Proposed Revision Request Detail Help
PRR Life Cycle*******Final Decision**
PRR Details
PRR #
1296
Title Configuration adjustment to reliability must run capacity payments to ensure that residual unit commitment costs are considered in the calculation for the combined residual unit commitment and real-time market excess revenues
Date Submitted 10/28/2020 12:52 PM
PRR Category B
Priority Normal
Owner Corona, Brenda (CAISO)
Status Final Decision
Status End Date 1/5/2021 11:59 PM
Related BPM Settlements and Billing
BPM Section CG PC RTM Net Amount v5.34.1
CG PC RTM Net Amount v5.35.1
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Existing Language
 
See BPM attached to this PRR
Proposed Language
 
See BPM attached to this PRR
Reason For Revision
 

ISO received a dispute that RMR owners may currently be underpaid in the market for their capacity payments. Under the RMR policy, costs and revenues are compared to determine potential excess revenues. If the costs exceed revenues, that means an absence of excess revenue where the full capacity payment amount should be paid. If, instead, the revenues are greater than the costs for these RMR resources, the ISO will claw back that amount. This is done by adjusting the capacity payment amount by the RMR excess revenue amount which uses the net costs.

 

Because of this adjustment, the capacity payments referenced in the dispute above are being reduced as the RUC commitment costs are not being taken into account when determining the RTM RMR excess revenue amount. Because the cost calculation did not include RUC commitment costs, the calculation showed that there was excess revenue.

 

Settlements has updated the configuration guide for the RTM Net Amount Pre-calculation to include RUC costs. The updated calculations combine the RTM and RUC revenues and costs together. Including the RUC commitment costs will allow for the correct calculation of the combined RUC and RTM excess revenues. This will reduce the claw back of excess revenues in the RMR capacity payments that RMR owners receive. Charge code 7020 (Daily RMR Capacity Payment) will be indirectly impacted as it receives the RMR excess revenues from the RTM Net Amount Pre-calculation.

 

The ISO anticipates implementation of the BPM changes on or about 12/16/2020, with an effective retroactive Trade Date of 1/1/2020.
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BPM PRR Submitter

Corona, Brenda (CAISO)
Modified BPM language proposed by the PBM Chnage Management Coordinator

The ISO proposes no modified BPM language beyond that proposed in the BPM PRR.
Identification of the authorship of comments

No comments were received.
Action

Approve the BPM PRR as submitted

NA
Statement of apparent requirements of the BPM PRR

This BPM PRR contains basic language changes.
Priority and rank for any BPM PRR requiring a CAISO system change

There are system changes associated with this PRR. The system changes are planned for implementation on 12/15/2020 on a normal basis.
Proposed effective date(s) of the BPM PRR

The ISO proposes an effective date of 1/1/2020 for the BPM revisions.
Other recommended actions

The ISO does not recommend any other actions on this BPM PRR.
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Final Decision

The ISO will adopt the BPM change as proposed in the recommendation.
Stakeholder Comment

No comments submitted.

Effective Date

1/1/2020
Action

Adopt the recommendation as originally issued

None
Announcements
No Announcements has been posted for this PRR.
Impact Analysis
Initial Comments
No Initial Comments available for this PRR.
Recommendation Comments
No Recommendation Comments available for this PRR.
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