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Business Practice Manual Change Management

Implementation of Nodal procurement ensures that both energy and flexible ramp awards are transmission feasible. This nodal approach addresses operational concerns that flexible ramping capacity may not be dispatchable and more accurately prices individual resource's flexible ramp capacity. The goal of this initiative is to not eliminate stranded ramping capability when system conditions change.

The scope of the FRP Deliverability is:

1. Calculate the FRP requirement as a function of demand, solar, and wind forecast.
2. Calculate the demand price curve for the FRP surplus for each BAA.
3. Procurement of FRP for BAAs that fails the flex test is separate for each BAA.
4. Procurement of FRP for BAAs that pass the flex test for the entire group of BAA.
5. Transmission constraints and transfer limits are enforced in FRP deployment scenarios.
6. Distributing the uncertainty requirement in each BAA load and VER locations versus just load.
7. Distributing the demand surplus variable as a decision variable at load aggregation points (LAP) versus Balancing Authority Areas (BAA).
8. To establish the Locational Marginal Capacity Prices (LMCP) for FRP.

Due to these changes settlements need to update the charge codes accordingly.  Settlements will now apply the new Flex Ramp Prices in our calculations,  Update our Allocation calculations to take in consideration the Pass Group determination of each BAA. 

For WEIM changes:

The configuration changes are needed to support settlement of WEIM Gen-Only BAAs. In the absence of metered demand, this update will allow settlements to allocate to an entity by using a new Gen-Only BAA Flag.

The effective Trade Date for this change is 11/1/2022 and the anticipated implementation date is 10/26/2022.