except in te event of outage, wic leads from pumping mode to offline; 2. For a resource in pumping, tere is only one constant pumping level tat tis resource can operate on (constant pumping level); Version 17 Last Revised: April 1, 2011 Page C-12

57 BPM for Maret Operations 3. Wen a resource is started up into pumping model or sut down from pumping mode, te ramping is assumed infinite. A vertical line of DOP dispatc from zero to Pumping Level (startup) or vertical line of pumping level to zero (sutdown) is assumed; 4. Wen a pump storage switc between pumping mode and generation mode in any given maret, it is assumed tat it as to go troug an offline period to meet te minimum down time requirement; 5. Scedules and DOPs in pumping mode are all negative MWs. Given tose assumptions, te possible Expected Energy incurred by resources in pumping mode will be Standard Ramping Energy, Ramping Energy Deviation, Day-Aead Pumping Energy and Real-Time Pumping Energy. 0 P 0 P P P MINi MAXi MINi MINi RTLEL RTLOL = RTLOL = RTUOL RTUEL PMAXi RTUOL P = 0 = i S TIE MAXi C Day-Aead Sceduled Energy DASE i, = max( 0, DAS ) 1r C Day-Aead Minimum Load Energy ( 0, min( DAS, P )) 1r DAMLE = max MINi Version 17 Last Revised: April 1, 2011 Page C-13

58 BPM for Maret Operations C Day-Aead Self Sceduled Energy DASSE ( 0, min( DAS, DALEL ) ( P )) 1r max,, = i i MINi C Day-Aead Bid Awarded Energy ( 0, DAS DALEL ) 1r DABAE = max C Day-Aead Pumping Energy ( 0, ) 1r DAPE i, = min DAS C Bloc Energy Accounting Rules Te DOP of te following Resources is converted to a step function at te relevant DOTs for Expected Energy accounting as follows: DOP ( t) = DOT T 1 t < T, = 1,2,,12 i STIE ( STG S HPD ) C Instructed Imbalance Energy IIE = T T 1 ( DOP t) DAS ) i ( 3600 dt Version 17 Last Revised: April 1, 2011 Page C-14

59 BPM for Maret Operations For Generating Units or System Resources, positive Instructed Imbalance Energy is produced, wereas negative Instructed Imbalance Energy is consumed. Te converse is true for Export System Resources, i.e., positive Instructed Imbalance Energy is consumed, wereas negative Instructed Imbalance Energy is produced. C Standard Ramping Energy Te Standard Ramp function is defined as follows: SR DAS DAS ( t) = DAS DAS + + DAS DAS DAS 1200 DAS 1200 ( T 2 ( t T t) 10 ) T T T t T t T t T i S i S HPD HPD S S TIE TIE Te Standard Ramping Energy is calculated as follows: SRE = T T 1 ( SR ( t) DAS ) 3600 dt = ( DAS 1 DAS ) ( DAS 1 DAS ) ( DAS + 1 DAS ) ( DAS DAS ) i S i S i S i S HPD HPD HPD HPD S S S S TIE TIE TIE TIE = 1 = 2 = 11 = 12 C MSS Load Following Energy Te MSS Load Following Energy is calculated as follows: Version 17 Last Revised: April 1, 2011 Page C-15

60 BPM for Maret Operations LFE i = T, T T T 1, 1 min max ( 0, DAS + QLFI min( DAS, SR ( t) )) MSS ( 0, DAS + QLFI max( DAS, SR ( t) )) dt dt QLFI QLFI < 0 > 0 i S C Reference Scedule To combine te distinct effects of Load Following in te formulae, it is convenient to define te following Reference Scedule function: RSi, t) RS DAS + QLFI i T t < T, = 1,2,,12 (,,, 1, C Real-Time Pumping Energy RTPE is te algebraic sum of negative IIE due to pumping increase and positive IIE due to pumping reduction, as follows: RTPE = T T 1 T ( ( )) ( ( ) ( )) +, 0, DOPi ( t) min 0, RS, DAS, SR ( t) max 0, min 0, DOPi ( t) max RS, DAS, SRi ( t) dt min, T 1 dt Version 17 Last Revised: April 1, 2011 Page C-16

61 BPM for Maret Operations C Real-Time Minimum Load Energy RTMLE = T T 1 ( 0, min( DOP ( t), P ) max( 0, RS, DAS, SR ( t) )) max i MINi 3600 dt C HASP Sceduled Energy HASE T + 1, ( 0, HAS max( P, RS )) min( 0, max( 0, HAS ) RS ) T 1,0 MINi = dt T T max, i dt i S HPD C Extra-Marginal Energy Extra-Marginal Energy is eiter produced Instructed Imbalance Energy at a iger bid price tan te Real-Time LMP or consumed Instructed Imbalance Energy at a lower bid price tan te Real-Time LMP, exclusive of Standard Ramping Energy. For Generating Units in generating mode and System Resources, Instructed Imbalance Energy witout a bid price, i.e., below or above te Energy Bid, is considered to be bid at if it is lower tan te Lower Economic Limit, and at + if it is iger tan te Upper Economic Limit. Te converse is true for Export System Resources, i.e., Instructed Imbalance Energy is considered to be bid at + if it is lower tan te Lower Economic Limit, and at if it is iger tan te Upper Economic Limit. For Pumped-Storage Hydro and Pump Resources in pumping mode, Instructed Imbalance Energy is considered to be bid at + if it is iger tan te Pumping Level, and at if it is lower tan te Pumping Level. To calculate Extra-Marginal Energy, te Real-Time LMP must be indexed against te relevant Energy Bid as follows: Version 17 Last Revised: April 1, 2011 Page C-17

62 BPM for Maret Operations RTLED RTUED RTLED = max p RTBPi = min p RTBPi = RTUED = PL,, i ( p) < RTLMP ( p) > RTLMP RTCS RTCS 0 = 1 RTLED and RTUED are eiter bot equal to te Energy Bid breapoint were te bid price jumps over te RTLMP, including te RTLEL or RTUEL, or equal to te start and end, respectively, of te Energy Bid segment wit a bid price equal to te RTLMP wen te resource is marginal. RTLED and RTUED are bot equal to te Pumping Level for pumping mode. Also it is important to note tat, wen tere is no Real-Time Energy Bid, RTLED = RTUED = Max(DAS, Pmin). In general, RTLED and RTUED may differ in eac Dispatc Interval. For te following sections, it is convenient to define te following functions: RTLED RTUED ( t) RTLED ( t) RTUED T 1 t < T, = 1,2,,12 Extra-Marginal Energy is calculated separately for eac relevant Instructed Imbalance Energy subtype, as sown in te following sections. C Binding Exceptional Dispatc Tere could be multiple Exceptional Dispatc Instructions active in a given Dispatc Interval. Neverteless, only one at most can be binding, determined as follows: ED BND = max( EDFIX, EDMIN, j ) min( EDFIX, EDMAX, j ) ( RTLED + RTUED ) 2 ED ED FIX FIX oterwise, ED, ED MIN, j MAX, j > RTUED < RTLED Version 17 Last Revised: April 1, 2011 Page C-18

63 BPM for Maret Operations Considering any point in te unconstrained Economic Dispatc range as te Binding Exceptional Dispatc by default wen one does not exist, is an algoritmic mecanism to render it irrelevant in te equations witout cecing for its existence. It is assumed tat Exceptional Dispatc instructions cannot conflict; terefore, a Fixed Exceptional Dispatc cannot coexist wit oter Fixed Exceptional Dispatces, a iger Min Exceptional Dispatc or a lower Max Exceptional Dispatc; moreover, a Min Exceptional Dispatc cannot be iger tan a Max Exceptional Dispatc. In general, te Binding Exceptional Dispatc may differ in eac Dispatc Interval. For te following sections, it is convenient to define te following function: ED BNDi, ( t) EDBND T 1 t < T, = 1,2,,12 C Operating Limits For te following sections, it is convenient to define te following operating limit functions: RTUOL RTLOL ( t) RTUOLi ( t) RTLOL, T 1 t < T, = 1,2,,12 C Dispatc Operating Point Slope Direction Te Slope Direction of te Dispatc Operating Point function is te sign of its first derivative as follows: 1 d DOP( t) s( t) signum = 0 dt 1 decreasing flat increasing Version 17 Last Revised: April 1, 2011 Page C-19

64 BPM for Maret Operations Version 17 Last Revised: April 1, 2011 Page C-20 Te Dispatc Operating Point may be discontinuous at te midpoint of eac Dispatc Interval because of vertical corrections due to te projected State Estimator solution. Te Slope Direction may cange at tese points, owever, it remains constant for te first alf and te second alf of te Dispatc Interval. Note tat te slope itself may cange witin tese alves because of ramp rate canges; owever, te slope direction does not cange. Terefore, te Dispatc Operating Point Slope Direction can also be determined as follows: < + < + = + > + + < + < + = + > i i i i i i i i i i i i i T t T T T DOP T T DOP T DOP T T DOP T DOP T T DOP T T t T T T DOP T DOP T T DOP T DOP T T DOP T DOP t s,, 1,,, 1,,, 1,,, 1,, 1, 1,, 1, 1,, 1, 1,, 1, 1,,, 2 ) ( 2 1 ) ( 2 0 ) ( ) ( 1 2 ) ( 0 2 ) ( 1 ) ( C Instructed Imbalance Energy Stac Figure 1 illustrates ow te various Instructed Imbalance Energy subtypes stac.

65 BPM for Maret Operations Figure 1. Instructed imbalance Energy Stac Version 17 Last Revised: April 1, 2011 Page C-21

66 BPM for Maret Operations C Ramping Energy Deviation Te Ramping Energy Deviation is te sum of te Overlapping Ramping Energy Deviation tat overlaps (and cancels) wit Standard Ramping Energy and te Non-overlapping Ramping Energy Deviation: = OREDi, + RED NRED, Te Overlapping Ramping Energy Deviation is calculated as follows: ORED ( 0, max( DOP ( t), DAS ) SR ( t) ) T, min i dt SR ( t) > DAS 3600 T, 1,, = i S S, max( 0, min( ( ),, ), ( )) = i T HPD TIE DOPi t DASi SRi t,, ( ) < dt SRi t DAS 3600 T, 1 1,2,11,12 Te Non-overlapping Ramping Energy Deviation may occur at te start and/or end of te Trading Hour, and only for as long as te Dispatc Operating Point Slope Direction remains increasing or decreasing, as te relevant case may be. Te Nonoverlapping Ramping Energy Deviation can be determined by searcing forward from te start of te Trading Hour and bacward from te end of te Trading Hour as follows: Version 17 Last Revised: April 1, 2011 Page C-22

67 BPM for Maret Operations NRED = T1 T0 T2 T0 min max ( 0, max( DOP ( t), DAS ) min( RTUOL ( t), ED ( t), RTLED ( t), RS ( t), SR ( t) )) i ( 0, min( DOP ( t), DAS ) max( RTLOL ( t), ED ( t), RTUED ( t), RS ( t), SR ( t) )) i BND BND ( 0, max( DOP ( t), DAS ) min( RTUOL ( t), ED ( t), RTLED ( t), RS ( t), SR ( t) )) T + 1,0 min i T3 T + 1,0 max i T4 i S HPD STIE Were te integration terminating times are determined as follows: BND ( 0, min( DOP ( t), DAS ) max( RTLOL ( t), ED ( t), RTUED ( t), RS ( t), SR ( t) )) BND dt dt dt dt DAS DAS DAS DAS < DAS > DAS < DAS > DAS + T1 = max T T = max T 2 T3 = min T T = min T 4 DOPi ( t) min DOPi ( t) max DOPi ( t) min DOPi ( t) max s ( t) = 1 ( ED ( t), RTLED ( t), SR ( t) ) BND s ( t) = 1 ( ED ( t), RTUED ( t), SR ( t) ) BND s ( t) = 1 i i i ( ED ( t), RTLED ( t), SR ( t) ) BND s ( t) = 1 i + 1,0 0 ( ED ( t), RTUED ( t), SR ( t) ) BND T T 0 T T 0 + 1,0 t T T t T T t T T + 1,0 + 1,0 0 t T T C Residual Imbalance Energy Te Residual Imbalance Energy may occur at te start and/or end of te Trading Hour, and only for as long as te Dispatc Operating Point Slope Direction remains increasing or decreasing, as te relevant case may be. Te Residual Imbalance Version 17 Last Revised: April 1, 2011 Page C-23

68 BPM for Maret Operations Energy at te top and bottom of te Trading Hour can be determined by searcing forward from te start of te Trading Hour and bacward from te end of te Trading Hour as follows: RIE TRIE BRIE = TRIE = T5 T0 T6 T0 min max + BRIE T + 1,0 min T7 = T + 1,0 max T8 i S S HPD ( 0, DOP ( t) min( DAS, DAS, RTUOL ( t), ED ( t), RTLED ( t), RS ( t) )) ( 0, DOP ( t) max( DAS, DAS, RTLOL ( t), ED ( t), RTUED ( t), RS ( t) )) ( 0, DOP ( t) min( DAS, DAS, RTUOL ( t), ED ( t), RTLED ( t), RS ( t) )) ( 0, DOP ( t) max( DAS, DAS, RTLOL ( t), ED ( t), RTUED ( t), RS ( t) )) TIE i i i i BND BND BND BND dt dt dt dt DOP ( T DOP ( T i i i i 0 0 DOP ( T DOP ( T ) < DAS ) > DAS + 1,0 + 1,0 ) < DAS ) > DAS Were te integration terminating times are determined as follows: T T T T = max T = max T = min T = min T DOPi ( t) min DOPi ( t) max DOPi ( t) min DOPi ( t) max ( DAS, DAS, ED ( t), RTLED ( t) ) 1 ( DAS, DAS, ED ( t), RTUED ( t) ) 1 ( DAS, DAS, ED ( t), RTLED ( t) ) ,0 0 ( DAS, DAS, ED ( t), RTUED ( t) ) + 1 s ( t) = 1 s ( t) = 1 s ( t) = 1 i i i s ( t) = 1 i BND BND BND BND T T T 0 T 0 + 1,0 t T T t T T t T T + 1,0 + 1,0 0 t T T Version 17 Last Revised: April 1, 2011 Page C-24

69 BPM for Maret Operations C Derate Energy Te Derate Energy is te sum of te Lower Derate Energy due to Minimum Load overrates and te Upper Derate Energy due to Maximum Capacity derates: = LDRE + DRE UDRE, Te Lower Derate Energy, including any overlap wit LFE or BED, but excluding SRE, is calculated as follows: LDRE = T 1 T T 1 T T T 1 max max max ( 0, min( DOP ( t), RTLOL ) max( ED, RTUED, HAS )) i ( 0, min( DOP ( t), RTLOL ) max( ED, RTUED, RS, DAS, SR ( t) )) i ( 0, min( DOP ( t), RTLOL, DAS, SR ( t) ) max( ED, RTUED, RS )) i 3600 BND BND BND Te Upper Derate Energy, including any overlap wit LFE or BED, but excluding SRE, is calculated as follows: UDRE = T 1 T T 1 T T T 1 min min min ( 0, max( DOP ( t), RTUOL ) min( ED, RTLED, HAS )) i ( 0, max( DOP ( t), RTUOL ) min( ED, RTLED, RS, DAS, SR ( t) )) i ( 0, max( DOP ( t), RTUOL, DAS, SR ( t) ) min( ED, RTLED, RS )) i 3600 BND BND BND dt dt dt + dt dt + dt i S i S i S i S HPD HPD HPD HPD Version 17 Last Revised: April 1, 2011 Page C-25

70 BPM for Maret Operations C Exceptional Dispatc Energy Te Exceptional Dispatc Energy, including any overlap wit LFE or BED, but excluding SRE and RTPE, is calculated as follows: EDE i = T, T T T 1, 1 max min ( 0, min( DOP ( t), ED ) max( 0, RTUED, HAS )) i HPD ( 0, max( 0, DOP ( t), ED ) min( RTLED, HAS )) i BND 3600 BND 3600 dt dt ED ED BND BND > HAS < HAS i S EDE = T, T T T, T T T 1 T max max min min ( 0, min( DOP ( t), ED ) max( 0, RTUED, RS, DAS, SR ( t) )) i ( 0, min( DOP ( t), ED, DAS, SR ( t) ) max( 0, RTUED, RS )) i ( 0, max( 0, DOP ( t), ED ) min( RTLED, RS, DAS, SR ( t) )) i ( 0, max( 0, DOP ( t), ED, DAS, SR ( t) ) min( RTLED, RS )) i BND BND BND BND dt + dt dt + dt ED ED BND BND > RS < RS i S HPD C Optimal Energy Any Instructed Imbalance Energy tat remains unaccounted is Optimal Energy: OE IIE SRE LFE RTPE RTMLE HASE = For Hourly Pre-Dispatced Resources, te Optimal Energy is calculated as te sum of te extra-marginal and infra-marginal portions as follows: RED RIE DRE EDE Version 17 Last Revised: April 1, 2011 Page C-26

71 BPM for Maret Operations OE = T T T T T T T T max max min min i S ( 0, DOP ( t) max( 0, RTLOL, ED, RTUED, HAS )) ( 0, min( DOP ( t), RTUED ) max( P, HAS )) ( 0, max( 0, DOP ( t) ) min( RTUOL, ED, RTLED, HAS )) ( 0, max( 0, DOP ( t), RTLED ) HAS ) HPD i i i i BND MINi BND dt For Dynamic System Resources, for wic no SRE/RED/RIE exists, te Optimal Energy is calculated as te sum of te extramarginal and infra-marginal portions, as follows: dt + dt + dt + Version 17 Last Revised: April 1, 2011 Page C-27

72 BPM for Maret Operations OE = T, T, 1 T, T, 1 T, T, 1 T, T, 1 max min min i S max ( 0, DOP ( t) max( RTLOL, ED, RTUED, RS )) ( 0, min( DOP ( t), RTUED ) max( P, RS )) ( 0, DOP ( t) min( RTUOL, ED, RTLED, RS )) ( 0, max( DOP ( t), RTLED ) RS ) HPD i i i S i i TIE BND BND MINi dt For te remaining Dynamic System Resources, for wic SRE/RED/RIE may exist, te Optimal Energy is calculated as te sum of te extra-marginal and infra-marginal portions tat may overlap wit LFE or not, but excluding SRE/RED/RIE and RTPE. Te Non-overlapping OE is calculated as follows: dt + dt + dt + Version 17 Last Revised: April 1, 2011 Page C-28

73 BPM for Maret Operations NOE = min T, T, 1 min T, T, 1 ( T, T, T ) max ( T, T, T ) min i S ( T,, T4, T8 ) max max 1 ( 0, DOP ( t) max( 0, RTLOL, ED, RTUED, RS, DAS, SR ( t) )) ( 0, min( DOP ( t), RTUED ) max( P, RS, DAS, SR ( t) )) 1 2 ( T,, T3, T7 ) min max 1 ( 0, max( 0, DOP ( t) ) min( RTUOL, ED, RTLED, RS, DAS, SR ( t) )) ( 0, max( 0, DOP ( t), RTLED ) min( RS, DAS, SR ( t) )) HPD 5 6 S TIE i i i i MINi BND BND Te Overlapping Optimal Energy, wic may exist only for Load Following Resources, is calculated as follows: OOE = T T T T T T T T max max min min i S dt dt + ( 0, min( DOP ( t), DAS, SR ( t) ) max( 0, RTLOL, ED, RTUED, RS )) ( 0, min( DOP ( t), RTUED, DAS, SR ( t) ) max( P, RS )) ( 0, max( 0, DOP ( t), DAS, SR ( t) ) min( RTUOL, ED, RTLED, RS )) ( 0, max( 0, DOP ( t), RTLED, DAS, SR ( t) ) RS ) MSS i i i i MINi BND BND dt dt + Te Optimal Energy is te sum of Overlapping and Non-overlapping Optimal Energy as follows: dt + dt + dt + dt + Version 17 Last Revised: April 1, 2011 Page C-29

74 BPM for Maret Operations OE = OOE + NOE i S HPD S TIE C Real-time Self-Scedule Energy RTSSE is NOT calculated in EE calculation. It is separated out from Optimal Energy wen doing EE allocation by using te lower portion of Optimal Energy below te RT mitigated Energy Bid curve. C RMR Energy Te calculation of RMR energy is not dependent and/or related to any oter Expected Energy calculation. It is calculated to fulfill te RMR contractual settlement requirement. It is calculated as te total energy under te RMR MW, wic is calculated as it follows, Based on te MPM/RRD process, te RMR MW level will be determined per RMR resource (including condition 1 and condition 2) for a given time in te following tree steps, Step 1, If RT RMR Requirement <> 0 Ten RMR _ MW = DOP Else If DA RMR Requirement <> 0 Ten RMR _ MW = min(max End If ( IFM _ commitment, RUC _ commitment, STUC _ commitment), DOP) Version 17 Last Revised: April 1, 2011 Page C-30

75 BPM for Maret Operations Step 2, If tere exists RMR Exceptional Dispatc Instruction oter tan RMRS Ten RMR _ MW = max( RMR_ Exceptional _ Dispatc RMR _ MW ) Else if RMR Exceptional Dispatc Instruction is RMRS Ten If RMR instruction is a MAX instruction Ten Indicating tat tis resource is te original RMR resource being substituted RMR_MW sould be increased for RMR energy calculation RMR _ MW = RMR _ MW + ( IFM _ Commitment RMR _ Exceptional _ Dispatc) Else -- Tis is te substituting resources -- RMR_MW sould be decreased for RMR energy calculation RMR _ MW = RMR _ MW ( RMR_ Exceptional _ Dispatc IFM _ Commitment) End If End If Step 3, RMR _ MW = min( MNDC, RMR _ MW ) Were: RMR_MW is te RMR MW level used in RMR energy calculation (time variant because it is tied to te DOP); Version 17 Last Revised: April 1, 2011 Page C-31

76 BPM for Maret Operations RT RMR Requirement DA RMR Requirement IFM_Commitment RUC_Commitment Te RMR requirement MW determined by Real-Time MPM/RRD process. (15-minute); Te RMR requirement MW determined by Day-Aead MPM/RRD process. (ourly); BINDING commitment scedule MW from IFM. Assume zero if none exists (ourly); BINDING commitment scedule MW from RUC. Assume zero if none exists (ourly); STUC_Commitment BINDING commitment scedule MW from RTM troug te sort term unit commitment process. Assume zero if non exists (15 minute); DOP Dispatc Operating Point from RTM; RMR Exceptional Dispatc Te Exceptional Dispatc MW wen te Exceptional Dispatc Energy code is one of te four types: RMRR, RMRS, RMRT, RMRV Tis can be simplified as essentially all Exceptional Dispatc Energy code beginning wit te letters RMR ; PreviousDOT Dispatc Operating Target (MW) for te previous 5-minute interval from RTM (5-minute); MNDC RMR Contractual Capacity defined in MF for RMR resources. It can be less or equal to te Pmax; C Energy Type Legend CAISO uses te following legend to identify te different types of Energy: Version 17 Last Revised: April 1, 2011 Page C-32

77 BPM for Maret Operations Version 17 Last Revised: April 1, 2011 Page C-33

78 BPM for Maret Operations C General Imbalance Energy Calculation Rules Following rules apply to all Dynamic System Resources tat are not MSS Load Following and not System Resources. Following are te main rules, q Energy types wit te same sign stac up; tey do not overlap q Energy types wit opposite signs overlap q Standard Ramping Energy is always present and it may overlap wit DA Scedule Energy q Ramping Energy Deviation may only overlap wit Standard Ramping Energy and/or DA Scedule Energy q Residual Energy may only overlap wit DA Scedule Energy Optimal and Exceptional Dispatc Energy do not overlap wit eac oter, but tey may overlap wit DA Scedule Energy Exibit D-1 illustrates te DA Energy breadown. It assumes tat tere is a DA Self-Scedule and Energy Bid for te corresponding resource. It also assumes tat te resource as a non-zero Pmin. Version 17 Last Revised: April 1, 2011 Page C-34

79 BPM for Maret Operations MW Day-aead Minimum Load Energy Day-aead Self- Sceduled Energy Day-aead Bid Awarded Energy Day-aead Sceduled Energy Day-aead LEL Pmin ' 5' ' 5' Exibit C-1: Day-aead Energy Breadown Version 17 Last Revised: April 1, 2011 Page C-35

80 BPM for Maret Operations MW ' 5' ' 5' Exibit C-2: Standard Ramping Energy and Ramping Energy Deviation (wit ramping deviation caused by slower ramp) Version 17 Last Revised: April 1, 2011 Page C-36

81 BPM for Maret Operations MW ' 5' ' 5' Exibit C-3: Ramping Energy Deviation (Canging Ramp Rate) Version 17 Last Revised: April 1, 2011 Page C-37

82 BPM for Maret Operations MW ' 5' ' 5' Exibit C-4: Ramping Deviation (Startup & Sutdown) Version 17 Last Revised: April 1, 2011 Page C-38

83 BPM for Maret Operations Exibit D-5 sows an economic Dispatc tat generates a DOP curve ramping first up towards te current our, ramp down below te DA Scedule in te middle of our, ten ramp furter down below te Day-Aead Scedule in te following our. Tis dispatc pattern results in te following Expected Energy: Day-Aead Scedule Energy, Standard Ramping Energy, Ramping Energy Deviation, Optimal Energy, Residual Imbalance Energy. MW ' 5' ' 5' Exibit C-5: Compreensive Economic Dispatc Case 1 Version 17 Last Revised: April 1, 2011 Page C-39

84 BPM for Maret Operations Exibit D-6 sows an economic dispatc tat generates a DOP curve ramping first up towards te current our owever below Day-Aead Scedule, furter ramp up above te Day-Aead Scedule in te middle of our, ten ramp furter down but above te Day-Aead Scedule in te following our. Tis dispatc pattern results in te following Expected Energy: Day-Aead Scedule Energy, Standard Ramping Energy, Ramping Energy Deviation, Optimal Energy, Residual Imbalance Energy. MW ' 5' ' 5' Exibit C-6: Compreensive Economic Dispatc Case 2 Version 17 Last Revised: April 1, 2011 Page C-40

85 BPM for Maret Operations Exibit D-7 sows an economic Dispatc tat generates a DOP curve ramping first down towards te current our owever above Day-Aead Scedule, furter ramp down below te Day-Aead Scedule in te middle of our, ten ramp furter up but below te Day-Aead Scedule in te following our. Tis dispatc pattern results in te following Expected Energy: Day- Aead Scedule Energy, Standard Ramping Energy, Ramping Energy Deviation, Optimal Energy, Residual Imbalance Energy. MW ' 5' ' 5' Exibit C-7: Compreensive Economic Dispatc Case 3 Version 17 Last Revised: April 1, 2011 Page C-41

86 BPM for Maret Operations Exibit D-8 sows te impact of Exceptional Dispatc. Te DOP curve ramps first up towards te current our, ramp down below te Day-Aead Scedule in te middle of our, ten ramp furter down below te Day-Aead Scedule in te following our. Tis dispatc pattern results in te following Expected Energy: Day-Aead Scedule energy, standard ramping energy, ramping energy deviation, Optimal Energy, Residual Imbalance Energy and Exceptional Dispatc Energy. Exceptional Dispatc energy is eiter Incremental energy above te RT LMP MW and below te lower of te DOP or te Exceptional Dispatc instruction; or Decremental energy below te RT LMP MW and above te iger of te DOP or te Exceptional Dispatc instruction. Version 17 Last Revised: April 1, 2011 Page C-42

87 BPM for Maret Operations MW ' 5' ' 5' Exibit C-8: Compreensive Exceptional Dispatc Case 1 Exibit D-9 sows an Exceptional Dispatc tat generates a DOP curve ramping first up towards te current our owever below Day-Aead Scedule, furter ramp up above te Day-Aead Scedule in te middle of our, ten ramp furter down but above te Day-Aead Scedule in te following our. Tis dispatc pattern results in te following Expected Energy: Day-Aead Scedule Energy, Standard Ramping Energy, Ramping Energy Deviation, Optimal Energy, Residual Imbalance Energy and Exceptional Dispatc Energy. Version 17 Last Revised: April 1, 2011 Page C-43

88 BPM for Maret Operations MW ' 5' ' 5' Exibit C-9: Compreensive Exceptional Dispatc Case 2 Exibit D-10 taes te original example from D-9 and sows te impact of a SLIC derate/rerate. In D-10, it assumes a SLIC derate of Pmax between min 0 to 27.5 in current our and a SLIC rerate of Pmin between 0 and 15 in te next our. Tis causes negative derate energy and positive derate energy in te corresponding time period. Version 17 Last Revised: April 1, 2011 Page C-44

89 BPM for Maret Operations MW RTUOL: Pmax Derated RTLOL: Rerated Pmin Negative Energy Derate Positive Energy Derate ' 5' ' 5' Exibit C-10: Impact of SLIC derate/rerate (Derate Energy) C Expected Energy in Pumping Mode Following rules apply to all Pumped-Storage Hydro Resource in pumping mode and Pump resources (Participating Load). For suc resources, te possible Expected Energy generated under zero can be DA Pumping Energy, RT Pumping Energy, Standard Ramping Energy and Ramping Energy Deviation Version 17 Last Revised: April 1, 2011 Page C-45

90 BPM for Maret Operations q DA Pumping Energy is always negative and tere is no furter breadown of DA Pumping Energy q RT Pumping Energy can be positive or negative q Standard Ramping Energy and Ramping Energy Deviation follow te same rules described in D q DA and RT Pumping Energy can overlap eac oter q Even toug tere can be HASP Intertie Scedule or Exceptional Dispatc equal or below zero, corresponding Imbalance Energy is always accounted for as RT Pumping Energy Exibit D-11 sows a case tat a Pump resource as been committed in DA pumping mode and get dispatced in Real-Time in Pumping mode for te current our. It also assumes te resource is off-line for te previous and next our. In tis case, te Expected Energy generated include DA pumping energy, Standard Ramping Energy and Ramping Energy Deviation. Version 17 Last Revised: April 1, 2011 Page C-46

91 BPM for Maret Operations MW Standard Ramping Day-aead Pumping Energy overlapped Energy wit Ramping Energy Deviation. Zero MW Zero MW ' 5' ' 5' Exibit C-11: Day-aead Pumping Energy Exibit D-12 sows a case tat a Pump resource as been committed in DA pumping mode and ten committed off-line in Real-Time. A DOP being zero ad been dispatced. It also assumes te resource is off-line for te previous and next our. Version 17 Last Revised: April 1, 2011 Page C-47

92 BPM for Maret Operations In tis case, te Expected Energy generated include DA pumping energy (negative), Real-time pumping energy (positive), Standard Ramping Energy and Ramping Energy Deviation Negative Day-aead MW Standard Ramping Positive Real-time Pumping Energy overlapped Pumping Energy Energy wit Ramping Energy Deviation. Zero MW Zero MW ' 5' ' 5' Exibit C-12: Positive Real-time Pumping Energy Version 17 Last Revised: April 1, 2011 Page C-48

93 BPM for Maret Operations Exibit D-13 sows a case tat a Pump resource as not been committed in DA (offline mode) and ten committed on-line in Real-Time. A DOP below zero ad been dispatced and a vertical curve is used for startup and sutdown. It also assumes te resource is off-line for te previous and next our. In tis case, te Expected Energy generated includes Realtime pumping energy (negative). MW Real-time Pumping Energy Zero MW Zero MW ' 5' ' 5' Exibit C-13: Negative Real-time Pumping Energy Version 17 Last Revised: April 1, 2011 Page C-49

94 BPM for Maret Operations Exibit D-14 sows a case tat a Pumped-Storage Hydro (PSH) Resource as been committed in DA generation mode and ten committed in pumping mode in Real-Time. A DOP below zero ad been dispatced and a vertical curve is used for startup and sutdown. It also assumes tat te resource is off-line for te previous and next our. In tis case, te Expected Energy generated includes Day-Aead Sceduled energy, Negative Optimal Energy and Negative Real-time Pumping Energy. Te energy above zero MW uses te same rules described in D MW Negative Real-time Pumping Energy Zero MW Zero MW DA Sceduled Energy, wic may also furter brea down into DA Bid Award Energy, DA self-sceduled Energy and DA Minimum Load Energy. Negative Optimal Energy, wic overlaps te Day-Aead Sceduled energy ' 5' ' 5' Exibit C-14: PSH from DA generation mode to Real-time pumping mode Version 17 Last Revised: April 1, 2011 Page C-50

95 BPM for Maret Operations Exibit D-15 sows a case tat a Pumped-Storage Hydro (PSH) Resource as been committed in DA pumping mode and ten committed in generation mode in Real-Time. In tis case, te Expected Energy generated includes negative DA Pumping Energy, positive Optimal Energy and positive Real-Time Pumping Energy and Real-Time Minimum Load Energy. Te energy above zero MW uses te same rules described in D MW DA Pumping Energy Pmin Pmin Zero MW Zero MW Positive Optimal Energy Positive RT Pumping Energy, wic overlaps te DA Pumping Energy. Real-time Minimum Load Energy ' 5' ' 5' Exibit C-15: PSH from DA pumping mode to RT generation mode Version 17 Last Revised: April 1, 2011 Page C-51

96 BPM for Maret Operations C Bloc Accounting in Expected Energy Wen calculating Expected Energy for System Resources(ourly pre-dispatced or not) and Non-Dynamic Resource-Specific System Resources, te bloc accounting metod is deployed. Te bloc accounting metod uses a step function at te relevant DOT as te converted bloc DOP wen calculating te Expected Energy under te curve. It is important to note tat, after te application of te bloc DOP, all oter Expected Energy calculation rules are te same as oter resources. Exibit 16 taes D-6 as te original example and apply te bloc accounting metod to te DOP, it resolves in te converted DOP curve (indicated by te pin dotted line). Notice tat, wile all Expected Energy calculation principle stays te same, te Expected Energy for eac interval is different now under te bloc DOP from te Expected Energy under te original DOP (dispatced from ADS). Version 17 Last Revised: April 1, 2011 Page C-52

97 BPM for Maret Operations MW Bloc DOP Curve ' 5' ' 5' Exibit C-16: Expected Energy under te bloc accounting metod (Non HPD Tie) Version 17 Last Revised: April 1, 2011 Page C-53

98 BPM for Maret Operations C HASP Sceduled Energy HASP Sceduled Energy andles te ourly pre-dispatced resources (Non-Dynamic System Resources). Exibit D-17 taes te original D-6 and adds in te HASP Intertie Scedule. Tis sows te impact and cange caused by a HASP Intertie Scedule. Notice tat, all Standard Ramping Energy, Ramping Energy Deviation and Residual Imbalance Energy are gone. Between interval 30 to 0, it also sows te overlapping case between HASP Sceduled Energy and Optimal Energy. Notice tat, if tis resource is a Tie or a TG, ten te DOP sould be applied bloc accounting metod. MW Negative HASE Negative HASE Negative HASE overlappe d wit Positive OE Positive HASE HASP Pre-dispatced Scedule ' 5' ' 5' Exibit C-17: Hourly Pre-dispatced Resources wit HASE Version 17 Last Revised: April 1, 2011 Page C-54

99 BPM for Maret Operations C MSS Load Following Energy MSS Load Following Energy (MSSLFE) is te area between te Load Following Instruction and te Day-Aead Scedule. Optimal and Exceptional Dispatc Energy do not overlap wit eac oter, but tey may overlap wit Day-Aead Sceduled Energy and/or MSS Load Following Energy. An important point to indicate is tat, all MSS load following instructions mentioned ere are te qualified MSS load following instructions. Te data flow for tese instructions is as it follows, Step 1: MSS MPs send in te MSS load following instructions troug ADS API on a 5-minute or ourly base; Step 2: ADS will publis tese instructions to RTN troug interval web services; Step 3: RTN will evaluate tese instructions and apply appropriate adjustments if necessary. Tis results in te qualified MSS load following instructions. RTN furter uses tese qualified instructions in its dispatc for te MSS load following resources. Dispatc Instructions are sent to MSS MPs troug ADS wic includes te qualified instructions as part of te DOT breadown; Step 4: MQS will use te qualified MSS load following instructions in clarification of Expected Energy for MSS load following resources. D-18 taes te compreensive economic Dispatc case in D-5 and adds in te MSS Load Following Instructions. Because of te MSS Load Following Instructions, te clarifications of Expected Energy do cange now. D-18 illustrates te following cases: 1. Between interval 45 and 52.5 in te previous our, tere is positive MSS Load Following energy incurred due to te MSS load following up instructions. Since te economic dispatces agree wit te load following up, tere is furter positive Optimal Energy incurred, but owever tere is no overlapping between Optimal Energy and MSS Load Following Energy. Version 17 Last Revised: April 1, 2011 Page C-55

100 BPM for Maret Operations Between interval 50 to 52.5, it is also important to note tat, standard ramping taes precedence over MSS Load Following Energy. Tey do not overlap eac oter; 2. Between interval 0 and 30 in te current our, similar to item 1, te MSS load following up instructions agree wit te economic Dispatces, ence bot positive Optimal Energy and MSS Load Following Energy are incurred and tey do not overlap. Between interval 27.5 to 30, tere is a small triangle above te DOP tat sows te overlapping between positive MSS Load Following Energy and negative Optimal Energy. Tis is caused by te ramping down case in wic te dispatces disagree wit te MSS load following up instructions; 3. Between interval 30 and 50 in te current our, tere are tree Expected Energy related to te topic of MSS load following: 3.1. Triangle area (between 30 and 32.5 ) below DOP and above Day-Aead Scedule is clarified as positive Optimal Energy. Te reason is because it is incremental Energy above Day-Aead Scedule and we deem tat aving no relationsip to te MSS load following down instruction; 3.2. Area (between 32.5 and 0 ) below te DOP and standard ramp curve AND above te DOP and MSS load following down instruction is clarified as MSS Load Following Energy. It is not overlapping wit any oter Expected Energy. Te reason is tat, tat decremental Energy is deemed to be solely caused by te MSS load following down instructions. Furtermore, te standard ramping area is not affected since standard ramping taes precedence over MSS Load Following Energy; 3.3. Area (between 30 and 50 ) below te DOP and Day-Aead Scedule AND above te MSS load following down instruction is clarified as Negative MSS Load Following Energy overlapping wit positive Optimal Energy. Te reason is tat, te dispatc disagrees wit te MSS load following down instruction. Witout te economic reason, te DOP would ave been at te MSS load following down instruction level. It is brougt up because more economic Energy in Real-Time is needed and ence a positive Optimal Energy is incurred in tat area. Version 17 Last Revised: April 1, 2011 Page C-56

101 BPM for Maret Operations 4. Between 2.5 and 15 in te next our, te area above Day-Aead Scedule and standard ramp curve AND below te MSS load following up instruction is clarified as positive MSS Load Following Energy overlapping wit negative Optimal Energy. Te reason is tat, te economic Dispatc disagree wit te MSS load following up and ence an additional negative Optimal Energy is generated. MW Only positive Optimal Energy. No overlapping. Positive MSS Load Following energy. No overlapping. Positive MSS Load Following energy overlapping wit Negative Optimal Energy Negative MSS Load Following Energy. No overlapping. Positive MSS Load Following energy. No overlapping. Negative MSS Load Following energy Overlapping wit positive Optimal Energy Positive MSS Load Following energy overlapping wit negative Optimal Energy ' 5' ' 5' Exibit C-18: MSS Load Following Energy (Economic Dispatc wit MSSLF case 1) Version 17 Last Revised: April 1, 2011 Page C-57

102 BPM for Maret Operations D-19 taes te compreensive economic dispatc case in D-6 and adds in te MSS Load Following Instructions. Because of te MSS Load Following Instructions, te clarifications of Expected Energy do cange now. As it is sown, te overlapping and non-overlapping cases related MSS Load Following Energy follow te same principle as it is described for D-18. MW Positive MSS Load Following energy overlapping wit negative Optimal Energy Negative MSS Load Following energy overlapping wit positive Optimal Energy Positive MSS Load Following energy overlapping wit negative Optimal Energy Positive MSS Load Following energy. No overlapping ' 5' ' 5' Exibit C-19: MSS Load Following Energy (Economic Dispatc wit MSSLF case 2) Version 17 Last Revised: April 1, 2011 Page C-58

103 BPM for Maret Operations D-20 taes te compreensive economic dispatc wit MSSLF case in D-18 and adds in te Exceptional Dispatc Instructions. Again, wen Exceptional Dispatc Instruction agrees wit te MSS load following instruction, te MSS Load Following Energy does not overlap wit Exceptional Dispatc Energy. Wen tey disagree, tere is a potential of overlapping. Area (between interval 30 and interval 47.5 in current our) below te Exceptional Dispatc and above te LMP MW is clarified as negative MSS Load Following Energy overlapping wit te positive Exceptional Dispatc Energy. It is important to note tat, tere are cases tat MSSLF instruction disagree wit Exceptional Dispatc owever, tere is no overlapping between MSS Load Following Energy and Exceptional Dispatc Energy because te overlapping case is taen care by Optimal Energy. Area between 0 and 15 in te next our illustrates tis case. Version 17 Last Revised: April 1, 2011 Page C-59

104 BPM for Maret Operations MW Only positive optimal energy. No overlapping. Negative MSS Load Following energy overlapping wit positive Exceptional Dispatc Energy Positive MSS Negative MSS Load Following energy Load Following Overlapping wit energy. No positive Optimal overlapping. Energy Positive MSS Load Following energy. No overlapping. Positive MSS Load Following energy overlapping wit negative Optimal Energy Positive MSS Load Following energy overlapping wit Negative optimal energy Negative MSS Load Following Energy. No overlapping ' 5' ' 5' Exibit C-20: MSS Load Following Energy (D-18 wit Exceptional Dispatc) Version 17 Last Revised: April 1, 2011 Page C-60

105 BPM for Maret Operations D-21 taes te compreensive economic dispatc wit MSSLF case in D-19 and adds in te Exceptional Dispatc Instructions. In tis example, te Exceptional Dispatc Instructions do not cange te MSS Load Following Energy. Tere are intervals in wic Exceptional Dispatc Instructions disagree wit Exceptional Dispatc Instructions, owever, it is already accounted for by Optimal Energy. Area between interval 45 and 0 in previous our, interval 0 and 57.5 in current our illustrates suc cases. MW Positive MSS Load Following energy overlapping wit negative Optimal Energy Negative MSS Load Following energy overlapping wit positive Optimal Energy Positive MSS Load Following energy overlapping wit negative Optimal Energy Positive MSS Load Following energy. No overlapping ' 5' ' 5' Exibit C-21: MSS Load Following Energy (D-19 wit Exceptional Dispatc) Version 17 Last Revised: April 1, 2011 Page C-61

106 BPM for Maret Operations C RMR Energy D-22 Illustrates an example in wic te RMR DOP is calculated based on te combination of DA, RT RMR requirements, DA and STUC commitment scedules and te DOP. Te RMR DOP is really a curve representing wat we believe is dispatc under te RMR contractual obligation. Te RMR energy is simply te area under te RMR DOP curve. RMR energy is te energy CAISO will pay based on RMR contract, not based on te maret. In D-22, Several cases are illustrated, Case 1: Interval (45 to 0 for te previous our) We ave RT RMR requirement and ence te RMR DOP is te same as te DOP for tose tree intervals; Case 2: Interval (0 to 15 for te current our) Tere is no RT RMR requirement. Tere is DA RMR requirement wic is equal to te DA commitment scedule. We also ave STUC commitment scedule equal to te LMP MW. In tis case, te RMR DOP is still te same as te DOP for tose tree intervals according to our algoritm; Case 3: Interval (15 to 30 for te current our) Tere is no RT RMR requirement. Tere is DA RMR requirement wic is equal to te DA commitment scedule. Tere is no STUC commitment scedule. According to our algoritm, te RMR DOP is equal to te Day-Aead Scedule; Case 4: Interval (30 to 0 for te current our) Version 17 Last Revised: April 1, 2011 Page C-62

107 BPM for Maret Operations Tere is no RT RMR requirement. Tere is DA RMR requirement wic is equal to te DA commitment scedule. Tere is a STUC commitment scedule equal to te LMP MW. According to our algoritm, tis leads to a RMR DOP wic mostly simulate te DOP curve except in te interval (30 to 32.5 ) since te STUC commitment scedule is lower tan te DOP; Case 4: Interval (0 to 15 for te next our) Tere is no RT RMR requirement. Tere is DA RMR requirement wic is equal to te DA commitment scedule. Tere is a STUC commitment scedule equal to te LMP MW. According to our algoritm, tis leads to a RMR DOP wic mostly simulate te DOP curve except in te interval (0 to 2.5 ) since te STUC commitment scedule is lower tan te DOP; Version 17 Last Revised: April 1, 2011 Page C-63

108 BPM for Maret Operations MW RMR DOP STUC Commitment RMR DOP DA RMR Requirement AND DA Commitment Scedule STUC Commitment Real-time requirement RMR ' 5' ' 5' Exibit C-22: RMR DOP curve calculation and RMR energy Version 17 Last Revised: April 1, 2011 Page C-64

109 BPM for Maret Operations C.3 Ex Post Capacity Allocation Tis section describes te ex post capacity allocation of various services onto a Generating Unit Energy Bid and capacity range for te purpose of indexing Instructed Imbalance Energy (IIE) out of tese services onto Energy Bid. Te capacity allocation rules are consistent wit te ones employed in te RTM applications. Te main output of tis process is to come up wit te following capacity range per maret resource and Dispatc Interval, SRC NSC MEC DAEC DeRatedCAP Spinning Reserve allocated capacity range. Non-Spinning Reserve allocated capacity range. Real-time Optimal Energy Capacity range Day-aead Optimal Energy Capacity range Derated Capacity Range Te following notation is used in te following Sections: LOL UOL UOL(rtm) LRL URL LEL UEL LFD Lower operating limit; it is te minimum load incorporating overrates, wic includes te late SLIC. MQS gets te original value from RTM and ten applies late SLIC if applicable. Upper operating limit; it is te maximum capacity incorporating derates, wic includes te late SLIC. MQS gets te original value from RTM and ten apply late SLIC if applicable. Upper operating limit; it is te maximum capacity incorporating derates in RTM if applicable in time. MQS gets tis from RTM. Lower regulating limit. Upper regulating limit. Lower economic limit; it is te starting operating level of te Real-Time Energy Bid. Upper economic limit; it is te ending operating level of te Real-Time Energy Bid. Load Following Down qualified self-provision capacity. (If exists in RT, tae RT, oterwise tae DA. In oter words, tey are not Version 17 Last Revised: April 1, 2011 Page C-65

110 BPM for Maret Operations LFU LFI RD RU SR NS LFDC LFUC RDC RUC SRC NSC MEC DAEC DeRatedCAP MinExCap MaxExCap incremental lie AS. Hourly for DA and 15-minute for RT) Load Following Up qualified self-provision capacity. (If exists in RT, tae RT, oterwise tae DA. Hourly for DA and 15- minute for RT) Validated Load Following Instructions (5 minute based. Tis value is a part of te DOT breadown from RTM.). Regulation Down award; it includes qualified self-provision capacity. (DA + RT. RTM as tis total already) Regulation Up award; it includes qualified self-provision capacity. (DA + RT. RTM as tis total already) Spinning Reserve award; it includes qualified self-provision capacity. (DA + RT. RTM as tis total already) Non-Spinning Reserve award; it includes qualified self-provision capacity. (DA + RT. RTM as tis total already) Load Following Down allocated capacity. Load Following Up allocated capacity. Regulation Down allocated capacity. Regulation Up allocated capacity. Spinning Reserve allocated capacity range. Non-Spinning Reserve allocated capacity range. Real-time Optimal Energy Capacity range Day-aead Optimal Energy Capacity range Derated Capacity Range Minimum Ex-post Capacity Maximum Ex-post Capacity Te Generating Unit is considered online if te RTUC status is ON in te relevant Dispatc Interval and offline if te commitment status is OFF. Te Generating Unit is considered on Regulation if te RTM regulating status is ON in te relevant Dispatc Interval, and off Regulation if te regulating status is OFF. Te lower and upper regulating limits are used wen te Generating Unit is on Regulation and tey are equally or more restrictive tan te Version 17 Last Revised: April 1, 2011 Page C-66

111 BPM for Maret Operations lower and upper operating limits, unless te latter are modified by derates. Te Energy Bid range is restricted between te Minimum Load and te maximum capacity, but it may extend beyond te regulating limits, and also beyond te operating limits if tey are derated. Derate Capacity: Wen considering late SLIC case in te ex-post capacity calculation, it is possible tat te adjusted UOL is lower tan te DOP. Tis situation reflect te fact tat Real-Time dispatc algoritm does not now and ence account for tis derate so te DOP is iger tan wat te unit can pysically deliver. In suc cases, we never cange te Expected Energy calculation. All Expected Energy will be calculated in te same way according to te DOP. Wat get affected is te energy allocation because now we ave a portion of te Expected Energy tat will not ave a capacity range tat corresponds to. Te capacity Derate Capacity is used to solve tis problem. Any capacity range above te Spin range to te DOP will be categorized as Derate Capacity. Te allocation logic is exactly te same as any oter capacity range. Te maret service type will be filled wit Derate Capacity in tis case. Notice tat, tere can be late SLIC for Pmin as well. In suc cases, wile te late SLIC does affect te after te fact calculated LOL and ence pus up te Optimal Energy, Non-spin and Spin capacity, tere is no need to introduce a new service type because te capacity underneat te ME is covered by Day-Aead energy capacity. C Online Resource not on Load Following or Regulation In tis case, te capacity allocation is as follows: Spinning Reserve is allocated first from te lower of te upper economic limit or te upper operating limit, and until te iger of te lower economic limit or te lower operating limit. Non-Spinning Reserve is allocated next below te Spinning Reserve and until te iger of te lower economic limit or te lower operating limit. Version 17 Last Revised: April 1, 2011 Page C-67

112 BPM for Maret Operations In matematical terms: = max( LOL, LEL) = min( UOL, UEL) ( SR, MaxExCap MinExCap) ( NS, MaxExCap MinExCap SRC) MinExCap MaxExCap SRC = min NSC = max(min,0) MEC = max( MaxExCap MinExCap SRC NSC,0) DAEC = MinExCap DeRatedCap = Max( (UOL(rtm) - MaxExCap),0) Exibit D-23 illustrates a typical scenario under tis case. Exibit D-23: Online Resource not on Load Following or Regulation $/MW NSC SRC C max(lol, LEL) Online Resource not on Load Following, but on Regulation min(uol, UEL) MW In tis case, te capacity allocation is as follows: Regulation Up and Regulation Down are allocated first and pro rata between te most restrictive of te regulating or operating limits. No Energy Bid is required for Regulation. Spinning Reserve is allocated next below te Regulation Up and te upper economic limit, and until te Regulation Down or te lower economic limit. Version 17 Last Revised: April 1, 2011 Page C-68

113 BPM for Maret Operations Non-Spinning Reserve is allocated next below te Spinning Reserve and until te Regulation Down or te lower operating limit. In matematical terms: RDC = min RD, RUC = min RU, MaxExCap MinExCap SRC = min NSC = max(min MEC = max( RD RD + RU RU RD + RU ( min( UOL, URL) max( LOL, LRL) ) ( min( UOL, URL) max( LOL, LRL) ) = min( min( UOL, URL) RUC, UEL) = max( max( LOL, LRL) + RDC, LEL) ( SR, MaxExCap MinExCap) ( NS, MaxExCap MinExCap SRC) ( MaxExCap MinExCap SRC NSC) DAEC = MinExCap DeRatedCap = Max( (UOL(rtm) - MaxExCap),0),0),0) Exibit D-24 illustrates a typical scenario under tis case. Exibit C-24: Online Resource not on Load Following but on Regulation $/MW RDC NSC SRC RUC max(lol, LRL) LEL UEL min(uol, URL) MW Version 17 Last Revised: April 1, 2011 Page C-69

114 BPM for Maret Operations C Online Resource on Load Following, Not on Regulation In tis case, te capacity allocation is as follows: Load following up and Load following down are allocated first and pro rata between te most restrictive of te economic or operating limits. An Energy Bid is required for Load Following. Spinning Reserve is allocated next below te Load following up and until te Load following down. Non-Spinning Reserve is allocated next below te Spinning Reserve and until te Load following down. In matematical terms: LFD LFDC = max(0, LFI + min LFD, LFD + LFU LFU LFUC = max(0, min LFU, LFD + LFU MaxExCap MinExCap SRC = min NSC = max(min MEC = max( = min( UOL, UEL) LFUC = max( LOL, LEL) + LFDC ( SR, MaxExCap MinExCap) ( NS, MaxExCap MinExCap SRC) ( MaxExCap MinExCap SRC NSC) DAEC = MinExCap DeRatedCap = Max( (UOL(rtm)- ( min( UOL, UEL) max( LOL, LEL) ) ( min( UOL, UEL) max( LOL, LEL) ) MaxExCap),0) Exibit D-25 illustrates a typical scenario under tis case.,0),0) ) LFI) Version 17 Last Revised: April 1, 2011 Page C-70

115 BPM for Maret Operations Exibit D-25: Online Resource on Load Following, but not on Regulation $/MW LFDC NSC SRC LFUC max(lol, LEL) min(uol, UEL) MW C Online Resource on Load Following & Regulation In tis case, te capacity allocation is as follows: Load following up and Load following down are allocated first and pro rata between te most restrictive of te economic, regulating, or operating limits. An Energy Bid is required for Load Following. Regulation Up and Regulation Down are allocated next and pro rata below and above Load following up and Load following down, respectively. In tis case, te Energy Bid covers Regulation. Spinning Reserve is allocated next below te Regulation Up and until te Regulation Down. Non-Spinning Reserve is allocated next below te Spinning Reserve and until te Regulation Down. In matematical terms: Version 17 Last Revised: April 1, 2011 Page C-71

116 BPM for Maret Operations LFD LFDC = max(0, LFI + min LFD, LFD + LFU LFU LFUC = max(0, min LFU, LFD + LFU RD min RDC = min RD, RD + RU LFDC LFUC RU min RUC = min RU, RD + RU LFDC LFUC MaxExCap MinExCap SRC = min NSC = max(min MEC = max( ( min( UOL, URL, UEL) max( LOL, LRL, LEL) ) ( min( UOL, URL, UEL) max( LOL, LRL, LEL) ) ( UOL, URL, UEL) max( LOL, LRL, LEL) ( UOL, URL, UEL) max( LOL, LRL, LEL) = min( UOL, URL, UEL) LFUC RUC = max( LOL, LRL, LEL) + LFDC + RDC ( SR, MaxExCap MinExCap) ( NS, MaxExCap MinExCap SRC) ( MaxExCap MinExCap SRC NSC) DAEC = MinExCap DeRatedCap = Max( (UOL(rtm) - MaxExCap),0),0),0) Exibit D-26 illustrates a typical scenario under tis case. ) LFI) $/MW LFDC RDC NSC SRC RUC LFUC max(lol, LRL, LEL) min(uol, URL, UEL) MW Exibit C-26: Online Resource on Load Following and Regulation Version 17 Last Revised: April 1, 2011 Page C-72

117 BPM for Maret Operations C.4 Expected Energy Allocation In order to support various compliance and settlement functions, we will need a combined brea-down of various maret services, Expected Energy and Day-Aead/Real-Time Energy Bid curve. Tis brea-down list is te so-called Expected Energy Allocation. Te breadown will loo lie te following and eac unique combination of Expected Energy type, maret service type and te corresponding bid segment will uniquely determines one unique energy amount. Expected Energy Type Maret Service Type Bid Price Energy Expected Energy Types Wat te maret offers tat as relationsip to settlement bid cost recovery and compliance Corresponding Price wit matced bid segment Brea-down energy amount C.4.1. Expected Energy Types and Maret Service Types In MRTU, te maret service types simply represent te various commodities supported by te maret tat as relationsip to Settlement Bid Cost Recovery and compliance calculation. Tese maret service types breadown is corresponding to te capacity range derived from te ex-post capacity allocation described in D.4 Te reason tat derate capacity, maret energy capacity and day-aead energy capacity are calculated is to determine spinning reserve and non-spinning reserve capacity because tose capacities do affect te ex-post spin and non-spin capacity range. Te expected energy witin te capacity range of spinning reserve and non-spinning reserve capacities are also referred spin energy and non-spin energy and used in Compliance for Spin and non-spin No Pay. Maret Service types are only used by Compliance for spin and non-spin no pay calculations. Version 17 Last Revised: April 1, 2011 Page C-73

118 BPM for Maret Operations Tey are as it follows, SR NR ME DAC DEC Spinning Reserve Capacity range. Non-Spinning Reserve Capacity range. Maret Energy Capacity Day-aead Capacity Derated Capacity Maret Participants will be able to review all Expected Energy Categories in OASIS and CMRI. All energy types can be verified against te Maret Participant s settlements statements to validate bot Day Aead HASP and Real Time Carge Codes. Te following matrix outlines ow eac report sall display te various types of Energy Types. Note tat for te definition of te Exceptional Dispatc types, please refer Settlements and Billing BPM for CC6470 Instructed Imbalance Energy Settlement. Expected Energy Category Day Aead Sceduled Energy Day Aead Bid Awarded Energy OASIS CMRI Expected Energy DASE DASE DASE DABE DABE n/a CMRI Expected Energy Allocation Details Day Aead Self Scedule Energy Day Aead Minimum Load Energy Day Aead Pumping Energy Total Expected Energy DSSE DSSE n/a DMLE DMLE n/a DAPE DAPE n/a TEE TEE n/a Hour Aead Sceduled Energy HASE HASE HASE Version 17 Last Revised: April 1, 2011 Page C-74

119 BPM for Maret Operations Optimal Energy OE OE OE Standard Ramping Energy Ramping Energy Deviation SRE SRE SRE RED RED RED RMR Energy RMRE RMRE n/a Residual Energy RE RE RE Minimum Load Energy MLE MLE MLE Pumping Energy PE PE n/a Real Time Self Sceduled Energy RTSSE RTSSE RTSSE SLIC Energy SE SE SE MSS Load Following Energy Exceptional Dispatc Energy Exceptional Dispatc Energy - TMODEL 1 Exceptional Dispatc Energy TMODEL2 Exceptional Dispatc Energy TMODEL3 Exceptional Dispatc Energy TMODEL4 Exceptional Dispatc Energy TMODEL5 Exceptional Dispatc Energy TMODEL6 Exceptional Dispatc Energy TMODEL7 MSSLFE MSSLFE MSSLFE TMODEL EDE TMODEL TMODEL1 EDE TMODEL1 TMODEL2 EDE TMODEL2 TMODEL3 EDE TMODEL3 TMODEL4 EDE TMODEL4 TMODEL5 EDE TMODEL5 TMODEL6 EDE TMODEL6 TMODEL7 EDE TMODEL7 Version 17 Last Revised: April 1, 2011 Page C-75

120 BPM for Maret Operations Exceptional Dispatc Energy - SYSEMR Exceptional Dispatc Energy SYSEMR1 Exceptional Dispatc Energy - TEMR Exceptional Dispatc Energy - RMRR Exceptional Dispatc Energy - RMRS Exceptional Dispatc Energy - RMRT Exceptional Dispatc Energy - NonTModel Exceptional Dispatc Energy TORETC Exceptional Dispatc Energy TORETC1 Exceptional Dispatc Energy - ASTEST Exceptional Dispatc Energy - PRETEST Exceptional Dispatc Energy - VS Exceptional Dispatc Energy - BS Exceptional Dispatc Energy - SYSEMR EDE SYSEMR SYSEMR1 EDE SYSEMR1 TEMR EDE TEMR RMRR EDE RMRR RMRS EDE RMRS RMRT EDE RMRT NonTMod EDE NonTMod TORETC EDE TORETC TORETC1 EDE TORETC1 ASTEST EDE ASTEST PRETEST EDE PRETEST VS EDE VS BS EDE BS SLIC EDE SLIC Version 17 Last Revised: April 1, 2011 Page C-76

121 BPM for Maret Operations SLIC RMRRC2 RMRRC2 EDE RMRRC2 OTHER OTHER EDE OTHER C5.2 Allocation Logic Tere are two steps in tis allocation: Step 1: Ex-post Capacity Allocation for every maret resource and 5 minute interval Tis as been described in D4. Te final result leads to te following table (ypertetical data) -- Example assumes no derate and ence no de-rated capacity exists. Maret Service Type Spinning Reserve Capacity Spinning Reserve Capacity Non Spinning Reserve Capacity Non Spinning Reserve Capacity Optimal Energy Capacity Day-aead Energy Capacity MW range 50 55MW 45 50MW 40 45MW MW MW 0 20 MW Step 2: Stac up te table in te order tat it is sown to te left of te Expected Energy curve and, apply te Real-Time Energy Bid segment to Real-Time Expected Energy AND te Day-Aead Energy Bid segment to Day-Aead Expected Energy Per Expected Energy area, maret service type, DA/RT Energy Bid segment, tis breas down te Expected Energy area into furter detail and te MWH related to tat area is calculated. Tis so called Slicing and Dicing metod is te same as we deployed in Pase 1B except te difference tat Day-Aead Energy Bid curve is used for DA energy and Real-Time Energy Bid curve is used for RT energy. Version 17 Last Revised: April 1, 2011 Page C-77

122 BPM for Maret Operations PRICE $50 $30 $50 Spin $30 Spin $30 Non- Spin $20 Nonspin $55 LMP, LMP MW = 55 MW $40 LMP, LMP MW = 50 MW MW $20 $20 ME Day-aead 20 Time 00:45 00:50 00:55 Exibit C-27: Slice and Dice for ancillary service allocation Economic Dispatc Te final output will be lie te following table (Te numbers are ypotetical) Expected Energy Maret Service Bid Price Energy Type Type Optimal Energy Spinning Reserve $ MWH Capacity Optimal Energy Spinning Reserve $ MWH Capacity Optimal Energy Non Spinning Reserve Capacity $ MWH Optimal Energy Optimal Energy Day-aead Energy Non Spinning Reserve Capacity Optimal Energy Capacity Day-aead Energy Capacity $ MWH $ MWH $ MWH Residual and Exceptional Energy Version 17 Last Revised: April 1, 2011 Page C-78

123 BPM for Maret Operations Wen dealing wit Residual Imbalance Energy, te bid segment needs to come from te reference our s bid, not te current our s bid. Exceptional Dispatc Energy is listed wit its description of te Exceptional Dispatc Instruction type. Wen tere are multiple Exceptional Dispatc Instructions for te same interval, ONLY te binding Exceptional Dispatc Instruction needs to be considered and outputted in te EE calculation. NO BID -- Wen Bid price is NULL Because of te nature of Exceptional Dispatc Instructions, it is possible tat an instruction will NOT ave a bid segment associated wit it (te so-called out-of maret) case. In suc cases, te Expected Energy type will be still filled in wit te Exceptional Dispatc Energy type wile te Bid price will be filled as NULL. Tis would indicate to downstream systems tat tere is no matc for te big curve. To furter more illustrate te NO BID scenario, tere are also oter cases tat tere is no Energy Bid at all for certain intervals. For example, tere is te case tat unit ramping from a our wit bid into te next our witout bid, a ramping energy deviation could occur in te first few intervals of te next our. In suc cases, use te NULL for bid price. Te Expected Energy type will stay as watever applies for tat energy portion. Te Day-Aead energy capacity and derate capacity sections typically come wit NULL price. However, some part of tose capacity ranges can come wit a bid price because tey overlaps wit te bid curve. Exibit D-28 furter illustrates ow Expected Energy allocation is done in a more compreensive example. Version 17 Last Revised: April 1, 2011 Page C-79

124 BPM for Maret Operations PRICE HE 1 Bid Allocation HE 2 Bid Allocation MW $50 $30 $20 $50 Spin $30 Spin $30 Non- Spin $20 Nonspin $20 ME Day-aead E OOS Reliability Must Run $50 Spin A H F G B C D $30 Spin $30 ME Day-aead Day-aead I J K OOS Overgeneration N O M O L Time 00:55 00:00 00:05 Exibit C-28 Exceptional Dispatc Energy and more complicated ramping scenarios Version 17 Last Revised: April 1, 2011 Page C-80

125 BPM for Maret Operations Te output of Exibit D-28 for interval 00:55 to 00:00 (HE 1) will be someting lie te following table (Tis time we use area label to indicate) Expected Energy Type EDE Reliability Must Run EDE Reliability Must Run EDE Reliability Must Run EDE Reliability Must Run EDE Reliability Must Run Standard Ramping Energy Maret Service Type Bid Price Spinning Reserve $50 A Spinning Reserve $30 B Non Spinning Reserve Non Spinning Reserve $30 C $20 D Optimal Energy $20 E Optimal Energy $20 F Day-aead Energy Day-aead Energy $0 G Energy Te output of Exibit D-28 for interval 00:00 to 00:05 (HE 2) will be someting lie te following table (Tis time we use area label to indicate) Expected Energy Type Maret Service Type Bid Price Energy Residual Energy Spinning Reserve $50 H Residual Energy Spinning Reserve $30 I Optimal Energy Optimal Energy $30 J Ramping Energy Day-aead Energy $0 K Deviation Standard Day-aead Energy $0 O (Negative) Ramping Energy Optimal Energy Day-aead Energy $0 L (Negative) EDE Overgeneration Day-aead Energy $0 M (Negative) Day-aead Day-aead Energy $0 N + O Version 17 Last Revised: April 1, 2011 Page C-81

126 BPM for Maret Operations Energy C.5 Maret Data Correction Prior to calculating Expected Energy, a review of te Trading Day s Maret results is performed. After te Day-Aead Maret application (IFM) and te Real-Time Maret application (RTM) conclude for te Trading Day, te Maret results are evaluated by CAISO Maret Operations Engineers and Maret data corrections are performed, if appropriate. For more details, refer to Section 8 of te BPM. C.6 Publis Expected Energy Calculation CAISO initially publises Expected Energy at Trading Day plus one (T+1) Calendar Day. Te remaining Expected Energy publication scedule is consistent wit te settlement scedule provided in Section of BPM for Settlements. CAISO will publis Expected Energy no later tan 2 business days in advance of te settlements scedule. Tis is to allow for Settlement Statement processing time and validation. Te data in Expected Energy sall matc te Settlement Statements wen publised. Expected Energy is available on a secure basis to eac Maret Participant via te CMRI. C.7 Multi-Stage Generating Resource Expected Energy C.7.1 Real-Time Minimum Load Energy Calculation for Multi-Stage Generating Resources Te formulas for te Expected Energy calculation and allocation logic for Multi-Stage Generating Resources do not differ from tose for non Multi-Stage Generating Resources. Te only difference in te Expected Energy calculation for a Multi-Stage Generating Resource is te calculation for te Real-Time Minimum Load Energy. Tis is to account for te possibility tat an MSG s Minimum Load is different between te Day-Aead Maret and te Real-Time Maret as a result of te commitment of different MSG Configurations. Te two instances were te Version 17 Last Revised: April 1, 2011 Page C-82

127 BPM for Maret Operations calculation of Real-Time Minimum Load Energy is different for a Multi-Stage Generating Resource are: 1- For any given Settlement Interval, if te Day-Aead Maret and Real-Time Maret ave different committed MSG Configurations, and te Real-Time MSG Configuration Minimum Load is greater tan Day-Aead Scedule, ten te Real-Time Minimum Load Energy will be te Energy below te Real-Time MSG Configuration Minimum Load and above Day-Aead Scedule. Te Day-Aead Minimum Load Energy will correspond to te Day-Aead MSG Configuration Minimum Load as sown below: Exibit C-29: Example of Real-Time Minimum Load Energy for Multi-Stage Generating Resource Version 17 Last Revised: April 1, 2011 Page C-83

128 BPM for Maret Operations 2- If te Day-Aead Maret and Real-Time Maret ave different committed MSG Configurations, and te Real-Time MSG Configuration Minimum Load is less tan te Day-Aead Scedule, tere will be no Real-Time Minimum Load Energy. Te Day- Aead Minimum Load Energy will correspond to te Day-Aead MSG Configuration Minimum Load as sown below: Exibit C-30: No Real-Time Minimum Load Energy: Multi-Stage Generating Resource were Real-Time MSG Configuration is Below Day-Aead MSG Configuration Version 17 Last Revised: April 1, 2011 Page C-84

129 BPM for Maret Operations C.7.2 Real-Time Economic Dispatc Levels for Multi-Stage Generating Resources Te calculation of te upper and lower Real-Time Economic Dispatc levels for Multi-Stage Generating Resources do not differ from tose for non MSG resources. However, te following rules apply in addition to te calculations detailed in section C above. For Multi-Stage Generating Resources, te Real-Time Economic Dispatc levels must always fall witin te operating range of te Real-Time active MSG Configuration. Te formula used to calculate tese levels wen tere is no Real-Time Energy Bid for te active MSG Configuration as been updated to comply wit tis convention. Te formula is as follows: RTLED = RTUED = Min { Pmax RT Config, Max [ DAS DA Config, Pmin RT Config ] } Te formula in section C used wen a Real-Time Energy Bid is present can be applied to Multi-Stage Generating Resources witout any canges. However, it is important to note tat te Real-Time Energy Bid Curve of te Real-Time active MSG Configuration will be used as te input to tat formula. Terefore, te calculated Real-Time Economic Dispatc levels will never exceed te operating range of te Real-Time active MSG Configuration. In te case were a Multi-Stage Generating Resource is dispatced uneconomically (for example due to Exceptional Dispatc) te Real-Time active MSG Configuration may be a different MSG Configuration tan te economic dispatc. (See figures C-31 and C-32 below for illustration of examples.) Version 17 Last Revised: April 1, 2011 Page C-85

130 BPM for Maret Operations Exibit C-31: Real-Time Economic Dispatc Levels wit Decremental Exceptional Dispatc Instruction Version 17 Last Revised: April 1, 2011 Page C-86

131 BPM for Maret Operations Exibit C-32: Real-Time Economic Dispatc Levels wit Incremental Exceptional Dispatc Instruction C.7.3 Residual Imbalance Energy for Multi-Stage Generating Resources As detailed in section C.1, Residual Imbalance Energy is assigned te Real-Time Energy Bid price from te reference our. For Multi-Stage Generating Resources if te Real-Time active MSG Configuration is te same during te intervals of te Residual Imbalance Energy and te reference our ten te Real-Time Energy Bid price from tat same MSG Configuration during te Reference Hour will be assigned to te Residual Imbalance Energy as appropriate. Tis is essentially te same process used for non- Multi-Stage Generating Resources. Version 17 Last Revised: April 1, 2011 Page C-87

132 BPM for Maret Operations For Multi-Stage Generating Resources it is possible tat te Residual Imbalance Energy may be in a Real-Time active MSG Configuration tat was not active in te reference our (see Figure C-33 below.) In suc cases te Real-Time Energy Bid price from te last or next active MSG Configuration will be assigned to te Residual Imbalance Energy depending on te direction of te reference our. If te reference our is te prior our (as in Figure C-33) ten te Real-Time Energy Bid price from te last active MSG Configuration in te reference our will be assigned to te Residual Imbalance Energy. If te reference our is te our after ten te Residual Imbalance Energy will use te Real-Time Energy Bid price from te first active MSG Configuration in te next our. It is important to note tat te range of te Real-Time Energy Bid Curve from te active MSG Configuration in te reference our may exclude some or all of te range of te Residual Imbalance Energy. In te case of two over-lapping configurations some of te Residual Imbalance Energy will be assigned te Real-Time Bid Price from te reference our and appropriate configuration. But some of te Residual Imbalance Energy will not be assigned any Energy Bid price and will instead be settled using te Resource Specific Settlement Interval LMP for eac interval. For example, in figure C-33 below, te Residual Imbalance Energy is in active configuration 2. Te last active MSG Configuration from te reference our is configuration 3, te range of wic overlaps wit Configuration 2. Te Real-Time Energy Bid price from configuration 3 will be assigned to te portion of te Residual Imbalance Energy tat overlaps wit te range of configuration 3. Te remaining Residual Imbalance Energy will not be assigned any Bid Price and will be settled using te Resource Specific Settlement Interval LMP values for eac interval. If tere was no overlap between configuration 3 and configuration 2 ten all of te Residual Imbalance Energy would be settled at te Resource Specific Settlement Interval LMP. Version 17 Last Revised: April 1, 2011 Page C-88

133 BPM for Maret Operations Exibit C-33: Residual Imbalance Energy After Real-Time Configuration Transition Version 17 Last Revised: April 1, 2011 Page C-89

134 BPM for Maret Operations Attacment D COMMITMENT COST DETERMINATION

135 BPM for Maret Operations D. Commitment Cost Determination D.1. Introduction In order to support te bid cost recovery process, te relevant commitment cost per maret and resource will need to be determined. Tis determination will first derive te Self-Commitment Periods based on te bid set and relevant inter-temporal constraints. Tis results into te separation of ISO commitment period versus self commitment period. At te end, te relevant commitment cost will be calculated based on te determined ISO commitment and self commitment period and relevant cost allocation rules. In essence, te bid cost for te resource witin te determined self-commitment periods will not be included te bid cost recovery. Te commitment cost covers te following resources, 1. Startup cost and minimum load cost for generators including pump storage resources in generation mode and tie generators; 2. Pumping cost and pump sutdown cost for participating loads and pump storage resources in pumping mode. In summary, tis determination process will include te following tree steps: 1. ELC/IFM/RUC self commitment type determination (sections D3, D4); 2. Real-time self commitment type determination (D6); 3. BCR commitment cost determination including individual cost dollar amount and eligibility (D7). Version 17 Last Revised: April 1, 2011 Page D-1

136 BPM for Maret Operations D.2. General Principles of Self Commitment Determination CAISO will determine te commitment type for eac time interval. Te commitment type sall be eiter Self-Commitment or CAISO-Commitment.. Te Commitment Types sall be determined for ELC, IFM, RUC and RTUC for eac time interval. Te time interval in te ELC, IFM and RUC is an our, and te time interval in RTUC is 15 minutes. Te manual commitment by te CAISO in RTD (OOS) as Exceptional Dispatc sould be considered as CAISO commitment if te OOS instruction is in its time orizon and also reported as OOS instructions. Te Commitment Types sall be determined for Generators, Tie Generators, Pump-Storage Units in Generating Mode, Pump-Storage in Pumping Mode, and Participating Load. Te ey is ow to determine Self-Commitment (including extended Self-Commitment); once Self-Commitment is determined, CAISO Commitments can be determined readily by excluding te Self-Commitments from te Commitment periods. Te following general principles apply to all marets including IFM, RUC, HASP, STUC, RTUC and RTM. For a unit tat is not a Fast Start unit, a time interval is considered a Self-Commitment interval if te unit as in its Clean Bid an energy self-scedule, load following up/down capacity or any AS self-provision (i.e., regulation up/down, spinning reserve, nonspinning reserve) in te interval or in oter intervals if it is determined by inference tat te unit must be on in te interval due to te unit s pysical constraints suc as Minimum Up Time (MUT), Minimum Down Time (MDT), Maximum Daily Startup (MDS). For a unit tat is a Fast Start unit (i.e. a unit tat can provide non-spin wen offline), a time interval is considered a Self-Commitment interval if te unit as in its Clean Bid an energy self-scedule, load following up/down capacity or any AS self-provision except non-spinning reserve (i.e., regulation up/down and spinning reserve) in te interval or in oter intervals if it is determined by inference tat te unit must be on in te interval due to te unit s pysical constraints suc as Minimum Up Time (MUT), Minimum Down Time (MDT), Maximum Daily Startup (MDS). Version 17 Last Revised: April 1, 2011 Page D-2

137 BPM for Maret Operations Self-commitment extension sould be done to satisfy MUT first, MDT second, and MDS last. Note, operator manual commitment sould be considered as CAISO Commitment even toug suc manual commitment may be treated in a similar way as energy self-scedules. If te CAISO decides to commit resource using te software automatically or manually, te commitment sould be considered as CAISO commitment. In order to better describe our business rules and examples, following conventions are used wen describing commitment periods and teir types. Commitment Period is a time period specified by a start-time/date and an end-time/date witin te time orizon of a maret process in wic te commitment statuses are determined. Te start-time is considered in te Commitment Period and te end-time is considered not in te Commitment Period; matematically, a Commitment Period is denoted by [start-time, end-time). Commitment Period Set is a collection of Commitment Periods as its elements. In te rest of te document, te Commitment Period Set is also referred to as Commitment Periods altoug a Commitment Period Set can ave zero, one or more elements in te collection. We use te following symbols in te following sections to simplify te description: Symbol Definition of Commitment Periods and Set Operators Meaning [ ) Time period, for example [1, 5) means starting at 1 (including 1) and ending at 5 (excluding 5). { } Set + Union set operator, for example {[1, 2), [3,5)} + {[2, 5)} = {[1, 5)} * Intersection set operator, for example {[1, 3)} * {[2, 5)} = {[2, 3)} - Minus set operator, for example {[1, 3)} {[2, 5)} = {[1, 2)} Version 17 Last Revised: April 1, 2011 Page D-3

138 BPM for Maret Operations { } A-AppName Commitment Period Set determined by a specific maret application; te types are defined in Table D.2. For example {SCUC} A-IFM means SCUC commitment type determined by IFM application. { } S-AppName Commitment Period Set provided troug te services for a specific maret application; te types are CAISO, SELF and UC. For example {CAISO} S-IFM means te CAISO IFM Commitment Periods. Te following examples in tis section illustrate in general ow MUT, MDT and MDS are used to extend te self-commitment periods. In tese examples, ourly intervals are used but te concepts illustrated by te examples also apply to RTM were te intervals are 15-minutes. In te figures of tese examples, S.C.P.E stands for Self-Commitment Period Extension. D 2.1 Minimum Up Time (MUT) Examples Example 1 Basic MUT Self-Commitment period extension A unit is ON from 8:00 to 16:00. It as a self-scedule of 6 ours from 8:00 to 14:00. Its MUT is 8 ours. Since te submitted self-scedule is less tan te MUT of te resource, te Self- Commitment Period is extended to 8:00 to 16:00 instead of 8:00 to 14:00. Note, wen a Self- Commitment Period can be extended in bot directions, always extend it to te ours after te self-scedule ours first because te ON ours before te self-scedule ours may not be due to te MUT but be due to an economic reason. Tis is illustrated in Figure Hour 0 23 Self-Commitment Period MUT = 8 (rs) MDT = MDS = S.C.P. E. MUT = + MUT 1= = 8 (rs) Figure 1 Basic MUT Self-Commitment period extension Version 17 Last Revised: April 1, 2011 Page D-4

139 BPM for Maret Operations Example 2 Forward and Bacward MUT Self-Commitment period extension A unit is ON from 7:00 to 16:00. It as a self-scedule of 6 ours from 8:00 to 14:00. Its MUT is 9 ours. Since te submitted self-scedule is less tan te MUT of te resource, te Self- Commitment Period is extended to 8:00 to 16:00 first ten to 7:00 to 16:00 to meet te MUT. Tis is illustrated in Figure Hour 0 23 Self-Commitment Period MUT = 9 (rs) S.C.P. E. = 8 (rs) Figure 2 Forward and Bacward MUT Self-Commitment period extension D 2.2 Minimum Down Time (MDT) Examples Example 3 Basic MDT Self-Commitment period extension A unit is ON from 8:00 to 18:00. Te original self-commitment periods are from 8:00 to 11:00 and from 15:00 to 18:00. Its MDT is 6 ours. Since te ours between te two original selfcommitment periods are only 4 ours tat is less tan te MDT, te two original selfcommitment periods are merged into one from 8:00 to 18:00. Tis is illustrated in Figure 3. S.C.P. E Hour 0 23 n = 4 (rs) Self-Commitment Period MDT=6 (rs) Self-Commitment Period Figure 3 Basic MDT Self-Commitment period extension Version 17 Last Revised: April 1, 2011 Page D-5

140 BPM for Maret Operations D 2.3 Maximum Daily Start-Ups (MDS) Examples Example 4 Basic MDS Self-Commitment period extension A unit is ON from 3:00 to 18:00. Te original self-commitment periods are from 3:00 to 6:00, 10:00 to 13:00, and 15:00 to 18:00. Its MDS is 2. Since te number of te original selfcommitment periods is 3 (exceeding te MDS), ten te original self-commitment periods wit te smallest time separation are merged to eliminate te violation. Tis is illustrated in Figure 4. Hour Self-Commitment Period Self-Commitment Period Self-Commitment Period Hour Self-Commitment Period Self-Commitment Period Self-Commitment Period Self-Commitment Period Combination Figure 4 Basic MDS Self-Commitment period extension first example Example 5 MDS Self-Commitment period extension sequence In te above example (MDS_1), if te second original self-commitment period is from 9:00 to 12:00 instead of 10:00 to 13:00, te time separation between te first and te second original self-commitment period is te same as te time separation between te second and te tird original self-commitment period. In tis case, te first two original self-commitment periods based on te time sequence are merged to eliminate te violation. Tis is illustrated in Figure 5 Version 17 Last Revised: April 1, 2011 Page D-6

141 BPM for Maret Operations Hour Self-Commitment Period Self-Commitment Period Self-Commitment Period Hour Self-Commitment Period Self-Commitment Period Combination Self-Commitment Period Self-Commitment Period Figure 5 MDS Self-Commitment period extension sequence Example 6 Not counting commitment period tat is a continuation of previous day If a unit initially is ON and te first original Self-Commitment Period is from 0:00, te unit s MDS will be increased by 1 before it is used to determine if te MDS limitation is violated. For example, a unit is initially ON and it continues to be ON from 0:00 to 18:00. It as tree original self-commit periods. Te first original self-commit period is from 0:00 to 4:00. Its MDS is 2. After increasing te MDS by 1, te MDS limitation is not violated any more. No merge is necessary. Tis is illustrated in Figure 6. Hour Self-Commitment Period Continuation from Previous Day Self-Commitment Period MDS = 2+1 = 3 Self-Commitment Period Figure 6 Not counting commitment period tat is a continuation of previous day Example 7 MDS Self-Commitment period extension in a more complex scenario If in te previous example, te first original Self-Commitment Period is from 1:00 to 4:00 instead of 0:00 to 4:00, te rule used in te first example will be applied ere first, i.e., te first original Version 17 Last Revised: April 1, 2011 Page D-7

142 BPM for Maret Operations Self-Commitment Period will be extended to 0:00 to 4:00 to join te commitment period of te previous day. Ten te unit s MDS will be increased by 1. Tis is illustrated in Figure 7. 1 Hour Self-Commitment Period Self-Commitment Period Self-Commitment Period Hour Self-Commitment Period Extension Self-Commitment Period Self-Commitment Period MDS = 2+1 = 3 Figure 7 MDS Self-Commitment period extension in a more complex scenario D.3. CAISO/Self-Commitment Extension in ELC Examples D.3.1. Minimum Up-Time (MUT) Examples Example 8 IFM Self-commitment Extension in ELC because of MUT Tis example illustrates tat an IFM Self-commitment period is extended to meet MUT in ELC. Assumptions: SUT = 19 ours MUT = 3 ours MDT = 20 ours Energy self-scedules submitted for te period of [4/4/07 22:00, 4/4/07 24:00); in ELC te energy self-scedules submitted for 4/4/07 are also used as energy self-scedules for [4/5/07 22:00, 4/5/07 24:00). Version 17 Last Revised: April 1, 2011 Page D-8

143 BPM for Maret Operations Te IFM commits te unit for te period of [4/4/07 22:00, 4/4/07 24:00) and determined tat tis period is IFM Self-commitment Tere is no additional commitment in RUC Te ELC commits te unit for te periods of {[4/4/07 22:00, 4/5/07 01:00], [4/5/07 22:00, 4/5/07 24:00)} Te entire ELC Commitment Periods will be ELC Self-commitment Periods because te periods of {[4/4/07 22:00, 4/4/07 24:00), [4/5/07 22:00, 4/5/07 24:00]} are covered by energy selfscedules, and te period [4/4/07 24:00, 4/5/07 01:00] is extended because of MUT of 3 ours. Tis is illustrated in Figure 8. IFM ELC IFM ELC /04/07 04/05/07 Trade Day - 1 MUT = 3 rs Figure 8 IFM Self-commitment Extension in ELC because of MUT Example 9 IFM Self-Scedule Extension in ELC because of MUT and copied selfscedules Tis example illustrates tat an IFM Self-commitment period is extended to meet MUT in ELC because of te self-scedules copied to te second day. Assumptions: SUT = 19 ours MUT = 3 ours MDT = 20 ours Energy self-scedule submitted for te period of [4/4/07 0:00, 4/4/07 2:00) and tis is accepted by SIBR because of existing energy scedules at te end of te previous day, i.e., 4/3/07. Te IFM commits te unit for te period of [4/4/07 0:00, 4/4/07 2:00) and determined tat tis period is IFM Self-commitment Tere is no additional commitment in RUC Te ELC commits te unit for te periods of {[4/4/07 0:00, 4/4/07 2:00), [4/4/07 22:00, 4/5/07 4:00)} Version 17 Last Revised: April 1, 2011 Page D-9

144 BPM for Maret Operations Te ELC Self-commitment Periods sould be [4/4/07 0:00, 4/4/07 2:00) and [4/5/07 0:00, 4/5/07 3:00). Tis is illustrated in Figure 9. IFM ELC Trade Day - 1 MUT = 3 rs 04/04/07 04/05/07 MUT = 3 rs Figure 9 IFM Self-Scedule Extension in ELC because of MUT and copied self-scedules Example 10 Manual commitment treated as CAISO commitment Tis example illustrates tat a CAISO IFM commitment period due to operator manual commitment prior to execution of te MPM/RRD is extended to meet MUT in ELC. Assumptions: SUT = 19 ours MUT = 36 ours MDT = 20 ours Operator manually commit te unit in te period of [4/4/07 12:00, 4/4/07 24:00) Te IFM commits te unit for te period of [4/4/07 12:00, 4/4/07 24:00) and determined tat tis period is CAISO IFM Commitment Tere is no additional commitment in RUC Te ELC commits te unit for te periods of {[4/4/07 12:00, 4/5/07 24:00]} Te entire ELC Commitment Period will be CAISO ELC Commitment Period because te period of {[4/4/07 12:00, 4/4/07 24:00]} is extended to {[4/4/07 12:00, 4/5/07 24:00]} because of MUT of 36 ours. Tis is illustrated in Figure 10. IFM ELC CAISO ELC Commitment 04/04/07 04/05/07 Trade Day - 1 MUT = 36 rs Figure 10 Manual commitment treated as CAISO commitment Version 17 Last Revised: April 1, 2011 Page D-10

145 BPM for Maret Operations D.3.2. Minimum Down Time (MDT) Examples Example 11 - IFM Self-commitment extension in ELC because of MDT Tis example illustrates tat an IFM Self-commitment period is extended to meet MDT in ELC. Assumptions: SUT = 19 ours MUT = 10 ours MDT = 20 ours Energy Self Scedule submitted for te period of [4/4/07 08:00, 4/4/07 18:00) Te IFM commits te unit for te period of [4/4/07 08:00, 4/4/07 18:00) and determined tat tis period is IFM Self-commitment, i.e., {SELF} S-IFM = {UC} S-IFM = [4/4/07 08:00, 4/4/07 18:00) Tere is no additional RUC commitment Te ELC commits te unit for te following periods: {SELF} S-ELC = {UC} S-ELC = {[4/4/07 08:00, 4/5/07 18:00]} Te entire ELC Commitment Period will be ELC Self-Commitment Period because te energy self scedule submitted for te period of [4/4/07 08:00, 4/4/07 18:00) is also used as energy self scedule for te period of [4/5/07 08:00, 4/5/07 18:00), and te period of {[4/4/07 18:00, 4/5/07 08:00)} is less tan te MDT of 20 ours. Tis is illustrated in Figure 11. SE xt IFM Commitment ELC Commitment IFM ELC Trade Day - 1 SUT = 19 (rs) MDT = 20 (rs) Trade Day Trade Day + 1 Figure 11 IFM Self-commitment extension in ELC because of MDT Example 12 Self-Commitment Extension in ELC due to combination of MUT and MDT Tis example illustrates Self-Commitment Extension in ELC due to combination of MUT and MDT. Assumptions: Version 17 Last Revised: April 1, 2011 Page D-11

146 BPM for Maret Operations SUT = 19 ours MUT = 5 ours MDT = 20 ours Energy self-scedule submitted for te periods of [4/4/07 0:00, 4/4/07 2:00) and [4/4/07 22:00, 4/4/07 24:00), wic is accepted by SIBR because of existence of commitment period at te end of 4/3/07. Te IFM commits te unit for te period of [4/4/07 0:00, 4/4/07 2:00) and [4/4/07 22:00, 4/4/07 24:00) and determined tat tese periods are IFM Self-commitment Tere is no additional commitment in RUC Te ELC commits te unit for te periods of {[4/4/07 0:00, 4/4/07 2:00), [4/4/07 22:00, 4/5/07 24:00)}. Note, te energy self-scedules submitted for IFM of 4/4/07 are also used for ELC of 4/5/07. All ELC Commitment Periods will be ELC Self-commitment Periods because te periods of {[4/4/07 0:00, 4/4/07 2:00), [4/4/07 22:00, 4/5/07 2:00), and [4/5/07 22:00, 4/5/07 24:00) are covered by energy self-scedules; and te period [4/4/07 22:00, 4/5/07 2:00) is extended to [4/4/07 22:00, 4/5/07 3:00) because of MUT of 5 ours; and ten te periods of [4/4/07 22:00, 4/5/07 3:00) and [4/5/07 22:00, 4/5/07 24:00) are merged due to te MDT of 20 ours. Tis is illustrated in Figure 12. IFM ELC Trade Day - 1 MUT = 5 rs 04/04/07 04/05/07 MUT = 5 rs MDT = 20 rs Figure 12 Self-Commitment Extension in ELC due to combination of MUT and MDT. Example 13 CAISO IFM Commitment extends Self-commitment extension in ELC Tis example illustrates te situation were te CAISO IFM/RUC commitments following a selfscedule commitment period extends te ELC Self-commitment periods due to MDT in ELC. Assumptions: SUT = 19 ours Version 17 Last Revised: April 1, 2011 Page D-12

147 BPM for Maret Operations MUT = 10 ours MDT = 20 ours Energy Self Scedule submitted for te period of [4/4/07 08:00, 4/4/07 18:00) Te IFM commits te unit for te period of [4/4/07 08:00, 4/4/07 18:00) and determined tat tis period is IFM Self-commitment, i.e., {SELF} S-IFM = {UC} S-IFM = [4/4/07 08:00, 4/4/07 18:00) Te RUC commits te unit for te period of [4/4/07 08:00, 4/4/07 24:00) and determined te following RUC Commitment periods: {UC} S-RUC = [4/4/07 08:00, 4/4/07 24:00) {SELF} S-RUC = {SELF} S-IFM = [4/4/07 08:00, 4/4/07 18:00) {CAISO} S-RUC = [4/4/07 18:00, 4/4/07 24:00) Ten we ave: Te ELC commits te unit for te following periods: {UC} S-ELC = {[4/4/07 08:00, 4/5/07 18:00)} {SELF} S-ELC = {[4/4/07 08:00, 4/4/07 18:00), [4/5/07 00:00, 4/5/07 18:00)} {CAISO} S-ELC = {[4/4/07 18:00, 4/4/07 24:00)} Te entire ELC Commitment Period would ave been ELC Self-commitment Period if tere were no additional RUC commitment during te period of [4/4/07 18:00, 4/4/07 24:00) due to MDT of 20 ours. However, te 24-our time orizon RUC does not see far enoug to now tat te period of [4/4/07 18:00, 4/4/07 24:00) sould be considered RUC Self-commitment period due to MDT. If a 48-our time orizon RUC is used, te period of [4/4/07 18:00, 4/4/07 24:00) sould be considered RUC Self-commitment period and consequently ELC Self-commitment period. However, te outcome of te first day for ELC is not important because ELC commitments are only used for te second day. Tis is illustrated in Figure 13. IFM ELC CAISO ELC ELC SELF Self IFM CAISO RUC Trade Day /04/07 04/05/07 Figure 13 CAISO IFM Commitment extends Self-commitment extension in ELC Version 17 Last Revised: April 1, 2011 Page D-13

148 BPM for Maret Operations Example 14 IFM/RUC automatic commitment treated as CAISO commitment in subsequent ELC Tis example illustrates tat a CAISO IFM commitment period due to SCUC optimization is extended to meet MUT in te subsequent ELC. Assumptions: SUT = 19 ours MUT = 36 ours MDT = 20 ours Energy bids are submitted for every ours of 4/4/07 on 4/3/07; no self-scedules or selfprovisions are submitted Te IFM executed on 4/3/07 commits te unit in te period of [4/4/07 08:00, 4/4/07 24:00) and determined tat te entire period is CAISO IFM commitment Ten, Te ELC executed on 4/3/07 commits te unit for te period of [4/4/07 08:00, 4/5/07 20:00) to satisfy MUT of 36 ours and determined tat tis period is CAISO ELC Commitment. Tis is illustrated in Figure 14. IFM ELC CAISO IFM Commitment CAISO ELC Commitment 04/03/07 04/04/07 04/05/07 MUT = 36 rs Figure 14 IFM/RUC automatic commitment treated as CAISO commitment in subsequent ELC D.4. CAISO/Self-Commitment Extension in IFM - Examples D.4.1. Minimum Up-Time (MUT) Examples SIBR ensures tat MUT are satisfied for te energy self-scedules except for te self-scedules at te end of te day. Te following examples illustrate tis situation. Version 17 Last Revised: April 1, 2011 Page D-14

149 BPM for Maret Operations Example 15 IFM Self-Commitment Period at te End of te Day A unit is ON from 19:00 to 24:00. It as DAM self-scedules for 3 ours from 21:00 to 24:00. Its MUT is 5 ours. Te submitted self-scedule is less tan te MUT of te resource and tis is accepted by SIBR because te set of consecutive self-scedules are at te end of te day. Selfcommitment Period is [21, 24). Self-Commitment Period is not extended to [19:00, 24:00) because te IFM commits te unit in [19:00, 21:00) for economic reasons and not for MUT. Terefore, [19, 21) is considered as CAISO commitment and not an extension of selfcommitment. Tis is illustrated in Figure 15. Hour Self- Commitment Period MUT = 5 (rs) Figure 15 IFM Self-Commitment Period at te end of te day Example 16 CAISO Commitment continuation of Self-Commitment Period from Previous Day Continue from te previous example; te unit ad energy self-scedules in [21, 24) of te previous day. Te unit is ON from 0:00 to 4:00 in te current trading day. It does not ave any self-scedule from 0:00 to 4:00 in te current trading day. Its MUT is 5 ours. Since te MUT as already been satisfied in te previous day, te commitments in [0. 4) of te current day is CAISO-Commitment. Tis is illustrated in Figure MUT = 5 ( rs) CAISO 4 (rs) Figure 16 CAISO Commitment continuation of Self-Commitment Period from Previous Day Example 17 IFM Self-Commitment Period at te End of te Day not satisfying MUT Version 17 Last Revised: April 1, 2011 Page D-15

150 BPM for Maret Operations A unit is ON from 21:00 to 24:00. It as DAM self-scedules for 3 ours from 21:00 to 24:00. Its MUT is 5 ours. Te submitted self-scedule is less tan te MUT of te resource and tis is accepted by SIBR because te set of consecutive self-scedules are at te end of te day. Selfcommitment Period is [21, 24). Tis is illustrated in Figure 17. Hour Self- Commitment Period MUT = 5 ( rs) Figure 17 IFM Self-Commitment Period at te end of te day not satisfying MUT Example 18 Self-Commitment continuation of Self-Commitment Period from Previous Day Continue from te previous example; te unit ad energy self-scedules in [21:00, 24:00) of te previous day. Te unit is ON from 0:00 to 4:00 in te current trading day. It does not ave any self-scedule from 0:00 to 4:00 in te current trading day. Since its MUT of 5 ours as not been satisfied, te Self-Commitment Period of te previous day will be extended into te current day to meet te MUT; resulting in [0:00, 2:00) as Self-Commitment Period. But tere is no need to report te portion of te Self-Commitment Period in te previous trade day, i.e., [21:00, 24:00) of te previous trading day. Te commitment period of [3:00, 4:00) is CAISO Commitment. Tis is illustrated in Figure MUT = 5 (rs) S.C.P. E. = 5 (rs) Figure 18 Self-Commitment continuation of Self-Commitment Period from Previous Day Example 19 IFM/RUC automatic commitment treated as CAISO commitment in next IFM Version 17 Last Revised: April 1, 2011 Page D-16

151 BPM for Maret Operations Tis example illustrates tat a CAISO IFM commitment period due to SCUC optimization is extended to meet MUT in te next IFM. Assumptions: SUT = 10 ours MUT = 36 ours MDT = 12 ours Low energy bids are submitted for every ours of 4/4/07 on 4/3/07; no self-scedules or self-provisions are submitted Hig energy bids are submitted for every ours of 4/5/07 on 4/4/07; no self-scedules or self-provisions are submitted Te IFM executed on 4/3/07 commits te unit in te period of [4/4/07 00:00, 4/4/07 24:00) and determined tat te entire period is CAISO IFM commitment. Tere are no additional ELC commitments for 4/5/07. Ten, Te IFM executed on 4/4/07 commits te unit for te period of [4/5/07 00:00, 4/5/07 12:00) to satisfy MUT of 36 ours and determined tat tis period is CAISO IFM Commitment. Tis is illustrated in Figure 19. IFM ELC CAISO IFM Commitment CAISO IFM Commitment 04/03/07 04/04/07 04/05/07 MUT = 36 rs Figure 19 IFM/RUC automatic commitment treated as CAISO commitment in next IFM D.5. Pump Storage Resources and Participating Loads A pump-storage unit as tree operating modes: generating mode, pumping mode and offline mode. Te multi-state model for a pump storage unit is sown below. According to te current implementation, a transition from te pumping mode to te generating mode must go troug te offline mode; and a transition from te generating mode to te pumping mode must also go troug te offline mode. Te Minimum Down-Time (MDT), specified in minutes, is te minimum Version 17 Last Revised: April 1, 2011 Page D-17

152 BPM for Maret Operations time te pump-storage unit must stay offline before transitioning into eiter te pumping mode or te generating mode. Te same MDT is used for bot te pumping mode and te generation mode. En p pump En;max p G En;3 p G En;2 p G En;1 p G startup C G En;min p G En G fix En L min En G 1 En G 2 En G 3 En G max En G Multi-State Model for Pumped Storage Unit A pump-storage unit as separate Minimum Up Time (MUT) for pumping and generating mode. A pump-storage unit as separate Maximum Daily Startup number for pumping and generating mode. Te commitment types of a pump storage unit operating in generating mode are determined in te same way tat te commitment types of oter generators are determined as illustrated in Section D.3. A pump storage unit is considered self-committed in pumping mode in an our in a maret if tere is an energy self-scedule in te pumping mode in te maret. Te self-commitment period extensions for a pump storage unit in pumping mode follow te same rules and examples as specified so far except tat separate MUT and MDS are used for operating in pumping mode. A Participating Load is a Load wit a Participating Load Agreement (PLA) and is certified for demand response and may be able to provide Non-Spinning Reserve. Version 17 Last Revised: April 1, 2011 Page D-18

153 BPM for Maret Operations In MRTU software Release 1, a Participating Load (PL) will be modeled by a pair of fictitious Non-Participating Load and fictitious Generator. Te PL inter-temporal constraints are converted outside of Siemens application for te fictitious Generator as follows: Load Curtailment Time => Generator Startup Time, Minimum Load Reduction Time => Generator Minimum Up Time, Minimum Base Load Time => Generator Minimum Down Time (set to zero), and Maximum Number of Daily Load Curtailments => maximum number of daily generator startups. Note all tese load inter-temporal parameters are constant values not dependent on time load being curtailed. Te commitment types of te fictitious generators are determined in te same way as oter generators as illustrated so far. D.6. Real-time Self Commitment Type determination D.6.1. Introduction Wile te self commitment types of ELC, IFM and RUC commitment are determined by te maret applications, te real-time self commitment types are determined on an after-te-fact base since tis determination requires a full istory of te DA and real-time commitment status. Te following table lists te maret processes and teir expected beavior: Table D.1 Maret Processes and teir expected beavior Day Time Activity D-2 13:00-15:00 ELC executes and passes te commitment types of extremely long start resources to te next IFM D-1 10:00-13:00 IFM executes and determines te IFM commitment types (including te ELC commitment results) D-1 10:00-13:00 RUC executes and determines te RUC commitment types Version 17 Last Revised: April 1, 2011 Page D-19

154 BPM for Maret Operations (including te ELC and IFM commitment results) D-1 13:00 Final IFM and RUC commitment types available to RTUCs; i.e., {UC} S-IFM, {SELF} S-IFM, {UC} S-RUC D-1 20:07:30 Te STUC executed at tis time as te first our of day D in te time orizon; STUC wit operator approval can mae binding unit commitment decisions for te 15-minute intervals in te period of [00:00, 01:00) in Day D. STUC will mae te binding commitment type {UC} S-STUC available to subsequent RTUC, RTD and MQS. If tere is any energy self-scedule or AS self-provision in our [21:00, 22:00) of day D-1, te commitment by STUC for our [00:00, 01:00) of day D is based on copied self-scedule. However, te commitment type will be determined later by MQS using te bid actually submitted for [00:00, 01:00) of day D. D-1 22:52:30 Te HASP executed at tis time as te first our of day D in te time orizon using te bid submitted for tis our. HASP wit operator approval can mae binding unit commitment decisions for te 15-minute intervals in te period of [00:00, 01:00) in Day D. HASP will mae te binding commitment type {UC} S-HASP available to subsequent RTUC, RTD and MQS. D-1 to D any time OOS instructions can override te commitment status made by te SCUC processes. All OOS instructions (Startup, Sut Down, Min, Max and Fix) can alter te commitment status determined by SCUC including tose pre-specified by te operator prior to SCUC execution. Suc OOS instructions sould be reflected in te RTUC commitment type {UC} S- RTUC. In oter words, te time intervals in wic te unit is off by OOS sould not be included in te {UC} S-RTUC and te time intervals in wic te unit is On by OOS sould be Version 17 Last Revised: April 1, 2011 Page D-20

155 BPM for Maret Operations included in te {UC} S-RTUC. Te OOS instructions are provided to MQS to allow MQS to determine te commitment types for intervals in {UC} S-RTUC. If an OOS instruction occurs in te middle of a 15 minute interval, it will affect te commitment status and type for te entire 15- minutes interval in te {UC} S-RTUC. D 23:22:30 Te RTUC3 executed at tis time is te last process tat as te last 15-minute interval in day D in te time orizon. RTUC3 maes binding unit commitment decisions for te last 15-minute interval in Day D. RTUC3 sall mae te binding commitment decision {UC} S-RTUC3 available to subsequent RTUC, RTD and MQS. D 23:37:30 Te RTUC4 executed at tis time is te first process tat as te first 15-minute interval in day D+1 as binding commitment interval. RTUC4 sall mae te binding commitment decision {UC} S-RTUC4 for day D+1 available to subsequent RTUC, RTD and MQS. D After 24:00 All commitment decisions for day D are final and available for MQS to determine te RTM commitment types. Table D.2 Input Data Needed to determine Commitment Types Data Source Description {UC} S-IFM IFM For eac resource in eac IFM time orizon, te IFM Commitment Periods denoted by te set {UC} S-IFM consists of all te ours in wic te resource is On as determined by te IFM SCUC including te previous binding ELC Commitment decisions passed to te current DAM, and tose operator pre-specified Version 17 Last Revised: April 1, 2011 Page D-21

156 BPM for Maret Operations commitment decision made at te beginning of te MPM/RRD process prior to te current IFM execution. {SELF} S-IFM IFM Te IFM Self-commitment Periods denoted by te set {SELF} S-IFM consists of all te previous ELC Self-commitment Periods and te selfcommitment periods determined by te current DAM energy Self-Scedules and AS Self- Provisions. Note, te operator pre-specified commitment decisions made at te beginning of te DAM process prior to MPM/RRD execution sall not be considered as Self- Commitment even toug suc manual commitments may be treated by te SCUC in a similar way as energy self-scedules. If te CAISO decides to commit a resource using te software automatically or manually, te commitment sould be considered as CAISO commitment. {UC} S-RUC RUC For eac resource in eac RUC time orizon, te RUC Commitment Periods denoted by te set {UC} S-RUC consists of all te ours in wic te resource is On as determined by te RUC SCUC including te IFM Commitment decisions passed to te RUC. {UC} S-RTUC RTUC Te RTUC application includes HASP, STUC, RTUC3 and RTUC4. {UC} S-RTUC includes all intervals of On status tat are binding as Version 17 Last Revised: April 1, 2011 Page D-22

157 BPM for Maret Operations determined by previous processes (IFM, RUC, ELC, RTUC, OOS) and te current process. DA Energy Self- Scedules SIBR Te energy self-scedules must be te originally submitted energy self-scedules. DA AS Self-provisions (including LFD and LFU) IFM Te AS self-provisions must be te originally submitted AS self-provisions. RT Energy Self- Scedules SIBR Te energy self-scedules must be te originally submitted energy self-scedules. RT AS Self-provisions (including LFD and LFU) RT RMR Requirement SIBR RT MPM/RRD Te AS self-provisions must be te originally submitted AS self-provisions. Tis is te result of RT MPM/RRD process. MUT Master File Minimum Up Time (for pump storage resource, separate values in pumping and generating modes) MDT Master File Minimum Down Time MDS Master file Maximum Number of Daily Startup (for pump storage resource, separate values in pumping and generating modes) Fast Start Master File Fast Start indicates tat te unit can deliver energy witin 10 minutes from off-line status. On Time RTM application On Time is te period between te beginning of te interval wen te unit was turned On and te end of te last contiguous On interval before te unit is turned Off. In oter words, On Time is measured at a given time by te Version 17 Last Revised: April 1, 2011 Page D-23

158 BPM for Maret Operations minutes elapsed since te resource was most recently started up at te Minimum Load and continuously stayed online. D.6.2. RTM Self-Commitment Type Determination for Generator Resources Te definitions and rules in tis subsection apply to generator resources, inter-tie generator resources, and pump-storage generator resources operating in generating mode. Def 1 A Real-Time Maret (RTM) Commitment Period is a set of consecutive intervals of On status generated by te RTUCs (including HASP, STUC as specific RTUC), including te commitment decisions made by ELC, IFM and RUC and not altered by te RTUCs, for a resource in a given time period. Def 2 Te lengt of a RTM Commitment Period is measured by te difference between te start-time and te end-time. Def 3 A Super RTM Commitment Period is te longest RTM Commitment Period among te RTM Commitment Periods tat ave nonempty intersection for te resource in te given period.9 Def 4 A Sub RTM Commitment Period is a RTM Commitment Period tat is sorter tan at least one RTM Commitment Period tat as nonempty intersection wit it for te resource in te given period. Def 5 A Super RUC Commitment Period is te longest RUC Commitment Period among te RUC Commitment Periods tat ave nonempty intersection for te resource in a given period. Def 6 A Super IFM Commitment Period is te longest IFM Commitment Period among te IFM Commitment Periods tat ave nonempty intersection for te resource in a given period. Def 7 A RTM Self-Commitment Period is a RTM Commitment Period tat is resulted from energy self-scedules, AS self-provisions and teir interaction wit inter-temporal constraints imposed by MUT, MDT and MDS for te resource in te given period. Def 8 A Basic RTM Self-Commitment Period is a RTM Self-Commitment Period tat is resulted directly from energy self-scedules, and AS self-provisions witout considering teir interaction wit inter-temporal constraints imposed by MUT, MDT and MDS for te resource in te given period. Def 9 A MUT Extended RTM Self-Commitment Period is a RTM Self-Commitment Period tat is resulted from one or more Basic RTM Self-Commitment Periods and teir interaction wit inter-temporal constraints imposed by MUT for te resource in te given period. Te MUT used 9 Te given period is not limited witin te Trading Day; te given period will be specified in te context of te rules. A Super RTM Commitment Period loosely speaing is a longest continuous RTM Commitment Period wic contains many Sub RTM Commitment Periods. Version 17 Last Revised: April 1, 2011 Page D-24

159 BPM for Maret Operations ere is rounded up to te next 15-minute commitment interval if it is not already in multiples of 15-minutes. A Basic RTM Self-Commitment Period is referred to as a MUT Extended RTM Self- Commitment Period after te MUT Extension process even if no MUT extension is made. Def 10 A MDT Extended RTM Self-Commitment Period is a RTM Self-Commitment Period tat is resulted from one or more MUT Extended RTM Self-Commitment Period and teir interaction wit inter-temporal constraints imposed by MDT for te resource in te given period. Te MDT used ere is rounded up to te next 15-minute commitment interval if it is not already in multiples of 15-minutes. A MUT Extended RTM Self-Commitment Period is referred to as a MDT Extended RTM Self-Commitment Period after te MDT Extension process even if no MDT extension is made. Def 11 A MDS Extended RTM Self-Commitment Period is a RTM Self-Commitment Period tat is resulted from one or more MDT Extended RTM Self-Commitment Period and teir interaction wit inter-temporal constraints imposed by MDS for te resource in te given period. A MDT Extended RTM Self-Commitment Period is referred to as a MDS Extended RTM Self- Commitment Period after te MDS Extension process even if no MDS extension is made. Def 12 A BCR RTM Self-Commitment Period is a RTM Self-Commitment Period tat is resulted from a MDS Extended RTM Self-Commitment Period by excluding its intersections wit IFM Commitment Periods and RUC Commitment Periods for te resource in a given period. A MDS Extended RTM Self-Commitment Period is referred to as a BCR Extended RTM Self- Commitment Period after te BCR Exclusion process even if no truncation is made to exclude te intersection wit any IFM Commitment Period or RUC Commitment Period. Def 13 Te BCR RTM Self-Commitment Periods, denoted by {SELF}RTM, sall be te union of all BCR RTM Self-Commitment Commitment Periods, for a resource in a given time period. Def 14 Te BCR RTM Commitment Periods, denoted by {UC}RTM, sall be te union of all RTM Commitment Periods excluding teir intersections wit IFM Commitment Periods and RUC Commitment Periods for te resource in te given period. Def 15 Te BCR CAISO RTM Commitment Periods, denoted by {CAISO}RTM, sall be te union of all BCR RTM Commitment Periods excluding teir intersections wit te BCR RTM Self-Commitment Periods, for a resource in a given time period. Def 16 Te RMR RTM Commitment Periods, denoted by {RMR}RTM, sall be te union of all te time intervals were an RMR resource as any positive (i.e., non-zero) DAM RMR Requirements or positive RTM RMR Requirements. Def 17 Te RTM MUT Bactrac Window, is a period tat as a configurable lengt and ends at te beginning of te current Trading Day. Te configurable lengt is minutes (i.e., 7 days) by default. Def 18 Te RTM MDT Bactrac Window, is a period tat as a configurable lengt and ends at te end of te current Trading Day. By default te configurable lengt is 4320 minutes (i.e., 3 days). Def 19 Te RTM MDT Fortcoming Window, is a period tat as a configurable lengt and starts at te end of te current Trading Day. By default te configurable lengt is 1440 minutes (i.e., 1 day). Version 17 Last Revised: April 1, 2011 Page D-25

160 BPM for Maret Operations A RTM Self-Commitment Period will go troug te following stages in arriving at te final usable form for Bid Cost Recovery (BCR). Basic MUT Extension MDT Extension MDS Extension BCR Exclusion Te Basic RTM Self-Commitment Periods for a resource in a given period are constructed as follows: Rule 1. Rule 2. If te resource is not a fast start unit, identify all te ours in wic te resource as any of te following in te trading day: RTM energy self-scedule, RTM LFU, RTM LFD, RTM Regulation Up self-provision, RTM Regulation Down selfprovision, Spinning Reserve self-provision or Non-Spinning Reserve selfprovision in te given period. If te resource is a fast start unit, identify all te ours in wic te resource as any of te following in te trading day: RTM energy self-scedule, RTM LFU, RTM LFD, RTM Regulation Up self-provision, RTM Regulation Down selfprovision, or Spinning Reserve self-provision in te given period. Rule 3. Eac set of consecutive ours identified in Rule 1 or Rule 2, is a Basic RTM Self- Commitment Period. Te MUT Extended RTM Self-Commitment Periods for a resource in te current Trading Day are constructed in sequence as follows: Rule 4. If a Basic RTM Self-Commitment Period [ e) is a Sub RTM Commitment Period 10, and if te lengt of te Basic RTM Self-Commitment Period is less tan te current MUT of te resource minus te On Time evaluated at te beginning of te Basic RTM Self-Commitment Period, i.e., if (e-)<mut On_Time, te Basic RTM Self-Commitment Period must be extended to te minimum of +MUT On_Time, te end of te Super RTM Commitment Period tat as 10 Only a Sub RTM Commitment Period can be extended witin te Super RTM Commitment Period tat contains it. A Super RTM Commitment Period witin a given period cannot be extended witin te given period because a Super RTM Commitment Period represents te entire number of intervals aving On status in te given period. Version 17 Last Revised: April 1, 2011 Page D-26

161 BPM for Maret Operations intersection wit te Basic RTM Self-Commitment Period tat is being extended, or te end of te current Trading Day. 11 (Note, tis step sall address several special cases: i. If a Basic RTM Self-Commitment Period [ e) in a Trading Day is a Sub RTM Commitment Period tat starts at te beginning of te day, and te resource was On at te end of te previous Trading Day, and if te lengt of te Basic RTM Self-Commitment Period is less tan te MUT of te resource minus te On Time evaluated at te end of te previous Trading Day, i.e., if (e-)<mut On_Time, te Basic RTM Self- Commitment Period must be extended to te minimum of +MUT On_Time, te end of te Super RTM Commitment Period tat as intersection wit te Basic RTM Self-Commitment Period tat is being extended, or te end of te current Trading Day. 12 ii. If a Basic RTM Self-Commitment Period [ e) in a Trading Day is a Sub RTM Commitment Period tat starts at te beginning of te day, and te resource was Off at te end of te previous Trading Day, and if te lengt of te Basic RTM Self-Commitment Period is less tan te MUT of te resource, i.e., if (e-)<mut, te Basic RTM Self-Commitment Period must be extended to te minimum of +MUT, te end of te Super RTM Commitment Period tat as intersection wit te Basic RTM Self- Commitment Period tat is being extended, or te end of te current Trading Day. iii. If a Basic RTM Self-Commitment Period [ e) in a Trading Day is a Sub RTM Commitment Period tat does not start at te beginning of te day, and if te lengt of te Basic RTM Self-Commitment Period is less tan te MUT of te resource minus te On Time evaluated at te beginning of te Basic RTM Self-Commitment Period, i.e., if (e-)<mut On_Time, 11 Te On-Time evaluated at te beginning of te Basic RTM Self-Commitment Period represents ow long te unit as been in On status continuously until te beginning of te Basic RTM Self-Commitment Period. Te Basic RTM Self-Commitment Period only needs to be extended to cover te remaining of te MUT counted from te beginning of te Basic RTM Self-Commitment Period. 12 Te On_Time of te previous days are counted towards meeting te MUT of te Basic RTM Self-Commitment. Version 17 Last Revised: April 1, 2011 Page D-27

162 BPM for Maret Operations te Basic RTM Self-Commitment Period must be extended to te minimum of +MUT On_Time, te end of te Super RTM Commitment Period tat as intersection wit te Basic RTM Self-Commitment Period tat is being extended, or te end of te current Trading Day. iv. If a Basic RTM Self-Commitment Period [ e) in a Trading Day is not a Sub RTM Commitment Period, (in oter words, if it is a Super RTM Commitment Period), even if te lengt of te Basic RTM Self- Commitment Period is less tan te MUT of te resource minus te On Time evaluated at te beginning of te Basic RTM Self-Commitment Period, i.e., if (e-)<mut On_Time, te Basic RTM Self-Commitment Period will not be extended because te resource will be off beyond te end of te Basic RTM Self-Commitment Period.) Rule 5. Rule 6. Rule 7. If in te RTM MUT Bactrac Window tere is a Super RTM Commitment Period [s, o) tat intersects wit a MDS Extended RTM Self-Commitment Period [m, o) tat ends at te end of te previous Trading Day, if te lengt of te Super RTM Commitment Period in te RTM MUT Bactrac Window is X minutes less tan te current MUT of te resource minus te On_Time evaluated at te beginning of te Super RTM Commitment Period in te RTM MUT Bactrac Window, and if tere is a Super RTM Commitment Period [o, e) tat is in te current Trading Day and starts at te beginning of te current Trading Day, a MUT Extended Commitment Period [o, min(x, e)) sall be defined wit te start-time being te beginning of te current Trading Day and te end-time being te smaller of X minutes after te beginning of te current Trading Day and te end of te Super RTM Commitment Period tat is in te current Trading Day and starts at te beginning of te current Trading Day. After tis MUT extension process, te Basic RTM Self-Commitment Periods are referred to as MUT Extended RTM Self-Commitment Periods regardless of weter any extension was made. If te MUT Extended RTM Self-Commitment Periods generated by te MUT extension process as described by Rule 4 troug Rule 6 ave nonempty Version 17 Last Revised: April 1, 2011 Page D-28

163 BPM for Maret Operations intersections, te MUT Extended RTM Self-Commitment Periods aving nonempty intersections sould be merged. Te MDT Extended RTM Self-Commitment Periods for a resource in a Trading Day are constructed in sequence as follows: Rule 8. Rule 9. Rule 10. If two disjoint and nonadjacent MUT Extended RTM Self-Commitment Periods intersect wit te same Super RTM Commitment Period 13 in te current Trading Day, and if te two MUT Extended RTM Self-Commitment Periods are apart from eac oter by less tan te current MDT of te resource, te two MUT Extended RTM Self-Commitment Periods sould be merged to form a MDT Extended RTM Self-Commitment Period. If a MUT Extended RTM Self-Commitment Period or a MDT Extended RTM Self- Commitment Period resulted from Rule 8 in te current Trading Day intersects te same Super RTM Commitment Period wit a disjoint, nonadjacent and earlier Super RUC Commitment Period in te RTM MDT Bactrac Window, and if te MUT/MDT Extended RTM Self-Commitment Period is apart from te Super RUC Commitment Period by less tan te current MDT of te resource, te start-time of te MUT/MDT Extended RTM Self-Commitment Period resulted from Rule 8 sould be extended to te later of te end-time of te Super RUC Commitment Period or te beginning of te current Trading Day. If a MUT Extended RTM Self-Commitment Period or a MDT Extended RTM Self- Commitment Period resulted from Rule 8 and Rule 9 in te current Trading Day intersects te same Super RTM Commitment Period wit a disjoint, nonadjacent and earlier MDS Extended RTM Self-Commitment Period in te RTM MDT Bactrac Window, and if te MUT/MDT Extended RTM Self-Commitment Period is apart from te MDS Extended RTM Self-Commitment Period by less tan te current MDT of te resource, te start-time of te MUT/MDT Extended RTM Self- Commitment Period sould be extended to te later of te end-time of te MDS 13 Since te Super RTM Commitment Period contains bot MUT Extended RTM Self-Commitment Periods, te unit is On during te gap between te two MUT Extended RTM Self-Commitment Periods. If two MUT Extended RTM Self-Commitment Periods do not intersect wit a common Super RTM Commitment Period, te unit must ave Off status during te gap between te two MUT Extended RTM Self-Commitment Periods. Version 17 Last Revised: April 1, 2011 Page D-29

164 BPM for Maret Operations Extended RTM Self-Commitment Period or te beginning of te current Trading Day. Rule 11. Rule 12. Rule 13. Rule 14. If a MUT Extended RTM Self-Commitment Period or a MDT Extended RTM Self- Commitment Period resulted from Rule 8 troug Rule 10 in te current Trading Day, intersects te same Super RTM Self-Commitment Period wit a disjoint, nonadjacent and later Super RUC Commitment Period in te current Trading Day, and if te MUT/MDT Extended RTM Self-Commitment Period is apart from te Super RUC Commitment Period by less tan te current MDT of te resource, te end-time of te MUT/MDT Extended RTM Self-Commitment Period sould be extended to te start-time of te Super RUC Commitment Period. If a MUT Extended RTM Self-Commitment Period or a MDT Extended RTM Self- Commitment Period resulted from Rule 8 troug Rule 11 intersects wit a Super RTM Self-Commitment Period tat ends at te end of te current Trading Day, and if te MUT/MDT Extended RTM Self-Commitment Period is apart from a disjoint, nonadjacent and later Super RUC Commitment Period in te RTM MDT Fortcoming Window by less tan te current MDT of te resource, te end-time of te MUT/MDT Extended RTM Self-Commitment Period sould be extended to te end of te current Trading Day. After tis MDT extension process, te MUT Extended RTM Self-Commitment Periods are referred to as MDT Extended RTM Self-Commitment Periods regardless of weter any extension was made. If te MDT Extended RTM Self-Commitment Periods generated by te MDT extension process as described by Rule 8 troug Rule 13 ave nonempty intersections, te MDT Extended RTM Self-Commitment Periods aving nonempty intersections sould be merged. Te MDS Extended RTM Self-Commitment Periods for a resource in a Trading Day are constructed in sequence as follows: Rule 15. If tere is any RTM Self-Commitment Period tat starts at te beginning of te Trading Day, or any RUC Commitment Period tat starts at te beginning of te Version 17 Last Revised: April 1, 2011 Page D-30

165 BPM for Maret Operations Trading Day, and te resource was On at te end of te previous Trading Day, and if te total number of MDT Extended RTM Self-Commitment Periods and teir disjoint and nonadjacent Super RUC Commitment Periods in te Trading Day is greater tan (MDS+1) of te resource, te MDT Extended RTM Self- Commitment Periods must be extended in bot directions in time iteratively to fill first te smallest time gap wit oter disjoint and nonadjacent MDT Extended RTM Self-Commitment Periods or Super RUC Commitment Periods tat intersects te same Super RTM Commitment Period until te number of MDT Extended RTM Self-Commitment Periods and teir disjoint and nonadjacent Super RUC Commitment Periods in te Trading Day is equal to (MDS+1). Rule 16. Rule 17. If tere is no RTM Commitment Period tat starts at te beginning of te Trading Day and tere is no RUC Commitment Period tat starts at te beginning of te Trading Day, or te resource was Off at te end of te previous Trading Day, and if te total number of MDT Extended RTM Self-Commitment Periods and teir disjoint and nonadjacent Super RUC Commitment Periods in te Trading Day is greater tan te MDS of te resource, te MDT Extended RTM Self- Commitment Periods must be extended in bot directions in time to fill first te smallest gap in time wit te oter disjoint and nonadjacent MDT Extended RTM Self-Commitment Periods or Super RUC Commitment Periods tat intersects te same Super RTM Commitment Period until te number of MDT Extended RTM Self-Commitment Periods and teir disjoint and nonadjacent Super RUC Commitment Periods in te Trading Day is equal to MDS. After tis MDS extension process, te MDT Extended RTM Self-Commitment Periods are referred to as MDS Extended RTM Self-Commitment Periods regardless of weter any extension was made. Te BCR RTM Self-Commitment Periods for a resource in a Trading Day are constructed as follows: Rule 18. If an MDS Extended RTM Self-Commitment Period intersects wit a Super RUC Commitment Period, te intersection is excluded from te MDS Extended RTM Version 17 Last Revised: April 1, 2011 Page D-31

166 BPM for Maret Operations Self-Commitment Period; and te remaining portion of te MDS Extended RTM Self-Commitment Period is te BCR RTM Self-Commitment Period. D.6.3. RTM Commitment Type Determination for Pump Storage Generator Resources in Pumping Mode Te general definitions (Def 1-4, and Def 6) in te previous section for generators also apply to te pumping mode. Te definitions and rules in tis subsection apply to pump-storage generator resources operating in pumping mode. Def 20 A RTM Self-Commitment Period in pumping mode is a RTM Commitment Period tat is resulted from energy self-scedules in pumping mode and teir interaction wit inter-temporal constraints imposed by MUT, MDT and MDS (in pumping mode) for te resource in te given period.14 Def 21 A Basic RTM Self-Commitment Period is a RTM Self-Commitment Period tat is resulted directly from energy self-scedules in pumping mode (wic is represented by negative quantities) witout considering teir interaction wit inter-temporal constraints imposed by MUT, MDT and MDS (in pumping mode) for te resource in te given period. Def 22 A MUT Extended RTM Self-Commitment Period in pumping mode is a RTM Self- Commitment Period in pumping mode tat is resulted from one or more Basic RTM Self- Commitment Periods in pumping mode and teir interaction wit inter-temporal constraints imposed by MUT in pumping mode for te resource in te given period. Te MUT used ere is rounded up to te next 15-minute commitment interval if it is not already in multiples of 15- minutes. A Basic RTM Self-Commitment Period in pumping mode is referred to as a MUT Extended RTM Self-Commitment Period in pumping mode after te MUT Extension process even if no MUT extension is made. Def 23 A MDT Extended RTM Self-Commitment Period in pumping mode is a RTM Self- Commitment Period in pumping mode tat is resulted from one or more MUT Extended RTM Self-Commitment Period in pumping mode and teir interaction wit inter-temporal constraints imposed by MDT for te resource in te given period. Te MDT used ere is rounded up to te next 15-minute commitment interval if it is not already in multiples of 15-minutes. A MUT Extended RTM Self-Commitment Period in pumping mode is referred to as a MDT Extended RTM Self-Commitment Period in pumping mode after te MDT Extension process even if no MDT extension is made. Def 24 A MDS Extended RTM Self-Commitment Period in pumping mode is a RTM Self- Commitment Period in pumping mode tat is resulted from one or more MDT Extended RTM Self-Commitment Period in pumping mode and teir interaction wit inter-temporal constraints imposed by MDS for te resource in pumping mode in te given period. A MDT Extended RTM 14 A pump-storage resource as separate MUT and MDS for operating in generating mode and pumping mode. A pump-storage resource as a single MDT for transitioning from generating mode to generating mode, from generating mode to pumping mode, from pumping mode to generating mode and from pumping mode to pumping mode. Version 17 Last Revised: April 1, 2011 Page D-32

167 BPM for Maret Operations Self-Commitment Period in pumping mode is referred to as a MDS Extended RTM Self- Commitment Period in pumping mode after te MDS Extension process even if no MDS extension is made. Def 25 A BCR RTM Self-Commitment Period in pumping mode is a RTM Self-Commitment Period in pumping mode, wic is resulted from a MDS Extended RTM Self-Commitment Period in pumping mode by excluding its intersections wit IFM Commitment Periods in pumping mode for te resource in a given period. A MDS Extended RTM Self-Commitment Period in pumping mode is referred to as a BCR Extended RTM Self-Commitment Period in pumping mode after te BCR Exclusion process even if no truncation is made to exclude te intersection wit any IFM Commitment Period in pumping mode. Def 26 Te BCR RTM Self-Commitment Periods in pumping mode, denoted by {SELFP}RTM, sall be te union of all BCR RTM Self-Commitment Periods in pumping mode, for a resource in a given time period. Def 27 Te BCR RTM Commitment Periods in pumping mode, denoted by {UCP}RTM, sall be te union of all RTM Commitment Periods in pumping mode excluding teir intersections wit IFM Commitment Periods in pumping mode for te resource in te given period. Def 28 Te BCR CAISO RTM Commitment Periods in pumping mode, denoted by {CAISOP}RTM, sall be te union of all BCR RTM Commitment Periods in pumping mode excluding teir intersections wit te BCR RTM Self-Commitment Periods in pumping mode, for a resource in a given time period. Def 29 Te RTM MUT Bactrac Window in pumping mode, is a period tat as a configurable lengt and ends at te beginning of te current Trading Day. Te configurable lengt is 2880 minutes (i.e., 2 days) by default. Note a pump-storage generator sall use two separately configurable RTM MUT Bactrac Windows; one for generating mode and te oter for pumping mode. Def 30 Te RTM MDT Bactrac Window in pumping mode, is a period tat as a configurable lengt and ends at te end of te current Trading Day. By default te configurable lengt is 2880 minutes (i.e., 2 days). Note a pump-storage generator sall ave two separately configurable RTM MDT Bactrac Windows; one for generating mode and te oter for pumping mode. Def 31 Te RTM MDT Fortcoming Window in pumping mode, is a period tat as a configurable lengt and starts at te end of te current Trading Day. By default te configurable lengt is 1440 minutes (i.e., 1 day). Note a pump-storage generator sall use two separately configurable RTM MDT Fortcoming Windows; one for generating mode and te oter for pumping mode. A RTM Self-Commitment Period in pumping mode will go troug te following stages in arriving at te final usable form for Bid Cost Recovery (BCR). Basic MUT Extension MDT Extension MDS Extension BCR Exclusion Version 17 Last Revised: April 1, 2011 Page D-33

168 BPM for Maret Operations Te Basic RTM Self-Commitment Periods in pumping mode for a resource in a given period are constructed as follows: Rule 19. Rule 20. If te resource is a pump-storage generating resource, identify all te ours in wic te resource as RTM energy self-scedules in pumping mode in te given period. Eac set of consecutive ours identified in Rule 19, is a Basic RTM Self- Commitment Period in pumping mode. Te MUT Extended RTM Self-Commitment Periods in pumping mode for a resource in a given period are constructed using Rule 4 troug Rule 7 except now te commitment periods are in pumping mode and te RTM MUT Bactrac Window is in pumping mode as defined by Def 29. Te MDT Extended RTM Self-Commitment Periods in pumping mode for a resource in a Trading Day are constructed as follows: Rule 21. Rule 22. If two disjoint and nonadjacent MUT Extended RTM Self-Commitment Periods in pumping mode intersect wit te same Super RTM Commitment Period in pumping mode in te current Trading Day, and if te two MUT Extended RTM Self-Commitment Periods in pumping mode are apart from eac oter by less tan te relevant MDT of te resource, te two MUT Extended RTM Self- Commitment Periods in pumping mode sould be merged to form a MDT Extended RTM Self-Commitment Period in pumping mode. If a MUT Extended RTM Self-Commitment Period in pumping mode or a MDT Extended RTM Self-Commitment Period in pumping mode resulted from Rule 21 intersects te same Super RTM Commitment Period in pumping mode wit a disjoint, nonadjacent and earlier Super IFM Commitment Period in pumping mode in te RTM MDT Bactrac Window in pumping mode, and if te MUT/MDT Extended RTM Self-Commitment Period in pumping mode is apart from te Super IFM Commitment Period by less tan te current MDT of te resource, te start-time of te MUT/MDT Extended RTM Self-Commitment Period in pumping mode sould be extended to te end-time of te Super IFM Version 17 Last Revised: April 1, 2011 Page D-34

169 BPM for Maret Operations Commitment Period in pumping mode or te beginning of te current Trading Day. Rule 23. Rule 24. Rule 25. If a MUT Extended RTM Self-Commitment Period in pumping mode or a MDT Extended RTM Self-Commitment Period in pumping mode resulted from Rule 21 and Rule 22 in te current Trading Day intersects te same Super RTM Commitment Period in pumping mode wit a disjoint, nonadjacent and earlier MDS Extended RTM Self-Commitment Period in pumping mode in te RTM MDT Bactrac Window in pumping mode, and if te MUT/MDT Extended RTM Self- Commitment Period in pumping mode is apart from te MDS Extended RTM Self-Commitment Period in pumping mode by less tan te current MDT of te resource, te start-time of te MUT/MDT Extended RTM Self-Commitment Period in pumping mode sould be extended to te later of te end-time of te MDS Extended RTM Self-Commitment Period in pumping mode or te beginning of te current Trading Day. If a MUT Extended RTM Self-Commitment Period in pumping mode or a MDT Extended RTM Self-Commitment Period in pumping mode resulted from Rule 21 troug Rule 23 in te current Trading Day, intersects te same Super RTM Self- Commitment Period in pumping mode wit a disjoint, nonadjacent and later Super IFM Commitment Period in pumping mode in te current Trading Day, and if te MUT/MDT Extended RTM Self-Commitment Period in pumping mode is apart from te Super IFM Commitment Period in pumping mode by less tan te current MDT of te resource, te end-time of te MUT/MDT Extended RTM Self- Commitment Period in pumping mode sould be extended to te start-time of te Super IFM Commitment Period in pumping mode. If a MUT Extended RTM Self-Commitment Period in pumping mode or a MDT Extended RTM Self-Commitment Period in pumping mode resulted from Rule 21 troug Rule 24 in te current Trading Day, intersects wit a Super RTM Self- Commitment Period in pumping mode, wic ends at te end of te current Trading Day, and if te MUT/MDT Extended RTM Self-Commitment Period in pumping mode is apart from a disjoint, nonadjacent and later Super IFM Commitment Period in pumping mode in te RTM MDT Fortcoming Window in Version 17 Last Revised: April 1, 2011 Page D-35

170 BPM for Maret Operations pumping mode, by less tan te current MDT of te resource, te end-time of te MUT/MDT Extended RTM Self-Commitment Period in pumping mode sould be extended to te end of te current Trading Day. Rule 26. Rule 27. After tis MDT extension process, te Basic RTM Self-Commitment Periods in pumping mode are referred to as MDT Extended RTM Self-Commitment Periods in pumping mode regardless of weter any extension was made. If te MDT Extended RTM Self-Commitment Periods in pumping mode generated by te MDT extension process as described by Rule 21 troug Rule 26 ave nonempty intersections, te MDT Extended RTM Self-Commitment Periods aving nonempty intersections sould be merged. Te MDS Extended RTM Self-Commitment Periods in pumping mode for a resource in a Trading Day are constructed as follows: Rule 28. Rule 29. If tere is any RTM Self-Commitment Period in pumping mode tat starts at te beginning of te Trading Day, or any IFM Commitment Period in pumping mode tat starts at te beginning of te Trading Day; and te resource was On in pumping mode at te end of te previous Trading Day, and if te total number of MDT Extended RTM Self-Commitment Periods in pumping mode and teir disjoint and nonadjacent Super IFM Commitment Periods in pumping mode in te Trading Day is greater tan (MDS+1) of te resource, te MDT Extended RTM Self-Commitment Periods in pumping mode must be extended in bot directions in time iteratively to fill first te smallest time gap wit oter disjoint and nonadjacent MDT Extended RTM Self-Commitment Periods in pumping mode or Super IFM Commitment Periods in pumping mode tat intersects te same Super RTM Commitment Period in pumping mode until te number of MDT Extended RTM Self-Commitment Periods in pumping mode and teir disjoint and nonadjacent Super IFM Commitment Periods in pumping mode in te Trading Day is equal to (MDS+1); If tere is no RTM Commitment Period in pumping mode tat starts at te beginning of te Trading Day and tere is no IFM Commitment Period in pumping mode tat starts at te beginning of te Trading Day, or te resource Version 17 Last Revised: April 1, 2011 Page D-36

171 BPM for Maret Operations was not in pumping mode at te end of te previous Trading Day, and if te total number of MDT Extended RTM Self-Commitment Periods in pumping mode and teir disjoint and nonadjacent Super IFM Commitment Periods in pumping mode in te Trading Day is greater tan te relevant (i.e., pump) MDS of te resource, te MDT Extended RTM Self-Commitment Periods in pumping mode must be extended in bot directions in time to fill first te smallest gap in time wit te oter disjoint and nonadjacent MDT Extended RTM Self-Commitment Periods in pumping mode or Super IFM Commitment Periods in pumping mode tat intersects te same Super RTM Commitment Period in pumping mode until te number of MDT Extended RTM Self-Commitment Periods in pumping mode and teir disjoint and nonadjacent Super IFM Commitment Periods in pumping mode in te Trading Day is equal to relevant (i.e., pump) MDS. Rule 30. After tis MDS extension process for pump storage generating resources in pumping mode, te MDT Extended RTM Self-Commitment Periods in pumping mode are referred to as MDS Extended RTM Self-Commitment Periods in pumping mode regardless of weter any extension was made. Te BCR RTM Self-Commitment Periods in pumping mode for a resource in a Trading Day are constructed as follows: Rule 31. If a MDS Extended RTM Commitment Period in pumping mode intersects wit a Super IFM Commitment Period in pumping mode, te intersection is excluded from te MDS Extended RTM Commitment Period in pumping mode; te remaining portion of te MDS Extended RTM Commitment Period in pumping mode is te BCR RTM Self-Commitment Period in pumping mode. Te BCR for Pump Sut-Down Cost will not be based on te BCR RTM Self-Commitment Periods because te BCR RTM Self-Commitment Periods indicate tat te unit is in pumping mode because of self-scedules. For determination of te eligibility for BCR of Pump Sut- Down Cost, one needs to determine weter te unit is transitioning out of te pumping mode solely because of te unit s own decision and not CAISO s decision. Terefore, weter a RTM Version 17 Last Revised: April 1, 2011 Page D-37

172 BPM for Maret Operations pump sut-down, is considered as "self commitment", is determined according to te following rules. Rule 32. Rule 33. D.6.4. If te RTM Commitment Periods in pumping mode in a Trading Day indicates a Pump Sutdown (i.e., end of a Super RTM Commitment Period in pumping mode), and te unit does not ave any Pump Cost Bid Component or Pumping Self-Scedule Bid Component for te immediate our after te RTM Pump Sutdown, te RTM Pump Sutdown is BCR RTM Self-Commitment. If te RTM Commitment Periods in pumping mode in a Trading Day indicates a Pump Sutdown (i.e., end of a Super RTM Commitment Period in pumping mode), and te unit as a Basic RTM Self-Commitment Period in generating mode starting witin te relevant MDT after te RTM Pump Sutdown, te RTM Pump Sutdown is BCR RTM Self-Commitment. Examples for RTM Commitment Type Determination Example 20 Generator Resource RTM Commitment type determination Rule # 4 (i) MUT In tis example, te following assumptions are made as sown in Figure. MUT = 6 ours Tere resource was On in te period [23, 24) of te previous Trading Day Basic RTM Self-Commitment Period: [0, 4) in te current Trading Day. Super RTM Commitment Period: [0, 8) in te Current Trading Day. According to Rule #4(i), since te lengt of te Basic RTM Self-Commitment Period (4 ours) is less tan te MUT of te resource minus te On time (5 ours), te Self-Commitment period must be extended to te minimum of 5 ours. Tis extension process results in te MUT Extended RTM Self-Commitment Period [0, 5). Tis is illustrated in Figure 20. Version 17 Last Revised: April 1, 2011 Page D-38

173 BPM for Maret Operations MUT = 6 ON-TIME = 1 MUT - ON-TIME = 5 MUT extended RTM Self Commitment period Super RTM Commitment Period Extend to Basic RTM Self-Commitment period Figure 20: Illustration of Rule #4(i) Example 21 Generator Resource RTM Commitment type determination Rule # 4 (ii) MUT In tis example, te following assumptions are made as sown in Figure 21. MUT = 6 ours Te resource was OFF at te end of te previous Trading Day Basic RTM Self-Commitment Period: [0, 4) in te current Trading Day. Super RTM Commitment Period: [0, 10) in te Current Trading Day. According to Rule #4(ii), since te lengt of te Basic RTM Self-Commitment Period (4 ours) is less tan te MUT of te resource (6 ours), te Self-Commitment period must be extended by 2 ours to te minimum of 6 ours. Tis extension process results in te MUT Extended RTM Self-Commitment Period [0, 6). Tis is illustrated in Figure 21. MUT = 6 MUT extended RTM Self-Commitment period Super RTM Commitment Period Extend to Basic RTM Self-Commitment period Figure 21: Illustration of Rule #4(ii) Version 17 Last Revised: April 1, 2011 Page D-39

174 BPM for Maret Operations Example 22 Generator Resource RTM Commitment type determination Rule # 4 (iii) MUT In tis example, te following assumptions are made as sown in Figure 2. MUT = 8 ours Basic RTM Self-Commitment Period: [3, 7) in te current Trading Day. On Time evaluated at te beginning of te Basic RTM Self-Commitment Period is 2 ours. Super RTM Commitment Period: [1, 11) in te Current Trading Day. According to Rule #4(iii), since te lengt of te Basic RTM Self-Commitment Period (4 ours) is less tan te MUT of te resource minus te On Time evaluated at te beginning of te Basic RTM Self-Commitment Period (6 ours), te Self-Commitment period must be extended by 2 ours to te minimum of 6 ours. Tis extension process results in te MUT Extended RTM Self-Commitment Period [3, 9). Tis is illustrated in Figure 22. MUT = 8 ON-TIME = 2 MUT - ON-TIME = 6 MUT extended RTM Self Commitment period Super RTM Commitment Period Extend to Basic RTM Self Commitment period Figure 22: Illustration of Rule #4(iii) Example 23 Generator Resource RTM Commitment type determination Rule # 4 (iv) MUT In tis example, te following assumptions are made as sown in Figure. MUT = 8 ours Basic RTM Commitment Period: [7, 14) wic is also a Super RTM Commitment Period in te current Trading Day. On Time evaluated at te beginning of te Basic RTM Commitment Period is zero. Version 17 Last Revised: April 1, 2011 Page D-40

175 BPM for Maret Operations According to Rule #4(iv), even toug te lengt of te commitment period is less tan te MUT of te resource minus te On time, te Basic RTM Self-Commitment Period is not extended, wic results in a MUT Extended RTM Self-Commitment Period [7, 14) even toug no extension was made. Te reason tat no extension is made is because te Basic RTM Commitment Period itself is a Super RTM Commitment Period; te MUT was not observed eiter because te maret participants bids were infeasible as to MUT or te RTM application failed to comply wit te MUT. Te MQS as a post process cannot extend te Basic Self- Commitment Period into intervals were te unit is Off. Tis is illustrated in Figure 23. MUT = 8 ON-TIME = 1 MUT extended RTM Self Commitment period Basic RTM SC period tat is also a Super RTM Self Commitment period Figure 23: Illustration of Rule #4(iv) Example 24 Generator Resource RTM Commitment type determination Rule 5 MUT In tis example, te following assumptions are made as sown in Figure. MUT = 12 ours On-time by 6/11/07 18:00 is 240 minutes (i.e., 4 ours) Super RTM Commitment Period [6/11/07 18:00, 6/11/07 24:00) in te RTM MUT Bactrac Window MDS Extended Self-Commitment Period [6/11/07 21:00, 6/11/07 24:00) Super RTM Commitment Period [00:00, 06:00) in te Current Trading Day (6/12/07) According to Rule 5, since te lengt of te Super RTM Commitment period in te Bactrac Window, wic is 6 ours, is less tan te (MUT - On-time) by X = 120 minutes or 2 ours, a MUT Extended Commitment period [00:00, 02:00) is defined in te current Trading Day. Te MUT Extended Commitment period [00:00, 02:00) is a portion of te MUT Extended RTM Self- Commitment period [6/11/07 21:00, 6/12/07 02:00) tat fits in te current Trading Day. Tis is illustrated in Figure 24. Version 17 Last Revised: April 1, 2011 Page D-41

176 BPM for Maret Operations MUT = 12 ON-TIME (s) = 240 (mins) Bactrac Window MUT extended RTM Self- Commitment period s m x e Figure 24: Illustration of Rule 5 Example 25 Generator Resource RTM Commitment type determination Rule 8 MDT In tis example, te following assumptions are made as sown in Figure. MDT = 9 ours Super RTM Commitment Period: [0, 24) in te current Trading Day. Disjoint and nonadjacent MUT Extended RTM Self-Commitment Periods : [0, 9) and [14, 23) According to Rule 8, since te two MUT Extended RTM Self-Commitment Periods are apart from eac oter by less tan te MDT of te resource, te two MUT extended RTM Self- Commitment Periods are merged to form a MDT Extended RTM Self-Commitment Period [0, 23). Tis is illustrated in Figure 25. MUT Extended Self- MUT Extended RTM Self- Commitment period Commitment period MDT = 9 L = 5 L MDT Extended RTM Self-Commitment period Super RTM commitment period Figure 25: Illustration of Rule 8 Version 17 Last Revised: April 1, 2011 Page D-42

177 BPM for Maret Operations Example 26 Generator Resource RTM Commitment type determination Rule 9 MDT In tis example, te following assumptions are made as sown in Figure. MDT = 9 ours MUT Extended RTM Self-Commitment Period: [05:00, 12:00) in te current Trading Day (6/12/07). Super RUC Commitment Period: [6/11/07 14:00, 6/11/07 21:00) in te RTM MDT Bactrac Window Super RTM Commitment Period: [6/11/07 14:00, 6/12/07 12:00) According to Rule 9, since te MUT Extended RTM Self-Commitment Period is apart from te disjoint, nonadjacent and earlier Super RUC Commitment Period by less tan te MDT of te resource, te start-time of te MUT Extended RTM Self-Commitment Period is extended to te beginning of te Current Trading Day. Tis extension process results in a MDT Extended RTM Self-Commitment Period [6/12/07 00:00, 6/12/07 12:00). Tis is illustrated in Figure 26. MDT Extended RTM Self- Commitment period MDT = 9 Super RUC Commitment Period MUT Extended Self- Commitment period Super RTM Commitment Period Figure 26: Illustration of Rule 9 Example 27 Generator Resource RTM Commitment type determination Rule 10 MDT In tis example, te following assumptions are made as sown in Figure. MDT = 9 ours MUT Extended RTM Self-Commitment Period: [5, 12) in te current Trading Day (6/12/07). Version 17 Last Revised: April 1, 2011 Page D-43

178 BPM for Maret Operations A disjoint, nonadjacent and earlier MDS Extended RTM Self-Commitment Period: [6/11/07 14:00, 6/11/07 21:00) in te RTM MDT Bactrac Window Super RTM Commitment Period: [6/11/07 15:00, 6/12/07 20:00) wic is intersected by bot te MUT Extended RTM Self-Commitment period and te MDS Extended RTM Self-Commitment period. According to Rule 10, since te MUT Extended RTM Self-Commitment Period is apart from te MDS Extended RTM Self-Commitment Period by less tan te current MDT of te resource, te start time of te MUT Extended Self-Commitment Period is extended to te beginning of te current trading day. Tis extension process results in a MDT Extended RTM Self-Commitment Period [6/12/07 00:00, 6/12/07 12:00). Tis is illustrated in Figure 27. MDS Extended RTM Self- Commitment period MDT Extended RTM Self- Commitment period MUT Extended Self- Commitment period MDT = Super RTM commitment period Figure 27: Illustration of Rule 10. Example 28 Generator Resource RTM Commitment type determination Rule 11 MDT In tis example, te following assumptions are made as sown in Figure. MDT = 9 ours MUT Extended RTM Self-Commitment Period: [4, 12) in te current Trading Day. A disjoint, nonadjacent and later Super RUC Commitment Period in te Current Trading Day: [20, 24) Version 17 Last Revised: April 1, 2011 Page D-44

179 BPM for Maret Operations Super RTM Self-Commitment Period: [4, 24) wic is intersected by bot te MUT Extended RTM Self-Commitment period and te Super RUC Commitment period detailed previously. According to Rule 11, since te MUT Extended RTM Self-Commitment Period is apart from te Super RUC Commitment Period by less tan te current MDT of te resource, te end time of te MUT Extended Self-Commitment Period is extended to te start-time of te Super RUC Commitment Period. Tis extension process results in a MDT Extended RTM Self-Commitment Period [4, 20). Tis is illustrated in Figure 28. MDT Extended RTM Self-Commitment period MDT = 9 MUT Extended RTM Self- Commitment period Super RUC Commitment period Super RTM commitment period 0 Figure 28: Illustration of Rule 11 Example 29 Generator Resource RTM Commitment type determination Rule 12 MDT In tis example, te following assumptions are made as sown in Figure MDT = 9 ours MUT Extended RTM Self-Commitment Period: [6/11/07 06:00, 6/11/07 21:00) in te current Trading Day. A disjoint, nonadjacent and later Super RUC Commitment Period in te RTM MDT Fortcoming Window: [6/12/07 02:00, 6/12/07 08:00) Super RTM Self-Commitment Period: [6/11/07 06:00, 6/11/07 24:00). According to Rule 12, since te MUT Extended RTM Self-Commitment Period is apart from te Super RUC Commitment Period by less tan te current MDT of te resource, te end time of te MUT Extended Self-Commitment Period is extended to te end of te current Trading Day. Version 17 Last Revised: April 1, 2011 Page D-45

180 BPM for Maret Operations Tis extension process results in a MDT Extended RTM Self-Commitment Period [6/11/07 06:00, 6/11/07 24:00). Tis is illustrated in Figure 29. MDT Extended RTM Self-Commitment period MUT Extended RTM Self- Commitment period MDT = 9 Super RUC Commitment period Super RTM commitment period Figure 29: Illustration of Rule 12 Example 30 Generator Resource RTM Commitment type determination Rule 15 MDS In tis example, te following assumptions are made as sown in Figure MDS = 1 Te resource was ON at te end of te previous Trading Day. Super RTM Commitment Period: [0, 24) in te current Trading Day. Super RUC Commitment Period: [0, 5) in te current Trading Day. MDT Extended RTM Self-Commitment Period: [7, 14) in te current Trading Day. MDT Extended RTM Self-Commitment Period: [17, 21) in te current Trading Day. According to Rule 15, since te total number of MDT Extended RTM Self Commitment Periods and teir disjoint and nonadjacent Super RUC Commitment Periods in te same trading Day is 3 wic is more tan (MDS + 1) = 2, te MDT Extended RTM Self-Commitment Period [7, 14) is extended to fill te smallest time gap [5, 7) wit te disjoint and nonadjacent Super RUC Commitment Period [0, 5) tat intersect te same Super RTM commitment Period. After tis extension process, te number of MDT Extended RTM Self-Commitment Periods or Super RUC Commitment Periods and teir disjoint and nonadjacent Super RUC Commitment Periods in te Trading Day is equal to ( MDS + 1) = 2.Tis extension process results in a MDS Extended Self-Commitment Period [5, 14). Tis is illustrated in Figure 30. Version 17 Last Revised: April 1, 2011 Page D-46

181 BPM for Maret Operations MDS = 1 ( MDS + 1 ) = 2 RUC 0 MDS Extended period MDT Extended MDT Ext Super RTM commitment period Figure 30: Illustration of Rule 15. Example 31 Generator Resource RTM Commitment type determination Rule 16 MDS In tis example, te following assumptions are made as sown in Figure. MDS = 2 Te resource was OFF at te end of te previous Trading Day. Super RTM Commitment Period: [0, 24) in te current Trading Day. Super RUC Commitment Period: [2, 7) in te current Trading Day. MDT Extended RTM Self-Commitment Period: [9, 15) in te current Trading Day. Super RUC Commitment Period: [18, 21) in te current Trading Day. According to Rule 16, since te total number of MDT Extended RTM Self Commitment Periods and teir disjoint and nonadjacent Super RUC Commitment Periods in te same trading Day is 3 wic is more tan te MDS (wic is 2) of te resource, te MDT Extended RTM Self- Commitment Period is extended to fill te smallest time gap [7, 9) wit te disjoint and nonadjacent Super RUC Commitment Period tat intersect te same Super RTM commitment Period [2, 7) to bring te number of MDT Extended RTM Self-Commitment Periods and teir disjoint and nonadjacent Super RUC Commitment Periods in te Trading Day to MDS (wic is 2). Tis extension process results in a MDS Extended Self-Commitment Period [7, 15). Tis is illustrated in Figure 31. Version 17 Last Revised: April 1, 2011 Page D-47

182 BPM for Maret Operations MDS = 2 2 RUC MDS Extended period MDT Extended RUC Super RTM commitment period Figure 31: Illustration of Rule 16. Example 32 Generator Resource RTM Commitment type determination Rule 18 BCR In tis example, te following assumptions are made as sown in Figure. MDS Extended RTM Self-Commitment Period: [0, 15) in te current Trading Day. Super RUC Commitment Period: [12, 21) in te current Trading Day. According to Rule 18, since te MDS Extended RTM Commitment Period intersects wit a Super RUC Commitment Period, te intersection is excluded from te MDS Extended RTM Commitment Period and te remaining MDS Extended RTM Commitment Period is te BCR RTM Self-Commitment Period i.e. [0, 12). Tis is illustrated in Figure 32. MDS extended commitment period BCR RTM SC period 0 12 Super RUC period Overlap Figure 32. Illustration of Rule 18. Example 33 - BCR for Pump Sutdown Cost Determination, Rule 32 BCR In tis example, a Super RTM Commitment Period in pumping mode comes to an end and tere is no Pump Cost Bid Component or Pump Self-Scedule Bid Component for te immediate our after te Pump sut-down. Terefore, te Pump sut-down is a BCR RTM Self-Commitment. See Figure 33 for an illustration. Tis is illustrated in Figure 33. Version 17 Last Revised: April 1, 2011 Page D-48

183 BPM for Maret Operations Super RTM Commitment Period in pumping mode Pump Sutdown is BCR RTM Self-Commitment Figure 33: Illustration of Rule # 32 Example 34- BCR for Pump Sutdown Cost Determination, Rule 33 BCR In tis example, a Super RTM Commitment Period in pumping mode comes to an end and te unit as a Basic RTM Self-Commitment Period in generating mode starting witin te MDT after te pump sutdown. Terefore, te Pump sut-down is a BCR RTM Self-Commitment. Tis is illustrated in Figure 34. MDT = 5 Super RTM Commitment Period in pumping mode 4 12 Basic RTM Self-Commitment Period in generating mode Pump Sutdown is BCR RTM Self-Commitment Figure 34: Illustration for Rule #33 D.7. IFM/RUC/RTM Start-up Cost/Pump Sut-down Cost and Minimum Load Cos/Pumping Cost Determination After te determination of ISO commitment versus self commitment period, te eligible Start-up Cost (SUC), eligible pump sut-down cost (PSDC), te eligible Minimum Load Cost (MLC) and te eligible Pumping Cost (PC) for eac CAISO committed interval in eiter IFM, RUC, or RTM will need to be calcualted. As a by-product, te SUC/PSDC and MLC/PC eligibility flags for IFM, RUC, and RTM. Te eligibility flag is a Y/N flag. Version 17 Last Revised: April 1, 2011 Page D-49

184 BPM for Maret Operations Te determination of commitment cost will include te generating resources including Pumped- Storage Hydro Units as well as te participating loads (pumps tat are dispatcable) and tie generators. D.7.1. Inputs Data Requirements -- Te ISO versus self commitment periods are determined by business rules described in sections D2 to D6. ISO Commitment Period of IFM, RUC, RTM Hourly in IFM, RUC, 15 minutes in RTM; All generators except Pumped-Storage Hydro Units can be committed in on-line or offline in IFM, RUC, RTM; All Pumped-Storage Hydro Units can be committed in pumping mode, generation mode or offline mode in IFM, RUC, RTM except tere is no pumping mode commitment in RUC; All Participating Loads can be committed in pumping mode or offline mode in IFM and RTM. Self-Commitment Period of IFM and RTM (no self commit in RUC) Hourly in IFM, 15 minutes in RTM; Same rules apply regarding various resources as ISO Commitment except tat tere is no self-commit in RUC. Start-up Time (All Generators) Minimum Load Cost (All Generators) Hourly $ value per resource Startup Cost (All Generators) $ value per startup Pumping Cost (Pumped-Storage Hydro Units and Participating Loads) Version 17 Last Revised: April 1, 2011 Page D-50

185 BPM for Maret Operations Hourly $ value per resource Pump Sut-down cost (Pumped-Storage Hydro Units and Participating Loads) $ value per pump sut-down Real-time Start-up/Sut-down Instructions including exceptional dispatc commitment instructions RUC Start-up Instructions Outputs BCR Eligible SUC ($) per resource, per settlement interval, per maret type BCR Eligible MLC ($) per resource, per settlement interval, per maret type BCR Eligible PSDC ($) per resource, per settlement interval, per maret type BCR Eligible PC ($) per resource, per settlement interval, per maret type SUC Eligibility flag per resource, per settlement interval, per maret type PSDC Eligibility flag per resource, per settlement interval, per maret type MLC Eligibility flag per resource, per settlement interval, per maret type PC Eligibility flag per resource, per settlement interval, per maret type D.7.2. Some Bacground Information Following description focuses on explanation of te difference between generation and pumping. Applicability A start-up cost/minimum load cost settlement applies to generators and Pumped-Storage Hydro Units in generation mode. Tose resources can be committed in IFM, RUC or RTM. Version 17 Last Revised: April 1, 2011 Page D-51

186 BPM for Maret Operations A sutdown cost/pumping cost settlement applies to Pumped-Storage Hydro Units in pumping mode and Participating Load (Pumps). Tose resources can be committed in IFM or RTM, not RUC. Minimum Load Cost VS Pumping Cost Te concept of pumping cost is te same as minimum load cost except tat te resource runs at an energy consumption level. Te business rules for determining te eligibility for pumping load cost is te same as for minimum load cost. In te following business rules, we will use te minimum load cost as te term representing bot minimum load cost in generation mode and pumping cost in pumping mode. Start-Up Cost VS Sut down Cost A start-up cost settlement applies to generators and Pumped-Storage Hydro Units in generation mode. Tose resources can be committed in IFM, RUC or RTM. A sutdown cost settlement ONLY applies to Pumped-Storage Hydro Units in pumping mode and Participating Load. In te following description, we will simply use te term Pump to refer to a participating load (a real pump) or a Pumped-Storage Hydro Unit in pumping mode. Pump sutdown cost is used to recover te cost associated wit tose resources wen tey are committed to be sutdown by CAISO wile tey are in pumping mode. A sutdown of a pump differs from a startup of a generator in te following perspective: 1.A sutdown of Pump appens immediately and ence te sutdown time period concept will not be applied; 2.Te concept of minimum load cost to pump is really te pumping cost as described before; 3.Tere is no pump sutdown in RUC and ence tere is no need to deal wit RUC sutdown cost. Version 17 Last Revised: April 1, 2011 Page D-52

187 BPM for Maret Operations A sutdown of a pump is similar to a startup of a generator in te following perspective: 1. A pump is associated wit te sutdown cost as part of te bid just lie te startup cost. However, a sutdown cost is only one single value wile a startup cost is an up to tree tiers of step functions based on cooling time; 2. CAISO only pays te pump sutdown due to CAISO commitment reason. CAISO will not pay sutdown cost if te pump is self-committed. Some clarifications related to Sut-down: DA Sut-down: For a pump, wen we "turn off" a pump in DA, we do NOT explicitly ave a pump Sut-down instruction. Te fact tat a pumping mode our followed by an offline mode our will implicitly tell tat te pump was determined to be "sut down" in DA; For a pumping storage resource, it is similar. RT Sut-down: For a pump, wen we "turn off" a pump in RT, we do EXPLICITLY ave a pump Sut-down instruction; For a Pumped-Storage Hydro Unit, it is te same except tat it is also possible we see a 15- minute in pumping mode followed by a 15-minute interval in generation or off-line mode. Interim Participating Load modeling in MRTU release 1: Since we model some of te pumps using a non-participating load and a pseudo-generating resource in MRTU release 1, for tese pumps, te pumping cost will be modeled as te minimum load cost of te pseudo-generator and te pump sutdown cost will be modeled as te startup cost of te pseudo-generator. Version 17 Last Revised: April 1, 2011 Page D-53

188 BPM for Maret Operations Exceptional Dispatc Sut-down: It is possible to issue an OOS (exceptional dispatc) commitment instruction to Sut-down a pump in RTM. D.7.3. Business Rules for Cost Calculation For all start-up and sut-downs, CAISO will cec te meter data to determine weter tis actually appens before applying appropriate BCR amount. Tis logic is described in BPM section for settlement. Following rules describe ow to calculate te potential eligibility and $ amount for evaluation before comparison of te revenue meter data. For Multi-Stage Generating Resources, te following rules apply at te MSG Configuration level, and do so in conjunction wit te Multi-Stage Generating Resource specific rules described in section D7.4. In following rules, wen commitment periods are mentioned, it is always referring to ISO commitment period. A self commitment period will be specified mentioned as self commitment period. Business Rules for IFM Start-Up Cost Te IFM Start-Up Cost for any IFM Commitment Period sall equal to te Start-Up Costs submitted by te Sceduling Coordinator to te CAISO for te IFM divided by te number of Settlement Intervals in te applicable IFM Commitment Period. For eac Settlement Interval, only te IFM Start Cost in a CAISO IFM Commitment Period is eligible for Bid Cost Recovery. Te following rules sall apply sequentially to qualify te IFM Start-Up Cost in an IFM Commitment Period: 1. Te IFM Start-Up Cost for an IFM Commitment Period sall be zero if it is overlapped wit or adjunction to an IFM Self-Commitment Period. 2. Te IFM Start-Up Cost for an IFM Commitment Period sall be zero if te Bid Cost Recovery Eligible Resource is manually pre-dispatced under an RMR Contract prior to te Day-Aead Maret or te resource is flagged as an RMR Dispatc in te Day-Aead Scedule in te Day- Aead Maret anywere witin te applicable IFM Commitment Period. Version 17 Last Revised: April 1, 2011 Page D-54

189 BPM for Maret Operations 3. Te IFM Start-Up Cost for an IFM Commitment Period sall be zero if tere is no actual Start- Up at te start of te applicable IFM Commitment Period because te IFM Commitment Period is te continuation of an IFM or RUC Commitment Period from te previous Trading Day. 4. Te IFM Start-Up Cost for an IFM Commitment Period sall be zero if te Start-Up is delayed by te Real-Time Maret past te IFM Commitment Period in question or cancelled by te Real- Time Maret before te startup process as started. 5. If an IFM Start-Up is terminated in te Real-Time witin te applicable IFM Commitment Period troug an Exceptional Dispatc Sut-Down Instruction issued wile te Bid Cost Recovery Eligible Resource was Starting Up, te IFM Start-Up Cost for tat IFM Commitment Period sall be prorated by te ratio of te Start-Up time before termination over te total IFM Start-Up time. Business Rules for IFM Minimum Load Cost/Pumping Cost Te Minimum Load Cost for te applicable Settlement Interval sall be te Minimum Load Cost/Pumping Cost submitted to te CAISO in te IFM divided by te number of Settlement Intervals in a Trading Hour. For eac Settlement Interval, only te IFM Minimum Load Cost in a CAISO IFM Commitment Period is eligible for Bid Cost Recovery. Te IFM Minimum Load Cost/Pumping Cost for any Settlement Interval is zero if: 1. Te Settlement Interval is in an IFM Self Commitment Period for te Bid Cost Recovery Eligible Resource; 2. Te Bid Cost Recovery Eligible Resource is manually pre-dispatced under an RMR Contract prior to te Day-Aead Maret or te resource is flagged as an RMR Dispatc in te Day-Aead Scedule for te applicable Settlement Interval; Business Rules for RUC Start-Up Cost Te RUC Start-Up Cost for any Settlement Interval in a RUC Commitment Period sall consist of Start-Up Cost of te Bid Cost Recovery Eligible Resource submitted to te CAISO for te applicable RUC Commitment Period divided by te number of Settlement Intervals in te applicable RUC Commitment Period. For eac Settlement Interval, only te RUC Start Cost in a Version 17 Last Revised: April 1, 2011 Page D-55

190 BPM for Maret Operations CAISO RUC Commitment Period is eligible for Bid Cost Recovery. Te following rules sall be applied in sequence and sall qualify te RUC Start-Up Cost in a RUC Commitment Period: 1. Te RUC Start-Up Cost for a RUC Commitment Period is zero if it is overlapped wit or adjunction to an IFM Commitment Period witin tat RUC Commitment Period. 2. Te RUC Start-Up Cost for a RUC Commitment Period is zero if te Bid Cost Recovery Eligible Resource is manually pre-dispatced under an RMR Contract prior to te Day-Aead Maret or is flagged as an RMR Dispatc in te Day-Aead Scedule anywere witin tat RUC Commitment Period. 3. Te RUC Start-Up Cost for a RUC Commitment Period is zero if tere is no RUC Start-Up at te start of tat RUC Commitment Period because te RUC Commitment Period is te continuation of an IFM or RUC Commitment Period from te previous Trading Day. 4. Te RUC Start-Up Cost for a RUC Commitment Period is zero if te Start-Up is delayed beyond te RUC Commitment Period in question or cancelled by te Real-Time Maret prior to te Bid Cost Recovery Eligible Resource starting its start-up process. 5. If a RUC Start-Up is terminated in te Real-Time witin te applicable RUC Commitment Period troug an Exceptional Dispatc Sut-Down Instruction issued wile te Bid Cost Recovery Eligible Resource is starting up te, RUC Start-Up Cost is prorated by te ratio of te Start-Up Time before termination over te RUC Start-Up Time. 6. If a Sort Start unit is committed by CAISO in Real Time as a result of its RUC capacity but does not ave a Day Aead Scedule, te commitment type will also be considered a CAISO RUC commitment. Business Rules for RUC Minimum Load Cost -- No Pumping Cost will be incurred in RUC Te Minimum Load Cost for te applicable Settlement Interval sall be te Minimum Load Cost of te Generating Bid Cost Recovery Eligible Resource divided by te number of Settlement Intervals in a Trading Hour. For eac Settlement Interval, only te RUC Minimum Load Cost in a Version 17 Last Revised: April 1, 2011 Page D-56

191 BPM for Maret Operations CAISO RUC Commitment Period is eligible for Bid Cost Recovery. Te RUC Minimum Load Cost for any Settlement Interval is zero if: 1. Te Bid Cost Recovery Eligible Resource is manually pre-dispatced under an RMR Contract or te resource is flagged as an RMR Dispatc in te Day-Aead Scedule in tat Settlement Interval; 2. Te applicable Settlement Interval is included in an IFM Commitment Period. Business Rules for RTM Start-Up Cost For eac Settlement Interval of te applicable Real-Time Maret Commitment Period, te Real- Time Maret Start-Up Cost sall consist of te Start-Up Cost of te Generating Bid Cost Recovery Eligible Resource submitted to te CAISO for te Real-Time Maret divided by te number of Settlement Intervals in te applicable Real-Time Maret Commitment Period. For eac Settlement Interval, only te Real-Time Maret Start-Up Cost in a CAISO Real-Time Maret Commitment Period is eligible for Bid Cost Recovery. Te following rules sall be applied in sequence and sall qualify te Real-Time Maret Start-Up Cost in a Real-Time Maret Commitment Period: 1. Te Real-Time Maret Start-Up Cost is zero if it is overlapped wit or adjunction to a Real- Time Maret Self-Commitment Period. 2. Te Real-Time Maret Start-Up Cost is zero if te Bid Cost Recovery Eligible Resource as been manually pre-dispatced under an RMR Contract or te resource is flagged as an RMR Dispatc in te Day-Aead Scedule or Real-Time Maret anywere witin tat Real-Time Maret Commitment Period. 3. Te Real-Time Maret Start-Up Cost is zero if tere is no Real-Time Maret Start-Up at te start of tat Real-Time Maret Commitment Period because te Real-Time Maret Commitment Period is te continuation of an IFM or RUC Commitment Period from te previous Trading Day. 4. If a Real-Time Maret Start-Up is terminated in te Real-Time witin te applicable Real-Time Maret Commitment Period troug an Exceptional Dispatc Sut-Down Instruction issued Version 17 Last Revised: April 1, 2011 Page D-57

192 BPM for Maret Operations wile te Bid Cost Recovery Eligible Resource is starting up te Real-Time Maret Start-Up Cost is prorated by te ratio of te Start-Up Time before termination over te Real-Time Maret Start-Up Time. Business Rules for RTM Minimum Load Cost/Pumping Cost Te Real-Time Maret Minimum Load Cost is te Minimum Load Cost/Pumping Cost of te Bid Cost Recovery Eligible Resource submitted to te CAISO for te Real-Time Maret divided by te number of Settlement Intervals in a Trading Hour. Te Real-Time Maret Minimum Load Cost/Pumping Cost for any Settlement Interval is zero if: 1. Te Settlement Interval is included in a Real-Time Maret Self Commitment period for Bid Cost Recovery Eligible Resource; 2. Te Bid Cost Recovery Eligible Resource as been manually dispatced under an RMR contract or te resource as been flagged as an RMR Dispatc in te Day-Aead Scedule or te Real-Time Maret in tat Settlement Interval; 3. Tat Settlement Interval is included in an IFM or RUC Commitment Period in generation mode for MLC or pumping mode for PC Business Rules for IFM Sut-down Cost An IFM Sut-down Period is defined as te our in wic a pump Sut-down is to occur. Te Sut-down is implied and terefore te IFM Sut-down Period will be te immediate our following te last commitment our in pumping mode before te switc ; Te IFM Sut-down Cost for a settlement interval witin an IFM Sut-down Period sall equal to te Sut-down Costs submitted by te Sceduling Coordinator to te CAISO for te IFM divided by te number of Settlement Intervals in te IFM Sut-down Period. For eac Settlement Interval, only te IFM Sut-down Cost in an IFM Sut-down Period is eligible for Bid Cost Recovery. Te following rules sall apply sequentially to qualify te IFM Sut-down Cost in an IFM Sut-down Period: Version 17 Last Revised: April 1, 2011 Page D-58

193 BPM for Maret Operations 1. Te IFM Sut-down Cost for an IFM Sut-down Period sall be zero if it is followed by an IFM or RT self commitment period in generation mode or offline mode; 2. Te IFM Sut-down Cost for an IFM Sut-down Period sall be zero if it is due to a SLIC outage; 3. Te IFM Sut-down Cost for an IFM Sut-down Period sall be zero if te Sut-down is delayed by te Real-Time Maret past te IFM Sut-down Period in question or cancelled by te Real-Time Maret before te sut-down process as started. Tis can be detected by aving te same our in DA pumping mode and RT Generation/Off-line, Or DA pumping mode followed by Real-time pumping in te following our. Business Rules for RTM Sut-down Cost A RTM Sut-down Period is defined as te our witin wic a real-time sut down instruction will occur if te sutdown time is witin te our, Or te immediate our following te instruction if te sutdown time is at an ourly boundary. Te RTM Sut-down Cost for a settlement interval witin a RTM Sut-down Period sall equal to te Sut-down Costs submitted by te Sceduling Coordinator to te CAISO for te RTM divided by te number of Settlement Intervals in te RTM Sut-down Period. For eac Settlement Interval, only te RTM Sut-down Cost in a RTM Sut-down Period is eligible for Bid Cost Recovery. Te following rules sall apply sequentially to qualify te RTM Sut-down Cost in a RTM Sut-down Period: 1. Te RTM Sut-down Cost for a RTM Sut-down Period sall be zero if it is followed by a RTM self commitment period in generation mode or offline mode; 2. Te RTM Sut-down Cost for a RTM Sut-down Period sall be zero if it is due to a SLIC outage; D.7.4. Business Rules for Cost Calculation for Multi-Stage Generating Resources Version 17 Last Revised: April 1, 2011 Page D-59

194 BPM for Maret Operations Bot commitment type determination and AUX process will be executed at te MSG Configuration level for Multi-Stage Generating Resources. Below is an outline of te logic for commitment type determination for resources: For MSG Configurations pertaining to CAISO Tariff sections , , teir commitment types will be determined using te existing logic for non MSG resources described in Section D2, D3, D4 and D6. Te application of te business rules is based on eac individual MSG Configuration s data wit te following specific rules for MSG Generating Resources: o o o o During a transition from one configuration to anoter configuration, te transition period is considered as part of te From MSG Configuration s Commitment Period. For te To MSG Configuration, te commitment period does not include te transition period. Instead it starts at te end of te transition period. For eac MSG Configuration, te self-commitment period extension logic is applicable only wen it is active and te resource is online. Wen applying te self commitment period extension rules in D6.2, te Minimum Run Time and Minimum Down Time for bot te Multi-Stage Generating Resource plant level and individual MSG Configuration level will be used. Pertaining to CAISO Tariff sections , and , te logic for te BCR consideration and allocation of te Commitment Costs (Start-Up Cost, Minimum Load Cost and Transition Cost) is as follows: Te logic in determining/distributing te Minimum Load Cost and Start-Up Cost for Multi- Stage Generating Resources is te same as tat for non-multi-stage Generating Resources except tat te Minimum Load Cost and Start-Up Cost will be allocated to te qualified MSG Configuration s CAISO Commitment Period.. Te rules for BCR qualifications for te MSG Configuration s CAISO Commitment Period are sown below. Te Transition Cost will be determined based on weter te To MSG Configuration is CAISO committed or not. Te Transition Cost amount is te Transition Cost registered for te transition related to te From MSG Configuration and To MSG Configuration. Version 17 Last Revised: April 1, 2011 Page D-60

195 BPM for Maret Operations Transition Cost is allocated to te CAISO Commitment Period of te To MSG Configuration. Te rules for BCR qualifications for te MSG Configuration s CAISO Commitment Period are sown below. For te MSG Configurations, wen starting up from offline to an MSG Configuration, te Start- Up Cost pertaining to tat MSG Configuration applies for BCR qualification, and tere are no Transition Costs applied.. Wen transitioning between any two MSG Configurations, since te resources are not offline, te Transition Costs will apply for BCR qualification, wereas Start-Up Costs will not apply. Te rules for BCR qualifications for CAISO Commitment Period MSG Configurations (applicable to Start-Up Cost, Minimum Load Cost and Transition Cost), re-stated from te CAISO tariff section , are as follows: For te settlement of te Multi-Stage Generating Resource Start-Up Cost, Minimum Load Cost, and Transition Cost in te IFM, RUC, and RTM, te CAISO will select te applicable Start-Up Cost, Minimum Load Cost, and Transition Cost based on te following rules. (1) In any given Settlement Interval, te CAISO will first apply te following rules to determine te applicable Start-Up Cost, Minimum Load Cost, and Transition Cost for te Multi-Stage Generating Resources. For a Commitment Period in wic te: (a) IFM Commitment Period and/or RUC Commitment Period MSG Configuration(s) are different tan te RTM CAISO Commitment Period MSG Configuration, te Multi- Stage Generating Resource s Start-Up Cost, Minimum Load Cost, and Transition Cost will be settled based on te RTM CAISO Commitment Period MSG Configuration Start- Up Cost, Minimum Load Cost, and Transition Cost as described in Section (b) IFM CAISO Commitment Period and/or RUC CAISO Commitment Period MSG Configuration(s) and tere is a RTM Self-Commitment Period in any MSG Configuration, te Multi-Stage Generating Resource s Start-Up Cost, Minimum Load Cost, and Transition Cost will be settled based on te IFM CAISO Commitment Period and/or RUC CAISO Commitment Period MSG Configuration(s) Start-Up Cost, Minimum Load Cost, and Transition Cost, as described in Sections and , and furter determined pursuant to part (2) of tis Section below. Version 17 Last Revised: April 1, 2011 Page D-61

196 BPM for Maret Operations (c) IFM CAISO Commitment Period and/or RUC CAISO Commitment Period MSG Configuration is te same as te RTM CAISO Commitment Period MSG Configuration, te Multi-Stage Generating Resource s Start-Up Cost, Minimum Load Cost, and Transition Cost will be settled based on te IFM CAISO Commitment Period and/or RUC CAISO Commitment Period MSG Configuration(s) Start-Up Cost, Minimum Load Cost, and Transition Cost for te, described in Sections and , and furter determined pursuant to part (2) of tis Section below. (d) IFM and RUC Self-Commitment Period MSG Configuration(s) are te same as te RTM CAISO Commitment Period MSG Configuration, ten te Multi-Stage Generating Resource s Start-Up Cost, Minimum Load Cost, and Transition Cost will be settled based on te RTM CAISO Commitment Period MSG Configuration Start-Up Cost, Minimum Load Cost, and Transition Cost for as described in Section (2) In any given Settlement Interval, after te rules specified in part (1) above of tis Section ave been executed, te ISO will apply te following rules to determine weter te IFM or RUC Start-Up Cost, Minimum Load Cost, and Transition Cost apply for Multi- Stage Generating Resources. For a Commitment Period in wic te: (a) IFM Commitment Period MSG Configuration is different tan te RUC CAISO Commitment Period MSG Configuration tan, ten te Multi-Stage Generating Resource s Start-Up Cost, Minimum Load Cost, and Transition Cost will be settled based on te RUC CAISO Commitment Period MSG Configuration Start-Up Cost, Minimum Load Cost, and Transition Cost as described in Section (b) IFM CAISO Commitment Period MSG Configuration is te same as te RUC Commitment Period MSG Configuration, te Multi-Stage Generating Resource s Start- Up Cost, Minimum Load Cost, and Transition Cost will be based on te IFM CAISO Commitment Period MSG Configuration Start-Up Cost, Minimum Load Cost, and Transition Cost for te, as described in Section Version 17 Last Revised: April 1, 2011 Page D-62

197 BPM for Maret Operations D.7.4. Business Rules Cange for Convergence Bidding Bid Cost Recovery costs related to Sort Start Units committed by CAISO in te Real- Time as a result of awarded RUC capacity will be included in RUC Compensation Costs. Te applicable Trading Hours are tose for wic te Sort Start Units ave a non-zero RUC Award but no Day-Aead Scedule. Version 17 Last Revised: April 1, 2011 Page D-63

198 BPM for Maret Operations Attacment E

199 BPM for Maret Operations E. Price Corrections Mae Wole Payments Te following attacment presents furter details in support of te CAISO Tariff section Price Corrections Mae Wole Payments, CAISO Demand and Exports. Te following attacment only describes te mecanism to calculate mae wole payments for pysical demand and exports. Altoug Virtual Bids are also subject to mae wole payment using te same principle as described below, it is performed in a different fasion. Refer to BPM for Settlement and Billing for te related carge code canges for Virtual Bid mae wole payments. Correction Overview Te Mae Wole payment mecanism is designed to compensate maret participants for adverse financial impacts wen prices are corrected in a way tat is not consistent wit accepted Demand bids. If te LMP Price Correction team corrects an LMP in te upward direction tat impacts Demand in te Day-Aead Maret or HASP marets suc tat te a maret participant s Demand or Export Bid curve becomes uneconomic, ten te CAISO will calculate a Mae Wole Price Correction. Te Mae Wole Price Correction will be calculated as follows: Te total cleared MWs of CAISO Demand or Export in te Day-Aead Scedule or HASP Intertie Scedule, as applicable, multiplied by te Derived LMP (or corrected) LMP, minus te mae-wole payment amount, all of wic is divided by te total cleared MWs of CAISO Demand or Export in te Day-Aead Scedule or HASP Intertie Scedule, as applicable. Specifically, te Mae Wole payment amount will be calculated on an ourly basis determined by te area between te resource s CAISO Demand or Export Bid curve and te Derived LMP, wic is calculated as te MWs in eac of te cleared bid segments in te Day-Aead Scedule or HASP Intertie Scedule for te affected resource, multiplied by te maximum of zero or te corrected LMP minus te bid segment price. Te following summarizes te Mae Wole Price Correction: Day Aead price corrections performed by te LMP Price Correction team can render an accepted bid uneconomic. Supply resources use te Bid Cost Recovery metod to recoup any un recovered cost Mae Wole will only apply if: Version 17 Last Revised: April 1, 2011 Page E-1

200 BPM for Maret Operations Price increases Only for te portion of bid rendered uneconomic Applies to DA Demand and Exports and HASP Exports Mae Wole Calculation Elements Te elements of te Mae Wole Price Correction are described in tis section. Definition of Bid Portion Rendered Uneconomic For te portion of Bid tat is rendered uneconomic, will be carged te equivalent of as-bid, instead of te corrected price. Figures 1 and 2 represent two examples of Mae Wole payments as defined by difference levels of price corrections and different levels of were teir bid is uneconomic: ($/MW) $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 Demand Bid Curve Mae-wole payment Corrected Price Original Price $ (MW) Figure 2. Price Correction from $20 to $80 Version 17 Last Revised: April 1, 2011 Page E-2

201 BPM for Maret Operations ($/MW) $80.00 Demand Bid Curve $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 Mae-wole payment Corrected Price Original Price $ (MW) Figure 3. Price Correction from $20 to $60 Mae Wole Price Correction Detailed Examples Two examples of te Mae Wole Price Correction are described in tis section. In Example 1, suppose te DA price is corrected from $23 to $85 and te original bid was accepted for 500MW, and none of wic was economic after price correction. Te following would occur: Demand resource will initially be set at te new LMP; Te Mae Wole Price Correction will calculate ow muc was over carged (stripped area in Figure 1) and subtracted from settlement wit new LMP; A Derived LMP will be set reflecting te uneconomic portion; Te Derived LMP will be sent to Settlements in CC 6011 (or 6051) and reflected on te Demand resource s initial settlement statement. Figures 3 represents te elements in tis example: Version 17 Last Revised: April 1, 2011 Page E-3

202 BPM for Maret Operations Figure 3. Example 1 Price Correction from $23 to $85 and Bid Curve Example 1 calculation is performed as follows: Carge from Ex-post LMP settlement = 300*$85=$25500 If te final energy scedule MW is greater tan or equal to te iger end of te bid segment MW range, ten te entire bid segment counts: Mae Wole Payment $ = Max(0, (iger end of bid segment lower end of te bid segment) * (Ex-post LMP bid price)) Version 17 Last Revised: April 1, 2011 Page E-4

203 BPM for Maret Operations Calculate te $ = (50MW-0MW)* ($85-$80) + (100MW-50MW)*($85-$70) + (150MW-100MW)*($85-$60) + (200MW-150MW)*($85-$50) + (250MW- 200MW)*($85-$40) + (300MW-250MW)*($85-$30) $9000 = $250+$750+$1250+$1750+$2250+$2750 = Mae wole payment Settlement minus Mae-Wole payment: $25500-$9000 = $16500 Implicit LMP = $16500/300MW = $55/MW In Example 2, suppose te DA price is corrected from $23 to $55 and te original bid was accepted for 500MW, and only a portion of wic was economic after price correction. Te following would occur: Version 17 Last Revised: April 1, 2011 Page E-5

204 BPM for Maret Operations Figure 4. Example 2 Price Correction from $23 to $55 and Bid Curve Example 2 calculation is performed as follows: Carge from Ex-post LMP settlement = 300*$55=$16500 If te final energy scedule MW is less tan te iger end of te bid segment MW range, ten only te range between te lower end and te scedule MW counts, Mae Wole Payment $ = Max(0, (Final scedule MW lower end of te bid segment MW) * (Ex-post LMP bid price)) Version 17 Last Revised: April 1, 2011 Page E-6