CAISO. Settlements & Billing CRR Auction Transaction Settlement CC 6798

Transcription

1 CAISO Settlements & Billing CRR Auction Transaction Settlement CC 6798

2 Table of Contents 1. Purpose of Document 3 2. Introduction Background Description 4 3. Charge Code Requirements Business Rules Predecessor Charge Codes Successor Charge Codes Inputs External Systems Inputs - Predecessor Charge Codes or Pre-calculations CAISO Formula Outputs 9 CAISO, 2009 Page 2 of 9

3 1. Purpose of Document The purpose of this document is to capture the requirements and design specification for a SaMC Charge Code in one document. 2. Introduction 2.1 Background Consistent with the adoption of Locational Marginal Pricing (LMP) under the new market design in place of zonal pricing under the current zonal market design, the current Congestion hedging instrument, Firm Transmission Rights (FTR), will be replaced with a new instrument called Congestion Revenue Rights (CRRs). In effect, zones will be eliminated and the new instrument will make use of CRR source(s) and CRR sink(s) that are based on nodes or group of nodes. FERC orders have approved the ISO s proposal to allocate CRRs to load-serving entities (LSEs) that serve customers located within the ISO control area, and to certain other parties described in the CAISO white paper on CRR Allocation Rules. The central principle behind allocation of CRRs to LSEs serving internal customers is that these customers have supported and continue to support the embedded costs of the transmission system through their payment of access charges, which entitles them to utilize the grid to bring power from their power sources to the points where they take power off the grid without being exposed to additional charges for such use of the grid. This principle is made operational by allocating financial hedging instruments CRRs that enable the LSE to hedge the charges for grid Congestion that are assessed in their regular settlements with the ISO. [CAISO White Paper: CRR Allocation Rules, 06/14/05] CRRs may come from allocations by CAISO, given free of charge to select market participants. CRRs may also come from auctions by CAISO for any remaining available CRR capacities after the allocations. CRRs from auctions are bought at a Market Clearing Price. Furthermore, the CRRs can be subdivided and can be traded in the secondary market but no new CRRs are released by CAISO in the secondary market. CAISO conducts an annual CRR Allocation once a year for the entire year. The annual CRR Allocation releases Seasonal CRRs for four seasonal periods. The CAISO also conducts monthly CRR Allocation twelve times a year in advance of each month. In addition, CAISO also conducts yearly and monthly CRR Auctions which can release monthly as well as seasonal CRRs. There is also a special type of CRRs - the Long-Term CRRs (LT-CRR) which have a validity of ten years as opposed to the short term ones. These LT-CRRs are seasonal in nature and are released via the annual CRR allocation process but not through CRR Auction. Ownership of a CRR may change hands. However, only one entity can own the CRR in any Trading Hour and CAISO will settle with that owner. The CRR charge codes, consisting of CC 6798 (CRR Auction Transaction Settlement), CC 6700 (CRR Hourly Settlement), CC 6790 (CRR Balancing Account), and CC 6791 (CRRBA Accrued Interest Allocation) shall conform to the Tariff language on CRR Settlements (Section ) and Full Funding of CRRs (Section ). CAISO, 2009 Page 3 of 9

4 CC 6700 settles the entitlement amounts (payments and charges) of all valid CRR holdings for each Trading Hour. This is funded by the CRR Balancing Account (CC 6790). The CRRBA is a daily account consisting of the IFM Congestion Fund, which is composed of hourly congestion revenues from Day-Ahead AS imports and Energy schedules and of CRR Charges. In addition, the CRRBA contains the net revenues from CRR Auctions applicable to each day. At the end of each day, the CRRBA is cleared through distribution of surplus or allocation of shortfall to Measured Demand excluding Measured Demand associated with valid ETC, TOR, and CVR Self-Schedules. Furthermore, at each monthend, accrued interest from investment of auction revenues shall be allocated to monthly Measured Demand excluding Measured Demand associated with valid ETC, TOR, and CVR Self-Schedules. 2.2 Description This Charge Code settles the transaction amounts per Business Associate (BA) for each CRR Auction market. This charge shall be included in the same Invoice for Market, GMC, TAC, and/or FERC charges, to allow for netting of this Charge Code with the others. For each year, CAISO conducts a yearly auction (actually consisting of several subauctions for each season) in advance of the year for which the CRRs are valid; and a monthly auction in advance of each month. Each auction is identified by an Auction Market Name and each auction consists of two time of use (TOU) - referring to the onpeak and off-peak hours classification of CRRs released in these auctions. Market participants who buy or sell in these auctions have to settle transaction amounts with CAISO for CRRs they have obtained in the auctions. The net proceeds of the transaction amounts of each auction are forwarded to the CRR Balancing Account. Each monthly auction s net transaction amounts plus a portion of the net proceeds of the seasonal auction for the season containing the same Trade Month shall be forwarded to the relevant CRRBA daily accounts of the same month. The seasonal on-peak and offpeak net auction revenues shall be allocated to each month of the season in proportion to the number of on-peak and off-peak hours, respectively, in each month. 3. Charge Code Requirements 3.1 Business Rules Bus Req ID 1.0 Business Rule This Charge Code settles the transaction amounts of Business Associates (BAs) who participate in each CRR Auction market. 1.1 Each auction market is represented by an Auction Market Name. 1.2 For each year, there will be seasonal auction markets and monthly auction markets The seasonal auction markets, which release seasonal CRRs, are collectively CAISO, 2009 Page 4 of 9

5 Bus Req ID Business Rule termed the yearly auction. All the seasonal auction markets for the same year are conducted before the start of the year. There are monthly auctions which release monthly CRRs, and where each monthly auction is conducted in advance of the applicable month. 1.3 This Charge Code shall be settled at the CRR ID level in each auction market Each Auction Market Name can have CRR IDs with a time of use (TOU) of offpeak or on-peak. An external system shall provide all the CRR Auction results, the transaction dates per auction, and the transaction amounts for CRRs bought at the auction. Positive transaction amount represent a charge to a Business Associate who participated in the CRR Auction. Negative transaction amount represent payment to a Business Associate who participated in the CRR Auction. Payments and charges to BAs must be invoiced as soon as possible after the CRR Auction transaction data is made available to Settlements This charge code has a daily frequency, although on as needed basis The daily settlement trade date shall be set in such a way that the CRR auction transaction settlement will be included in the next nearest monthly invoice - whether that be a monthly initial market or a monthly recalc market invoice. The transaction amount per source or sink resource per CRR ID, per TOU per auction market name shall be provided for validation purposes. This Charge Code shall be included in the same Invoice for Market, GMC, TAC, and/or FERC charges, to allow for netting of this Charge Code with the others. 5.0 PTB charge adjustment is not allowed for this charge code Each monthly auction s net transaction amounts plus a portion of the net proceeds of the seasonal auction for the season containing the same Trade Month shall be forwarded to the relevant CRRBA daily accounts of the same month. The seasonal on-peak and off-peak net auction revenues shall be allocated to each month of the season in proportion to the number of on-peak and off-peak hours, respectively, in each month. The net auction transaction amounts shall be differentiated based on the time of use of each CRR holding. On-peak amounts shall be computed from CRR auction holdings with on-peak time of use, while off-peak amounts shall be computed from CRR auction holdings with off-peak time of use. CAISO, 2009 Page 5 of 9

6 3.2 Predecessor Charge Codes None Charge Code/ Pre-calc Name 3.3 Successor Charge Codes CC CRR Balancing Account Charge Code/ Pre-calc Name 3.4 Inputs External Systems Row # Variable Name Description Transaction amount for CRR z for its source or sink node resource r at Auction Market Name N with a TOU of t for Business Associate B for bill_period_start U and bill_period_end U,with an auction completion date of Trading Day d of Trade Month m. ($) Note: Sign flipping is necessary for sink node resource transaction amounts. Attribute t shall always be null or empty for the input. The source node and sink nodes of CRR auction holdings are mapped as attribute r in this input. 1 BAResourceCRRAuctionTransa ctionamt BrzN t UU md Also, a special mapping rule is provided on how to generate U U as well as the values for the splitting of original seasonal transaction amount records into monthly records. Creation of BAResourceCRRAuctionTransactionAmt BrzN t UU md : For each CRR Auction Transaction Amount and specific TOU, the data mapping splits the records such that each record represents a single bill period with the bill_period_start and bill_period_end attributes representing the start and stop dates of the bill period within the auction duration. The original amount is prorated based on the number of matching TOU hours within the bill period vs. the number of matching TOU hours within a particular CRR CAISO, 2009 Page 6 of 9

7 Row # Variable Name Description Auction. For example, for the AUC_AN_ _ _TC and assuming this is for TOU of ON with $300 proceeds from the auction. Using the current TOU hours definition to pro-rate, having 416 on-peak hours for April 2008, 416 on-peak hours for May 2008, and 400 on-peak hours for June 2008, and a total of 1232 on-peak hours for the season, then data mapping will generate 3 records for April, May and June, with $101.3, $101.3, and $97.4 as the interval values, respectively. No prorata is required for the monthly or onetime auctions, however, data mapping still needs to generate bill_period_start and bill_period_end attributes parsed from the auction market name. 3.5 Inputs - Predecessor Charge Codes or Pre-calculations Row # Variable Name Predecessor Charge Code/ Pre-calc Configuration None 3.6 CAISO Formula The settlement amount to Business Associate B for CRR ID z at Auction Market N : BACRRAuctionTransactionAmount BzN md = r t ' U U ' BAResourceCRRAuctionTransactionAmt BrzN t UU md CAISOCRRAuctionMarketTOUTotalRevenueforMonthAmount U Ut; = B r z N ' BAResourceCRRAuctionTransactionAmt BrzN t UU md m d Implementation Note: This value summed over all auction market names N having the same bill period start and bill period end (i.e., the same month, more accurately the monthly auction contribution and the monthly contribution from a seasonal auction for the same month) would correspond to the CAISO-wide net transaction amounts that must go to CRR Balancing account for the relevant month. Attributes m and d of BAResourceCRRAuctionTransactionAmount BrtzN t UU md shall be ignored, particularly that CAISO, 2009 Page 7 of 9

8 attribute m in this input would not necessarily correspond to the month bounded by U and U. CAISOCRRAuctionMarketTOUTotalRevenueforMonthAmount UU t shall be used in CC6790 and will be shown in that charge code as CAISOMonthlyCRRAuctionMarketTOUTotalRevenueAmount t m, where m in the latter is the converted month period bounded by U and U CAISODailyCRRAuctionMarketTotalRevenueforMonthAmount U U = t ' CAISOCRRAuctionMarketTOUTotalRevenueforMonthAmount UU t; Implementation Note: The above sum of CAISOCRRAuctionMarketTOUTotalRevenueforMonthAmount U Ut; for time of use t for on-peak (1) and off-peak (0) corresponds to the total monthly auction revenues, which is invested by CAISO if held more than a month and accrues interest. The interest is allocated in CC 6791, CRRBA Accrued Interest Allocation. CAISO, 2009 Page 8 of 9

9 3.7 Outputs Output ID Name In addition to any outputs listed below, all inputs shall be included as outputs. BACRRAuctionTransactionAmount BzN md CAISOCRRAuctionMarketTOUTotalReve nueformonthamount UU t CAISODailyCRRAuctionMarketTotalRev enueformonthamount UU Description The settlement amount to Business Associate B for CRR ID z at Auction Market N, with an auction completion date of Trading Day d of Trade Month m. ($). The amount of net CRR auction proceeds going into the relevant CRRBA monthly account for the month corresponding to the period bounded by U (bill_period_start) and U (bill_period_end), for a specific time of use t. This considers both the monthly auction contribution and the monthly contribution from a seasonal auction for the same month. ($). The amount of net CRR auction proceeds to be distributed to the relevant CRRBA daily accounts for the Trading Month m corresponding to the period bounded by U (bill_period_start) and U (bill_period_end). This considers both the monthly auction contribution and the monthly contribution from a seasonal auction for the same month. ($). CAISO, 2009 Page 9 of 9