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Business Practice Manual Change Management

Does not contain clarifications and updates.

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1. Transition cost bid adjustments (page 5, Section 4.1 & page 31-32, Attachment O.1.2)
   1. For MSG configurations, if startup cost reference level adjustments are accepted (i.e. Revised Default Startup Bid), CAISO will re-calculate the Default Transition Bids to reflect the startup adjustment
2. Hydro DEB parameter update (page 9, Attachment D.8.2)
   1. Update hydro DEB gas floor component's typical gas generator heat rate to align with more recently-published value from EIA
3. Reference level change request clarifications
   1. Automated reference level change requests should also reflect updated transportation costs in addition to the commodity gas price, since the transportation cost calculation also uses the commodity gas price (page 20, Attachment O.1.1). In recent audits of automated reference level change requests, we observed that the transportation costs weren't consistently being updated from one SC to another. With this language, we seek to make clear the expectation (page 20, Attachment O.1.1)
   2. Audits of automated reference level change requests clarifications:
      1. Errors/mistakes will be audited to the same criteria as all other applications i.e. exceptions won't be made for errors/mistakes. Errors were found when auditing some recent automated reference level change requests, and we want to avoid needing to make judgements on which errors/mistakes to accept or not moving forward (page 45, Attachment O.2.1)
      2. Guide SCs to existing BPM formulas for correctly calculating the adjusted costs they are requesting. Recent audits saw cases where the calculations of the requested costs missed certain components (page 44, Attachment O.2.1)
   3. Clarifying eligibility criteria and steps SCs need to take for after-market cost recovery when costs for energy and minimum load are above the $2,000/MWh Hard Energy Bid Cap and $2,000/MWh Minimum Load Cost Hard Cap, respectively (page 50-51, Attachment O.3.2)
4. Wholesale EPI formula update (page 14, Attachment M.3)
   1. Correction to formula to remove redundant components which are already included in the Total Transportation Cost component of the formula

​The reasons for the revisions are to make clarifications on existing BPM guidance, as well as make corrections to existing BPM guidance. These clarifications and corrections impact formulas and processes. They do not reflect any new policies and would not require changes to market participants’ systems.