Business Requirements Specification

Transcription

1 Business Requirements Specification Pay For Performance Regulation Page 1 of 51

2 Revision History Date Version Description Author 04/29/ Add in the enhancements in the EMS mileage calculation based on production AGC data experiences, 1. Based on the latest policy verification, refine the boundary conditions when previous AGCs are equal in adjusted mileage calculation: BRQ024 and BRQ025; 2. Based on production EMS data, a threshold is introduced to detect the small movement situation where there is no real AGC. Clarification is also made for intervals without regulation capacities. (BRQ017); 3. Based on stake holders requests, put in the description of the 4-second DOP calculation logic that exists in current EMS functionality. This is to support their shadow settlement purpose (BRQ020); 5/10/2013 Updated BRQ-017 For regulation up, If (Abs(Max(0, AGC set point DOP))) < Max(0.1% * Regulation Up Capacity, 0.1MW), Then no calculation for the regulation up mileage and accuracy for that 4-second. Essentially NULL for that 4-second; For regulation down, If (Abs(Min(0, AGC set point DOP))) < Max(0.1% * Regulation Down Capacity, 0.1MW), Then no calculation for the regulation down mileage and accuracy for that 4-second. Essentially NULL for that 4-second; Mileage continues to be calculated for those intervals. The 0.1% and 0.1MW Copyright 2012 California ISO Page 2 of 51

3 Table of Contents 1. INTRODUCTION PURPOSE REFERENCES DETAILS OF BUSINESS NEED/PROBLEM DESCRIPTION BUSINESS PROCESS IMPACTS HIGH LEVEL BUSINESS PROCESS Description ASSUMPTIONS & CONSTRAINTS BUSINESS REQUIREMENTS BUSINESS PROCESS: MANAGE RESOURCE PERFORMANCE VERIFICATION Business Requirements BUSINESS PROCESS: MANAGE SC REQUESTED RESOURCE TESTING Business Requirements BUSINESS PROCESS: MANAGE ENTITY & RESOURCE MAINTENANCE UPDATES Business Requirements BUSINESS PROCESS: MANAGE REAL-TIME OPERATION Business Requirements BUSINESS PROCESS: MANAGE REGULATION MILEAGE Business Requirements BUSINESS PROCESS: MANAGE GENERATION OUTAGE Business Requirements BUSINESS PROCESS: MANAGE DAY-AHEAD PROCESS Business Requirements BUSINESS PROCESS: MANAGE REAL-TIME PROCESS Business Requirements BUSINESS PROCESS: MANAGE BILLING AND SETTLEMENTS Business Requirements BUSINESS PROCESS: MANAGE PRICE CORRECTION Business Requirements BUSINESS PROCESS: MANAGE PRICE VALIDATION Business Requirements BUSINESS PROCESS: MANAGE ANALYSIS DISPUTE AND RESOLUTION Business Requirements BUSINESS PROCESS: MANAGE MARKET PERFORMANCE (MAD) Business Requirements BUSINESS PROCESS: MANAGE MARKET PERFORMANCE (DMM) Business Requirements BUSINESS PROCESS: DEVELOP TRAINING Business Requirements BUSINESS PROCESS: METRICS AND PERFORMANCE CRITERIA Business Requirements BUSINESS PROCESS: INFORMATION SECURITY ADHERENCE Copyright 2012 California ISO Page 3 of 51

4 Business Requirements BUSINESS PROCESS: MARKET MONITORING AND REPORTING Business Requirements LIST OF SYMBOLS Copyright 2012 California ISO Page 4 of 51

5 1. Introduction 1.1 Purpose The purpose of this document is to provide users and stakeholders with high-level business requirements for the project. The information in this document will serve as inputs to determine the scope of information systems changes to implement the project and to all business process modeling and system requirements specifications efforts. These requirements will serve as the initial set of business unit requirements for the appropriate software application/systems development effort. The ISO s information technology services (ITS) department will identify additional requirements and systems analysis and may produce To Be business process models, system requirements specifications, and use cases to serve as the set of requirements documents used by the ITS development teams to buy, modify, or build the necessary software and hardware systems References [1] Pay for Performance Regulation Draft Final Proposal Addendum, February 22, 2012 is located in [2] Board materials for Pay for Performance Regulation are located in %20relevant%20market%20notices [3] ISO tariff filing is located in [4] ISO answers to comments are located in 2. Details of Business Need/Problem 2.1 Description On October 20, 2011, the Federal Energy Regulatory Commission adopted a final rule (FERC Order 755) to remedy what FERC identifies as undue discrimination in the procurement of frequency regulation in the organized wholesale electric markets and ensure that providers of frequency regulation receive just and reasonable and not unduly discriminatory or preferential rates. The final rule requires a two part payment for frequency regulation: (1) a payment for regulation capacity and (2) a payment for performance of the resource in response to a regulation signal. The ISO has proposed to comply with FERC s direction by developing a mileage payment based upon the automatic generation control (AGC) set points given to a resource and an accuracy adjustment based on the resource s actual response to these AGC set points. FERC s order adopting the final rule requires a compliance filing with proposed tariff language by April 30, 2012, and implementation in October Due to the extensive changes to the business Copyright 2012 California ISO Page 5 of 51

6 processes and software systems that are required to implement this FERC order, the ISO has requested an implementation date in the Spring of Business Process Impacts 3.1 High Level Business Process Description This project for implementing FERC 755 is referred to as Pay For Performance Regulation (PFPR) in this document. This project involves accepting a new regulation mileage bid, validating the mileage bid, determining mileage prices and mileage awards, calculating payments and charges, and releasing information to the market. Therefore, the project affects most of the business processes from bid to bill. A high level summary of the business process impact is provided in the table below. The sections of the PFPR final proposal that impact the process are listed under the process name in the table. Process Manage Entity & Resource Maintenance Updates ( 8.4, 8.5) Manage Resource Verification ( 8.4, 8.5) Manage SC-Requested Resource Testing ( 8.4, 8.5) Day Ahead Process ( 6.1, 6.2, 6.3) Impact Add a regulation up certification flag and a regulation down certification flag. Update these flags for regulation resources after a resource completes regulation testing. Add a monthly event to check the Historic Regulation Performance Accuracy against the threshold (50% at go-live). Notify the SC if a resource falls below the threshold. Trigger regulation disqualification if the resource fails to recertify within 90 days. Change regulation certification testing procedure: The maximum regulation capacity shall be determined using 10-minute ramping capability. The SIBR system shall accept and validate mileage bids, including: Set mileage bid validation parameters (e.g. floor, ceiling) Accept and validate bids Generate bid ($0) if necessary Release clean bids The system shall compute mileage clearing price and awards, including: Calculate the mileage requirements Generate mileage bid function Formulate the optimization problem including mileage in objective function and constraints Solve the optimization problem and provide mileage clearing price and awards to other business processes Consider regulation unit outage Release market information to market participants (CMRI) and the public (OASIS) Copyright 2012 California ISO Page 6 of 51

7 Process Impact The SIBR system shall accept and validate mileage bids, including: Set mileage bid validation parameters (e.g. floor, ceiling) Accept and validate bids Generate bid ($0) if necessary Release clean bids Real-Time Process ( 6.1, 6.2, 6.3) The (RTPD) system shall compute mileage clearing price and awards, including: Calculate the mileage requirements Generate mileage bid function Formulate the optimization problem including mileage in objective function and constraints Solve the optimization problem and provide mileage clearing price and awards to other business processes Consider regulation unit outage Release market information to market participants (CMRI and ADS) and the public (OASIS) Receive and process PI data at least daily: AGC set points at 4-second interval Telemetry data at 4-second interval Identify missing data within each 15 minute interval Match the AGC set points and telemetry points for the same time instance Manage Regulation Mileage ( 6.1, 6.2, 7, 7.1, 7.2, 7.3, 8.2) Manage Billing and s ( 7.2, 7.3, 7.4, 8.1, 8.2, 8.3, 8.6, 8.8) Receiving and processing DOP (dispatch operating points): DOP at 5 minute interval with occasionally additional points within 5 minute interval when ramp rate changes Convert DOP into 4-second interval data points that match AGC and telemetry data points Calculate mileage and mileage multipliers, including: System mileage multipliers Resource mileage multipliers Instructed mileage Adjusted mileage System weekly mileage average Regulation Performance Accuracy and averages Provide data to other processes. The high level changes to the billing and settlement process are: Taking mileage awards and marginal price Taking mileage awards and marginal price Calculate mileage price as weighted average of and marginal mileage prices Taking Regulation Performance Accuracy and instructed mileage with under-response adjustment (including treatment of missing accuracy data) Calculate mileage payment to generators according to mileage prices Copyright 2012 California ISO Page 7 of 51

8 Process Impact Calculate disqualification of mileage payment Calculate mileage bid cost recovery Calculate mileage cost allocation Calculate GMC Consider Regulation Outage in no-pay Manage Generation Outage Manage Real-Time Operation Manage Price Correction Manage Price validation Manage Analysis Dispute and Resolution Market Performance (MAD) ( 6.1, 6.3, 9) Market Performance (DMM) Develop Training Monitor regulation capacity opportunity cost justification. Add Regulation Outage as a new outage type Enhancing PI data availability: Store AGC set points in EMS buffer Restore AGC set points from EMS buffer to PI after PI outage Manage mileage price correction. Manage mileage price validation Manage dispute of mileage price, mileage payment, mileage cost allocation, GMC for mileage bid segments. Monitor the performance of the regulation mileage performance and recommend changes to mileage requirement, accuracy threshold, mileage bid floor and ceiling. Conduct review after one year operation experience to evaluate the market design. Monitor the performance of the regulation mileage performance and assess market efficiency. Internal and external training on the new market features for pay for performance regulation Variables Posted in Spring 2013 Release The following section describes data that will be posted as of Spring 2013: Externally posted variables (OASIS) 1. Mileage requirements: DMR, UMR 2. Min/Max: only min requirement (above) for CAISO-EXP AS Region 3. Prices: DDMP, DUMP, RDMP, RUMP Resource specific posted variables (CMRI) 1. Awards: DM, UM Variables that will NOT be posted 1. Instructed/Telemetered/Adjusted Mileage: ID, IU, TD, TU, IDM, IUM, JDM, JUM, ADM, AUM a. Customers will have this information in their PI systems: ID, IU, TD, TU b. Customers will have this information in their systems: ADM, AUM 2. Multiplier a. Minimum Mileage regulation multiplier for resources r: FU, FD b. Resource regulation mileage multiplier for resource r and hour h: RDMM, RUMM c. System weekly average mileage multiplier for hour h: SDMM, SUMM 3. Configurable time period: j, L j 4. System Performance accuracy: SCD, SCU Copyright 2012 California ISO Page 8 of 51

9 5. Resource specific accuracy: CD, CU, ACD, ACU a. Customers will have this information in their systems: CU, CD 3.2 Assumptions & Constraints 1 It is assumed that Manage Regulation Mileage is a new business process. 2 It is assumed that the regulation mileage calculation would be performed by a new system or new application, which is referred to as the PFP system in this document. The IT architecture team will determine which software system should implement this business requirement. 4. Business Requirements The sections below describe the business processes and the associated business requirements involved in the project. These may represent high level functional, non-functional, reporting and/or infrastructure requirements. These business requirements directly relate to the high level scope items determined for the project. 4.1 Business Process: Manage Resource Performance Verification The eligibility of a resource to provide regulation services will be affected by the historical performance of the resource in responding to the CAISO s AGC signals. If a resource violates the minimum performance threshold, the resource will have ninety days to re-certify to provide regulation. If the resource does not re-certify within the ninety days, the ISO will change the Master File to reflect that the resource is no longer certified to provide the relevant regulation service. This process shall be updated to include a monthly event to conduct the Historic Regulation Performance Accuracy (HRPA) test. The monthly average of Historic Regulation Performance Accuracy is calculated by the Manage Regulation Mileage process. The monthly HRPA test shall be conducted upon receiving the HRPA at the end of every month. Copyright 2012 California ISO Page 9 of 51

10 Monthly Event Send notification to SC and Resource Owner Receive HRPA at the end of each month Record Date and Time of SC Receiving the Notification Conduct HRPA Test (i.e., HRPA <0.5?) No Set Warning in Active State Regulation unit passed test? Recertification Completed within 90 days? No Initiate Disqualification Yes Yes End Deactivate Warning Figure 1 Illustrative Business Process Diagram Business Requirements Copyright 2012 California ISO Page 10 of 51

11 BRQ001 The system shall determine, besides other existing criteria, the eligibility of a resource to provide regulation up and regulation down according to the monthly average of Historic Regulation Performance Accuracy for regulation up and regulation down, respectively. Master File (MF) BRQ002 BRQ003 BRQ004 BRQ005 BRQ006 BRQ007 BRQ008 BRQ009 The system shall allow the user to specify a configurable minimum threshold for the Historic Regulation Performance Accuracy with a default value of 50%. The same threshold shall be used for both the regulation up and the regulation down services. The system shall compare the monthly Historic Regulation Performance Accuracy of each resource for the regulation up service with the minimum threshold (50% initially) whenever a new monthly average is available. If the monthly average of the Historic Regulation Performance Accuracy of a resource for the regulation up service is smaller than the minimum threshold, the resource is said to have a Regulation Performance Accuracy violation for the regulation up service. The system shall record the time of the violation and notify the ISO user. The notification shall include the reason for the notification, the time of the violation, the resource name, the scheduling coordinator for the resource, the Historic Regulation Performance Accuracy for the regulation up service, and the threshold. The system shall compare the monthly Historic Regulation Performance Accuracy of each resource for the regulation down service with the minimum threshold (50% initially) whenever a new monthly average is available. If the monthly average of the Historic Regulation Performance Accuracy of a resource for the regulation down service is smaller than the minimum threshold, the resource is said to have a Regulation Performance Accuracy violation for the regulation down service. The system shall record the time of the violation and notify the ISO user. The notification shall include the reason for the notification, the time of the violation, the resource name, the scheduling coordinator for the resource, the Historic Regulation Performance Accuracy for the regulation down service, and the threshold. The ISO shall provide a written notice (by registered mail) to the scheduling coordinator if a resource has a Regulation Performance Accuracy violation for regulation up, for regulation down or for both regulation up and regulation down. The system shall allow the user to record the date and time when the scheduling coordinator received the notification. The system shall nullify any existing record of AGC-response violation for the regulation up service if the resource is re-certified to provide regulation up service. The system shall nullify any existing record of AGC-response violation for the regulation down service if the resource is re-certified to provide regulation down service. The system shall revoke a resource s eligibility for providing the regulation up service if a resource does not re-certifiy to provide the regulation up service within 90 days after the scheduling coordinator has received the notification from the ISO regarding the resource s violation of the Historic Regulation Performance Accuracy for regulation up. The system shall revoke a resource s eligibility for providing the regulation down service if a resource does not re-certifiy to provide the regulation down service within 90 days after the scheduling coordinator has received the notification from the ISO regarding the resource s violation of the Historic Regulation Performance Accuracy for regulation down. Master File Master File Master File N/A Master File Master File Master File Master File Copyright 2012 California ISO Page 11 of 51

12 4.2 Business Process: Manage SC Requested Resource Testing In the past, the maximum regulation capacity that a resource may offer has been determined by the amount reached within a period that may range from a minimum of 10 minutes to a maximum of 30 minutes. In practice, the ISO has used a 10 minute ramp period. This project changes the standardized the duration of the ramping interval to 10 minutes. Using the 10 minute ramp, the certification process will use the same ramp measurement interval for regulation, spinning reserves and non-spinning reserves. This process shall determine the maximum regulation up/down capacity and eligibility for providing regulation up/down separately and pass the information to Manage Entity & Resource Maintenance Updates to update the records in the Master File Business Requirements BRQ010 BRQ011 The ISO shall determine the maximum regulation up capacity of each resource certified to provide the regulation up service according to the 10-minute ramping capability of the resource. The ISO shall determine the maximum regulation down capacity of each resource certified to provide the regulation down service according to the 10-minute ramping capability of the resource. N/A, Manual N/A, Manual 4.3 Business Process: Manage Entity & Resource Maintenance Updates Upon reception of the information from the process Manage SC-Requested Resource Testing, the Master File shall be updated to change the maximum regulation up/down capacity if necessary and the eligibility for providing regulation up/down based on the outcome of the test Business Requirements BRQ012 BRQ013 BRQ014 The system shall separately record the eligibility of a resource to provide regulation up and regulation down. The system shall be able to update the maximum regulation up capacity according to the information provided by the Manage SC Requested Resource Testing process. The system shall be able to update the maximum regulation down capacity according to the information provided by the Manage SC Requested Resource Testing process. Master File Master File Master File Copyright 2012 California ISO Page 12 of 51

13 BRQ015 BRQ016 The system shall allow the user to update the eligibility of a resource to provide the regulation up service according to the information provided by the Manage SC Requested Resource Testing process. The system shall allow the user to update the eligibility of a resource to provide the regulation down service according to the information provided by the Manage SC Requested Resource Testing process. Master File Master File 4.4 Business Process: Manage Real-Time Operation To enhance the availability of AGC set points and telemetry data for regulation mileage calculation, the EMS (Energy Management System) shall be able to buffer up to 4 hours of 4-second data for all regulating resources if the PI connection is lost. When the PI connection is restored after a loss then all buffered data for regulating resources should be transmitted to PI Business Requirements BRQ156 BRQ157 The EMS (Energy Management System) shall be able to buffer up to 4 hours of 4- second data for all regulating resources if the PI connection is lost. The 4-second data to be buffered shall include: a) AGC set points at 4-second interval, and b) Telemetry data at 4-second interval When the PI connection is restored after a loss, the EMS shall transmit all buffered data for regulating resources to PI. EMS EMS, PI 4.5 Business Process: Manage Regulation Mileage This business process will perform regulation mileage related calculation. This process will receive from PI the AGC set points and the telemetry data, and DOP (dispatch operating points) originated from the real-time market process. Although these input data are generated in real-time, the Manage Regulation Mileage process only needs to collect them daily for settlement purpose, weekly and monthly for calculating mileage multipliers and Regulation Performance Accuracy. In order to manage the regulation mileage, the ISO will use the EMS, PI and MQS systems in combination to calculate the various measurements. Furthermore, a new business process will be developed to maintain the regular operation and manage dispute process regarding regulation mileage Business Requirements Copyright 2012 California ISO Page 13 of 51

14 BRQ017 The system shall provide an automated means to obtain the following historical data for each resource certified and awarded to provide regulation up or regulation down: a) AGC set points at 4-second interval, and b) Telemetry data at 4-second interval coincidental with the AGC set points The system shall receive all the 4-second interval AGC set points and the telemetry data of the trade day at least once every day. In order to make sure that the true regulation mileage is calculated when unit is truly under AGC, the following two verifications need to happen, Verifirication 1, When using 4-second interval AGC data for the calculation of regulation mileage, the system shall skip the 4-second interval for the accuracy calculation if that interval meets the following criteria, For regulation up, If (Abs(Max(0, AGC set point DOP))) < Max(0.1% * Regulation Up Capacity, 0.1MW), Then no calculation for the regulation up mileage and accuracy for that 4- second. Essentially NULL for that 4-second; For regulation down, If (Abs(Min(0, AGC set point DOP))) < Max(0.1% * Regulation Down Capacity, 0.1MW), Then no calculation for the regulation down mileage and accuracy for that 4- second. Essentially NULL for that 4-second; Mileage continues to be calculated for those intervals. The 0.1% and 0.1MW are examples and shall be system level configurable parameters. ISO will determine these two parameters based on production AGC data. Regulation capacities in formulas above refer to final capacities cleared in the real-time market for applicable intervals. When all 4-seconds in a 15-minutes are falling in the threshold, the accuracy will be the prior interval s accuracy. Verification 2, When there is no regulation up capacity cleared in the market, there shall not be any regulation up mileage calculation for any 4-second interval wthin that 15-minute interval; When there is no regulation down capacity cleared in the market, there shall not be any regulation down mileage calculation for any 4-second interval wthin that 15-minute interval; EMS, PI, MQS Copyright 2012 California ISO Page 14 of 51

15 BRQ018 BRQ019 BRQ020 The system shall align the timing of AGC set points and telemetry data considering telecommunication delays. It is important to note that the data point applicable for the same time instance is needed regardless when the AGC instruction was sent and when the telemetry data was received. For example, if a telemetric data point corresponds to an AGC signal that was sent 8 seconds earlier, the AGC set point for interval t should be aligned with the telemetric data point obtained in interval t+2, where each interval is 4-seconds. The system shall provide an automated means to obtain historical Dispatch Operating Point (DOP). The DOP from the original data source will have data points at 5-minute intervals and occasionally additional points sometimes within the 5- minute intervals. Although the 4-second DOP calculation is an existing EMS functionality, it is worth to mention and clarify how ISO calculates this since the 4-second DOP is used in the mileage calculation, Step 1, Calculate a DOP curve based on two consecutive DOTs (same as ADS DOTs) across 5-minute for RTD runs, Start from the first DOT MW at T (DOT time stamp), use the applicable ramprate to ramp towards the next DOT MW with its DOT time stamp at its FULL RAMP capability. You may reach the MW earlier than the next DOT MW s DOT timestamp. In that event, assumes a flat line after the MW reaches the DOT MW. Step 2, Figure out the 4-second DOP MW value based on the 4-second time on the DOP curve, This calculation is done every 4-second since the DOP MW can be different every four second given the same DOP curve. Example, Assuming the following, DOT for 01:52:30 is 50MW, the DOT for 01:57:30 is 100MW, and the ramp-rate is 25MW/min. The DOP curve is From 01:52:30 to 01:54:30, a linear ramp from 50MW to 100MW; From 01:54:30 to 01:57:30, a flat DOP from 100MW to 100MW. As such, Tthe 4-second DOP at 01:52:34 is /15 (51.66MW); The 4-second DOP at 01:52:38 is /15 (53.33MW); The 4-second DOP at 01:55:00 is 100MW. EMS, PI EMS, PI, EMS, PI Copyright 2012 California ISO Page 15 of 51

16 BRQ021 BRQ022 BRQ154 The system shall calculate the Instructed Regulation Up Mileage at 4-second intervals as follows: = where, = ( ) t time instant t-1 time t minus one 4-second interval A r,t AGC set point of resource r for time t. T r,t Telemetry of resource r for time t. The telemetry data may be received two 4- second interval later, i.e., at time t plus two 4-second interval; nevertheless it s still aligned with the AGC set point t. D r,t DOP of resource r at time t with 4-second interval granularity IU r,t Instructed regulation up for resource r at time t IUM r,t Instructed regulation up mileage for resource r for interval ending t The system shall calculate the Instructed Regulation Down Mileage at 4-second intervals as follows: = where, = ( ) ID r,t Instructed regulation down for resource r at time t IDM r,t Instructed regulation down mileage for resource r for interval ending t The system shall calculate the Instructed regulation-up Mileages for each resource in each 15-minute interval i as follows: EMS, PI EMS, PI EMS, PI BRQ155 RUM r,i Instructed regulation Up Mileage for resource r in interval i for all the 4-second intervals [t-1, t] contained in the 15-minute interval i The system shall calculate the Instructed regulation-down Mileages for each resource in each 15-minute interval i as follows: RDM r,i Instructed regulation Down Mileage for resource r in interval i EMS, PI Copyright 2012 California ISO Page 16 of 51

17 BRQ024 The method for calculating the Adjusted Regulation-up Mileages for each interval [t- 1, t] is as follows: a) If ( ) b) If c) If ) ( = = ( ) EMS, PI = where = ( ) t-2 time t minus two 4-second intervals TU r,t Telemetric regulation up for resource r at time t JUM r,t Regulation up mileage with under response adjustment for resource r for interval ending t BRQ025 The method for calculating the Adjusted Regulation-down Mileages for each interval [t-1, t] is as follows: a) If ( ) = b) If EMS, PI c) If = ( ) = where = ( ) TD r,t Telemetric regulation down for resource r at time t JDM r,t Regulation down mileage with under response adjustment for resource r for interval ending t Copyright 2012 California ISO Page 17 of 51

18 BRQ028 The system shall calculate the Adjusted regulation-up Mileages for each resource in each 15-minute interval i as follows: EMS, PI BRQ029 BRQ169 BRQ170 BRQ171 AUM r,i Adjusted regulation Up Mileage for resource r in interval i for all the 4-second intervals [t-1, t] contained in the 15-minute interval i The system shall calculate the Adjusted regulation-down Mileages for each resource in each 15-minute interval i as follows: ADM r,i Adjusted regulation Down Mileage for resource r in interval i The system shall calculate the Average Instructed Regulation Up by disjoint time periods that have a configurable length ranging from 4 seconds to 5 minutes. AIU r,j Average Instructed Regulation Up for resource r in period j j The j-th configurable time period L j The set of sampling points in period j L j The number of 4-second sampling points in the set L j The system shall calculate the Average Instructed Regulation Down by disjoint time periods that have a configurable length ranging from 4 seconds to 5 minutes. AID r,j Average Instructed Regulation Down for resource r in period j The system shall calculate the Average Telemetric Regulation Up by disjoint time periods that have a configurable length ranging from 4 seconds to 5 minutes. ATU r,j Average Telemetric Regulation Up for resource r in period j EMS, PI EMS, PI EMS, PI EMS, PI Copyright 2012 California ISO Page 18 of 51

19 BRQ172 BRQ030 The system shall calculate the Average Telemetric Regulation Down by disjoint time periods that have a configurable length ranging from 4 seconds to 5 minutes. ATD r,j Average Telemetric Regulation Down for resource r in period j The method for calculating the Regulation Performance Accuracy for Regulation-up for resource r in interval i is as follows: [ ( )] EMS, PI EMS, PI BRQ031 CU r,i Regulation Performance Accuracy for regulation up for resource r in interval i i 15-minute interval i S i The set of configurable periods j in interval i The method for calculating the Regulation Performance Accuracy for Regulationdown for resource r in interval i is as follows: CD r,i [ ( )] Regulation Performance Accuracy for regulation down for resource r in interval i EMS, PI Copyright 2012 California ISO Page 19 of 51

20 BRQ034 The system shall calculate monthly rolling 30-day average Historic Regulation Performance Accuracy for Regulation Up per resource as follows: ACU r 30-day average Historic Regulation Performance Accuracy for regulation up for resource r for all market intervals MU r the set of 15-minute intervals for which the resource is scheduled for regulation up in the previous 30 days MU r the number of 15-minute intervals for which the resource is scheduled for regulation up in the previous 30 days The set MU r shall not include the 15-minute intervals with missing data (e.g., missing telemetry data) in calculating the resource s historical accuracy. For newly certified or recertified resources, ACU r shall be set initially to the average 30-day Historic Regulation Up Performance Accuracy among all certified resources. The last calculated value shall be retained when the resource has not been scheduled for regulation up during the period of the rolling 30 days at all. MQS The system shall also perform this calculation for each calendar month to calculate the monthly average Historic Regulation Performance Accuracy for regulation up, used in resource certification and verification. Copyright 2012 California ISO Page 20 of 51

21 BRQ035 The system shall calculate a rolling 30-day average Historic Regulation Performance Accuracy for Regulation Down per resource as follows: ACD r 30-day average Historic Regulation Performance Accuracy for regulation down for resource r for all market intervals MD r the set of 15-minute intervals for which the resource is scheduled for regulation down in the previous 30 days MD r the number of 15-minute intervals for which the resource is scheduled for regulation down in the previous 30 days The system shall not include the 15-minute intervals with missing data (e.g., missing telemetry data) in calculating the resource s historical accuracy. For newly certified or recertified resources, ACD r shall be set initially to the average 30-day Historic Regulation Down Performance Accuracy among all certified resources. The last calculated value shall be retained when the resource has not been scheduled for regulation down during the period of the rolling 30 days at all. MQS BRQ106 BRQ107 BRQ036 The system shall also perform this calculation for each calendar month to calculate the monthly average Historic Regulation Performance Accuracy for regulation down, used in resource certification and verification. If the Regulation Performance Accuracy for regulation up for resource r in interval i is missing because of data communication errors, the Historic Regulation Performance Accuracy for regulation up for resource r shall be used, i.e., CU r,i = ACU r If the Regulation Performance Accuracy for regulation down for resource r in interval i is missing because of data communication errors, the Historic Regulation Performance Accuracy for regulation down for resource r shall be used, i.e., CD r,i = ACD r The system shall calculate a rolling 7-day average of Regulation Performance Accuracy for Regulation Up for the system in hour h as follows: MQS MQS MQS SCU h System weekly average Regulation Performance Accuracy for regulation up in hour h W h the set that contains the h th hour in the previous 7 days (i.e., seven hours) U the set of resources committed to provide regulation up service in each 15- minute interval in W h W h for all 15-minute interval i that is part of any hour in the set W h NU h The number of data points in the numerator Copyright 2012 California ISO Page 21 of 51

22 BRQ037 The system shall calculate a rolling 7-day average of Regulation Performance Accuracy for Regulation Down for the system in hour h as follows: MQS SCD h System weekly average Regulation Performance Accuracy for regulation down in hour h D the set of resources committed to provide regulation down service in each 15- minute interval in W h ND h The number of data points in the numerator BRQ038 The system shall calculate a rolling 7-day average of Instructed Mileage for Regulation Up for the system in hour h as follows: MQS UMA h System weekly average Instructed Mileage for regulation up in hour h BRQ039 The system shall calculate a rolling 7-day average of Instructed Mileage for Regulation down for the system in hour h as follows: MQS DMA h System weekly average Instructed Mileage for regulation down in hour h BRQ040 The system shall calculate the System Regulation Up Mileage Multiplier for hour h as follows: SUMM h shall be 1 initially. SUMM h System regulation Up Mileage Multiplier for hour h RU i,r Real-time regulation Up capacity award including finally qualified regulation up self-provision for resource r in interval i. This is the total including awards from the day-ahead. MQS Copyright 2012 California ISO Page 22 of 51

23 BRQ041 The system shall calculate the System Regulation Down Mileage Multiplier for hour h as follows: SDMM h shall be 1 initially. SDMM h System regulation Down Mileage Multiplier for hour h RD i,r Real-time regulation Down capacity award including finally qualified regulation up self-provision for resource r in interval i. This is the total including awards from the day-ahead. MQS BRQ189 BRQ190 BRQ191 BRQ042 The system shall persistently maintain a minimum regulation up mileage multiplier (initialized to unity) for each resource certified for regulation. The system shall persistently maintain a minimum regulation down mileage multiplier (initialized to unity) for each resource certified for regulation. The system shall calculate the weighted average ramp rate for each resource certified for regulation from the registered best operational ramp rate curves between the registered Lower and Upper Regulating Limits of all registered regulating ranges and all configurations (applicable to MSG) that are certified for regulation as follows: n index of relevant ramp rate segment w r,n length (MW) of relevant ramp rate segment r r,n ramp rate (MW/min) of relevant ramp rate segment The system shall calculate the Resource Regulation Up Mileage Multiplier for hour h as follows: ( The ceiling operator ensures that the number of minutes to reach certified regulation up capacity is an integer from 1 to 10. RUMM h,r Resource regulation Up Mileage Multiplier for resource r and hour h R r The weighted average ramp rate for resource r certified in the best condition XU r Certified regulation up maximum capacity for resource r means ceiling of x, the smallest integer not less than x, for example and. ) MQS MQS MQS MQS Copyright 2012 California ISO Page 23 of 51

24 BRQ043 The system shall calculate the Resource Regulation Down Mileage Multiplier for hour h as follows: ( The ceiling operator ensures that the number of minutes to reach certified regulation down capacity is an integer from 1 to 10. RDMM h,r Resource regulation Down Mileage Multiplier for resource r and hour h XD r Certified regulation down maximum capacity for resource r ) MQS FPR- BRQ217 The system shall provide the following data with automated means: ACU r 30-day rolling average Historic Regulation Performance Accuracy for regulation up for every regulating resource r. ACD r 30-day rolling average Historic Regulation Performance Accuracy for regulation down for every regulating resource r. SCU h 7-day rolling average System Regulation Performance Accuracy for regulation up for every hour h of a day. SCD h 7-day rolling average System Regulation Performance Accuracy for regulation down for every hour h of a day. UMA h 7-day rolling average System Instructed Mileage for regulation up for every hour h of a day. DMA h 7-day rolling average System Instructed Mileage for regulation down for every hour h of a day. SUMM h 7-day rolling average System regulation Up Mileage Multiplier for every hour h of a day. SDMM h 7-day rolling average System regulation Down Mileage Multiplier for every hour h of a day. RUMM h,r Regulation Up Mileage Multiplier for every regulating resource r and every hour h of a day. RDMM h,r Regulation Down Mileage Multiplier for every regulating resource r and every hour h of a day. FU r Minimum Regulation Up Mileage Multiplier for every regulating resource r. FD r Minimum Regulation Down Mileage Multiplier for every regulating resource r. This data shall be retained in the Market Applications (/RTM) until overwritten by new data. This retention would allow the market to run even when the system (MQS) fails to publish new data. MQS (publish), /RTM (receive) 4.6 Business Process: Manage Generation Outage The CAISO system shall allow market participants to submit regulation service outage. The existing system (SLIC) does not have the capability to manage regulation service outage. A Regulation Outage card should be added to the system (SLIC) and integrated and transferred to the Market to handle Regulation outages. No partial outage should be supported; lower regulation limit (LRL) and upper regulation limit (URL) shall stay at regular (Master File) values. Copyright 2012 California ISO Page 24 of 51

25 4.6.1 Business Requirements BRQ158 BRQ159 BRQ160 The system shall allow the authorized user to submit regulation outage information to the CAISO to indicate that a resource that is in service will not be able to provide regulation services for a certain period of time (from a start time to an end time). For MSG, the regulation outage can be for specific configuration(s) or for the entire resource, i.e., effectively for all configurations that are certified for Regulation. The system shall make the regulation outage information available to CAISO business processes to make market and grid operation decisions. When a resource is unable to regulate, a Regulation Outage card should be submitted within the currently allowed time period for logging outages as stated in the Tariff. SLIC SLIC N/A 4.7 Business Process: Manage Day-Ahead Process The day-ahead process is affected by this project in two major areas: (1) accepting the mileage bids, and (2) generating mileage bid prices. This process will need inputs from the Manage Regulation Mileage process and the Manage Master File process. This process will provide outputs to other processes for settlement and data release Business Requirements BRQ044 BRQ045 BRQ046 BRQ047 BRQ048 BRQ049 BRQ050 The system shall provide an automated means for Scheduling Coordinators to submit the regulation mileage bids to CAISO. The system shall provide an automated means to obtain the most current information of regulation certification for every resource from the Master Files. The system shall allow the ISO user to set a configurable regulation up mileage bid price floor, a configurable regulation down mileage bid price floor, a configurable regulation up mileage bid price ceiling, and a configurable regulation down mileage bid price ceiling. The system shall set the default values of regulation up and regulation down mileage bid price floors to be zero, and the regulation up and regulation down mileage bid price ceilings to be $50/MWh. The system shall allow and only allow a resource that is certified to provide regulation up service to provide regulation up mileage bids. The system shall allow and only allow a resource that is certified to provide regulation down service to provide regulation down mileage bids. The system shall ensure that a regulation up capacity bid submitted by a SC has at most three attributes: (a) a required Regulation up capacity bid quantity (MW), (b) a required Regulation up capacity bid price ($/MWh), and (c) an optional Regulation up capacity opportunity cost ($/MWh) SIBR SIBR Master Files SIBR SIBR SIBR SIBR SIBR Copyright 2012 California ISO Page 25 of 51

26 BRQ051 The system shall ensure that a regulation down capacity bid submitted by a SC has at most three attributes: (a) required Regulation down capacity bid quantity (MW), (b) a required Regulation down capacity bid price ($/MWh), and (c) an optional Regulation down capacity opportunity cost ($/MWh) SIBR BRQ052 BRQ053 BRQ054 BRQ055 BRQ056 BRQ057 BRQ058 BRQ059 BRQ060 BRQ061 BRQ187 BRQ062 The system shall ensure that a regulation up mileage bid submitted by a SC has only one attribute: Regulation up mileage bid price ($/MWh) The system shall ensure that a regulation down mileage bid submitted by a SC has only one attribute: Regulation down mileage bid price ($/MWh) The system shall ensure that the regulation up mileage bid price is not greater than the regulation up mileage bid ceiling and not smaller than the regulation up mileage bid floor. The system shall ensure that the regulation down mileage bid price is not greater than the regulation down mileage bid ceiling and not smaller than the regulation down mileage bid floor. The system shall set the regulation up capacity opportunity cost to zero if a regulation up capacity bid submitted by an SC does not have the opportunity cost attribute. The system shall set the regulation down capacity opportunity cost to zero if a regulation down capacity bid submitted by an SC does not have the opportunity cost attribute. The system shall generate a regulation up mileage bid for a resource that is certified to provide regulation up if the resource has a regulation up capacity bid and does not have a regulation up mileage bid. In this case, the system shall set the regulation up mileage bid price to zero when generating the regulation up mileage bid. The system shall generate a regulation down mileage bid for a resource that is certified to provide regulation down if the resource has a regulation down capacity bid and does not have a regulation down mileage bid. In this case, the system shall set the regulation down mileage bid price to zero when generating the regulation down mileage bid. The system shall make the clean regulation up mileage bids and the clean regulation down mileage bids to other business processes. The system shall provide an automated means to transfer the clean regulation up mileage bids and the clean regulation down mileage bids to the market optimization system. The system shall copy the day-ahead regulation up and regulation down mileage bids submitted for one configuration of a multi-stage generator (MSG) to other eligible configurations of the MSG in a similar way that regulation capacity bids are copied. The copied mileage bids would include any implicit mileage self-provision at zero price and any explicit economic mileage bid. The system shall provide an automated means to obtain the following inputs: (a) historical weekly average of Instructed Mileage for Regulation Up, (b) historical weekly average of Instructed Mileage for Regulation Down, (c) System regulation Up Mileage Multipliers, (d) System regulation Down Mileage Multipliers, (e) Resource regulation Up Mileage Multipliers, and (f) Resource regulation Down Mileage Multipliers. SIBR SIBR SIBR SIBR SIBR SIBR SIBR SIBR SIBR SIBR, SIBR, PFP Copyright 2012 California ISO Page 26 of 51

27 BRQ063 BRQ064 BRQ161 BRQ162 BRQ065 The system shall calculate the regulation up mileage requirements and the regulation down mileage requirements at the system (CAISO extended) level and not by ancillary service sub-regions. The system shall allow the authorized ISO user to change with automated means the regulation up mileage requirements and the regulation down mileage requirements that are calculated by the system before each market optimization. The system shall provide an automated means to obtain the Regulation Outage information. The system shall not award regulation services to a resource that has a Regulation Outage during the intervals that overlap with the regulation outage period (start of interval for DAM and middle of interval for RTM). The system shall apply the appropriate capacity limits depending on whether a resource is on regulation outage. The regulation up mileage requirement for the CAISO system in hour h shall be calculated as follows: [ ],, UMA h shall be ignored in the initial calculation of UMR h. BRQ066 UMR h regulation Up Mileage Requirement for hour h UCR h regulation Up Capacity Requirement for the CAISO extended region in hour h UCB h,r total regulation Up Capacity Bid quantity including self-schedule for resource r and hour h The regulation down mileage requirement for the CAISO system in hour h shall be calculated as follows: [ ] BRQ173 DMA h shall be ignored in the initial calculation of DMR h. DMR h regulation Down Mileage Requirement for hour h DCR h regulation Down Capacity Requirement for the CAISO extended region in hour h DCB h,r total regulation Down Capacity Bid quantity including self-schedule for resource r and hour h The system shall generate based on the Clean Bids the day-ahead regulation up mileage bid functions and the regulation down mileage bid functions to be used in the market optimization. DUF h,r Day-ahead regulation Up mileage bid Function for resource r and hour h DDF h,r Day-ahead regulation Down mileage bid Function for resource r and hour h Copyright 2012 California ISO Page 27 of 51

28 BRQ174 If a regulating resource does not have day-ahead regulation up capacity self-provision in an hour, the system shall generate the day-ahead regulation up mileage bid function with one bid segment for the resource in the hour as follows: BRQ175 DUBP h,r Day-ahead regulation Up mileage Bid Price for resource r in hour h UM h,r regulation Up Mileage award for resource r in hour h If a regulating resource has day-ahead regulation up capacity self-provision in an hour, the system shall generate the day-ahead regulation up mileage bid function with two bid segments for the resource in the hour as follows: BRQ067 BRQ176 Day-ahead conditionally qualified regulation Up Self-provision for resource r in hour h The system shall include in the market optimization objective function the regulation up mileage bid cost components in addition to existing components for resources that are committed to provide regulation up capacity services. The regulation up mileage bid cost components can be expressed as follows: m the number of hours in the time horizon If a regulating resource does not have day-ahead regulation down capacity selfprovision in an hour, the system shall generate the day-ahead regulation down mileage bid function with one bid segment for the resource in the hour as follows: DDBP h,r DM h,r Day-ahead regulation Down mileage Bid Price for resource r in hour h regulation Down Mileage award for resource r in hour h Copyright 2012 California ISO Page 28 of 51