Business Requirements Specification

Transcription

1 Business Requirements Specificatin Cngestin Revenue Rights Auctin Efficiency Track 1A Dc ID: GNFDMDEHU6BB Page 1 f 15

2 Disclaimer All infrmatin cntained in this draft Business Requirements Specificatin (BRS) as prvided by the Califrnia Independent System Operatr Crpratin (ISO) is prepared fr discussin and infrmatin purpses nly. The draft BRS is prvided as is withut representatin r warranty f any kind, including, withut limitatin, a representatin r warranty as t accuracy, cmpleteness, r apprpriateness fr any particular purpse. The draft BRS shall be revised as the develpment and review f the business requirements prgresses. The ISO assumes n respnsibility fr the cnsequences f any errrs r missins. The ISO may revise r withdraw all r part f this infrmatin at any time at its discretin withut ntice. Dc ID: GNFDMDEHU6BB Page 2 f 15

3 Table f Cntents 1. INTRODUCTION PURPOSE REFERENCES INTELLECTUAL PROPERTY OWNERSHIP GUIDELINES CHECKLIST APPENDIX: ACRONYM DEFINITION DETAILS OF BUSINESS NEED/PROBLEM DESCRIPTION Prblem Need BUSINESS PROCESS IMPACTS BUSINESS PRACTICE MANUAL (BPM) OTHER BUSINESS REQUIREMENTS BUSINESS PROCESS: MANAGE SOURCE-SINK PAIRS Business Requirements BUSINESS PROCESS: MANAGE CRR SELL PROCESS Business Requirements Intrductin 1.1 Purpse Since 2012, cngestin revenue rights auctin revenues that are allcated t lad serving entities were n average $130 millin less than the cngestin payments received by entities purchasing these cngestin revenue rights. This shrtfall shws that auctin valuatins are cnsistently lwer than eventual payuts n the prducts. If cngestin revenue rights are truly valued as hedging instruments fr market participants, then valuatins ver time shuld be greater than the bserved payuts n thse prducts. Dc ID: GNFDMDEHU6BB Page 3 f 15

4 In early 2017, the ISO began its initiative t address the CRR auctin efficiency. It is cncerned abut the large CRR payments made t hlders f auctin CRRs in cmparisn t the auctin revenues cllected when releasing the CRRs thrugh the auctins. The ISO began its plicy stage at a stakehlder wrking grup n December 19, The plicy stage is rganized int three tracks: Track 0, Track 1, and Track 2. Track 0 - Prcess, business rules, and peratinal guidance. Track 1A Fcus is n enhancements t: Infrmatin received and used fr the CRR allcatins and auctin CRR sftware t supprt a mechanism t allw market participants t sell previusly acquired CRRs int subsequent auctins Track 1B Fcus is n reducing the gap between auctin revenues and CRR payuts Track 2 - Fcused n cmprehensive design changes, structural matters and market design rules This Business Requirements Specificatin includes requirements fr nly Track 1A enhancements. 1.2 References All references represent external requirements dcuments r stakehlder requests develped and submitted by the Business Units. Prject Plan and ther relevant dcuments that precede the BRS are lcated in Stakehlder Initiatives web page at: Dc ID: GNFDMDEHU6BB Page 4 f 15

5 2. Intellectual Prperty Ownership Intellectual prperty cvers a brad array f infrmatin and materials, including written wrks, cmputer prgrams, sftware, business manuals, prcesses, symbls, lgs, and ther wrk prducts. Determining wnership f intellectual prperty is very imprtant in preserving rights f the Califrnia ISO and helps t avid intellectual prperty infringement issues. In cnsidering the business requirements r service requirements t be perfrmed, the business wner f the prject must determine intellectual prperty Ownership. Califrnia ISO, All rights reserved. 2.1 Guidelines Intellectual prperty wnership must be cnsidered by all applicable stakehlders befre the services are perfrmed. The level f analysis is tw-fld. One, the business wner must determine if the intellectual prperty necessary t perfrm the services is wned by the Califrnia ISO r whether it must be btained frm a third party. Once it has been determined that the Califrnia ISO has secured the prper intellectual prperty rights t perfrm the services (i.e., the intellectual prperty is wned by the Califrnia ISO r we have licensed it frm a third party), then the secnd step in the analysis is t cnsider whether new intellectual prperty will be created as a result f the business requirements r service requirements t be perfrmed and hw that intellectual prperty will be wned and prtected by the Califrnia ISO. In rder t assist the business wner in the analysis previusly described, refer t the Califrnia Intellectual Prperty Plicy available at which prvides a brief tutrial n what Intellectual Prperty is and hw the Califrnia ISO can g abut prtecting its intellectual prperty. Please cntact the Legal Department if yu have any questins regarding intellectual prperty. Califrnia ISO, All rights reserved. 2.2 Checklist There are n impacts t intellectual prperty based n the requirements stated in this dcument. Califrnia ISO, All rights reserved. Dc ID: GNFDMDEHU6BB Page 5 f 15

6 3. Appendix: Acrnym Definitin Acrnym CRR CRR ID LSE LMT_CNT CRR LSE_LMT CRR OASIS SRS Definitin Cngestin Revenue Rights Unique Identifier f a CRR The system that manages CRRs and CRR Auctins Lad Serving Entity Lad Migratin Cunterflw CRR Lad Migratin Flw Directin CRR Open Access Same-time Infrmatin System Secndary Registratin System 4. Details f Business Need/Prblem 4.1 Descriptin Prblem Since 2012, cngestin revenue rights auctin revenues that are allcated t lad serving entities were n average $130 millin less than the cngestin payments received by entities purchasing these cngestin revenue rights. This shrtfall shws that auctin valuatins are cnsistently lwer than eventual payuts n the prducts. If cngestin revenue rights are truly valued as hedging instruments fr market participants, then valuatins ver time shuld be greater than the bserved payuts n thse prducts Need CAISO needs t reduce the shrtfall r difference between the Auctin revenues and cngestin payuts. The apprach taken in this Track 1A t achieve the desired reductin includes three (3) cre tasks fcused n the fllwing: a) Having the CRR mdel fr the Annual Auctin mre accurately reflect prjected cngestin due t planned utages b) Increased valuatin f CRRs which reflect true hedging f cngestin csts assciated with serving lads c) Ability f CRR Hlders t sell CRR capacity t enhance their respective psitins Dc ID: GNFDMDEHU6BB Page 6 f 15

7 5. Business Prcess Impacts 5.1 Business Practice Manual (BPM) Managing Full Netwrk Mdel Cngestin Revenue Rights Market Instruments Outage Management Reliability Requirement Market Operatins Cmpliance Mnitring Metering BPM Scheduling Crdinatr Certificatin & Terminatin Rules f Cnduct Administratin BPM Change Management Definitins & Acrnyms Settlements & Billing Credit Management Candidate CRR Hlder Transmissin Planning Prcess Direct Telemetry Distributed Generatin fr Deliverability Energy Imbalance Market (EIM) Generatr Intercnnectin Prcedure (GIP) Generatr Intercnnectin and Deliverability Allcatin Prcedures Generatr Management Managing Full Netwrk Mdel YES: Descriptin f Impact(s) Additinal Outage Reprt data t be used in CRR mdel fr Annual Auctin New Sell functin ptins Remve ptin t purchase cunterflw CRRs YES New Outage Reprt fr utages that can affect the CRR mdel Dc ID: GNFDMDEHU6BB Page 7 f 15

8 5.2 Other Impact: Market Simulatin Market Participant Impact User Acceptance Testing (UAT) Internal Training External Training Vendr Plicy Initiative Tariff Change Descriptin: (ptinal) YES: CRR System YES: CRR System Use YES: CRR System CAISO with Vendr YES: CRR System Cnfiguratin YES: CRR System fr UI Access New mechanism t allw market participants t sell previusly acquired CRRs int subsequent auctins YES: Nexant YES YES 6. Business Requirements The sectins belw describe the Business Prcesses and the assciated business requirements invlved in the prject. These business requirements directly relate t the high-level scpe items identified fr the prject. 6.1 Business Prcess: Manage Surce-Sink Pairs The CAISO will identify the surce-sink pairs that will be made available fr the Annual and Mnthly CRR Auctins. The allwed surces and applicable sink lcatins will be in accrdance with the Tariff and Cngestin Revenue Rights Business Practice Manual (BPM) Business Requirements Ptential Applicatin(s) BRQ001 BRQ002 BRQ003 System shall prvide a User Interface that enables CASIO t specify valid lcatins t be identified as surces fr CRR Surce-Sink Pairs available fr each CRR Auctin System shall prvide a User Interface that enables CASIO t specify valid lcatins t be identified as sinks fr CRR Surce-Sink Pairs available fr each CRR Auctin System shall prvide the capability fr CAISO t specify the allwable cmbinatins f Surce- Sink Pairs available fr each CRR Auctin Dc ID: GNFDMDEHU6BB Page 8 f 15

9 Ptential Applicatin(s) BRQ004 BRQ005 System shall use the allwable Surce-Sink Pairs fr CRR Surce-Sink Pairs available in CRR Auctins t validate Bid Offers System shall have the ability t validate surcesink pairs by market name 6.2 Business Prcess: Manage CRR Sell Prcess CRR Hlders will have the pprtunity t sell CRRs in bth the Annual and Mnthly CRR Auctins. These Sell Offers must be made in accrdance with the requirements f the Cngestin Revenue Rights BPM. CRR Hlders will have the pprtunity t submit and rescind Sell Offers during the Auctin windw identified by the CAISO. Sell Offers will be made in submittals dedicated t Selling r Rescinding CRRs. Sell Offers will nt be included in Auctin Bid submittals. Only ne (1) Sell Offer fr a given CRR ID can be submitted fr each auctin. Bid curves shuld be used fr presenting ptins fr ffering ptinal MW values within the same Sell Offer. CRRs ffered fr sale in the Secndary Registratin System (SRS) and nt cleared will be restricted frm being submitted in an auctin Business Requirements Ptential Applicatin(s) BRQ020A System shall prvide a User Interface (UI) t enable CRR Hlders t submit ffers t sell CRRs. NOTE: Sell Offers submittals will be islated frm Auctin Bids submittals. BRQ020B System shall prvide a User Interface (UI) t enable CRR Hlders t rescind previusly submitted ffers t sell CRRs during an Auctin. BRQ020C System t restrict CRR Hlders t submit and rescind single ffers t sell any CRRs during an Auctin. Dc ID: GNFDMDEHU6BB Page 9 f 15

10 Ptential Applicatin(s) BRQ020D Windw f time t submit r rescind Sell Offers t be the same as fr Bid Offers. BRQ020E If a CRR has been ffered fr sale in the Secndary Registratin System (SRS) and nt cleared during an auctin windw: System will reject a Sell Offer submittal fr that CRR ID System will present errr message t user indicating basis fr rejectin BRQ020F If a CRR has been ffered fr sale in the Secndary Registratin System (SRS) and the CRR clears during an auctin windw: System will calculate the remaining MWs available fr the CRR ID System will allw submittal f a Sell Offer fr the CRR ID the day after the SRS transactin has cleared BRQ021 System shall validate that CRR Hlders have included, but nt limited t, the fllwing infrmatin in each Sell Offer. All fields are required t be cmpleted: CRR Hlder CRR ID MWs ffered are within the available range f the CRR as recrded in the CRR system Price: Price Curve must be mntnically nn-decreasing BRQ022 System shall validate that CRR Hlders have ffered CRRs that they hld. BRQ023 System must validate CRR Sell Offers fr acceptance using the specific market Auctin effective perid and cmparing that perid t the effective perid f the ffered CRR. Dc ID: GNFDMDEHU6BB Page 10 f 15

11 Ptential Applicatin(s) BRQ024 System shall reject the submitted Sell Offer if ffer des nt meet all requirements nted in BRQ021, BRQ022 and BRQ023. BRQ025 If a submittal is rejected per BRQ024, an errr message shall be prvided t the user indicating the rejectin and including applicable infrmatin regarding the rejectin. BRQ026 Upn validatin f all requirements fr Sell Offers nted in BRQ021, BRQ022 and BRQ023, system shall retain fr audit purpses each Sell Offer recrd which shall include, but nt be limited t, the fllwing attributes: Designated CRR Auctin fr the Sell Offer Date the Sell Offer was accepted in the system If applicable, date the Sell Offer was rescinded BRQ027 System shall include accepted Sell Offers in each submittal/prtfli and send relevant data t CAISO system fr credit mnitring as required: If Sell Offer includes a Sell Price equal t r greater than $0.00, system: Will nt send Sell submittal/prtfli Will include the Sell Offer in auctin inventry If Sell Offer includes a Sell Price less than $0.00, i.e., Seller is willing t pay fr a Bidder t take the CRR, system: Will nt include the Sell Offer in auctin inventry Will send the Sell submittal/prtfli t the CAISO system fr credit status Will include the Sell Offer in auctin inventry upn credit status apprval frm CAISO system per BRQ027A Dc ID: GNFDMDEHU6BB Page 11 f 15

12 Ptential Applicatin(s) BRQ027A System t receive and prcess credit status respnse frm CAISO system fr Sell submittals/prtflis per BRQ053: If acceptance, include Sell Offer in auctin inventry If credit rejected, reject Sell Offer submittal. An errr message shall be prvided t the user indicating the rejectin and including applicable infrmatin regarding the rejectin. BRQ028 All accepted and recrded Sell Offers that d nt clear during the designated CRR Auctin shall expire and will nt be available fr a subsequent CRR Auctin. BRQ029 Fr each Sell Offer submittal, the system will use the MW value in the ffer t calculate the reduced balance f MWs available t the CRR Hlder fr that CRR ID BRQ030 When a CRR Hlder rescinds a Sell Offer, system shall validate that the CRR Hlder has included, but nt limited t, the fllwing infrmatin in each submittal rescinding a Sell Offer during an Auctin. All fields are required t be cmpleted: CRR Hlder CRR ID Sell Offer submittal/prtfli ID in which the Sell Offer being rescinded was included BRQ031 System shall validate the Sell Offer submittal/prtfli ID and Sell Offer being rescinded as nted in BRQ030 BRQ032 System shall reject the rescind submittal if it des nt meet all requirements nted in BRQ030 and BRQ031. Dc ID: GNFDMDEHU6BB Page 12 f 15

13 Ptential Applicatin(s) BRQ033 If a rescind submittal is rejected per BRQ032, an errr message shall be prvided t the user indicating the rejectin and including applicable infrmatin regarding the rejectin. BRQ034 Upn validatin f all requirements fr rescinding a Sell Offer nted in BRQ030 and BRQ031, system shall retain fr audit purpses each rescind submittal recrd which shall include, but nt be limited t, the fllwing attributes: Designated CRR Auctin fr the rescinded Sell Offer Date the rescind submittal was accepted in the system The submittal/prtfli ID in which the riginal Sell Offer was made BRQ035 Fr each Sell Offer that is rescinded fr a CRR ID previusly ffered in the current Auctin, the system will use the MW value in the previus Sell ffer t calculate the increased balance f MWs available t the CRR Hlder fr that CRR ID BRQ036 Fr Sell Offers: Maximum bid expsure t be calculated based slely n the bid curve submitted by the selling entity System t determine where n the bid curve maximum bid expsure wuld be derived The credit margin piece f the calculatin: Only applies t an entity that is ffering t pay anther entity t take the CRR being ffered Des nt apply t an entity ffering CRRs fr sale in the auctin Dc ID: GNFDMDEHU6BB Page 13 f 15

14 Ptential Applicatin(s) BRQ036A Fr purpses f calculating the CRR credit hlding requirement, system will: Use the netted MW value after accunting fr any MWs sld in the auctin Retain t the accunt f the selling entity the netted MW value in the netting CRR grup t which it was riginally assigned Assign the new CRR acquired by the buying entity t the Auctin grup CRR, regardless f the type f CRR that was ffered fr sale BRQ036B Fr CRR Sell transactins in the auctin, system will prcess the transactins as fllws: Fr sld CRR: If n available MWs remain fr the CRR, clse/terminate the CRR If available MWs remain fr the CRR, identify and recrd the available amunt and retain the same CRR Type If the CRR was a seasnal CRR but nly ne mnth f the CRR was sld, create and manage required subsets f the riginal CRR t enable clear indicatin f MWs available fr remaining effective perid f the CRR Fr CRRs purchased: Retain current practice f assigning Auctin Type t all purchased CRRs, regardless f the Type f CRR that was sld Recrd MW amunt purchased and available in the new CRR Dc ID: GNFDMDEHU6BB Page 14 f 15

15 Ptential Applicatin(s) BRQ037 System t include Sell Offers available fr auctin in the number f bid transactins identified fr GMC Charges per BAID Sell Offers available fr auctin will include: All Sell Offers submitted and apprved prir t clsing f auctin windw Any Sell Offers submitted prir t clse f auctin windw but credit apprval is received frm CAISO system after the windw is clsed BRQ038 System t include Sell Offers available fr auctin in auctin bid data paylad submitted t OASIS BRQ039 System t submit bid data paylad t OASIS after all Sell Offers have cmpleted the credit checking prcess and dispsitin received frm CAISO system BRQ040 System t include indicatr in auctin bid data paylad submitted t OASIS that prvides differentiatin between Sell and Buy transactins resulting frm auctin BRQ041 System t add Clumn fr identifying individual transactins as BUY r SELL. OASIS BRQ042 System t receive bid data paylad frm CRR Sftware and prcess paylad transactins t: OASIS Discern type f transactin, i.e., either BUY r SELL Insert transactin type in new Clumn identified in BRQ041 Dc ID: GNFDMDEHU6BB Page 15 f 15