Minutes No. 12 1 Southwest Power Pool SCHEDULE 1A TASK FORCE MEETING March 25, 2019 Teleconference • MINUTES • Administrative Items Chair John Olsen called the meeting to order at 1:00 PM. The following individuals participated in the meeting: John Olsen Evergy Jason Mazigian Basin Electric John Varnell Tenaska Robert Tallman OG&E David Mindham ITC Holdings Corp. Ray Bergmeier Sunflower Electric Alfred Busbee GDS Associates/ETEC Greg Garst OPPD Heather Starnes Healy Law Offices/MJMEUC Rob Janssen Dogwood Energy Tim Hall Southern Power Richard Ross AEP-Southwestern Electric Power Co. (TO) Bill Grant Southwestern Public Service – Xcel Energy Bernard Liu Xcel Energy Brian Rounds AESL Consulting Calvin Daniels Western Farmers Dennis Reed Midwest Regulatory Consulting, LLC Ella Caillouette NorthWestern Energy Jessica Meyer Lincoln Electric System Robert Pick NPPD Robert Safuto Customized Energy Solutions Ron Thompson NPPD Sandy Wirkus WAPA Jessica Kasparek Lincoln Electric System Jodi Endres WAPA Chris Green Liberty Utilities Tom Dunn SPP Mike Riley SPP Nicole Wagner SPP Dianne Branch SPP Patti Kelly SPP Denise Martin SPP David Daniels SPP Sam Loudenslager SPP Tony Alexander SPP Lee Elliot SPP Minutes from the February 21, 2019 meeting were reviewed. Heather Starnes motioned to approve the minutes. The motion was seconded by Jason Mazigian. The minutes were unanimously approved by voice vote.
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Minutes No. 12
1
Southwest Power Pool
SCHEDULE 1A TASK FORCE MEETING
March 25, 2019
Teleconference
• M I N U T E S •
Administrative Items Chair John Olsen called the meeting to order at 1:00 PM. The following individuals participated in the meeting:
John Olsen Evergy Jason Mazigian Basin Electric John Varnell Tenaska Robert Tallman OG&E David Mindham ITC Holdings Corp. Ray Bergmeier Sunflower Electric Alfred Busbee GDS Associates/ETEC Greg Garst OPPD Heather Starnes Healy Law Offices/MJMEUC Rob Janssen Dogwood Energy Tim Hall Southern Power Richard Ross AEP-Southwestern Electric Power Co. (TO) Bill Grant Southwestern Public Service – Xcel Energy Bernard Liu Xcel Energy Brian Rounds AESL Consulting Calvin Daniels Western Farmers Dennis Reed Midwest Regulatory Consulting, LLC Ella Caillouette NorthWestern Energy Jessica Meyer Lincoln Electric System Robert Pick NPPD Robert Safuto Customized Energy Solutions Ron Thompson NPPD Sandy Wirkus WAPA Jessica Kasparek Lincoln Electric System Jodi Endres WAPA Chris Green Liberty Utilities Tom Dunn SPP Mike Riley SPP Nicole Wagner SPP Dianne Branch SPP Patti Kelly SPP Denise Martin SPP David Daniels SPP Sam Loudenslager SPP Tony Alexander SPP Lee Elliot SPP
Minutes from the February 21, 2019 meeting were reviewed. Heather Starnes motioned to approve the minutes. The motion was seconded by Jason Mazigian. The minutes were unanimously approved by voice vote.
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The following proxies were in effect for the meeting – Bill Grant for Wes Berger and Richard Ross for Jim Jacoby (see attachments). Update on Action Items from February 21st Meeting
1) Staff to prepare formula templates for proposed rate schedules. UPDATE: Discussed under Agenda Item 5.
2) Staff to incorporate recommended edits to the white paper draft. UPDATE: Discussed under Agenda Item 6.
3) Staff to complete tariff language edits as discussed during meeting UPDATE: Discussed under Agenda Item 3.
Tariff Language Review Mike Riley presented the tariff language as revised to reflect comments from the February 21st meeting. The most noteworthy edit was the modification of the cap language in the opening paragraph to include the summation of costs from all rate schedules. The remaining changes made to the tariff language consisted of minor verbiage edits. There was a brief discussion on the necessity of the rate cap in light of the creation of the formula rate templates. John Olsen restated that it was the Task Force’s desire to continue the use of the rate cap calculation that would be included in the formula rate template annually for overall cost control purposes. Staff raised the issue as to the appropriateness of using Schedule 9 billing determinants for purposes of billing network service under RS 1, which was modeled after the current schedule 1A billing methodology. Currently, Schedule 1A is charged to network customers based on Schedule 9 demand which excludes GFAs. Alternatively, it was suggested that utilizing Schedule 11 might be more appropriate given that it includes GFAs. In response to this suggestion, concern was raised that GFAs being served via PTP service could theoretically be billed twice under RS 1 if Schedule 11 demand was utilized to bill network service - once for network service because the GFA load would be included within the Schedule 11 demand, and second because the PTP service would also be charged under RS 1. Because of this issue, the Task Force did not feel that it could approve the tariff language as currently constructed until staff performed further analysis of Schedule 9 vs 11 billing determinants and its effect on revenue associated with monthly assessments. Market Protocol Revisions Patti Kelly provided an overview of the current draft of the Revision Request Form, highlighting the market protocol revisions resulting from the proposed schedule 1A rate structure changes. There was a brief discussion and related questions that were addressed by staff. Formula Rate Template Review Nicole Wagner provided an overview of the current draft of the formula rate template, highlighting the structure of the underlying data (both cost and billing determinants) for all rate schedules. She emphasized that the template was still a work in progress and that staff was still in the process of
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validating the completeness and accuracy of the data to be included in the template. There was some general discussion by the Task Force. Staff will present a more completed version of the template at the next meeting. White Paper Review The Task Force briefly discussed the current version of the white paper as presented in the materials. While there were no suggested edits/modifications to the draft raised by the Task Force at this time, final approval will be delayed until all remaining outstanding issues have been resolved. Action Items
1) Staff to complete analysis of Schedule 9 vs Schedule 11 billing determinants and its impact to the current monthly assessment portion of the administrative fee.
Future Meetings Friday, April 12th 10AM-Noon – Teleconference/WebEx There being no further business, John Olsen adjourned the meeting at 2:50 PM. Respectfully Submitted, Dianne Branch Secretary
Antitrust: SPP strictly prohibits use of participation in SPP activities as a forum for engaging in practices or communications that violate the antitrust laws. Please avoid discussion of topics or behavior that would result in anti-competitive behavior, including but not limited to, agreements between or among competitors regarding prices, bid and offer practices, availability of service, product design, terms of sale, division of markets, allocation of customers or any other activity that might unreasonably restrain competition.
Southwest Power Pool, Inc. SCHEDULE 1A TASK FORCE MEETING
March 25, 2019 Teleconference
• A G E N D A •
1 – 5 PM CST
1. Administrative Items (10 minutes)
a. Call to Order…………………………………………………………………………...John Olsen
b. Attendance………………………………………………………………………...Dianne Branch
c. Review of Agenda…………………………………………………………………….John Olsen
d. Approve Meeting Minutes…………………………..……………………………….John Olsen
2. Review of Past Actions Items (10 minutes)…………………………………………………..Dianne Branch
3. Tariff Language Review (45 minutes)…………..………………………………………………… Mike Riley
4. Market Protocol Revisions (30 minutes)……………………………………………………………Patti Kelly
5. Formula Rate Template Review (60 minutes)...………..……………………………………Nicole Wagner
6. White Paper Review (45 minutes)……………………………..……………..………….……Dianne Branch
From: Jacoby, JimSent: Sunday, March 24, 2019 10:16 AMTo: Olsen, John; Dianne BranchCc: David Erkin; Ross, Richard C. (AEP)Subject: **External Email** 1ATF proxy
John and Dianne, I won’t be on the 1ATF call Monday. Please accept Richard Ross as my proxy. Thanks Jim Jacoby AEP [email protected] 214‐777‐1144
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Dianne Branch
From: Berger, WesSent: Wednesday, March 20, 2019 8:57 AMTo: Dianne Branch; Olsen, JohnCc: Grant, WilliamSubject: **External Email** Proxy for SPP Sch1A meeting next week
I am unable to attend the meeting next week. Bill Grant will have my proxy. Thanks. Wes Berger Xcel Energy | Responsible By Nature Manager, Rate Cases 790 S. Buchanan St., 7th Floor, Amarillo TX 79101 P: 806.378.2891 C: 806.672.6080
Minutes No. 11
1
Southwest Power Pool
SCHEDULE 1A TASK FORCE MEETING February 21, 2019
DFW Hyatt Regency – Dallas, TX
• M I N U T E S •
Administrative Items Chair John Olsen called the meeting to order at 8:00 AM. The following individuals participated in the meeting:
John Olsen Evergy Jim Jacoby AEP-Public Service Company of Oklahoma Jason Mazigian Basin Electric John Varnell Tenaska Robert Tallman OG&E David Mindham ITC Holdings Corp. Wes Berger Xcel Energy/SPS Ray Bergmeier Sunflower Electric Mike Riley SPP Dianne Branch SPP
Those participating by phone were as follows:
Alfred Busbee GDS Associates/ETEC Greg Garst OPPD Joel Dagerman NPPD Heather Starnes Healy Law Offices/MJMEUC Rob Janssen Dogwood Energy Calvin Daniels Western Farmers Chris Lyons Customized Energy Solutions Damir Domazet The Energy Authority David Erkin AEP David Kays OG&E Greg McAuley OG&E – Transmission J.P. Maddock Basin Electric Lee Anderson Lincoln Electric System Jessica Meyer Lincoln Electric System Ron Thompson NPPD Sandy Wirkus WAPA David Daniels SPP Steve Davis SPP Richard Dillon SPP Nicole Wagner SPP Chris Cranford SPP Lee Elliot SPP Patti Kelly SPP
Minutes from the February 5, 2019 meeting were reviewed. Jason Mazigian motioned to approve the minutes. The motion was seconded by John Varnell. The minutes were unanimously approved by voice vote.
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The following proxy was in effect for the meeting – John Varnell for Tim Hall (see attachment). Update on Action Items from February 5th Meeting
1) Task force members to contemplate the impacts to their respective companies as it relates to the various options for positioning new rate structure language into the tariff (e.g. all remain in 1A, only RS 1 remain in 1A, all in separate section). Members should be prepared to discuss at February 21st meeting. UPDATE: Discussed under Agenda Item 3.
2) Task force members to discuss within their respective companies the preference on removing/keeping a cap on the rate schedule(s). Members should be prepared to discuss at February 21st meeting. UPDATE: Discussed under Agenda Item 3.
3) Staff to incorporate illustrative timeline into the white paper to clearly explain the period for which billing determinants will be utilized in the annual rate setting process and the period for which the established rate would be in effect. UPDATE: Illustrative timeline was added to white paper (Agenda Item 4)
4) Staff to prepare formula templates for proposed rate schedules. UPDATE: This item remains open.
5) Staff to prepare analysis on monthly assessments illustrating materiality and the underlying components of the calculation UPDATE: Discussed under Agenda Item 3. Schedule was included in meeting materials. .
6) Staff to research current tariff language on bad debt, identifying exposure (if any) that would necessitate the inclusion of language in tariff sections under current revision. UPDATE: Discussed under Agenda Item 3. Memo was included in meeting materials.
Tariff Language Review Mike Riley facilitated the ongoing review and edit of the proposed tariff language as provided in the meeting materials. The Task Force worked through each of the sections representing the four rate schedules, providing numerous edits. There were several items/issues raised during the February 5th meeting that required additional analysis and consideration. A recap of those issues along with the ultimate resolution reached during this meeting is as follows:
(1) Rate Cap Issue: Current Schedule 1A explicitly sets a cap on the administrative fee that SPP can charge. Is a cap needed under the proposed new rate structure? At the conclusion of the February 5th meeting, Task Force members were asked to go back and discuss with their respective companies and be prepared to discuss at next meeting.
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Resolution: After a moderate amount of discussion, there was general agreement that a) some type of cap should remain in the tariff for the proposed rate structure and b) a cap for each rate schedule did not seem like a reasonable option. Wes Berger made the following motion related to the rate cap - “To retain the current administration cap in the tariff and develop a tab in the formula rate template that will duplicate the current methodology of calculating the 1A fee to compare the annual values to this cap.” Joel Dagerman seconded the motion. Staff expressed their concern with having a cap calculation that was disconnected from the rate setting calculations given the difference in the billing determinants utilized for each calculation. Rate cap calculation would be based on 12CP and proposed rate schedules 2-4 would be based on market billing determinants. Only rate schedule 1 is based on 12 CP. The motion passed by voice vote with MJMEUC abstaining.
(2) Location of New Tariff Language Issue: How should the new rate schedules be incorporated in the tariff? Options include leaving all in Schedule 1A, moving all to new section, or leaving only RS 1 in Schedule 1A while including all others in a separate section (e.g. 13 or AE). Moving any or all language from Schedule 1A would necessitate some TOs to make new filings with FERC and possibly trigger state filings for other entities. During the February 5th meeting, Task Force members were asked to go back and discuss impacts with their respective companies and be prepared to discuss at next meeting. Resolution: After a moderate amount of discussion, the Task Force agreed that the four proposed rate schedules should be retained within the current Schedule 1-A in some manner. Depending on further analysis of existing references in the tariff back to 1-A, it may make sense to create additional sections (B, C, and D) to accommodate the four rate schedules. In summary, the Task Force preferred that no new sections be created in the tariff for the four rate schedules (i.e. no Schedule 13 as previously proposed).
(3) Bad Debt Expense Reference Issue: Current Schedule 1A includes language to address bad debt expense. Under the new proposed rate schedules, is this language still necessary? During the February 5th meeting, staff was asked to research and prepare analysis for next meeting. Resolution: Dianne Branch provided an overview of the memo included in the meeting materials. In summary, current tariff language contains provisions to cover situations of non-payment for invoiced market and transmission activity. As described in the memo, situations that might give rise to bad debt expense in any given year would obviously impact the over/under recovery for that year and that impact would be included in the following year’s rate setting calculation as an adjustment to the NRR. Therefore, it is staff’s recommendation that there would be no special mention of bad debt expense in the tariff language supporting the new rate schedules given that it was really no different than any other variance to budget in a given year. While the Task Force agreed with staff’s recommendation to exclude from tariff language, they suggested a line for bad debt expense be incorporated into the formula rate templates to cover any future situation where such expense would be a component of the annual rate true-up.
(4) Monthly Assessments Issue: Under proposed new rate structure, should monthly assessments be eliminated? This current language resides in the by-laws and would require approval from the Corporate Governance Committee to remove. During the February 5th meeting, staff was asked to prepare analysis for next meeting.
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Resolution: Dianne Branch provided an overview of the analysis performed by staff since the last meeting. The conclusion of the analysis was that there was no load billed under the current methodology as a monthly assessment that would not be picked up in the proposed methodology either under Rate Schedule 1 as a TSR or under Rate Schedules 3 and 4 as market activity. This conclusion was confirmed during the meeting by SPP Settlements staff member, David Daniels. The Task Force concluded that no further consideration was needed for monthly assessments in the tariff language supporting the proposed four rate schedule structure. However, it was suggested that current monthly assessment language in the by-laws be reviewed further as there may be a need to remove reference to the Schedule 1-A billing practices.
White Paper Review The Task Force discussed the content of the white paper, identifying numerous items that need to be considered before the document can be finalized. Those items are summarized as follows:
1) Recent decisions made during this meeting need to be incorporated 2) MMU consultation and opinion should be more fully documented 3) Titles of rate schedules to be updated to match drafted tariff language 4) Transition/true-up processes should be more fully documented * 5) Language highlighting the correlation between Rate Schedule costs to FERC expense
accounts should be added 6) Remove vote counts/dissent comments 7) Refine definition of TCR Holder to more closely align to proposed tariff language 8) Add the rate schedule summary slide from previous presentations that summarizes by
rate schedule - costs to be recovered, who pays, billing determinants, etc. 9) Add language supporting the rationale as to the necessity for both Rate Schedule 3 and 4 10) Mention the decision to eliminate the virtual transactional fee charge. 11) Refine language in the Cash and Billing Determinant section to exclude some of the
discussions leading up to the final conclusions reached
*A separate motion was made by Bob Tallman to include transition/true-up language in the white paper. Motion was seconded by Wes Berger. The motion passed unanimously by voice vote.
Action Items
1) Staff to prepare formula templates for proposed rate schedules. 2) Staff to incorporate recommended edits to the white paper draft. 3) Staff to complete tariff language edits as discussed during meeting
Future Meetings Monday, March 25th 1AM-5PM – Teleconference/WebEx There being no further business, John Olsen adjourned the meeting at 2:05 PM. Respectfully Submitted, Dianne Branch Secretary
SCHEDULE 1-A
TARIFF ADMINISTRATION SERVICES
The Transmission Provider shall provide the administration services described in this
Schedule 1-A to carry out its responsibilities under this Tariff. Transmission Customers and
Market Participants must purchase these services from the Transmission Provider. Unless
otherwise collected under this Tariff, the Transmission Provider will recover 100% of its total
expenses incurred for the provision of these services, through the charges described herein, and
when such total expenses are divided by the total billing determinants of Schedule 1-A1, the
resulting rate will not exceed $.43 per MWh. The charges for these services are developed as
shown below.
1. Schedule 1-A1 Transmission Administration Service
Transmission administration service is provided by the Transmission Provider to all
Transmission Customers under this Tariff and includes the provision of: (1) reliability
a. Integrated Marketplace Facilitation Administration Service Charge
The Schedule 1-A4 Service charge provides for the recovery of any costs incurred by
the Transmission Provider in providing this Schedule 1-A4 Service.
i. Costs
The costs to be recovered under this Schedule 1-A4 include without limitation, any direct
resources, system maintenance, debt service (including costs of financing capital purchases
associated with providing Schedule 1-A4 Service), corporate overhead (including a proportionate
allocation of indirect costs associated with providing Schedule 1-A4 Service), and other costs
associated with providing Schedule 1-A4 Service (“Schedule 1-A4 Costs”).
ii. Billing Determinants
The Schedule 1-A4 billing determinants are: 1) all Real-Time Energy injected into and
withdrawn from the Transmission System; and, 2) all Import Interchange Transactions in Real-
Time and all Export Interchange Transactions in Real-Time.
iii. Rate Formula
Deleted: 13-3
Deleted: 13-3
Deleted: VI
Deleted: 13-4
Deleted: Administrative
Deleted: administrative
Deleted: 13-4
Deleted: Administrative
Deleted: 13-4
Deleted: 13-4
Deleted: 13-4
Deleted: 13-4
Deleted: 13-4
Deleted: 13-4
Deleted: 13-4
Deleted: 13-4
Annually, the Transmission Provider will determine the Schedule 1-A4 Service rate for
each calendar year as described in the Schedule 1-A4 template.
b. Charges To Market Participants
The Schedule 1-A4 charge is the product of the Schedule 1-A4 rate and the Market
Participant’s billing determinants.
Deleted: 13-4
Deleted: 13-4
Deleted: 13-4
Deleted: 13-4
Page 1 of 156
Revision Request Form SPP STAFF TO COMPLETE THIS SECTION
RR #: Date:
RR Title: System Changes No Yes Process Changes? No Yes Impact Analysis Required? No Yes
SUBMITTER INFORMATION Name: Dianne Branch on behalf of Schedule 1-A Task Force
Company: Southwest Power Pool
Email: [email protected] Phone: 501-614-3223 Only Qualified Entities may submit Revision Requests.
Please select at least one applicable option below, as it applies to the named submitter(s).
SPP Staff SPP Market Participant SPP Member An entity designated by a Qualified Entity to submit
a Revision Request “on their behalf”
SPP Market Monitor Staff of government authority with jurisdiction over
SPP/SPP member Rostered individual of SPP Committee, Task Force or
Working Group Transmission Customers or other entities that are parties to
transactions under the Tariff REVISION REQUEST DETAILS
Requested Resolution Timing: Normal Expedited Urgent Action
Reason for Expedited/Urgent Resolution:
Type of Revision (select all that apply):
Correction
Clarification
Design Enhancement
New Protocol, Business Practice, Criteria, Tariff
NERC Standard Impact (Specifically state if revision relates to/or impacts NERC Standards, list standard(s))
FERC Mandate (List order number(s))
REVISION REQUEST RISK DRIVERS
Are there existing risks to one or more SPP Members or the BES driving the need for this RR? Yes No
If yes, provided details to explain the risk and timelines associated:
Compliance (Tariff, NERC, Other)
Reliability/Operations
Financial SPP Documents Requiring Revision: Please select your primary intended document(s) as well as all others known that could be impacted by the requested revision (e.g. a change to a protocol that would necessitate a criteria or business practice revision).
Section(s): In the Main Body of the Tariff: Section 10.5 Transmission Provider Recovery Section 13.7 Classification of Firm Transmission Service Section 14.5 Classification of Non-Firm Point-To-Point Transmission Service Schedules: Schedule 1-A (Tariff Administration Services) Addendum 1 to Schedule 1-A (Formula Rate Template Protocols) Attachments to the Tariff: Attachment F (Service Agreement for NITS), Attachment 1 to the Network Integration Transmission Service Agreement Attachment H – where Schedule 1-A is referenced in various Addendums to Attachment H, those Addendums will be cleaned up to reflect Schedule 1-A1, as necessary, at a later time either by Participants or by SPP on their behalf – no changes included in the general sections of Attachment H necessary so nothing to attach here. Attachment L (Treatment of Revenues), Section IV Distribution of Other Revenues Attachment O (Transmission Planning Process), Section IV (Other Planning Studies) and Section IX (Recovering Costs Associated with the Planning Process) Attachment AE (Integrated Marketplace): Table of Contents 4.2.1 Virtual Energy Offers 4.3.2 Virtual Energy Bids 8.5.17 Day-Ahead Virtual Energy Transaction Fee Amount – (Remove Section) 8.10 Market Administration Services Amount – (New Section) Attachment AF (Market Mitigation Measures), Section 3.2 D and E
Revision Request Process Section(s): Minimum Transmission Design
Standards for Competitive Upgrades (MTDS) Section(s):
Reliability Coordinator and Balancing Authority Data Specifications (RDS) Section(s):
SPP Communications Protocols Section(s):
OBJECTIVE OF REVISION
Objectives of Revision Request:
Currently, all of SPP’s administrative costs of providing all services are recovered through the application of Tariff Schedule 1-A. Schedule 1-A charges all load a certain rate that is determined each year, based on SPP’s projected costs to perform all services for the following year. Since its inception, only Transmission Customers pay Schedule 1-A charges.
In light of the expanded services provided by SPP in the Integrated Marketplace, SPP determined it was the right time to review the current cost recovery mechanism and determine a better mechanism to recover costs from all who use and benefit from SPP’s services.
The Schedule 1-A Task Force (“TF”) was tasked by the MOPC with developing a rate structure to allow SPP to recover its administrative costs of operations from users of SPP’s services as outlined in the Whitepaper developed by the TF. The TF has developed a rate methodology that adheres to the following broad principles of simplicity, better alignment of payer cost/benefits, and inclusion of energy transactions.
The Task Force reached general agreement that the proposed rate structure should include a mix of demand and energy charges. Generally, transmission-related charges would continue to be recovered through a demand charge and the market-related charges would be recovered through three different energy related charges.
Under the proposal, the energy-related charges will be recovered through three separate charges: 1) Transmission Congestion Rights Administrative Service (to be paid by all TCR Holders) and would cover the costs to administer the TCR Markets and related costs; 2) Integrated Marketplace Clearing Administrative Service (to be paid by all Market Participants including Virtuals) and would recover costs related to market settlement, credit services, market monitoring, and customer service; and 3) Integrated Marketplace Facilitation Administrative Service (to be paid by all Market Participants excluding Virtuals) and would recover costs to provide the Day Ahead Markets, Real Time Balancing Market, and RUC Processes.
Under the Task Force proposal, Schedule 1-A will remain and be broken into four rate schedules. The first being the original transmission service schedule (current 1-A) and it would become Schedule 1-A1 and the three previously mentioned Market Schedules would become Schedules 1-A2, 1-A3, and 1-A4.
Additional changes to the Tariff are also included to reflect the slight change in numbering of the current 1-A to 1-A1 and additional changes to reflect the rate schedule(s) throughout the Tariff including in Attachment AE. A currently effective rate in Attachment AE for Virtual Transactions is being removed as Virtuals are proposed to pay Schedule 1-A3 and that change has other changes to be made to AE to conform to this proposal. Changes are also proposed to the Marketplace Protocols and include similar changes to Attachment AE changes.
Describe the benefits that will be realized from this revision.
The benefits that will be realized from this revision is that the costs that SPP incurs to provide all of its current services will be allocated more appropriately to the customers who utilize those services.
Page 4 of 156
REVISIONS TO SPP DOCUMENTS In the appropriate sections below, please provide the language from the current document(s) for which you are requesting revision(s), with all edits redlined.
Market Protocols
Market Protocols TABLE OF CONTENTS CURRENT REVISION ............................................................... Error! Bookmark not defined. TABLE OF CONTENTS ..............................................................................................................4
LIST OF EXHIBITS.................................................................... Error! Bookmark not defined. 1. Glossary .................................................................................. Error! Bookmark not defined. 2. Introduction ............................................................................ Error! Bookmark not defined.
2.1 Purpose ............................................................................... Error! Bookmark not defined.
3. SPP Integrated Marketplace Overview ............................... Error! Bookmark not defined. 3.1 Energy and Operating Reserve Markets ............................ Error! Bookmark not defined. 3.2 Transmission Congestion Rights Markets ......................... Error! Bookmark not defined.
4. Energy and Operating Reserve Markets Processes ............ Error! Bookmark not defined. 4.1 SPP System Requirements ................................................. Error! Bookmark not defined.
4.1.1 Reserve Zone Establishment ........................................ Error! Bookmark not defined. 4.1.2 Forecasting ................................................................... Error! Bookmark not defined.
4.1.2.1 Short Term and Mid-Term Load Forecasting ........ Error! Bookmark not defined. 4.1.2.1.1 Conforming Load ............................................. Error! Bookmark not defined. 4.1.2.1.2 Non-conforming Load ..................................... Error! Bookmark not defined. 4.1.2.1.3 Losses ............................................................... Error! Bookmark not defined. 4.1.2.1.4 Demand Response Adjustments ...................... Error! Bookmark not defined. 4.1.2.1.5 Reserve Zone Load .......................................... Error! Bookmark not defined. 4.1.2.1.6 Load Distribution ............................................. Error! Bookmark not defined.
4.1.2.2 Wind-Powered Generation Resource Output ForecastsError! Bookmark not defined. 4.1.2.3 Wind-Powered Generation Resource Data RequirementsError! Bookmark not defined. 4.1.2.4 Grandfathered Wind-Powered Generation Resource Data RequirementsError! Bookmark not defined.
4.1.2.5 Solar-Powered Generation Resource Output ForecastsError! Bookmark not defined. 4.1.2.6 Solar-Powered Generation Resource Data RequirementsError! Bookmark not defined.
Deleted: ¶
Page 5 of 156
4.1.3 Operating Reserve, and Instantaneous Load Capacity RequirementsError! Bookmark not defined. 4.1.3.1 Reserve Zone Requirements .................................. Error! Bookmark not defined.
4.1.3.1.1 Minimum Reserve Zone Operating Reserve RequirementsError! Bookmark not defined. 4.1.3.1.2 Maximum Reserve Zone Operating Reserve LimitationsError! Bookmark not defined.
4.1.3.2 Instantaneous Load Capacity Requirements .......... Error! Bookmark not defined. 4.1.4 Violation Relaxation Limits ......................................... Error! Bookmark not defined.
4.1.4.1 Impact of VRLs on LMPs and MCPs .................... Error! Bookmark not defined. 4.1.4.2 Determination of VRLs.......................................... Error! Bookmark not defined. 4.1.4.3 VRL Reporting....................................................... Error! Bookmark not defined.
4.1.4.3.1 Annual Reporting ............................................. Error! Bookmark not defined. 4.1.5 Scarcity Pricing ............................................................ Error! Bookmark not defined.
4.1.5.1 Demand Curve Interaction with VRLs .................. Error! Bookmark not defined. 4.1.5.2 Operating Reserve Scarcity Factors ....................... Error! Bookmark not defined. 4.1.5.3 Regulation Base Demand Price ............................. Error! Bookmark not defined.
4.1.6 Ramp Sharing............................................................... Error! Bookmark not defined. 4.1.7 Outage Scheduling and Reporting ............................... Error! Bookmark not defined. 4.1.8 Joint Operating Agreements – Seams Coordination .... Error! Bookmark not defined. 4.1.9 Calculation of Net Benefits Test for Compensation of Demand Response LoadError! Bookmark not defined.
4.2 Pre-Day-Ahead Activities .................................................. Error! Bookmark not defined. 4.2.1 Must-Offer Requirement .............................................. Error! Bookmark not defined.
4.2.1.1 Day-Ahead Market................................................. Error! Bookmark not defined. 4.2.1.1.1 Penalty Calculation .......................................... Error! Bookmark not defined.
4.2.1.2 RUC and RTBM .................................................... Error! Bookmark not defined. 4.2.2 Offer Submittal ............................................................ Error! Bookmark not defined.
4.2.2.1 Resource Offer Parameters .................................... Error! Bookmark not defined. 4.2.2.1.1 Resource Ramp Rate Interaction – Energy and Operating ReserveError! Bookmark not defined. 4.2.2.1.2 Regulation-Up and Regulation-Down Service OffersError! Bookmark not defined. 4.2.2.1.3 Mitigated Regulation-Up and Regulation-Down Service OffersError! Bookmark not defined. 4.2.2.1.4 Mileage Factor Calculation .............................. Error! Bookmark not defined.
4.2.2.2 Resource Status ...................................................... Error! Bookmark not defined. 4.2.2.2.1 Commitment Status .......................................... Error! Bookmark not defined.
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4.2.2.2.2 Dispatch Status................................................. Error! Bookmark not defined. 4.2.2.3 Resource Limit Validation ..................................... Error! Bookmark not defined. 4.2.2.4 Resource Commitment Parameter Relationships... Error! Bookmark not defined.
4.2.2.4.1 Start-Up and Shut-Down Times....................... Error! Bookmark not defined. 4.2.2.5 Resource Modeling ................................................ Error! Bookmark not defined.
4.2.2.5.1 Dispatchable Demand Response Resource ...... Error! Bookmark not defined. 4.2.2.5.2 Block Demand Response Resource ................. Error! Bookmark not defined. 4.2.2.5.3 Combined Cycle Resource ............................... Error! Bookmark not defined. 4.2.2.5.4 Jointly Owned Unit .......................................... Error! Bookmark not defined. 4.2.2.5.5 Dispatchable Variable Energy Resources ........ Error! Bookmark not defined. 4.2.2.5.6 Non-Dispatchable Variable Energy Resources Error! Bookmark not defined. 4.2.2.5.7 External Dynamic Resource ............................ Error! Bookmark not defined. 4.2.2.5.8 Resources Pseudo-Tied Out of the SPP BAA . Error! Bookmark not defined. 4.2.2.5.9 Electric Storage Resource (ESR) ..................... Error! Bookmark not defined.
4.2.2.6 Virtual Energy Offers ..............................................................................................4
4.2.2.7 Import Interchange Transaction Offers .................. Error! Bookmark not defined. 4.2.3 Bid Submittal ............................................................... Error! Bookmark not defined.
4.2.3.1 Demand Bids .......................................................... Error! Bookmark not defined. 4.2.3.2 Virtual Energy Bids ...............................................................................................30
4.2.3.3 Export Interchange Transaction Bids..................... Error! Bookmark not defined. 4.2.4 Through Interchange Transactions .............................. Error! Bookmark not defined. 4.2.5 Ramp Reservation Requirements ................................. Error! Bookmark not defined. 4.2.6 Multi-Day Reliability Assessment ............................... Error! Bookmark not defined.
4.2.6.1 Multi-Day Reliability Assessment Inputs .............. Error! Bookmark not defined. 4.2.6.2 Multi-Day Reliability Assessment Analysis .......... Error! Bookmark not defined. 4.2.6.3 Multi-Day Reliability Assessment Results ............ Error! Bookmark not defined.
4.3 Day-Ahead Activities......................................................... Error! Bookmark not defined. 4.3.1 Day-Ahead Market....................................................... Error! Bookmark not defined.
4.3.1.1 DA Market Inputs .................................................. Error! Bookmark not defined. 4.3.1.2 DA Market Execution ............................................ Error! Bookmark not defined.
4.3.1.2.1 Clearing During Capacity Shortage ................. Error! Bookmark not defined.
Page 7 of 156
4.3.1.2.2 Clearing During Excess Generation ConditionsError! Bookmark not defined. 4.3.1.3 DA Market Results ................................................ Error! Bookmark not defined.
4.3.2 Day-Ahead Reliability Unit Commitment ................... Error! Bookmark not defined. 4.3.2.1 Day-Ahead RUC Inputs ......................................... Error! Bookmark not defined. 4.3.2.2 Day-Ahead RUC Execution ................................... Error! Bookmark not defined. 4.3.2.3 Day-Ahead RUC Results ....................................... Error! Bookmark not defined. 4.3.2.4 Update Current Operating Plan .............................. Error! Bookmark not defined.
4.4 Operating Day Activities ................................................... Error! Bookmark not defined. 4.4.1 Intra-Day Reliability Unit Commitment ...................... Error! Bookmark not defined.
4.4.1.1 Intra-Day RUC Inputs ............................................ Error! Bookmark not defined. 4.4.1.2 Intra-Day RUC Execution...................................... Error! Bookmark not defined. 4.4.1.3 Intra-Day RUC Results .......................................... Error! Bookmark not defined. 4.4.1.4 Update Current Operating Plan .............................. Error! Bookmark not defined.
4.4.2 Real-Time Balancing Market ....................................... Error! Bookmark not defined. 4.4.2.1 Managing Regulation Control Status Prior to Operating HourError! Bookmark not defined. 4.4.2.2 RTBM Inputs ......................................................... Error! Bookmark not defined.
4.4.2.2.1 Pre-Operating Hour Inputs: .............................. Error! Bookmark not defined. 4.4.2.2.2 In-Operating Hour Inputs:................................ Error! Bookmark not defined. 4.4.2.2.3 Control Status................................................... Error! Bookmark not defined.
4.4.2.3 RTBM Execution ................................................... Error! Bookmark not defined. 4.4.2.3.1 Quick-Start Resource Logic ............................. Error! Bookmark not defined. 4.4.2.3.2 Emergency Operations – Capacity Shortage ... Error! Bookmark not defined. 4.4.2.3.3 Emergency Operations – Excess Generation ... Error! Bookmark not defined. 4.4.2.3.4 Ensuring Reliable Operations .......................... Error! Bookmark not defined.
4.4.2.4 RTBM Results ....................................................... Error! Bookmark not defined. 4.4.2.5 Out-of-Merit Energy (OOME) Dispatch ............... Error! Bookmark not defined.
4.4.2.5.1 Fixed OOME .................................................... Error! Bookmark not defined. 4.4.2.5.2 OOME Cap and OOME Floor ......................... Error! Bookmark not defined. 4.4.2.5.3 Out-of-Merit Energy During Emergency ConditionsError! Bookmark not defined.
4.4.2.6 SPP Congestion Management ................................ Error! Bookmark not defined. 4.4.2.6.1 SPP Congestion Management under TLR OperationsError! Bookmark not defined.
Page 8 of 156
4.4.2.6.2 Congestion Management - Market Flow ......... Error! Bookmark not defined. 4.4.2.6.3 IDC Curtailments ............................................. Error! Bookmark not defined.
4.4.3 Energy and Operating Reserve Deployment ................ Error! Bookmark not defined. 4.4.3.1 Dispatchable Variable Energy Resource DeploymentError! Bookmark not defined. 4.4.3.2 Non-Dispatchable Variable Energy Resource DeploymentError! Bookmark not defined. 4.4.3.3 Regulation Deployment ......................................... Error! Bookmark not defined. 4.4.3.4 Contingency Reserve Deployment ........................ Error! Bookmark not defined. 4.4.3.5 Reserve Sharing Group Scheduling Procedures .... Error! Bookmark not defined. 4.4.3.6 Contingency Reserve Recovery ............................. Error! Bookmark not defined. 4.4.3.7 Market Storage Resource Development ................ Error! Bookmark not defined.
4.4.4 Energy and Operating Reserve Deployment Failure ... Error! Bookmark not defined. 4.4.4.1 Uninstructed Resource Deviation .......................... Error! Bookmark not defined.
4.4.4.1.1 URD Exemptions ............................................. Error! Bookmark not defined. 4.4.4.1.2 Load Deviation Exemptions ............................ Error! Bookmark not defined.
4.4.5 Inadvertent Management ............................................. Error! Bookmark not defined. 4.4.5.1 Inadvertent Payback Reporting .............................. Error! Bookmark not defined.
4.5 Post Operating Day and Settlement Activities...................................................................31
4.5.1 Settlement Sign Conventions ....................................... Error! Bookmark not defined. 4.5.2 Commercial Model ...................................................... Error! Bookmark not defined.
4.5.2.1 Nodes ..................................................................... Error! Bookmark not defined. 4.5.2.2 Pricing Nodes ......................................................... Error! Bookmark not defined.
4.5.2.2.1 Aggregated Pricing Nodes ............................... Error! Bookmark not defined. 4.5.2.3 Settlement Locations .............................................. Error! Bookmark not defined.
4.5.2.3.1 Trading Hubs ................................................... Error! Bookmark not defined. 4.5.2.3.2 Resource Hubs ................................................. Error! Bookmark not defined.
4.5.2.4 Asset Owners ......................................................... Error! Bookmark not defined. 4.5.2.5 Market Participants ................................................ Error! Bookmark not defined.
4.5.3 Bilateral Settlement Schedules .................................... Error! Bookmark not defined. 4.5.3.1 Transition Mechanism for Pre-Existing Bilateral ContractsError! Bookmark not defined.
Page 9 of 156
4.5.3.2 GFA Carve Out or FSE Schedules – Internal ........ Error! Bookmark not defined. 4.5.3.3 GFA Carve Out or FSE Schedules – External ....... Error! Bookmark not defined. 4.5.3.4 GFA Carve Out or FSE Uplift ............................... Error! Bookmark not defined.
4.5.4 Calculation of LMPs, LMP Components and MCPs ... Error! Bookmark not defined. 4.5.4.1 LMP Calculations and LMP Components ............. Error! Bookmark not defined.
4.5.4.1.1 Marginal Losses Component Calculation ........ Error! Bookmark not defined. 4.5.4.1.2 Marginal Congestion Component Calculation. Error! Bookmark not defined. 4.5.4.1.3 Marginal Energy Component Calculation ....... Error! Bookmark not defined.
4.5.4.2 MCP Calculations .................................................. Error! Bookmark not defined. 4.5.5 Settlement Location LMPs and LMP Components ..... Error! Bookmark not defined.
4.5.5.1 Calculation of LMP at a Trading Hub Settlement LocationError! Bookmark not defined. 4.5.5.2 Calculation of LMP at a Load APNode Settlement LocationError! Bookmark not defined. 4.5.5.3 Calculation of LMP at an External Interface Settlement LocationError! Bookmark not defined.
4.5.6 Calculation of Actual Regulation Up/Down Mileage .. Error! Bookmark not defined. 4.5.7 Precision, Rounding and FERC Electric Quarterly ReportingError! Bookmark not defined.
4.5.7.1 FERC Electric Quarterly Reporting ....................... Error! Bookmark not defined. 4.5.8 Day-Ahead Market Settlement ....................................................................................32
4.5.8.1 Day-Ahead Asset Energy Amount......................... Error! Bookmark not defined. 4.5.8.2 Day-Ahead Non-Asset Energy Amount ................ Error! Bookmark not defined. 4.5.8.3 Day-Ahead Virtual Energy Amount ...................... Error! Bookmark not defined. 4.5.8.4 Day-Ahead Regulation-Up Service Amount ......... Error! Bookmark not defined. 4.5.8.5 Day-Ahead Regulation-Down Service Amount .... Error! Bookmark not defined. 4.5.8.6 Day-Ahead Spinning Reserve Amount .................. Error! Bookmark not defined. 4.5.8.7 Day-Ahead Supplemental Reserve Amount .......... Error! Bookmark not defined. 4.5.8.8 Day-Ahead Regulation-Up Service Distribution AmountError! Bookmark not defined. 4.5.8.9 Day-Ahead Regulation-Down Service Distribution AmountError! Bookmark not defined. 4.5.8.10 Day-Ahead Spinning Reserve Distribution AmountError! Bookmark not defined. 4.5.8.11 Day-Ahead Supplemental Reserve Distribution AmountError! Bookmark not defined. 4.5.8.12 Day-Ahead Make Whole Payment Amount .......... Error! Bookmark not defined. 4.5.8.13 Day-Ahead Make Whole Payment Distribution AmountError! Bookmark not defined. 4.5.8.14 Transmission Congestion Rights Funding AmountError! Bookmark not defined.
Page 10 of 156
4.5.8.15 Transmission Congestion Rights Daily Uplift AmountError! Bookmark not defined. 4.5.8.16 Transmission Congestion Rights Monthly Payback AmountError! Bookmark not defined. 4.5.8.17 Transmission Congestion Rights Annual Payback AmountError! Bookmark not defined. 4.5.8.18 Transmission Congestion Rights Annual Closeout AmountError! Bookmark not defined. 4.5.8.19 Day-Ahead Over-Collected Losses Distribution AmountError! Bookmark not defined. 4.5.8.20 Day-Ahead Demand Reduction Amount ...............................................................35
4.5.8.21 Day-Ahead Demand Reduction Distribution Amount ...........................................36
4.5.9.1 Real-Time Asset Energy Amount .......................... Error! Bookmark not defined. 4.5.9.2 Real-Time Non-Asset Energy Amount .................. Error! Bookmark not defined. 4.5.9.3 Real-Time Virtual Energy Amount ....................... Error! Bookmark not defined. 4.5.9.4 Real-Time Regulation-Up Service Amount........... Error! Bookmark not defined. 4.5.9.5 Real-Time Regulation-Down Service Amount ...... Error! Bookmark not defined. 4.5.9.6 Real-Time Spinning Reserve Amount ................... Error! Bookmark not defined. 4.5.9.7 Real-Time Supplemental Reserve Amount ........... Error! Bookmark not defined. 4.5.9.8 RUC Make-Whole Payment Amount .................... Error! Bookmark not defined. 4.5.9.9 Real-Time Out-Of-Merit Amount.......................... Error! Bookmark not defined. 4.5.9.10 RUC Make Whole Payment Distribution Amount Error! Bookmark not defined. 4.5.9.11 Real-Time Regulation-Up Service Distribution AmountError! Bookmark not defined. 4.5.9.12 Real-Time Regulation-Down Service Distribution AmountError! Bookmark not defined. 4.5.9.13 Real-Time Spinning Reserve Distribution AmountError! Bookmark not defined. 4.5.9.14 Real-Time Supplemental Reserve Distribution AmountError! Bookmark not defined. 4.5.9.15 Real-Time Regulation Service Non-Performance AmountError! Bookmark not defined. 4.5.9.16 Real-Time Regulation Non-Performance Distribution AmountError! Bookmark not defined.
Deleted: 4.5.8.20 Day-Ahead Virtual Energy Transaction Fee Amount 30¶
Deleted: 1
Deleted: 2
Deleted: 3
Deleted: 4
Deleted: 5
Deleted: 6
Deleted: 7
Deleted: 8
Deleted: 9
Page 11 of 156
4.5.9.17 Real-Time Contingency Reserve Deployment Failure AmountError! Bookmark not defined. 4.5.9.18 Real-Time Contingency Reserve Deployment Failure Distribution AmountError! Bookmark not defined. 4.5.9.19 Real-Time Regulation Service Deployment Adjustment AmountError! Bookmark not defined. 4.5.9.20 Over-Collected Losses Distribution Amount.........................................................59
4.5.9.21 Real-Time Joint Operating Agreement Amount .... Error! Bookmark not defined. 4.5.9.22 Real-Time Reserve Sharing Group Amount .......... Error! Bookmark not defined. 4.5.9.23 Real-Time Reserve Sharing Group Distribution AmountError! Bookmark not defined. 4.5.9.24 Real-Time Demand Reduction Amount ................ Error! Bookmark not defined. 4.5.9.25 Real-Time Demand Reduction Distribution AmountError! Bookmark not defined. 4.5.9.26 Real-Time Pseudo-Tie Congestion Amount .......... Error! Bookmark not defined. 4.5.9.27 Real-Time Pseudo-Tie Losses Amount ................. Error! Bookmark not defined. 4.5.9.28 Unused Regulation-Up Mileage Make Whole Payment AmountError! Bookmark not defined. 4.5.9.29 Unused Regulation-Down Mileage Make Whole Payment AmountError! Bookmark not defined. 4.5.9.30 Real-Time Combined Interest Resource Adjustment AmountError! Bookmark not defined.
4.5.10 ARR and TCR Auction Settlement .............................. Error! Bookmark not defined. 4.5.10.1 Transmission Congestion Rights Auction Transaction AmountError! Bookmark not defined. 4.5.10.2 Auction Revenue Rights Funding Amount ............ Error! Bookmark not defined. 4.5.10.3 Auction Revenue Rights Uplift Amount................ Error! Bookmark not defined. 4.5.10.4 Auction Revenue Rights Monthly Payback AmountError! Bookmark not defined. 4.5.10.5 Auction Revenue Rights Annual Payback AmountError! Bookmark not defined. 4.5.10.6 Auction Revenue Rights Annual Closeout AmountError! Bookmark not defined.
4.5.12 Revenue Neutrality Uplift Distribution Amount ......... Error! Bookmark not defined. 4.5.13 Settlement Statement Process ...................................... Error! Bookmark not defined.
4.5.13.1 Meter Data and Bilateral Settlement Schedule SubmittalError! Bookmark not defined. 4.5.13.2 Daily Settlement Statement.................................... Error! Bookmark not defined. 4.5.13.3 Settlement Statement Access ................................. Error! Bookmark not defined. 4.5.13.4 S7 Scheduled Settlement Statements ..................... Error! Bookmark not defined. 4.5.13.5 S53 Scheduled Settlement Statements ................... Error! Bookmark not defined. 4.5.13.6 S120 Scheduled Settlement Statements ................. Error! Bookmark not defined. 4.5.13.7 Resettlement Statements ........................................ Error! Bookmark not defined.
Page 12 of 156
4.5.13.8 Settlement Timeline ............................................... Error! Bookmark not defined. 4.5.14 Settlement Invoice ....................................................... Error! Bookmark not defined.
4.5.14.1 Timing and Content of Invoice .............................. Error! Bookmark not defined. 4.5.14.2 Invoice Calendar .................................................... Error! Bookmark not defined. 4.5.14.3 Holiday Invoice Calendar ...................................... Error! Bookmark not defined.
4.5.15 Disputes........................................................................ Error! Bookmark not defined. 4.5.15.1 Dispute Submission Timeline ................................ Error! Bookmark not defined. 4.5.15.2 SPP Dispute Processing ......................................... Error! Bookmark not defined.
4.5.15.2.1 Dispute Status .................................................. Error! Bookmark not defined. 4.5.16 Invoice Payment Process ............................................. Error! Bookmark not defined.
4.5.16.1 Overview of Payment Process ............................... Error! Bookmark not defined. 4.5.16.2 Invoice Payments Due SPP .................................... Error! Bookmark not defined. 4.5.16.3 SPP Payments to Invoice Recipients ..................... Error! Bookmark not defined.
4.5.17 Billing Determinant Anomalies ................................... Error! Bookmark not defined. 4.6 Integrated Marketplace Administration Service
4.6.1 Integrated Marketplace Clearing Administration Service
4.6.2 Integrated Marketplace Facilitation Administration Service
5. Transmission Congestion Rights Markets Process ............. Error! Bookmark not defined. 5.1 Annual LTCR/ILTCR/ARR Verification Process ............. Error! Bookmark not defined.
5.1.1 Transmission Service Verification ............................... Error! Bookmark not defined. 5.1.1.1 TSR Modification for Resource Specific Source PointsError! Bookmark not defined.
5.1.2 Candidate LTCRs/ARRs .............................................. Error! Bookmark not defined. 5.1.3 ARR Nomination Cap .................................................. Error! Bookmark not defined.
5.2 Annual LTCR Allocation Process ..................................... Error! Bookmark not defined. 5.2.1 LTCR/ILTCR Surrender .............................................. Error! Bookmark not defined. 5.2.2 LTCR/ILTCR Nomination........................................... Error! Bookmark not defined. 5.2.3 LTCR Simultaneous Feasibility for LSEs and Incremental LTCRsError! Bookmark not defined. 5.2.4 Annual LTCR Awards for LSEs and Incremental LTCR AwardsError! Bookmark not defined. 5.2.5 LTCR Simultaneous Feasibility for Non-LSEs ........... Error! Bookmark not defined. 5.2.6 Annual LTCR Awards for Non-LSEs.......................... Error! Bookmark not defined. 5.2.7 LTCR /ILTCR Conversion to TCRs ............................ Error! Bookmark not defined.
Page 13 of 156
5.2.8 Initial ILTCR Award Process ...................................... Error! Bookmark not defined. 5.3 Annual ARR Allocation Process ....................................... Error! Bookmark not defined.
5.3.1 ARR Nominations ........................................................ Error! Bookmark not defined. 5.3.2 ARR Allocation ........................................................... Error! Bookmark not defined.
5.3.2.1 Transitional ARR Allocation ................................. Error! Bookmark not defined. 5.3.3 Simultaneous Feasibility .............................................. Error! Bookmark not defined. 5.3.4 Annual ARR Awards ................................................... Error! Bookmark not defined.
5.4 Annual TCR Auction ......................................................... Error! Bookmark not defined. 5.4.1 TCR Bid and Offer Submittal ...................................... Error! Bookmark not defined. 5.4.2 Annual TCR Auction Process ...................................... Error! Bookmark not defined. 5.4.3 Annual TCR Auction Clearing and Simultaneous FeasibilityError! Bookmark not defined. 5.4.4 Annual TCR Awards.................................................... Error! Bookmark not defined.
5.5 Monthly ARR Allocation Process ..................................... Error! Bookmark not defined. 5.5.1 Monthly ARR Transmission Service Verification ....... Error! Bookmark not defined. 5.5.2 Monthly ARR Nominations ......................................... Error! Bookmark not defined. 5.5.3 Simultaneous Feasibility .............................................. Error! Bookmark not defined. 5.5.4 Monthly ARR Awards ................................................. Error! Bookmark not defined.
5.6 Monthly TCR Auction Processes....................................... Error! Bookmark not defined. 5.6.1 TCR Bid and Offer Submittal ...................................... Error! Bookmark not defined. 5.6.2 Monthly TCR Auction Process .................................... Error! Bookmark not defined. 5.6.3 Monthly TCR Auction Clearing and Simultaneous FeasibilityError! Bookmark not defined. 5.6.4 Monthly TCR Awards.................................................. Error! Bookmark not defined.
5.7 ARR Allocation/TCR Auction Settlements ....................... Error! Bookmark not defined. 5.8 TCR Secondary Market ..................................................... Error! Bookmark not defined. 5.9 Transmission Congestion Rights Administration Service
6. Market Registration............................................................... Error! Bookmark not defined.
6.1 Registration of Resources .................................................. Error! Bookmark not defined. 6.1.1 Responsibilities of the Resource Asset Owner ............ Error! Bookmark not defined. 6.1.2 Energy Production Prior to Completion of Market RegistrationError! Bookmark not defined. 6.1.3 Common Bus ............................................................... Error! Bookmark not defined. 6.1.4 Dispatchable Demand Response Resource .................. Error! Bookmark not defined.
Page 14 of 156
6.1.5 Block Demand Response Resource ............................. Error! Bookmark not defined. 6.1.6 Jointly Owned Unit Resource ...................................... Error! Bookmark not defined.
6.1.6.1 Individual Resource Option ................................... Error! Bookmark not defined. 6.1.7 Combined Cycle Resource ........................................... Error! Bookmark not defined.
6.1.7.1 Multi-Configuration Combined Cycle Resource ... Error! Bookmark not defined. 6.1.8 Dispatchable Variable Energy Resource ..................... Error! Bookmark not defined. 6.1.9 Non-Dispatchable Variable Energy Resource ............. Error! Bookmark not defined. 6.1.10 Resources External to the SPP BA .............................. Error! Bookmark not defined.
6.1.10.1 External Dynamic Resources ................................. Error! Bookmark not defined. 6.1.10.2 Resources External to the SPP BA Pseudo-Tying InError! Bookmark not defined. 6.1.10.3 Resources Internal to the SPP BA Pseudo-Tying OutError! Bookmark not defined.
6.1.11 Operating Reserve Certification .................................. Error! Bookmark not defined. 6.1.11.1 Spin Qualified Resources ....................................... Error! Bookmark not defined. 6.1.11.2 Supplemental Qualified Resources ........................ Error! Bookmark not defined. 6.1.11.3 Regulation Qualified Resources ............................ Error! Bookmark not defined.
6.1.11.3.1 Regulation Testing Procedures ........................ Error! Bookmark not defined. 6.1.11.3.2 Regulation Testing Scoring.............................. Error! Bookmark not defined. 6.1.11.3.3 Regulation Qualified Resource Compliance RatingError! Bookmark not defined.
6.1.12 Resource Auxiliary Load Modeling............................. Error! Bookmark not defined. 6.1.13 Staggered Start Resource ............................................. Error! Bookmark not defined. 6.1.14 Combined Interest Resource Modeling ....................... Error! Bookmark not defined. 6.1.15 Market Storage Resource (MSR) ................................. Error! Bookmark not defined.
6.2 Registration of Load .......................................................... Error! Bookmark not defined. 6.2.1 Responsibilities of the Load......................................... Error! Bookmark not defined. 6.2.2 Non-Conforming Load................................................. Error! Bookmark not defined. 6.2.3 Demand Response Load Asset..................................... Error! Bookmark not defined. 6.2.4 Dispatchable Demand Response Load Settlement LocationError! Bookmark not defined. 6.2.5 Block Demand Response Load Settlement Location... Error! Bookmark not defined. 6.2.6 Loads External to the SPP BA Pseudo-Tying In ......... Error! Bookmark not defined. 6.2.7 Loads Internal to the SPP BA Pseudo-Tying Out ........ Error! Bookmark not defined. 6.2.8 Loads Transfers Relating to Bilateral Contracts .......... Error! Bookmark not defined.
Page 15 of 156
6.3 Registration of Meter Agent .............................................. Error! Bookmark not defined. 6.4 Network and Commercial Model Updates ........................ Error! Bookmark not defined. 6.5 Registration of External Participants in the Reserve Sharing GroupError! Bookmark not defined. 6.6 TCR/ARR Related Network and Commercial Model UpdatesError! Bookmark not defined.
6.6.1 Modeling with Future Effective Date .......................... Error! Bookmark not defined. 6.6.1.1 Future Effective Dated Resource Registration ...... Error! Bookmark not defined. 6.6.1.2 Future Effective Dated Load Registration ............. Error! Bookmark not defined.
6.7 Naming Conventions for Market Assets ............................ Error! Bookmark not defined. 6.7.1 General Requirements .................................................. Error! Bookmark not defined. 6.7.2 Resource Settlement Location /Asset Name ................ Error! Bookmark not defined. 6.7.3 Load Settlement Location Name/Asset Name ............. Error! Bookmark not defined. 6.7.4 Hub Settlement Location Name ................................... Error! Bookmark not defined. 6.7.5 Tie Interface Meter Data Submittal Location (MDSL) NameError! Bookmark not defined. 6.7.6 Source/Sink Name ....................................................... Error! Bookmark not defined. 6.7.7 Market and/or Reliability Data Developed and Named by SPPError! Bookmark not defined.
7. Market System Outage and Error Handling....................... Error! Bookmark not defined. 7.1 Market System Outages ..................................................... Error! Bookmark not defined.
7.1.1 Day-Ahead Market System Outages ............................ Error! Bookmark not defined. 7.1.2 SPP-Wide Real-Time Balancing Market System OutagesError! Bookmark not defined. 7.1.3 Islanded Real-Time Balancing Market System OutagesError! Bookmark not defined.
7.2 Procedures for Correcting LMPs and/or MCPs Resulting From Market Software and Data Errors ................................................................................. Error! Bookmark not defined.
7.2.1 Procedures for Revising Prices in Response to Market Software and Data ErrorsError! Bookmark not defined. 7.2.1.1 Notice to Market Participants and the Public ........ Error! Bookmark not defined. 7.2.1.2 Process for Recalculating DA Market Cleared Amounts and PricesError! Bookmark not defined. 7.2.1.3 Process for Recalculating RTBM Prices................ Error! Bookmark not defined. 7.2.1.4 Compensatory Payments to Market Participants ... Error! Bookmark not defined.
7.2.2 Disputes and Resettlement Provisions ......................... Error! Bookmark not defined.
8. Market Monitoring and Mitigation ...................................... Error! Bookmark not defined. 8.1 Market Monitoring Plan ..................................................... Error! Bookmark not defined.
8.1.1 Purpose and Objective ................................................. Error! Bookmark not defined.
Page 16 of 156
8.1.2 Resolution of Conflicts ................................................ Error! Bookmark not defined. 8.1.3 Independent Market Monitor ....................................... Error! Bookmark not defined.
8.1.3.1 Staffing and Resources .......................................... Error! Bookmark not defined. 8.1.3.2 Relationships and Notifications ............................. Error! Bookmark not defined. 8.1.3.3 Standards of Conduct ............................................. Error! Bookmark not defined.
8.1.4 Market Monitoring ....................................................... Error! Bookmark not defined. 8.1.4.1 Markets to be Monitored ........................................ Error! Bookmark not defined. 8.1.4.2 Monitoring Activities ............................................. Error! Bookmark not defined. 8.1.4.3 Instances of Market Power..................................... Error! Bookmark not defined. 8.1.4.4 Market Participant Behavior Warranting Possible MitigationError! Bookmark not defined.
8.1.5 Inquiries ....................................................................... Error! Bookmark not defined. 8.1.5.1 Requests ................................................................. Error! Bookmark not defined. 8.1.5.2 Conducting Inquiries .............................................. Error! Bookmark not defined. 8.1.5.3 Reporting................................................................ Error! Bookmark not defined.
8.1.6 Compliance and Corrective Actions ............................ Error! Bookmark not defined. 8.1.6.1 Compliance ............................................................ Error! Bookmark not defined. 8.1.6.2 Corrective Actions for Market Design ................... Error! Bookmark not defined.
8.1.7 Reporting...................................................................... Error! Bookmark not defined. 8.1.7.1 Annual State of the Market Report ........................ Error! Bookmark not defined. 8.1.7.2 Monthly, Quarterly and Annual Metrics Reports .. Error! Bookmark not defined. 8.1.7.3 Communication of Market Monitoring Reports .... Error! Bookmark not defined. 8.1.7.4 Other Reports ......................................................... Error! Bookmark not defined.
8.1.8 Performance Indices, Metrics and Screens .................. Error! Bookmark not defined. 8.1.8.1 Development .......................................................... Error! Bookmark not defined.
8.1.9 Referrals to the Commission ........................................ Error! Bookmark not defined. 8.1.10 Market Manipulation ................................................... Error! Bookmark not defined. 8.1.11 Monitoring for Potential Transmission Market Power ActivitiesError! Bookmark not defined. 8.1.12 Data Access, Collection and Retention ........................ Error! Bookmark not defined.
8.1.12.1 Confidentiality ....................................................... Error! Bookmark not defined. 8.1.12.2 Access to SPP Data and Information ..................... Error! Bookmark not defined. 8.1.12.3 Access to Market Participant Data and InformationError! Bookmark not defined.
Page 17 of 156
8.1.12.4 Data Created by the Market Monitor ..................... Error! Bookmark not defined. 8.1.13 Miscellaneous Provisions............................................. Error! Bookmark not defined.
8.1.13.1 Rights and Remedies.............................................. Error! Bookmark not defined. 8.1.13.2 Disputes.................................................................. Error! Bookmark not defined. 8.1.13.3 Review of Market Monitor .................................... Error! Bookmark not defined.
8.2 Market Power Mitigation and Monitoring ......................... Error! Bookmark not defined. 8.2.1 Purpose and Objectives ................................................ Error! Bookmark not defined. 8.2.2 Economic Withholding ................................................ Error! Bookmark not defined.
8.2.2.1 Mitigate Only in the Presence of Local Market PowerError! Bookmark not defined. 8.2.2.2 Mitigation Measures .............................................. Error! Bookmark not defined. 8.2.2.3 Mitigation Measures for Energy Offer Curves ...... Error! Bookmark not defined. 8.2.2.4 Mitigation Measures for Start-Up and No-Load OffersError! Bookmark not defined. 8.2.2.5 Mitigation Measures for Operating Reserve OffersError! Bookmark not defined. 8.2.2.6 Mitigation Measures for Transition State Offers ... Error! Bookmark not defined. 8.2.2.7 Local Market Power Test ....................................... Error! Bookmark not defined.
8.2.2.7.1 Frequently Constrained Areas.......................... Error! Bookmark not defined. 8.2.2.8 Additional Mitigation Measures for Resource Offer ParametersError! Bookmark not defined. 8.2.2.9 Market Impact Test ................................................ Error! Bookmark not defined. 8.2.2.10 Mitigated Offer Development Guidelines ............. Error! Bookmark not defined. 8.2.2.11 Participant Requested Mitigation Exceptions ........ Error! Bookmark not defined.
8.2.3 Uneconomic Production............................................... Error! Bookmark not defined. 8.2.4 Measures and Mitigation for Virtual Energy Bids and OffersError! Bookmark not defined.
8.2.4.1 Metric and Threshold Specifications ..................... Error! Bookmark not defined. 8.2.4.2 Excessive Divergence and Mitigation Measures ... Error! Bookmark not defined.
8.2.5 Offer Caps and Floors .................................................. Error! Bookmark not defined. 8.2.6 Physical Withholding ................................................... Error! Bookmark not defined.
8.2.6.1 Thresholds for Identifying Physical Withholding of Resource CapacityError! Bookmark not defined. 8.2.6.2 Thresholds for Identifying Physical Withholding of Transmission FacilitiesError! Bookmark not defined. 8.2.6.3 Sanctions for Physical Withholding....................... Error! Bookmark not defined.
8.2.7 Sanctions for Noncompliance with the Day-Ahead Market Must Offer RequirementError! Bookmark not defined. 8.2.8 Maintenance and Implementation of the Mitigation ProtocolsError! Bookmark not defined.
Page 18 of 156
9. Market Process and System Change Process ...................... Error! Bookmark not defined. 9.1 Root Cause Analysis .......................................................... Error! Bookmark not defined.
Appendix A Registration Portal ......................................... Error! Bookmark not defined. Appendix B XML Specifications.............................................. Error! Bookmark not defined. Appendix C Meter Technical Protocols ............................ Error! Bookmark not defined.
C.1 Scope .................................................................................. Error! Bookmark not defined. C.2 Purpose ............................................................................... Error! Bookmark not defined. C.3 Definitions.......................................................................... Error! Bookmark not defined. C.4 Applicable Standards ......................................................... Error! Bookmark not defined. C.5 General ............................................................................... Error! Bookmark not defined.
C.5.1 Introduction .................................................................. Error! Bookmark not defined. C.5.2 Existing Facilities......................................................... Error! Bookmark not defined. C.5.3 Physical Location of Meter .......................................... Error! Bookmark not defined. C.5.4 Metering of Net Interchange ........................................ Error! Bookmark not defined. C.5.5 Metering for Resources ................................................ Error! Bookmark not defined. C.5.6 Metering for Loads ...................................................... Error! Bookmark not defined. C.5.7 Measurement Quantity Verification ............................ Error! Bookmark not defined. C.5.8 Measurement Governance ........................................... Error! Bookmark not defined.
C.6 Timing Standard................................................................. Error! Bookmark not defined. C.6.1 Remote Terminal Unit (RTU) Freeze Contact or SignalError! Bookmark not defined. C.6.2 Accumulators / Register Values................................... Error! Bookmark not defined. C.6.3 Accuracy - Meter ......................................................... Error! Bookmark not defined. C.6.4 Accuracy – EMS/RTU ................................................. Error! Bookmark not defined.
C.7 Meters ................................................................................ Error! Bookmark not defined. C.7.1 Measurement Quantities .............................................. Error! Bookmark not defined. C.7.2 Measurement Configuration ........................................ Error! Bookmark not defined. C.7.3 Accuracy ...................................................................... Error! Bookmark not defined. C.7.4 Testing.......................................................................... Error! Bookmark not defined.
C.7.4.1 Testing Equipment ................................................. Error! Bookmark not defined. C.7.4.2 Acceptance Testing ................................................ Error! Bookmark not defined. C.7.4.3 In-Service Testing .................................................. Error! Bookmark not defined.
Page 19 of 156
C.7.4.4 Verification Records and Retention ....................... Error! Bookmark not defined. C.7.5 Real Time Metering ..................................................... Error! Bookmark not defined.
C.7.5.1 General ................................................................... Error! Bookmark not defined. C.7.5.2 Measurement Configuration .................................. Error! Bookmark not defined. C.7.5.3 Accuracy ................................................................ Error! Bookmark not defined. C.7.5.4 Testing.................................................................... Error! Bookmark not defined.
C.7.5.4.1 Testing Equipment ........................................... Error! Bookmark not defined. C.7.5.4.2 Acceptance Testing .......................................... Error! Bookmark not defined. C.7.5.4.3 Operating Conditions ....................................... Error! Bookmark not defined. C.7.5.4.4 Output Characteristics ...................................... Error! Bookmark not defined. C.7.5.4.5 In Service Testing ............................................ Error! Bookmark not defined. C.7.5.4.6 Verification Records and Retention ................. Error! Bookmark not defined.
C.7.6 New Current and Voltage Sensing Technologies ........ Error! Bookmark not defined. C.7.7 Current Transformers ................................................... Error! Bookmark not defined.
C.7.7.1 Nameplate .............................................................. Error! Bookmark not defined. C.7.7.2 Polarity ................................................................... Error! Bookmark not defined. C.7.7.3 Burden Testing ....................................................... Error! Bookmark not defined. C.7.7.4 Paralleling .............................................................. Error! Bookmark not defined.
C.7.8 Coupling Capacitor Voltage Transformers .................. Error! Bookmark not defined. C.7.8.1 General ................................................................... Error! Bookmark not defined. C.7.8.2 Nameplate .............................................................. Error! Bookmark not defined. C.7.8.3 Polarity ................................................................... Error! Bookmark not defined. C.7.8.4 Burden .................................................................... Error! Bookmark not defined.
C.7.9 Wire Wound Voltage Transformers ............................. Error! Bookmark not defined. C.7.9.1 Nameplate .............................................................. Error! Bookmark not defined. C.7.9.2 Polarity ................................................................... Error! Bookmark not defined. C.7.9.3 Burden .................................................................... Error! Bookmark not defined.
C.7.10 Ancillary Devices......................................................... Error! Bookmark not defined. C.7.10.1 Wiring .................................................................... Error! Bookmark not defined.
C.7.10.1.1 Phase Wiring .................................................... Error! Bookmark not defined. C.7.10.1.2 Neutral Returns ................................................ Error! Bookmark not defined.
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C.7.10.1.3 Induced Voltage on Wiring .............................. Error! Bookmark not defined. C.7.10.1.4 Fusing ............................................................... Error! Bookmark not defined. C.7.10.1.5 Test Switches ................................................... Error! Bookmark not defined.
C.7.11 Metering Site Procedures ............................................. Error! Bookmark not defined. C.7.11.1 General ................................................................... Error! Bookmark not defined. C.7.11.2 Site Verification Procedure .................................... Error! Bookmark not defined. C.7.11.3 Periodic Test Procedure ......................................... Error! Bookmark not defined.
C.7.12 Node Loss Compensation ............................................ Error! Bookmark not defined. C.7.12.1 General ................................................................... Error! Bookmark not defined. C.7.12.2 Methods for Compensation .................................... Error! Bookmark not defined.
C.7.12.2.1 Flat Percentage Adjustment ............................. Error! Bookmark not defined. C.7.12.2.2 Engineered Adjustment with Assumptions ...... Error! Bookmark not defined. C.7.12.2.3 Engineered Adjustment .................................... Error! Bookmark not defined.
C.7.12.3 Node Loss Compensation Variables and CalculationsError! Bookmark not defined. C.7.12.3.1 Transformer Test Data ..................................... Error! Bookmark not defined. C.7.12.3.2 Calculating data not supplied with Transformer Test DataError! Bookmark not defined. C.7.12.3.3 Transmission line losses .................................. Error! Bookmark not defined. C.7.12.3.4 Secondary line losses ....................................... Error! Bookmark not defined.
C.7.13 Record Retention ......................................................... Error! Bookmark not defined.
Appendix D Settlement Metering Data Management ProtocolsError! Bookmark not defined. D.1 Scope .................................................................................. Error! Bookmark not defined. D.2 Purpose ............................................................................... Error! Bookmark not defined. D.3 Definitions.......................................................................... Error! Bookmark not defined. D.4 Market Participants ............................................................ Error! Bookmark not defined.
D.4.1 Responsibilities ............................................................ Error! Bookmark not defined. D.4.2 Meter Agent(s) Designation ......................................... Error! Bookmark not defined.
D.5 Meter Agent ....................................................................... Error! Bookmark not defined. D.6 Data Format ....................................................................... Error! Bookmark not defined.
D.6.1 Unit of Measure ........................................................... Error! Bookmark not defined. D.6.2 Sign Convention of Data .............................................. Error! Bookmark not defined. D.6.3 Meter Technical Standards .......................................... Error! Bookmark not defined.
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D.6.4 Data Submission Standards.......................................... Error! Bookmark not defined. D.7 Settlement Meter Data Types ............................................. Error! Bookmark not defined.
D.7.1 Resource Metering ....................................................... Error! Bookmark not defined. D.7.1.1 Joint Owned Unit (JOU) Generation ..................... Error! Bookmark not defined. D.7.1.2 Generation Loss Compensation ............................. Error! Bookmark not defined.
D.7.2 Load Metering .............................................................. Error! Bookmark not defined. D.7.2.1 General ................................................................... Error! Bookmark not defined. D.7.2.2 Load Loss Compensation ....................................... Error! Bookmark not defined. D.7.2.3 Residual Load ........................................................ Error! Bookmark not defined.
D.7.3 Settlement Area Tie-Lines ........................................... Error! Bookmark not defined. D.7.3.1 Substitution for Missing Data ................................ Error! Bookmark not defined.
D.8 Settlement Location Anatomy ........................................... Error! Bookmark not defined. D.8.1 General ......................................................................... Error! Bookmark not defined. D.8.2 Making of a Settlement Location ................................. Error! Bookmark not defined.
D.8.2.1 Resource and Load Settlement Locations .............. Error! Bookmark not defined. D.8.2.2 Overview of Settlement Area Load Settlement LocationsError! Bookmark not defined.
D.9 Loss Compensation ............................................................ Error! Bookmark not defined. D.9.1 General ......................................................................... Error! Bookmark not defined. D.9.2 Loss Compensation Examples ..................................... Error! Bookmark not defined.
D.9.2.1 Loss Compensation to Node when Meter is on Distribution SystemError! Bookmark not defined. D.9.2.2 Loss Compensation to Node when Meter and Node at Different LocationError! Bookmark not defined.
D.9.3 Meter Data Exchange and Submission ........................ Error! Bookmark not defined. D.9.3.1 Actual Meter Data (Idata) ...................................... Error! Bookmark not defined. D.9.3.2 Alternate Settlement Meter Data ........................... Error! Bookmark not defined.
D.10 Data Source and Estimating ............................................... Error! Bookmark not defined. D.10.1 Actual Meter Data (Idata – Actual) ............................. Error! Bookmark not defined.
D.10.1.1 Primary Data Sources ............................................ Error! Bookmark not defined. D.10.1.2 Backup Data Sources ............................................. Error! Bookmark not defined.
D.10.2 Estimated Meter Data (Idata – Estimated) ................... Error! Bookmark not defined. D.10.2.1 Estimation Methods ............................................... Error! Bookmark not defined. D.10.2.2 Replacing Estimated Meter Data ........................... Error! Bookmark not defined.
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D.11 Verification Meter SL Values ............................................ Error! Bookmark not defined. D.11.1 Data Types and Verification Methods ......................... Error! Bookmark not defined.
D.11.1.1 Telemetered Pulses via Remote Terminal Unit (RTU)Error! Bookmark not defined. D.11.1.2 Register Transfer via Other Communication OptionsError! Bookmark not defined. D.11.1.3 Interval Data Recorder Collection System (IDRCS)Error! Bookmark not defined. D.11.1.4 Inter Control Center Protocol (ICCP) Data ........... Error! Bookmark not defined. D.11.1.5 Alternate Data for Verification .............................. Error! Bookmark not defined.
D.11.2 Periodicity of Verification ........................................... Error! Bookmark not defined. D.11.2.1 Telemetered Pulses via Remote Terminal Unit (RTU)Error! Bookmark not defined. D.11.2.2 Other Data Transfers .............................................. Error! Bookmark not defined.
D.11.3 Verification Uncovers Discrepancy ............................. Error! Bookmark not defined. D.11.3.1 Identify the Cause for the Discrepancy .................. Error! Bookmark not defined. D.11.3.2 Impact to Settlement Location Values Submitted . Error! Bookmark not defined.
D.11.3.2.1 Settlement Data Values Correct ....................... Error! Bookmark not defined. D.11.3.2.2 Settlement Data Values Incorrect .................... Error! Bookmark not defined.
D.11.3.2.2.1 Requirement for Resubmission .................. Error! Bookmark not defined. D.11.3.2.2.2 Good Utility Business Practices/Contractual RequirementsError! Bookmark not defined.
D.12 Real Time Data Reporting to SPP Balancing Authority .... Error! Bookmark not defined. D.13 Record Retention ............................................................... Error! Bookmark not defined.
Appendix E Network and Commercial Model Update TimingError! Bookmark not defined. Appendix F Settlement Examples............................................ Error! Bookmark not defined.
F.1 Introduction ........................................................................ Error! Bookmark not defined. F.1.1 Purpose ......................................................................... Error! Bookmark not defined. F.1.2 Definition of Terms...................................................... Error! Bookmark not defined. F.1.3 Outstanding Issues/Assumptions ................................. Error! Bookmark not defined.
F.2 Market Model..................................................................... Error! Bookmark not defined. F.2.1 Commercial Model ...................................................... Error! Bookmark not defined.
F.2.1.1 Financial Entities and Relationships ...................... Error! Bookmark not defined. F.2.1.2 Network Entities and Relationships ....................... Error! Bookmark not defined.
F.2.2 Transactional Legend ................................................... Error! Bookmark not defined.
Appendix G Mitigated Offer Development Guidelines .... Error! Bookmark not defined.
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G.1 Introduction ........................................................................ Error! Bookmark not defined. G.1.1 About These Guidelines ............................................... Error! Bookmark not defined. G.1.2 Intended Audience ....................................................... Error! Bookmark not defined. G.1.3 What is in this Manual? ............................................... Error! Bookmark not defined. G.1.4 Purpose ......................................................................... Error! Bookmark not defined. G.1.5 Mitigated Offer Methodology Approval Process ........ Error! Bookmark not defined.
G.2 Policies for All Resource Types ........................................ Error! Bookmark not defined. G.2.1 Heat Rates .................................................................... Error! Bookmark not defined.
G.2.1.1 Heat Content of Fuel .............................................. Error! Bookmark not defined. G.2.1.2 Heat Rate Curves ................................................... Error! Bookmark not defined.
G.2.2 Performance Factors .................................................... Error! Bookmark not defined. G.2.2.1 Engineering Judgment in Performance Factors ..... Error! Bookmark not defined. G.2.2.2 Calculation Methods of Performance Factors ........ Error! Bookmark not defined. G.2.2.3 “Like” Resources for Performance Factors ........... Error! Bookmark not defined.
G.2.3 Fuel Cost Policies ........................................................ Error! Bookmark not defined. G.2.3.1 Modifications to Fuel Cost Policies ....................... Error! Bookmark not defined. G.2.3.2 Fuel Cost Calculation ............................................. Error! Bookmark not defined. G.2.3.3 Total Fuel Related Costs ........................................ Error! Bookmark not defined. G.2.3.4 Types of Fuel Costs ............................................... Error! Bookmark not defined. G.2.3.5 Emission Allowances ............................................. Error! Bookmark not defined. G.2.3.6 Variable Fuel Transportation Equipment ............... Error! Bookmark not defined.
G.2.4 Total Variable Operation and Maintenance Cost ......... Error! Bookmark not defined. G.2.4.1 Escalation Index ..................................................... Error! Bookmark not defined. G.2.4.2 Maintenance Period ............................................... Error! Bookmark not defined. G.2.4.3 Average VOM Cost ............................................... Error! Bookmark not defined.
G.2.5 Mitigated Energy Offer Curve ..................................... Error! Bookmark not defined. G.2.6 Mitigated Start- Up Offer ............................................. Error! Bookmark not defined.
G.2.6.1 Start- Up Offer Definitions .................................... Error! Bookmark not defined. G.2.7 Mitigated No-Load Offer ............................................. Error! Bookmark not defined.
G.2.7.1 No-Load Definitions .............................................. Error! Bookmark not defined. G.2.7.2 No-Load Fuel ......................................................... Error! Bookmark not defined.
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G.2.8 Mitigated Spinning Reserve Offer ............................... Error! Bookmark not defined. G.2.9 Mitigated Supplemental Reserve Offer ....................... Error! Bookmark not defined. G.2.10 Mitigated Regulation-Up and Regulation-Down Service OffersError! Bookmark not defined.
G.2.10.1 Uncompensated Costs: ........................................... Error! Bookmark not defined. G.2.10.2 Cost Increase due to Heat Rate increase during non-steady state:Error! Bookmark not defined. G.2.10.3 Cost increase in Variable Operations and Maintenance:Error! Bookmark not defined.
G.3 Nuclear Unit Guidelines .................................................... Error! Bookmark not defined. G.3.1 Nuclear Heat Rate ........................................................ Error! Bookmark not defined. G.3.2 Performance Factor ...................................................... Error! Bookmark not defined. G.3.3 Fuel Cost ...................................................................... Error! Bookmark not defined.
G.3.3.1 Basic Nuclear Fuel Cost......................................... Error! Bookmark not defined. G.3.3.2 Total Fuel-Related Costs for Nuclear Units........... Error! Bookmark not defined.
G.3.4 Mitigated Start-Up Offer.............................................. Error! Bookmark not defined. G.3.4.1 Hot Start Cost ......................................................... Error! Bookmark not defined. G.3.4.2 Intermediate Start Cost .......................................... Error! Bookmark not defined. G.3.4.3 Cold Start Cost ....................................................... Error! Bookmark not defined. G.3.4.4 Additional Components Applied to Hot, Intermediate and Cold Start-Up CostsError! Bookmark not defined.
G.3.5 Mitigated No-Load Offer ............................................. Error! Bookmark not defined. G.3.6 VOM Cost .................................................................... Error! Bookmark not defined.
G.3.6.1 Configuration Addition VOM Cost ....................... Error! Bookmark not defined. G.3.6.2 Calculation of the Configuration Addition VOM Cost:Error! Bookmark not defined. G.3.6.3 Reductions in Total VOM Costs: ........................... Error! Bookmark not defined.
G.3.7 Mitigated Spinning Reserve Offer ............................... Error! Bookmark not defined. G.3.8 Mitigated Supplemental Reserve Offer ....................... Error! Bookmark not defined. G.3.9 Mitigated Regulation Offers ........................................ Error! Bookmark not defined.
G.4 Fossil Steam Unit Guidelines............................................. Error! Bookmark not defined. G.4.1 Heat Rate ...................................................................... Error! Bookmark not defined. G.4.2 Performance Factor ...................................................... Error! Bookmark not defined. G.4.3 Fuel Cost ...................................................................... Error! Bookmark not defined. G.4.4 Hot Start Cost, Intermediate Start Cost, and Cold Start costError! Bookmark not defined.
G.4.4.1 Hot Start Cost ......................................................... Error! Bookmark not defined.
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G.4.4.2 Intermediate Start Cost .......................................... Error! Bookmark not defined. G.4.4.3 Cold Start Cost ....................................................... Error! Bookmark not defined.
G.4.5 Mitigated No-Load Offer ............................................. Error! Bookmark not defined. G.4.6 VOM Cost .................................................................... Error! Bookmark not defined.
G.4.6.1 Configuration Addition VOM Cost ....................... Error! Bookmark not defined. G.4.6.2 Calculation of the Configuration Addition VOM CostError! Bookmark not defined. G.4.6.3 Reductions in Total VOM Costs ............................ Error! Bookmark not defined.
G.4.7 Mitigated Spinning Reserve Offer ............................... Error! Bookmark not defined. G.4.8 Mitigated Supplemental Reserve Offer ....................... Error! Bookmark not defined. G.4.9 Regulation .................................................................... Error! Bookmark not defined.
G.5 Combined Cycle (CC) Guidelines ..................................... Error! Bookmark not defined. G.5.1 Heat Rate ...................................................................... Error! Bookmark not defined. G.5.2 Performance Factors .................................................... Error! Bookmark not defined. G.5.3 Fuel Cost ...................................................................... Error! Bookmark not defined. G.5.4 Mitigated Start-Up Offer.............................................. Error! Bookmark not defined. G.5.5 Mitigated Transition State Offer .................................. Error! Bookmark not defined. G.5.6 Mitigated No-Load Offer ............................................. Error! Bookmark not defined. G.5.7 VOM Cost .................................................................... Error! Bookmark not defined. G.5.8 Mitigated Spinning Reserve Offer ............................... Error! Bookmark not defined. G.5.9 Mitigated Supplemental Reserve Offer ....................... Error! Bookmark not defined. G.5.10 Mitigated Regulation Offers ........................................ Error! Bookmark not defined.
G.6 Combustion Turbine (CT) and Reciprocating Engine GuidelinesError! Bookmark not defined. G.6.1 Combustion Turbine and Reciprocating Engine Heat RateError! Bookmark not defined. G.6.2 Performance Factor ...................................................... Error! Bookmark not defined. G.6.3 Fuel Cost ...................................................................... Error! Bookmark not defined.
G.6.3.1 Combustion Turbine other Fuel-Related Costs...... Error! Bookmark not defined. G.6.4 Energy Offer Curve for Quick Start ............................. Error! Bookmark not defined. G.6.5 Mitigated Start-Up Offer.............................................. Error! Bookmark not defined. G.6.6 Mitigated No-Load Offer for CTs ................................ Error! Bookmark not defined. G.6.7 VOM Cost .................................................................... Error! Bookmark not defined. G.6.8 Mitigated Spinning Reserve Offer ............................... Error! Bookmark not defined.
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G.6.9 Mitigated Supplemental Reserve Offer ....................... Error! Bookmark not defined. G.6.10 Mitigated Regulation Offers ........................................ Error! Bookmark not defined.
G.7 Hydro Guidelines ............................................................... Error! Bookmark not defined. G.7.1 Pumping Efficiency (Pumped Hydro Only) ................ Error! Bookmark not defined. G.7.2 Performance Factors .................................................... Error! Bookmark not defined. G.7.3 Fuel Cost ...................................................................... Error! Bookmark not defined.
G.7.3.1 Total Energy Input Related Costs for Pumped Storage Hydro Plant GenerationError! Bookmark not defined. G.7.4 Mitigated Start-Up Offer.............................................. Error! Bookmark not defined. G.7.5 Mitigated No-Load Offer ............................................. Error! Bookmark not defined. G.7.6 VOM Cost .................................................................... Error! Bookmark not defined. G.7.7 Spinning Reserve: Hydro Unit Costs ........................... Error! Bookmark not defined. G.7.8 Mitigated Supplemental Reserve Offer ....................... Error! Bookmark not defined. G.7.9 Mitigated Regulation Offers ........................................ Error! Bookmark not defined.
G.8 Demand Response Guidelines ........................................... Error! Bookmark not defined. G.8.1 Demand Response Resource (DRR) Cost for Behind the Meter GenerationError! Bookmark not defined. G.8.2 DRR Cost for Demand Reduction ............................... Error! Bookmark not defined. G.8.3 DRR Start-Up Cost ...................................................... Error! Bookmark not defined. G.8.4 DRR Cost to Provide Spinning and/or Supplemental ReservesError! Bookmark not defined. G.8.5 DRR Cost to Provide Regulation ................................. Error! Bookmark not defined.
G.9 Wind Guidelines ................................................................ Error! Bookmark not defined. G.9.1 Fuel Cost ...................................................................... Error! Bookmark not defined. G.9.2 Mitigated Start-Up Offer.............................................. Error! Bookmark not defined. G.9.3 Mitigated No-Load Offer ............................................. Error! Bookmark not defined. G.9.4 VOM ............................................................................ Error! Bookmark not defined.
G.10 Solar Guidelines ................................................................. Error! Bookmark not defined. G.10.1 Fuel Cost ...................................................................... Error! Bookmark not defined. G.10.2 Mitigated Start-Up Offer.............................................. Error! Bookmark not defined. G.10.3 Mitigated No-Load Offer ............................................. Error! Bookmark not defined. G.10.4 VOM ............................................................................ Error! Bookmark not defined.
G.11 Electric Storage Resource Guidelines ................................ Error! Bookmark not defined. G.11.1 Electric Storage Resource Loss Factor ........................ Error! Bookmark not defined.
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G.11.2 Performance Factor ...................................................... Error! Bookmark not defined. G.11.3 Fuel Cost ...................................................................... Error! Bookmark not defined.
G.11.3.1 Total Energy Input-Related Costs for Electric Storage Resource GenerationError! Bookmark not defined. G.11.4 Mitigated Start-Up Offer.............................................. Error! Bookmark not defined. G.11.5 Mitigated No-Load Offer ............................................. Error! Bookmark not defined. G.11.6 VOM Cost .................................................................... Error! Bookmark not defined. G.11.7 Mitigated Spinning Reserve Offer ............................... Error! Bookmark not defined. G.11.8 Mitigated Supplemental Reserve Offer ....................... Error! Bookmark not defined. G.11.9 Mitigated Regulation Offer .......................................... Error! Bookmark not defined.
G.12 Energy Market Opportunity Cost Guidelines .................... Error! Bookmark not defined. G.12.1 Basis for Opportunity Cost to be Included in Mitigated OffersError! Bookmark not defined.
G.12.1.1 Environmental Run-hour Restriction ..................... Error! Bookmark not defined. G.12.1.2 Physical Equipment Limitations ............................ Error! Bookmark not defined. G.12.1.3 Non-Regulatory Opportunity Cost: Fuel LimitationsError! Bookmark not defined.
G.12.2 Calculation Method ...................................................... Error! Bookmark not defined. G.12.2.1 Overview of the Opportunity Cost Calculation ..... Error! Bookmark not defined. G.12.2.2 Daily Opportunity Cost Calculation ...................... Error! Bookmark not defined.
G.12.2.2.1 Step 1: Forecast Hourly Resource LMPs ......... Error! Bookmark not defined. G.12.2.2.2 Step 2: Calculate the price-cost margin for each hour of the dayError! Bookmark not defined. G.12.2.2.3 Step 3: Determine the Opportunity Cost ComponentError! Bookmark not defined.
G.12.2.3 Long Term Opportunity Cost Calculation ............. Error! Bookmark not defined. G.12.2.3.1 Step 1: Forecast SPP System Monthly On-Peak/Off-Peak Average LMPsError! Bookmark not defined. G.12.2.3.2 Step 2: Derive Historical Monthly LMP Basis Differential between the
Resource Settlement Location and the SPP Real-Time Marginal Energy Component of LMP ......................................... Error! Bookmark not defined.
G.12.2.3.3 Step 3: Derive hourly volatility scalars to incorporate hourly volatility into the LMP forecast .................................................... Error! Bookmark not defined.
G.12.2.3.4 Step 4: Create three sets of hourly forecasted Resource Settlement Location values ............................................................... Error! Bookmark not defined.
G.12.2.3.5 Step 5: Create a daily fuel volatility scalar ...... Error! Bookmark not defined. G.12.2.3.6 Step 6: Create three daily delivered fuel forecastsError! Bookmark not defined. G.12.2.3.7 Step 7: Create Resource(s) cost for each of the three forecastsError! Bookmark not defined.
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G.12.2.3.8 Step 8: Calculate the margin for every hour in the three hourly forecastsError! Bookmark not defined. G.12.2.3.9 Step 9: Determine the opportunity cost componentError! Bookmark not defined.
G.12.2.4 Short Term Opportunity Cost Calculation ............. Error! Bookmark not defined. G.12.2.4.1 Step 1: Forecast SPP System Monthly On-Peak/Off-Peak Average LMPsError! Bookmark not defined. G.12.2.4.2 Step 2: Derive Historical Monthly LMP Basis Differential between the
Resource Settlement Location and the SPP Real Time Marginal Energy Component of LMP ......................................... Error! Bookmark not defined.
G.12.2.4.3 Step 3: Derive hourly volatility scalars to incorporate hourly volatility into the LMP forecast .................................................... Error! Bookmark not defined.
G.12.2.4.4 Step 4: Create three sets of hourly forecasted Resource LMPsError! Bookmark not defined. G.12.2.4.5 Step 5: Fuel Price ............................................. Error! Bookmark not defined. G.12.2.4.6 Step 6: Create generating unit’s cost for each of the three forecastsError! Bookmark not defined. G.12.2.4.7 Step 7: Calculate the margin for every hour in the three hourly forecastsError! Bookmark not defined. G.12.2.4.8 Step 8: Determine the opportunity cost ........... Error! Bookmark not defined.
G.13 No-Load Calculation Examples ......................................... Error! Bookmark not defined. G.13.1 No-Load Fuel ............................................................... Error! Bookmark not defined.
G.13.1.1 Typical Steam Unit Example ................................. Error! Bookmark not defined. G.13.1.2 Typical Combustion Turbine Example .................. Error! Bookmark not defined.
G.13.2 No-Load Cost Adjustments.......................................... Error! Bookmark not defined. G.13.2.1 Combustion Turbine Zero No-Load Example ....... Error! Bookmark not defined.
REVISION HISTORY ................................................................ Error! Bookmark not defined. 4.2.2.6 Virtual Energy Offers Virtual Energy Offers are supported in the DA Market only. Virtual Energy Offers are purely
financial, only apply to Energy and are not associated with a physical Resource asset. The
following rules apply to Virtual Energy Offer submittal.
(1) A Virtual Energy Offer can be submitted by a Market Participant at any Settlement
Location;
(2) A Market Participant may submit a single Virtual Energy Offer for each Asset Owner at
any Settlement Location for a particular Hour in the form of a Virtual Energy Offer
Curve (MW, $/MWh, up to ten (10) price/quantity pairs and slope or block option). The
submitted MW values must be increasing and the submitted $/MWh values must be
Page 29 of 156
monotonically non-decreasing. A Virtual Energy Offer will clear when the price at the
applicable Settlement Location is greater than or equal to the specified curve price for
that Operating Hour. The highest MW quantity submitted in the Virtual Energy Offer
Curve representing the maximum MW amount that can be cleared. The minimum MW
amount that can be cleared is equal to zero;
(a) Block and slope pairs may not coexist. The Resource Offer in effect for any
given period of time must be comprised of all block or all slope price/quantity
pairs.
(b) If the LMP is less than the lowest $/MWh submitted in the curve, then the cleared
MWs will be zero.
(c) Under the slope option, the set of price points that are submitted are used as the
beginning and ending values for calculating a linear slope for each set of
beginning and ending values. Therefore, each MW between the two price points
has a different price due to the interpolation of the submitted price points. Under
the block option, each MW between the two MW points is offered at the price of
the larger MW point. Exhibit 4-9 illustrates Virtual Energy Offer curves
developed from submitted price/MWh pairs for both the slope and block options.
Exhibit 4-1: Virtual Energy Offer Curve Development
(3) Each Virtual Energy Offer must specify a start and stop Hour within the applicable
Operating Day;
MW $/MWh100 20.00200 40.00400 60.00500 80.00
Submitted Data
Slope Option
Block Option
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
0 100 200 300 400 500 600
$/M
Wh
MW
Virtual Energy Offer Curve
Slope Option
Block Option
Page 30 of 156
(4) Virtual Energy Offers may be submitted up to $2,000/MWh and are not subject to cost
verification.
4.2.3.2 Virtual Energy Bids Virtual Energy Bids are supported in the DA Market only. Virtual Energy Bids are purely
financial in nature, only apply to Energy and are not associated with a physical Load asset. The
follow rules apply to Virtual Energy Bid submittal.
(1) A Virtual Energy Bid can be submitted at any Settlement Location;
(2) A Market Participant may submit a single Virtual Energy Bid for each Asset Owner at
any Settlement Location for a particular Hour in the form of a Virtual Energy Bid Curve
(MW, $/MWh, up to 10 price/quantity pairs and slope or block option). The submitted
MW values must be increasing and the submitted $/MWh values must be monotonically
non-increasing. A Virtual Energy Bid will clear when the price at the applicable
Settlement Location is less than or equal to the specified curve price for that Operating
Hour. The maximum MW amount that can be cleared is equal to the highest MW
quantity submitted in the Virtual Energy Bid Curve. The minimum MW amount that can
be cleared is equal to zero. The price of all MWhs below the lowest MW amount
submitted is equal to the first pricing point price;
(a) Block and slope pairs may not coexist. The Resource Offer in effect for any
given period of time must be comprised of all block or all slope price/quantity
pairs.
(b) If the LMP is greater than the highest $/MWh submitted in the curve, then the
cleared MWs will be zero.
(c) Under the slope option, the set of price points that are submitted are used as the
beginning and ending values for calculating a linear slope for each set of
beginning and ending values. Therefore, each MW between the two price points
has a different price due to the interpolation of the submitted price points. Under
the block option, each MW between the two MW points is offered at the price of
the larger MW point. Exhibit 4-11 illustrates Virtual Energy Bid Curves
developed from submitted price/MWh pairs for both the slope and block options.
Deleted: <#>Virtual Energy Offers are subject to a transaction fee as described under Section 4.5.8.20.¶
Commented [RR229.1]: Awaiting FERC and System Implementation
Page 31 of 156
Exhibit 4-1: Virtual Energy Bid Curve Development
(3) Each Virtual Energy Bid must specify a start and stop Hour within the applicable
Operating Day;
(4) Virtual Energy Bids may be submitted up to $2,000/MWh and are not subject to cost
verification.
4.5 Post Operating Day and Settlement Activities Post Operating Day activities begin on the day immediately following the Operating Day. SPP
Settlement Statement process is outlined in Section 4.5.13. Settlement Statements will be
configurable by Market Participants to show hourly net amounts or to show that Market
Participant’s hourly and sub-hourly billing quantities at each Settlement Location to be paid or
credited resulting from the DA Market and RTBM settlements. All charge types and billing
determinants defined under Sections 4.5.8, 4.5.9, 4.5.100, 4.5.11, and 4.5.12 are available on the
Settlement Statement and Settlement Determinant Report unless specifically excluded as
identified in the table definitions under each charge type. Settlement Invoices are issued on
weekly basis.
Metering standards associated with submittal of actual load and Resource Energy quantities are
specified in Appendix C and settlement data reporting processes are specified in Appendix D to
these Market Protocols. Detailed explanations of all DA Market and RTBM charges types, along
with example calculations, are contained within Appendix F to these Market Protocols.
MW $/MWh50 120.00
100 100.00200 80.00400 60.00500 40.00550 20.00
Submitted Data
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
0 100 200 300 400 500 600
$/M
Wh
MW
Virtual Energy Bid Curve
Slope Option
Block Option
Deleted: <#>Virtual Energy Bids are subject to a transaction fee as described under Section 4.5.8.20.;¶
Commented [RR229.2]: Awaiting FERC and System Implementation
Deleted: SPP issues initial settlement statements for each Operating Day on the 7th day following the Operating Day and final settlement statements on the 47th day following the Operating Day.
Commented [RR259.3]: Awaiting FERC and Implementation
Deleted: s
Commented [RR259.4]: Awaiting FERC and Implementation
Deleted: 4.5.8.21
Deleted: , 4.5.9.24
Commented [RR259.5]: Awaiting FERC and Implementation
Page 32 of 156
Exhibit 4-19 provides a representative overall timeline of Post Operating Day activities.
…
4.5.8 Day-Ahead Market Settlement Settlement calculations for Energy and Operating Reserve in the DA Market are performed on an
hourly basis for each Operating Day and are based upon the results of the DA Market clearing
for that Operating Day.
(1) Each Market Participant with cleared Offers is paid for each Settlement Location:
(a) For the amount of physical Energy sold, net of Bilateral Settlement Schedules for
Energy, at the associated LMP (see Sections 4.5.8.1 and 4.5.8.2);
(b) For the amount of virtual Energy sold at the associated LMP (see Section 4.5.8.3);
(c) For the amount of Regulation-Up Service sold at the associated Regulation-Up
Service MCP (see Section 4.5.8.4);
(d) For the amount of Regulation-Down Service sold at the associated Regulation-
Down Service MCP (see Section 4.5.8.5);
(e) For the amount of Spinning Reserve sold at the associated Spinning Reserve MCP
(see Section 4.5.8.6); and
(f) For the amount of Supplemental Reserve sold at the associated Supplemental
Reserve MCP (see Section 4.5.8.7).
(2) Each Market Participant with cleared Bids is charged for each Settlement
Location:
(a) For the amount of physical Energy purchased, net of Bilateral Settlement
Schedules for Energy, at the associated LMP (see Sections 4.5.8.1 and 4.5.8.2);
and
(b) For the amount of virtual Energy purchased at the associated LMP (see Section
4.5.8.3).
(3) Charges to Market Participants for Operating Reserve procured in the DA Market are
calculated on a Reserve Zone basis by multiplying the Reserve Zone Operating Reserve
procurement rate by each Asset Owner’s DA Market Operating Reserve Reserve Zone
Obligation. See Sections 4.5.8.8, 4.5.8.9, 4.5.8.10, and 4.5.8.11 for additional details;
Deleted: s
Deleted: and 4.5.8.20
Deleted: s
Deleted: and 4.5.8.20
Page 33 of 156
(a) The procurement rate within a Reserve Zone for each Operating Reserve product
is equal to the DA Market Operating Reserve product procurement costs to meet
the Reserve Zone DA Market Operating Reserve product obligation divided by
the DA Market Reserve Zone Operating Reserve obligation.
(b) For Reserve Zones where Operating Reserve procured is more than the entire
obligation in the zone, the DA Market Operating Reserve procurement cost is
equal to the clearing price for DA Market Operating Reserve for that zone,
multiplied by the zone obligation. For Reserve Zones where Operating Reserve
procured is less than the entire obligation in the zone, the DA Market Operating
Reserve procurement cost is the weighted average of (1) the clearing price for DA
Market Operating Reserve for that zone and (2) the average clearing price for the
DA Market Operating Reserve procured and imported from other zones,
multiplied by the zone obligation.
(4) Market Participants of SPP committed Resources in the DA Market will also receive a
Make Whole Payment if the total revenues received for Energy and Operating Reserve
sales in the DA Market settlement are less than the Resource’s Offer costs associated
with those sales. Make Whole Payments are calculated on a commitment period basis
and are collected on a daily basis from Asset Owners based upon their pro-rata share of
the sum of all Demand Bids, Export Interchange Transaction Bids and Virtual Energy
Bids cleared in the Day-Ahead Market for the Operating Day. See Sections 4.5.8.12, and
4.5.8.13 for additional details;
(5) Settlements related to congestion management are also performed as part of the Day-
Ahead Market settlement as follows;
(a) Holders of TCRs are paid (or charged) for the amount of TCRs held between a
particular source and sink at the difference between the sink MCC and the source
MCC. See Section 4.5.8.14 for additional details.
(b) To the extent that there are insufficient congestion revenues collected in an
Operating Day to fully fund TCR holders, TCR holders are charged a pro-rata
uplift amount to cover the under collection based upon each TCR holder’s net
charges or credits for the Operating Day. If there is excess congestion revenues
collected in an Operating Day, the excess is carried for use at the end of the
month. See Section 4.5.8.15 for additional details.
(c) At the end of each month, if there are excess congestion revenues available, these
revenues are used to reimburse TCR holders that received an uplift charge for
Page 34 of 156
Operating Days during that month. Each TCR holder is reimbursed a pro-rata
share of the uplift charges paid based upon the level of uplift charges paid until
they are fully reimbursed or the excess congestion revenues are depleted. To the
extent that there are excess congestion revenues remaining after fully reimbursing
TCR holders, this excess is carried forward for use at the end of the year. See
Section 4.5.8.16 for additional details.
(d) At the end of each year, if there are excess congestion revenues available, these
revenues are used to reimburse TCR holders that received an uplift charge for
Operating Days during that year that were not fully reimbursed. Each TCR holder
is reimbursed a pro-rata share of the remaining uplift charges paid based upon the
level of remaining uplift charges paid until they are fully reimbursed or the excess
congestion revenues are depleted. See Section 4.5.8.17 for additional details.
(e) To the extent that there are excess congestion revenues remaining at the end of the
year after fully reimbursing TCR holders, this excess is distributed back to ARR
holders pro-rata based upon their annual ARR Nomination Caps. See Section
4.5.8.18 for additional details.
(6) Settlement associated with revenue over collection due to the impact of marginal losses
on the DA Market LMPs is performed as desrcibe under Section 4.5.9.20.
(7) Demand reduction credits to Market Participants associated with a load Settlement
Location that contains a Demand Response Resource are calculated as part of the Day-
Ahead Market settlement in order to ensure that, on a net settlement basis, the charge
associated with that load Settlement Location is reflective of the net load (i.e. the load
including the impact of a cleared Demand Response Resource).
For example, consider a load Settlement Location that consists of a single PNode and that
PNode also represents a Demand Response Load that is associated with a Dispatchable
Demand Response (DDR) Resource. The Market Participant for the load Settlement
Location submits a fixed Demand Bid of 100 MW, which is reflective of that location’s
actual load consumption in real-time, assuming that there is No-Load reduction (i.e. this
value represents the baseline value for the DRL that will be submitted for use in real-
time). The Market Participant for the DDR Resource submits a Resource Offer that
results in the DDR clearing for 20 MWs of Energy. Therefore, the net load consumption
at the load Settlement Location is actually 80 MWs and the load settlement amount needs
to reflect that. If we assume that LMP is $50/MWh, the net settlement at the load
The net $4000 charge is the same as the charge that would have been calculated using the
net load of 80 MW multiplied by the $50/MWh LMP. However, in order to ensure
proper deviation accounting in real-time, the 100 MW of cleared load and the 20 MW of
cleared DDR output is used to calculate real-time deviations from cleared Day-Ahead
Market amounts. See Section 4.5.8.20 for additional calculation details.
(8) Charges to Market Participants for recovery of Day-Ahead Market demand reduction
credits are calculated on a system-wide basis by multiplying the demand reduction charge
rate by each Market Participant’s Day-Ahead Market demand reduction obligation. See
Sections 4.5.8.21 for additional details;
(a) The demand reduction charge rate is equal to the total amount of demand
reduction credits paid to load divided by the system-wide total cleared
withdrawals (Demand Bids, Virtual Bids and Export Interchange Transaction
Bids).
(b) Each Market Participant’s demand reduction obligation is equal to that Market
Participant’s total cleared withdrawals (Demand Bids, Virtual Bids and Export
Interchange Transaction Bids).
The following subsections describe the DA Market settlement charge types. For each charge
type, the calculation is performed at the hourly level for each Asset Owner at each Settlement
Location. In addition to the hourly values, daily values will be accessible on the Settlement
Statement for all charge types.
4.5.8.20 Day-Ahead Demand Reduction Amount
Deleted: 1
Deleted: 2
Deleted: ¶¶¶
4.5.8.20 Day-Ahead Virtual Energy Transaction Fee Amount¶
Deleted: <#>A DA Market credit1 or charge for each hour of the Operating Day in which a Virtual Energy Offer and Virtual Energy Bid is submitted as of the close of the Day-Ahead Market will be calculated for each Asset Owner for each Operating Day. Charges collected by SPP under this charge type are used by SPP to reduce the SPP budgeted expenses used to calculate the rate specified under Schedule 1-A of the SPP Tariff. The amount is calculated as follows:¶
#DaVTxnFeeAoAmt a, m, d = DaVTxnDlyCnt a, d * DaVTxnFeeDlyRate d¶
<#> For each Market Participant, a daily amount is calculated representing the sum of Asset Owner amounts associated with that Market Participant. The net daily charge or credit is calculated as follows:¶
DaVTxnFeeMpAmt m, d =
Deleted: ∑a
Deleted: DaVTxnFeeAoAmt a, m, d¶¶
¶¶¶The above variables are defined as follows:¶
Variable¶ ...Deleted: 1
Page 36 of 156
4.5.8.21 Day-Ahead Demand Reduction Distribution Amount …
The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
DaDRDistHrlyAmt a, s, h $ Hour Day-Ahead Demand Reduction Distribution Amount per AO per Hour - The amount to AO a for AO a’s share of DA Market Demand Reduction costs per Settlement Location per Hour.
DaDRLoadHrlyQty a, s, h MWh Hour Day-Ahead Demand Reduction Load per AO per Settlement Location for Hour h – Asset Owner a’s load, virtual withdrawal and Export Interchange Transactions cleared in the DA Market at Settlement Location s for Hour h for use in Demand Reduction cost allocation.
DaDRDistHrlyRate h $/MWh Hour Day-Ahead Demand Reduction Distribution Rate per Hour – The rate applied to AO a’s Demand Reduction load in Hour h.
DaDRDistHrlyCost h $ Hour Day-Ahead Demand Reduction Distribution Cost per Hour – The cost of Demand Reduction in Hour h.
DaDRDistHrlyQty h MWh Hour Day-Ahead Demand Reduction Distribution Quantity per Hour – The total cost allocation quantity for Demand Reduction in Hour h.
DaDRHrlyAmt a, s, h $ Hour Day-Ahead Demand Reduction Amount per AO per Settlement Location per Hour - The value described under Section 4.5.8.20.
DaClrdHrlyQty a, s, h MWh Dispatch Interval
Day-Ahead Cleared Energy Quantity per AO per Settlement Location per Hour in the DA Market – The value described under Section 4.5.8.1 for AO a at Settlement Location s for Hour h.
DaClrdVHrlyQty a, s, h, t MWh Hour Day-Ahead Cleared Virtual Energy Quantity per AO per Transaction per Settlement Location per Hour in the DA Market – The value described under Section 4.5.8.3.
DaImpExp5minQty a, s, i, t MWh Dispatch Interval
Day-Ahead Interchange Transaction Quantity per AO per Transaction per Settlement Location per Dispatch Interval – The value described under Section 4.5.8.2.
Deleted: 2
Deleted: 1
Page 37 of 156
Variable
Unit
Settlement Interval
Definition
DaDRDistAoAmt a, m, d $
Operating Day
Day-Ahead Demand Reduction Distribution Amount per AO per Operating Day - The DA Market amount to AO a associated with Market Participant m for Demand Reduction for the Operating Day.
DaDRDistMpAmt m, d $
Operating Day
Day-Ahead Demand Reduction Distribution Amount per Market Participant per Operating Day - The DA Market amount to Market Participant m for Demand Reduction for the Operating Day.
DaDRDistDlyAmt a, s, d $ Operating Day
Day-Ahead Demand Reduction Distribution Amount per Settlement Location per Operating Day - The DA Market amount to Settlement Location s associated with AO a for Demand Reduction for the Operating Day.
4.5.8.23 Day-Ahead Grandfathered Agreement Carve-Out Monthly Amount … The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
DaGFAAoMnthlyAmt a, m, mn $
Month Day-Ahead Grandfathered Agreement Carve-Out Monthly Amount per AO per Month– The net reversal of charges and credits from the settlement of Transmission Congestion Rights Monthly Payback & Auction Revenue Rights Monthly Payback to AO a modeled to represent a Grandfathered Agreement Carve-Outs and FSEs associated with Market Participant m for the Month
TcrPaybackMnthlyAmt a, m, mn $
Month Transmission Congestion Right Monthly Payback Amount per AO per Asset Owner per MP per Month – The amount calculated under Section 4.5.8.16.
ArrPaybackMnthlyAmt a, m, mn $
Month Auction Revenue Rights Monthly Payback Amount per AO per month - The amount calculated under Section 4.5.10.4.
AoIsGFAMnthlyFlg a, m, mn none Month Grandfathered Agreement Carve-Out Asset Owner Flag per AO per Month – A Flag which indicates that the AO is exempt from Day-Ahead Transmission Congestion charge types, thus forcing the cost allocation of the exclusion into Non GFA Load Ratio Share
AoIsGFADlyFlg a, m, d none Month Grandfathered Agreement Carve-Out Asset Owner Flag per AO per Day – The flag described under Section 4.5.8.22
DaGFAMpMnthlyAmt m, mn $
Month Day-Ahead Grandfathered Agreement Carve-Out Monthly Amount per MP per Month – The net reversal of charges and credits from the settlement of Monthly Transmission Congestion Rights Paybacks & Monthly Auction Revenue Rights Paybacks to MP m modeled to represent a Grandfathered Agreement Carve-Out or FSE for the Month.
Year Day-Ahead Grandfathered Agreement Carve-Out Yearly Amount per AO per Year– The net reversal of charges and credits from the settlement of Transmission Congestion Rights Yearly Payback & Closeout, and Auction Revenue Rights Yearly Payback & Closeout to AO a modeled to represent a Grandfathered Agreement Carve-Out or FSE associated with Market Participant m for the Year
TcrPaybackYrlyAmt a, m, yr $
Year Transmission Congestion Rights Annual Payback Amount per AO - The amount calculated under Section 4.5.8.17.
TcrCloseoutYrlyAmt a, m, yr $ Year Transmission Congestion Rights Annual Payback Amount per AO – The amount calculated under Section 4.5.8.18.
ArrPaybackYrlyAmt a, m, yr $
Year Auction Revenue Rights Annual Payback Amount per AO per year - The amount calculated under Section 4.5.10.5.
ArrCloseoutYrlyAmt a, m, yr $ Year Auction Revenue Rights Annual Payback Amount per AO per Year - The amount calculated under Section 4.5.10.6.
AoIsGFAYrlyFlg a, m, yr none Year Grandfathered Agreement Carve-Out Asset Owner Flag per AO per Year – A Flag which indicates that the AO is exempt from Day-Ahead Transmission Congestion charge types, thus forcing the cost allocation of the exclusion into Non GFA Load Ratio Share
AoIsGFADlyFlg a, m, d none Day Grandfathered Agreement Carve-Out Asset Owner Flag per AO per Day – The flag described under Section 4.5.8.22
Deleted: 5
Deleted: 3
Page 42 of 156
Variable
Unit
Settlement Interval
Definition
DaGFAMpYrlyAmt m, yr $
Year Day-Ahead Grandfathered Agreement Carve-Out Yearly Amount per MP per Year – The net reversal of charges and credits from the settlement of Yearly Transmission Congestion Rights Paybacks & Closeouts, and Yearly Auction Revenue Rights Paybacks & Closeouts to MP m modeled to represent a Grandfather Agreement Carve-Out and FSE for the Year.
a none none An Asset Owner.
mn none none A Month
yr none none A Year.
m none none A Market Participant.
Page 43 of 156
4.5.8.25 GFA Carve Out Distribution Daily Amount … The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
RtLoadMtr5minQty a, s, i MW Dispatch Interval
Real-Time Load Meter Quantity per Asset Owner per Settlement Location per Dispatch Interval - The value described under Section 4.5.9.1 for Settlement Location s.
RtImpExp5minQty a, s, i, t MW Dispatch Interval
Real-Time Interchange Transaction Quantity per AO per Settlement Location per Dispatch Interval per Transaction – The value described under Section 4.5.9.2 for Reserve Zone z.
AoIsGFALoadDlyFlg a, s, d, t Operating Day
Grandfathered Agreement Carve-Out Asset Owner Flag per AO per Operating Day – A Flag which indicates that the AO is exempt from the distribution of the GFA Carve Out Account
DaEnFinHrlyQty a, s, h, t MWh
Hour Day-Ahead Asset Energy Bilateral Settlement Schedule per AO per Transaction per Settlement Location per Hour - The quantity specified by the buyer AO and seller AO in a DA Market Bilateral Settlement Schedule for Energy at Asset Settlement Location s, for each transaction t, for the Hour. The buyer AO quantity is a positive value and the seller AO quantity is a negative value.
DaNEnFinHrlyQty a, s, h, t MWh Hour Day-Ahead Non-Asset Energy Bilateral Settlement Schedule for Energy per Transaction per AO per Settlement Location per Hour - The quantity specified by the buyer AO and seller AO in a DA Market Bilateral Settlement Schedule for Energy at Non-Asset Settlement Location s, for each transaction t, for the Hour. The buyer AO quantity is a positive value and the seller AO quantity is a negative value.
DaGFACarveOutDistDlyAmt a, s, d $ Operating Day
Day Ahead GFA Carve Out Distribution Daily Amount per AO per Settlement Location per Operating Day – The amount to distribute to AO a at Settlement Location s in an Operating Day d.
Deleted: 6
Deleted: RtBillMtr5minQty a, s, i
Deleted: MW
Deleted: Dispatch Interval
Deleted: Real-Time Billing Meter Quantity per AO per Settlement Location per Dispatch Interval - The value described under Section 4.5.9.1 for Reserve Zone z.
Commented [RR323.6]: Awaiting FERC and Implementation
Commented [RR323.7]: Awaiting FERC and Implementation
Page 44 of 156
Variable
Unit
Settlement Interval
Definition
DaGFACarveOutDistAoDlyAmt a, m, d $ Operating Day
Day Ahead GFA Carve Out Distribution Amount per AO per Operating Day – The amount to distribute to AO a associated with Market Participant m in an Operating Day d.
DaGFACarveOutDistMpDlyAmt m, d $ Operating Day
Day Ahead GFA Carve Out Distribution Daily Amount per MP per Operating Day – The amount for to distribute to MP m in an Operating Day d.
GFARevInadqcSppDlyAmt spp, d $ Operating Day
Grandfathered Agreement Carve-Out Revenue Inadequacy Daily Amount – The amount of charges and credits to GFA Carve-Out responsible entities and Western-UGP on an SPP-wide basis from the settlement of Day-Ahead Asset & Non-Asset Energy, Day-Ahead Over-Collected Losses Distribution, Transmission Congestion Rights Funding & Uplift, Transmission Congestion Rights Auction and Auction Revenue Rights & Uplift amount to Market Participant m for net cleared offers and bids, net of Bilateral Settlement Schedules for Energy for the Operating Day.
RtNonGFAHrlyQty a, s, h Hour Real-Time Non-GFA Hourly Quantity per AO per Hour per Settlement Location – The value is calculated by taking the Load’s Real-Time Meter plus the Load’s Exports minus the GFA Carved Out Load MWs minus the FSE Load MWs per AO a at Settlement Location s in hour h
RtGFALoadRatioShareDlyFct a, s, d Operating Day
Real-Time GFA Load Ratio Share Daily Factor per AO per Hour per Settlement Location – The value is calculated by taking a single Asset Owner Load Settlement Location’s Real-Time GFA Exclusion Hourly Factor and divided it by the sum of all of the Asset Owner Load Settlement Location’s Real-Time GFA Exclusion Hourly Factor.
DaGFAMpAmt m, d $ Operating Day
Day-Ahead Grandfathered Agreement Carve-Out Amount per MP per Day - The value calculated under Section 4.5.8.22
a none None An Asset Owner.
s none none A Resource Settlement Location.
h none none An Hour.
d none none An Operating Day.
mn none none A Month
Deleted: 3
Page 45 of 156
Variable
Unit
Settlement Interval
Definition
m none none A Market Participant.
spp none none Southwest Power Pool.
Page 46 of 156
4.5.8.26 GFA Carve Out Distribution Monthly Amount … The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
DaGFACarveOutDistMnthlyAmt a, s,
mn $ Month Day Ahead GFA Carve Out Distribution Monthly Amount per AO per
Settlement Location per Month – The amount to distribute to AO a at Settlement Location s in Month mn.
RtGFALoadRatioShareMnthlyFct a, s,
mn $/MW Month Real-Time GFA Share Load Ratio Share Distribution Factor per AO
per Month per Settlement Location – The ratio determining the portion of the total Grandfathered Agreement Carve-Out Revenue Inadequacy Monthly Amount assigned to AO a at Settlement Location s in Month mn.
DaGFACarveOutDistAoMnthlyAmt
a, m, mn $ Month Day Ahead GFA Carve Out Distribution Amount per AO per Month –
The amount to distribute to AO a associated with Market Participant m in Month mn.
DaGFACarveOutDistMpMnthlyAmt
m, mn $ Month Day Ahead GFA Carve Out Distribution Monthly Amount per MP per
Month – The amount for to distribute to MP m in Month mn.
GFARevInadqcSppMnthlyAmt spp, mn $ Month Grandfathered Agreement Carve-Out Revenue Inadequacy Monthly Amount – The amount of charges and credits to GFA Carve-Out responsible entities and Western-UGP on an SPP-wide basis from the settlement of Transmission Congestion Rights Payback Amount and Auction Revenue Rights Payback Amount for Month mn.
RtGFALoadRatioShareDlyFct a, s, d MW Hour Real-Time GFA Load Ratio Share per AO per Day per Settlement Location – The value calculated under Section 4.5.8.25
DaGFAMpMnthlyAmt m, mn $ Month Day-Ahead Grandfathered Agreement Carve-Out Amount per MP per Month - The value calculated under Section 4.5.8.23
a none None An Asset Owner.
s none none A Resource Settlement Location.
h none none An Hour.
Deleted: 7
Deleted: 6
Deleted: 4
Page 47 of 156
Variable
Unit
Settlement Interval
Definition
d none none An Operating Day.
mn none none A Month
m none none A Market Participant.
spp none none Southwest Power Pool.
Page 48 of 156
4.5.8.27 GFA Carve Out Distribution Yearly Amount … The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
DaGFACarveOutDistYrlyAmt a, s, yr $ Year Day Ahead GFA Carve Out Distribution Yearly Amount per AO per Settlement Location per Yearly – The amount to distribute to AO a at Settlement Location s in Year yr.
RtGFALoadRatioShareYrlyFct a, s,
yr none Year Real-Time GFA Load Ratio Share Factor per AO per Year per
Settlement Location – The ratio determining the portion of the total Grandfathered Agreement Carve-Out Revenue Inadequacy Yearly Amount assigned to AO a at Settlement Location s in Year yr.
DaGFACarveOutDistAoYrlyAmt a,
m, yr $ Year Day Ahead GFA Carve Out Distribution Amount per AO per Year –
The amount to distribute to AO a associated with Market Participant m in Year yr.
GFARevInadqcSppYrlyAmt spp, yr $ Year Grandfathered Agreement Carve-Out Revenue Inadequacy Yearly Amount – The amount of charges and credits to GFA Carve-Out responsible entities and Western-UGP on an SPP-wide basis from the settlement of Transmission Congestion Rights Payback Amount, Transmission Congestion Rights Closeout Amount, Auction Revenue Rights Payback Amount and Auction Revenue Rights Closeout Amount for Year yr.
RtGFALoadRatioShareDlyFct a, s, h MW Hour Real-Time GFA Load Ratio Share per AO per Day per Settlement Location – The value calculated under Section 4.5.8.25
DaGFAMpYrlyAmt m, yr $ Year Day-Ahead Grandfathered Agreement Carve-Out Yearly Amount per MP per Year - The value calculated under Section 4.5.8.24
Transactions, (v) Real-Time Bilateral Settlement Schedules for Energy, and (vi)
Day-Ahead Market Bilateral Settlement Schedules for Energy, including those
associated with GFA Carve Outs, at that Settlement Location. Asset Owner
credits associated with GFA Carve Outs are used to offset GFA Carve Out costs
through inclusion of such credits under Section 4.5.8.22.
…
Deleted: 3
Page 57 of 156
The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
RtDR5minAmt a, s, i $ Hour Real-Time Demand Reduction Amount per AO per Settlement Location per Hour - The RTBM amount to AO a for Demand Reduction at Settlement Location s for Dispatch Interval i.
RtLoadGrossUp5minQty a, s, i MW Dispatch Interval
Real-Time Load Gross-Up Quantity per AO per Settlement Location per Dispatch Interval - The sum of Demand Response deployed in the RTBM associated with AO a’s host load Settlement Location s in Dispatch Interval i.
RtLoadGrossUp5minQty a, s, ml, i MW Dispatch Interval
Real-Time Load Gross Up per AO per Meter Settlement Location per Dispatch Interval - The value described under Section 4.5.9.1 at Meter Data Submittal Location associated with host Settlement Location s for Dispatch Interval i.
DaLoadGrossUpHrlyQty a, s, h MWh Hour Day-Ahead Load Gross-Up Quantity per AO per Settlement Location per Hour - The value described under Section 4.5.8.20 for AO a at host Settlement Location s for Hour h.
RtLmp5minPrc s, i $/MW Dispatch Interval
Real-Time LMP - The value defined under Section 4.5.9.1 at host Settlement Location s for Dispatch Interval i.
RtDRHrlyAmt a, s, d $
Operating Day
Real-Time Demand Reduction Amount per AO per Settlement Location per Hour - The RTBM amount to AO a for Demand Reduction at Settlement Location s for Hour h.
RtDRDlyAmt a, s, d $
Operating Day
Real-Time Demand Reduction Amount per AO per Settlement Location per Operating Day - The RTBM amount to AO a for Demand Reduction at Settlement Location s for the Operating Day.
RtDRAoAmt a, m, d $
Operating Day
Real-Time Demand Reduction Amount per AO per Operating Day - The RTBM amount to AO a associated with Market Participant m for Demand Reduction for the Operating Day.
RtDRMpAmt m, d $
Operating Day
Real-Time Demand Reduction Amount per Market Participant per Operating Day - The RTBM amount to Market Participant m for Demand Reduction for the Operating Day.
a none none An Asset Owner.
Deleted: 1
Page 58 of 156
Variable
Unit
Settlement Interval
Definition
s none none A Settlement Location.
h none none An Hour.
i none none A Dispatch Interval.
d none none An Operating Day.
m none none A Market Participant.
Page 59 of 156
4.5.9.20 Over-Collected Losses Distribution Amount …
The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
RtOclDistHrlyAmt a, s, lp, h $ Hour Real-Time Over Collected Losses Distribution Amount per AO per Settlement Location in Loss Pool lp per Hour - The amount to AO a for AO a’s share of total over/under collection due to marginal losses at Settlement Location s in Loss Pool lp for the Hour.
RtPseudoTieLossSpp5minAmt i $ Dispatch Interval
Real-Time SPP Total Pseudo-Tie Losses Amount per Dispatch Interval - The total amount for losses on Pseudo-Ties in Dispatch Interval i.
RtPseudoTie5minQty a, source, sink, i MW Dispatch Interval
Real-Time Pseudo-Tie Quantity per Asset Owner per source-sink path per Dispatch Interval – The value described under Section 4.5.9.26.
RtPseudoTieLoss5minAmt a, source,
sink,(s), i $ Dispatch
Interval Real-Time Pseudo-Tie Losses Amount per Asset Owner per source-sink path per Dispatch Interval - The value described under 4.5.9.27 for AO a on path source to sink in Dispatch Interval i. For the purpose of its inclusion in the calculation of the Loss Rebate Factor the sink (s) notation is an indication that value is collected at the sink Settlement Location.
RtNormLpRbtHrlyFct lp, h none Hour Real-Time Normalized Loss Rebate Factor per Loss Pool per Hour – The percentage of RtIncrOclHrlyAmt h allocated to Loss Pool lp for the Hour.
RtSlRbtHrlyFct s, lp, h $ Hour Real-Time Loss Rebate Factor per Settlement Location per Loss Pool per Hour – The sum of RtSlRbt5minFct s, lp, i at Settlement Location s in Loss Pool lp for the Hour.
RtSlRbt5minFct s, lp, i $ Dispatch Interval
Real-Time Loss Rebate Factor per Settlement Location per Loss Pool per Dispatch Interval– The amount of marginal loss dollars calculated at Settlement Location s in Loss Pool lp for the Dispatch Interval.
Page 60 of 156
Variable
Unit
Settlement Interval
Definition
RtSppRbtHrlyFct h $ Hour Real-Time Loss Rebate Factor per Hour – The SPP total of RtLpRbtHrlyFct lp, h for the Hour.
RtLpRbtHrlyFct lp, h $ Hour Real-Time Loss Rebate Factor per Loss Pool per Hour – The amount of marginal loss dollars collected in Loss Pool lp for the Hour.
RtIncrOclHrlyAmt h $ Hour Real-Time Incremental Over Collected Losses Amount per Hour – The sum of RtIncrOcl5minAmt i for the Hour.
DaOclHrlyAmt h $ Hour Day-Ahead Over Collected Losses Amount per Hour – The amount of over collection in the DA Market due to marginal losses for the Hour.
RtIncrOcl5minAmt i $ Dispatch Interval
Real-Time Incremental Over Collected Losses Amount per Dispatch Interval – The amount of over/under collection in the RTBM due to marginal losses for the Dispatch Interval.
RtLpIntSupply5minFct lp, i none Dispatch Interval
Real-Time Loss Pool Internal Supply Factor per Loss Pool per Dispatch Interval – A ratio indicating the percentage of Loss Pool lp’s net withdrawals that are being served by net RTBM Energy injections inside of Loss Pool lp in Dispatch Interval i.
RtLpExtSupply5minFct lp, i none Dispatch Interval
Real-Time Loss Pool External Supply Factor per Loss Pool per Dispatch Interval – A ratio indicating the percentage of Loss Pool lp’s net RTBM Energy injections that are in excess of Loss Pool lp’s net RTBM Energy withdrawals in Dispatch Interval i.
RtLpIwaMlc5minPrc lp, i $/MWh Dispatch Interval
Real-Time Loss Pool Injection Weighted Average Marginal Loss Component per Loss Pool per Dispatch Interval - The weighted average RtMlc5minPrc s, i for all net RTBM Energy injections in loss pool lp in Dispatch Interval i.
RtSppIwaMlc5minPrc i $/MWh Dispatch Interval
Real-Time SPP Injection Weighted Average Marginal Loss Component per Dispatch Interval - The weighted average of RtMlc5minPrc s, i for all loss pool net RTBM Energy injections in excess of loss pool net RTBM Energy withdrawals in Dispatch Interval i.
RtLpInj5minQty , lp, i MW Dispatch Interval
Real-Time Net Injection Quantity per Loss Pool per Dispatch Interval – The net RTBM Energy injection quantity in Loss pool lp in Dispatch Interval i.
Page 61 of 156
Variable
Unit
Settlement Interval
Definition
RtSlInj5minQty s, lp, i MWh Dispatch Interval
Real-Time Net Injection Quantity per Settlement Location per Loss Pool per Dispatch Interval – Settlement Location s’s net RTBM Energy injection quantity in Loss pool lp in Dispatch Interval i.
RtLpWdr5minQty lp, i MW Dispatch Interval
Real-Time Net Withdrawal Quantity per Settlement Location per Loss Pool per Dispatch Interval – The net RTBM Energy withdrawal quantity in Loss pool lp in Dispatch Interval i.
RtAoSlLpLrsHrlyFct a, s, lp, h
None
Hour Real-Time Loss Pool Load Ratio Share per AO per Settlement Location per Loss Pool per Hour – The ratio of AO a’s The net RTBM Energy withdrawal at Settlement Location s to the total The net RTBM Energy withdrawals in Loss pool lp in Hour h.
RtAoSlWdrHrlyQty a, s, lp, h MWh Hour Real-Time Net Market Energy Asset Owner Withdrawal per AO per Settlement Location per Loss Pool per Hour – The positive value of the sum of the difference between AO a’s RTBM Energy and its DA Market Energy instruments at Settlement Location s in Loss pool lp in Hour h.
RtAoLpWdrHrlyQty lp, h MWh Hour Real-Time Net Market Energy Withdrawal per Loss Pool per Hour – The sum of net RTBM Energy Asset Owner withdrawal in Loss pool lp in Hour h.
RtSlWdr5minQty s, lp, i MWh Dispatch Interval
Real-Time Net Withdrawal Quantity per Settlement Location per Loss Pool per Dispatch Interval – Settlement Location s’s net RTBM Energy withdrawal quantity in Loss Pool lp in Dispatch Interval i.
SltoLp5minMap s, lp, i none Dispatch Interval
Settlement Location to Loss Pool Map per Settlement Location per Loss Pool per Dispatch Interval - The portion of injection or withdrawal at Settlement Location s associated with Loss Pool lp for Dispatch Interval i.
SltoLpHrlyMap s, lp, h none Hourly Settlement Location to Loss Pool Map per Settlement Location per Loss Pool per Hour – The portion of injection or withdrawal at Settlement Location s associated with Loss Pool lp for Hour h.
RtLmp5minPrc s, i $/MWh Dispatch Interval
Real-Time LMP – The value described under Section 4.5.9.1 at Settlement Location s for Dispatch Interval i.
Page 62 of 156
Variable
Unit
Settlement Interval
Definition
RtMcc5minPrc s, i $/MWh Dispatch Interval
Real-Time Marginal Congestion Component of Real-Time LMP – The Marginal Congestion Component of Real-Time LMP at Settlement Location s for Dispatch Interval i.
DaLmpHrlyPrc s, h $/MWh Hour Day-Ahead LMP – The value described under Section 4.5.8.1 at Settlement Location s for Hour h.
DaMccHrlyPrc s, h $/MWh Hour Day-Ahead Marginal Congestion Component of Day-Ahead LMP – The value described under Section 4.5.8.14 at Settlement Location s for Hour h.
RtMlc5minPrc s, i $/MWh Dispatch Interval
Real-Time Marginal Losses Component of Real-Time LMP – The Marginal Losses Component of the Real-Time LMP at Settlement Location s for Dispatch Interval i.
RtEnFinHrlyQty a, s, t, h MWh Hour Bilateral Settlement Schedule for Energy per AO per Settlement Location per Transaction per Hour - The value described under Section 4.5.9.1 for AO a at Settlement Location s for Hour h.
RtNEnFinHrlyQty a, s, t, h MWh Hour Non-Asset Bilateral Settlement Schedule for Energy per AO per Settlement Location per Transaction per Hour - The value described under Section 4.5.9.2 for AO a at Settlement Location s for Hour h.
DaEnFinHrlyQty a, s, h, t MWh Hour Day-Ahead Asset Energy Bilateral Settlement Schedule per AO per Transaction per Settlement Location per Hour – The value described under Section 4.5.8.2 for AO a at Settlement Location s for transaction t for Hour h.
DaNEnFinHrlyQty a, s, h, t MWh Hour Day-Ahead Non-Asset Energy Bilateral Settlement Schedule per AO per Transaction per Settlement Location per Hour – The value described under Section 4.5.8.2 for AO a at Settlement Location s for transaction t for Hour h.
DaClrdHrlyQty a, s, h MWh Hour Day-Ahead Cleared Energy Quantity per AO per Settlement Location per Hour in the DA Market – The value described under Section 4.5.8.1 for AO a at Settlement Location s for Hour h.
Page 63 of 156
Variable
Unit
Settlement Interval
Definition
DaClrdVHrlyQty a, s, h, t MWh Hour Day-Ahead Cleared Virtual Energy Quantity per AO per Settlement Location per Transaction per Hour in the DA Market – The value described under Section 4.5.8.3 for AO a at Settlement Location s in for transaction t for Hour h.
DaImpExp5minQty a, s, i, t MW Dispatch Interval
Day-Ahead Interchange Transaction Quantity per AO per Settlement Location per Transaction per Dispatch Interval – The value described under Section 4.5.8.2 for AO a at Settlement Location s in for transaction t for Dispatch Interval i.
RtImpExp5minQty a, s, i, t MW Dispatch Interval
Real-Time Interchange Transaction Quantity per AO per Settlement Location per Transaction per Dispatch Interval – The value described under Section 4.5.9.2 for AO a at Settlement Location s in for transaction t for Dispatch Interval i.
RtBillMtr5minQty a, s, i MW Dispatch Interval
Real-Time Billing Meter Quantity per AO per Settlement Location per Dispatch Interval - The value described under Section 4.5.9.1 for AO a at Settlement Location s in for Dispatch Interval i.
RtNetInadvertentSpp5minAmt i
MW$ Dispatch Interval
Real-Time SPP Net Inadvertent Energy Amount per Dispatch Interval – The value calculated under Section 4.5.12.
RtOclDistDlyAmt a, s, lp, d $ Operating Day
Real-Time Over Collected Losses Distribution Amount per AO per Settlement Location per Loss Pool Operating Day - The amount to AO a for AO a’s share of total over/under collection due to marginal losses at Settlement Location s in Loss Pool lp for the Operating Day.
RtOclDistAoAmt a, m, d $ Operating Day
Real-Time Over Collected Losses Distribution Amount per AO per Operating Day- The amount to AO a associated with Market Participant m for AO a’s share of total over/under collection due to marginal losses for the Operating Day.
RtOclDistMpAmt m, d $ Operating Day
Real-Time Over Collected Losses Distribution Amount per MP per Operating Day- The amount to MP m for MP m’s share of total over/under collection due to marginal losses for the Operating Day.
RtAoSlActWdrHrlyQty a, s, h MWh Hour Real-Time Actual Withdrawal Quantity per Asset Owner per Settlement Location per Hour – The amount of actual MWs withdrawn for Asset Owner a’s at Settlement Location s in Hour h.
Page 64 of 156
Variable
Unit
Settlement Interval
Definition
AoIsGFADlyFlg a, m, d none Month Grandfathered Agrement Carve-Out Asset Owner Flag per AO per Day – The flag described under Section 4.5.8.22.
AoIsGFALoadDlyFlg a, s, d, t none Operating Day
Grandfathered Agreement Carve-Out Asset Owner Flag per AO per Operating Day – The flag described under Section 4.5.8.25.
RtSlBssHrlyFct s, h, t Ratio Hour Real-Time BSS Factor per Settlement Location per Hour per Transaction – The RtAoSlBssHrlyFct applied to BSS with Transaction t at Settlement Location’s s in Hour h.
RtSlBssGFAHrlyFct s, h, t Ratio Hour Real-Time BSS Factor per Settlement Location per Hour per Transaction for Grand-Fathered Agreements - The percentage of GFA BSSs compared to total withdrawal applied at Settlement Location’s s in Hour h.
RtAoSlGFAWdrHrlyQty a, s, h MWh Hour Real-Time GFA/FSE Withdrawal Quantity per Asset Owner per Settlement Location per Hour – The amount of BSS MWs associated with GFA/FSE withdrawal for Asset Owner a’s at Settlement Location s in Hour h.
RtAoSlBssWdrHrlyQty a, s, h MWh Hour Real-Time BSS Withdrawal Quantity per Asset Owner per Settlement Location per Hour – The amount of BSS MWs of withdrawal for Asset Owner a’s at Settlement Location s in Hour h.
RtAoSlBssHrlyFct a, s, h Ratio Hour Real-Time Asset Owner BSS Factor per Settlement Location per Hour – The ratio of BSS withdrawal over physical withdrawal for Asset Owner a’s at Settlement Location’s s in Hour h.
bs none none A buyer or a seller of a Bilateral Settlement Schedule.
a none none An Asset Owner.
s none none A Settlement Location.
h none none An Hour.
i none none A Dispatch Interval.
t none none A single tagged Interchange Transaction, a single virtual energy transaction, a single Bilateral Settlement Schedule, a single contracted Operating Reserve transaction, a single TCR instrument, a single ARR award or a single Reserve Sharing Event transaction.
Deleted: 3
Deleted: 6
Page 65 of 156
Variable
Unit
Settlement Interval
Definition
d none none An Operating Day.
lp none none A Loss Pool.
m none none A Market Participant.
rsg none none An import or export resulting from a schedule created by a Reserve Sharing Event.
Page 66 of 156
4.5.11 Miscellaneous Amount …
The above variable is defined as follows:
Variable
Unit
Settlement Interval
Definition
MiscDlyAmt a, ct, s, rnu, d
$ Operating Day
Miscellaneous Amount per AO per Settlement Location per Settlement Location per Operating Day – The miscellaneous amount to AO a for charge type ct at Settlement Location s in Operating Day d.
MiscAoAmt a, m, d $ Operating Day
Miscellaneous Amount per AO per Operating Day – The total miscellaneous amount to AO a in Operating Day d.
MiscMpAmt m, d $ Operating Day
Miscellaneous Amount per MP per Operating Day – The total miscellaneous amount to MP m in Operating Day d.
ct none none Any charge type specified under Sections 4.5.8, 4.5.8.20 or 4.5.9.24 or any other miscellaneous charges not specifically accounted for under a distinct charge type.
s none none A Settlement Location.
rnu none none A flag which instructs the settlement system to include the amount in Revenue Neutrality Uplift calculations (1 = Y, 0 = N).
d none none An Operating Day.
Deleted: 1
Page 67 of 156
4.5.12 Revenue Neutrality Uplift Distribution Amount …
The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
RtRnuHrlyAmt a, s, h $ Hour Real-Time Revenue Neutrality Uplift Amount per AO per Settlement Location per Hour – The amount for revenue neutrality to AO a at Settlement Location s in Hour h.
RtRnuSppDistRate d $/MW Operating Day
Real-Time Revenue Neutrality Uplift SPP Distribution Rate per Operating Day – The rate applied to AO a’s
RtRnuDistHrlyQty a, s, h in each Hour h at Settlement Location s in Operating Day d.
RtRnuSppDlyAmt spp, d $ Operating Day
Real-Time Revenue Neutrality Uplift SPP Daily Amount – The total amount SPP is not revenue neutral, through all other charge types, in an Operating Day. The amount that is to be uplifted to the SPP market for Operating Day d.
RtRnuDistHrlyQty a, s, h
MWh Hour Real-Time Revenue Neutrality Uplift Quantity per AO per Hour
per Settlement Location – The total MWh RNU allocation determinant for AO a at Settlement Location s for Hour h.
RtRnuDistSppQty spp, d
MWh Operating
Day Real-Time Revenue Neutrality Uplift Quantity for SPP per Operating Day – The total MWh RNU allocation determinant for SPP on a system-wide basis.
DaClrdVHrlyQty a, s, h, t MWh Hour Day-Ahead Cleared Virtual Energy Quantity per AO per Transaction per Settlement Location per Hour – The value defined under Section 4.5.8.3.
RtOomSppAmt spp, d $ Operating Day
Real-Time Out-Of-Merit Make Whole Payment Amount for SPP per Operating Day – The SPP system-wide total of the values described under Section 4.5.9.9.
Commented [RR273.15]: Awaiting FERC and Implementation
Page 68 of 156
Variable
Unit
Settlement Interval
Definition
RtRegAdjSppAmt spp, d $ Operating Day
Real-Time Regulation Deployment Adjustment Amount for SPP per Operating Day – The SPP system-wide total of the values described under Section 4.5.9.18.
RtJoaSppAmt spp, d $ Operating Day
Real-Time Joint Operating Agreement Amount for SPP per Operating Day – The SPP system-wide total of the values calculated under Section 4.5.9.21.
DaRevInadqcSppAmt spp, d $ Operating Day
Day-Ahead Revenue Inadequacy Amount – The amount of mismatch on an SPP-wide basis between total DA Market charges and DA Market credits for Operating Day d.
DaCirAdjMpDlyAmt m, d $ Operating Day
Day-Ahead Adjustment Amount per Market Participant per Operating Day – The value calculated under Section 4.5.8.28.
DaEnergyMpAmt m, d $ Operating Day
Day-Ahead Asset Energy Amount per MP per Operating Day – The value calculated under Section 4.5.8.1.
DaNEnergyMpAmt m, d $ Operating Day
Day-Ahead Non-Asset Energy Amount per MP per Operating Day – The value calculated under Section 4.5.8.2.
DaVEnergyMpAmt m, d $ Operating Day
Day-Ahead Virtual Energy Amount per MP per Operating Day – The value calculated under Section 4.5.8.3.
DaRegUpMpAmt m, d $ Operating Day
Day-Ahead Regulation-Up Service Amount per MP per Operating Day – The value calculated under Section 4.5.8.4.
DaRegDnMpAmt m, d $ Operating Day
Day-Ahead Regulation-Down Service Amount per MP per Operating Day – The value calculated under Section 4.5.8.5.
DaSpinMpAmt m, d $ Operating Day
Day-Ahead Spinning Reserve Amount per MP per Operating Day – The value calculated under Section 4.5.8.6.
DaSuppMpAmt m, d $ Operating Day
Day-Ahead Supplemental Reserve Amount per MP per Operating Day – The value calculated under Section 4.5.8.7.
DaRegUpDistMpAmt m, d $ Operating Day
Day-Ahead Regulation-Up Service Distribution Amount per MP per Operating Day – The value calculated under Section 4.5.8.8.
DaRegDnDistMpAmt m, d $ Operating Day
Day-Ahead Regulation-Down Service Distribution Amount per MP per Operating Day – The value calculated under Section 4.5.8.9.
Deleted: 9
Commented [RR266.16]: Awaiting FERC and Implementation
Page 69 of 156
Variable
Unit
Settlement Interval
Definition
DaSpinDistMpAmt m, d $ Operating Day
Day-Ahead Spinning Reserve Distribution Amount per MP per Operating Day – The value calculated under Section 4.5.8.10.
DaSuppDistMpAmt m, d $ Operating Day
Day-Ahead Supplemental Reserve Distribution Amount per MP per Operating Day – The value calculated under Section 4.5.8.11.
DaMwpMpAmt m, d $ Operating Day
Day-Ahead Make Whole Payment Amount per MP per Operating Day – The value calculated under Section 4.5.8.12.
DaMwpDistMpAmt m, d $ Operating Day
Day-Ahead Make Whole Payment Distribution Amount per MP per Operating Day – The value calculated under Section 4.5.8.13.
TcrFundMpAmt m, d $ Operating Day
Transmission Congestion Rights Funding Amount per MP per Operating Day – The value calculated under Section 4.5.8.14.
TcrUpliftDlyMpAmt m, d $ Operating Day
Transmission Congestion Rights Uplift Amount per MP per Operating Day – The value calculated under Section 4.5.8.15.
ECFDlyAmt d $ Operating Day
Excess Congestion Fund Amount per Operating Day – The value calculated under Section 4.5.8.16.
ECFYrlyAmt yr $ Year Excess Congestion Fund Yearly Amount – The value calculated under Section 4.5.8.18.
ARFDlyAmt d $ Operating Day
Auction Revenue Fund Amount per Operating Day – The value calculated under Section 4.5.10.4.
ARFYrlyAmt yr $ Year Auction Revenue Yearly Fund – The value calculated under Section 4.5.10.6.
DaOclHrlyAmt h $ Hour Day-Ahead Incremental Over Collected Losses Amount per Hour – The value described under Section 4.5.9.20.
TcrAucTxnMpAmt m, d $ Operating Day
Transmission Congestion Right Auction Daily Amount per MP per Operating Day – The value calculated under Section 4.5.10.1.
TcrPaybackSppYrlyAmt yr $ Year Transmission Congestion Rights Annual Payback Amount – The value calculated under Section 4.5.8.18.
TcrCloseoutYrlyMpAmt my, yr $ Year Transmission Congestion Rights Annual Closeout Amount per MP per Year – The value calculated under Section 4.5.8.18.
Commented [RR273.17]: Awaiting FERC and Implementation
Commented [RR273.18]: Awaiting FERC and Implementation
Commented [RR273.19]: Awaiting FERC and Implementation
Commented [RR273.20]: Awaiting FERC and Implementation
Page 70 of 156
Variable
Unit
Settlement Interval
Definition
ArrAucTxnMpAmt m, d $ Operating Day
Auction Revenue Rights Funding Amount per MP per Operating Day – The value calculated under Section 4.5.10.2.
ArrUpliftMpAmt m, d $ Operating Day
Auction Revenue Rights Funding Uplift Amount per MP per Operating Day – The value calculated under Section 4.5.10.3.
ArrPaybackSppYrlyAmt yr $ Year Auction Revenue Rights Annual Payback Amount per Year – The value calculated under Section 4.5.10.6.
ArrCloseoutYrlyMpAmt m, yr $ Year Auction Revenue Rights Annual Closeout Amount per MP per Year – The value calculated under Section 4.5.10.6.
DaDRMpAmt m, d $ Operating Day
Day-Ahead Demand Reduction Amount per Market Participant per Operating Day – The value calculated under Section 4.5.9.24
DaDRDistMpAmt m, d $ Operating Day
Day-Ahead Demand Reduction Distribution Amount per Market Participant per Operating Day – The value calculated under Section 4.5.9.25
RtRevInadqcSppAmt spp, d $ Operating Day
Real-Time Revenue Inadequacy Amount – The amount of mismatch on an SPP-wide basis between total RTBM charges and RTBM credits.
RtBillMtr5minQty a, s, i MW Dispatch Interval
Real-Time Billing Meter Quantity per AO per Settlement Location per Dispatch Interval - The value described under Section 4.5.9.1.
RtBillMtrCir5minQty a, s, i MW Dispatch Interval
Real-Time Billing Meter Quantity per Asset Owner per Settlement Location share per Dispatch Interval – The value described under Section 4.5.9.30.
RtImpExp5minQty a, s, i, t MW Dispatch Interval
Real-Time Interchange Transaction Quantity per AO per Settlement Location per Dispatch Interval per Transaction – The value described under Section 4.5.9.2.
DaClrdVHrlyQty a, s, h, t MWh Hour Day-Ahead Virtual Energy Quantity per AO per Settlement Location per Hour per Transaction – The value described under Section 4.5.8.3.
DaClrdHrlyQty a, s, h MWh Hour Day-Ahead Asset Energy Quantity per AO per Settlement Location per Hour – The value described under Section 4.5.8.1.
Commented [RR273.21]: Awaiting FERC and Implementation
Commented [RR273.22]: Awaiting FERC and Implementation
Commented [RR266.23]: Awaiting FERC and Implementation
Page 71 of 156
Variable
Unit
Settlement Interval
Definition
DaImpExp5MinQty a, s, i, t MW Dispatch Interval
Day-Ahead Interchange Transaction Quantity per AO per Settlement Location per Dispatch Interval per Transaction – The value described under Section 4.5.8.2.
RtMcc5minPrc s, i $/MW Dispatch Interval
Real-Time Marginal Congestion Component of Real-Time LMP – The Marginal Congestion Component of the Real-Time LMP at Settlement Location s for Dispatch Interval i.
RtEnergyMpAmt m, d $ Operating Day
Real-Time Energy Amount per MP per Operating Day – The value described under Section 4.5.9.1.
RtNEnergyMpAmt m, d $ Operating Day
Real-Time Non-Asset Energy Amount per MP per Operating Day – The value described under Section 4.5.9.2.
RtVEnergyMpAmt m, d $ Operating Day
Real-Time Virtual Energy Amount per MP per Operating Day – The value described under Section 4.5.9.3.
RtRegUpMpAmt m, d $ Operating Day
Real-Time Regulation-Up Service Amount per MP per Operating Day – The value described under Section4.5.9.4.
RegUpUnsedMileMwpMpAmt m, d $ Operating Day
Unused Regulation-Up Mileage Make Whole Payment Amount per MP per Operating Day – The value described under Section4.5.9.28
RtRegDnMpAmt m, d $ Operating Day
Real-Time Regulation-Down Service Amount per MP per Operating Day – The value described under Section 4.5.9.5.
RegUpUnsedMileMwpMpAmt m, d $ Operating Day
Unused Regulation-Down Mileage Make Whole Payment Amount per MP per Operating Day – The value described under Section 4.5.9.29.
RtSpinMpAmt m, d $ Operating Day
Real-Time Spinning Reserve Amount per MP per Operating Day – The value described under Section 4.5.9.6.
RtSuppMpAmt m, d $ Operating Day
Real-Time Supplemental Reserve Amount per MP per Operating Day – The value described under Section 4.5.9.7.
RtMwpMpAmt m, d $ Operating Day
RUC Make Whole Payment Amount per MP per Operating Day – The value described under Section 4.5.9.8
RtOomMpAmt m, d $ Operating Day
Real-Time Out-Of-Merit Make Whole Payment Amount per MP per Operating Day - The value described under Section 4.5.9.9.
Page 72 of 156
Variable
Unit
Settlement Interval
Definition
RtMwpDistMpAmt m, d $ Operating Day
RUC Make Whole Payment Distribution Amount per MP per Operating Day – The value described under Section 4.5.9.10.
RtRegNonPerfMpAmt m, d $ Operating Day
Real-Time Regulation Non-Performance Amount per MP per Operating Day – The value described under Section 4.5.9.15.
RtCRDeplFailMpAmt m, d $ Operating Day
Real-Time Contingency Reserve Deployment Failure Amount per MP per Operating Day – The value described under Section 4.5.9.17.
RtRegAdjMpAmt m, d $ Operating Day
Real-Time Regulation Deployment Adjustment Amount per MP per Operating Day - The value described under Section 4.5.9.19.
RtOclDistMpAmt m, d $ Operating Day
Real-Time Over Collected Losses Distribution Amount per MP per Operating Day - The value calculated under Section 4.5.9.20.
RtNetInadvertentSpp5minAmt i $ Dispatch Interval
Real-Time SPP Inadvertent Energy Amount per Dispatch Interval – SPP net Inadvertent Energy for Dispatch Interval i valued at the Real-Time LMP MEC.
RtNetInadvertentSppAmt spp, d $ Operating Day
Real-Time SPP Inadvertent Energy Amount per Operating Day – The sum of RtNetInadvertentSpp5minAmt i for Operating Day d.
RtCongestionSppAmt spp, d $ Operating Day
Real-Time SPP Net Congestion Revenue Amount – The net amount of total Real-Time congestion revenue collected over Operating Day d.
RtNetActIntrchngSpp5minQty i MW Dispatch Interval
Real-Time SPP Net Actual Interchange per Dispatch Interval – SPP Net Actual Interchange in Dispatch Interval i.
RtNetSchIntrchngSpp5minQty i MW Dispatch Interval
Real-Time SPP Net Scheduled Interchange per Dispatch Interval – SPP Net Scheduled Interchange in Dispatch Interval i.
RtMec5minPrc i $/MW Dispatch Interval
Marginal Energy Component of Real-Time LMP per Dispatch Interval – The Real-Time LMP MEC in Dispatch Interval i.
RtJoaHrlyAmt a, h, f $ Hour Real-Time Joint Operating Agreement Hourly Amount - The value calculated under Section 4.5.9.21.
RtRegNonPerfDistMpAmt m, d $ Operating Day
Real-Time Regulation Non-Performance Distribution Amount - The value calculated under Section 4.5.9.16.
Page 73 of 156
Variable
Unit
Settlement Interval
Definition
RtCRDeplFailDistMpAmt m, d
$ Operating
Day Real-Time Contingency Reserve Deployment Failure Distribution Amount - The value calculated under Section 4.5.9.18.
RtRegUpDistMpAmt m, d $ Operating Day
Real-Time Regulation-Up Service Distribution Amount – The value calculated under Section 4.5.9.11.
RtRegDnDistMpAmt m, d $ Operating Day
Real-Time Regulation-Down Service Distribution Amount – The value calculated under Section 4.5.9.12.
RtSpinDistMpAmt m, d $ Operating Day
Real-Time Spinning Reserve Distribution Amount – The value calculated under Section 4.5.9.13.
RtSuppDistMpAmt m, d $ Operating Day
Real-Time Supplemental Reserve Distribution Amount – The value calculated under Section 4.5.9.14.
RtRsgDistMpAmt m, d $ Operating Day
Real-Time Reserve Sharing Group Distribution Amount – The amount calculated under Section 4.5.9.23.
RtDRMpAmt m, d $ Operating Day
Real-Time Demand Reduction Amount per Market Participant per Operating Day – The amount calculated under Section 4.5.9.24
RtDRDistMpAmt m, d $ Operating Day
Real-Time Demand Reduction Distribution Amount per Market Participant per Operating Day – The amount calculated under Section 4.5.9.25.
RtRsgDlyAmt a, d $ Operating Day
Real-Time Reserve Sharing Group Amount – The amount calculated under Section 4.5.9.22.
MiscDlyAmt a, c, d $ Operating Day
Real-Time Miscellaneous Amount per AO per Charge Type per Operating Day – The miscellaneous amount to AO a for charge type c in Operating Day d as described under Section 4.5.10.4.
RtRnuDlyAmt a, s, d $ Operating Day
Real-Time Revenue Neutrality Uplift Amount per AO per Settlement Location per Operating Day– The amount for revenue neutrality to AO a at Settlement Location s in Operating Day d.
RtRnuAoAmt a, m, d $ Operating Day
Real-Time Revenue Neutrality Uplift Amount per AO per Operating Day – The amount for revenue neutrality to AO a associated with Market Participant m in Operating Day d.
Page 74 of 156
Variable
Unit
Settlement Interval
Definition
RtRnuMpAmt m, d $ Operating Day
Real-Time Revenue Neutrality Uplift Amount per MP per Operating Day – The amount for revenue neutrality to MP m in Operating Day d.
RtPseudoTieCongSppAmt d $ Dispatch Interval
Real-Time SPP Total Pseudo-Tie Congestion Amount per Dispatch Interval - The total amount for congestion on Pseudo-Ties for the Operating Day.
RtPseudoTieLossMpAmt m, d $ Operating Day
Real-Time Pseudo-Tie Losses Amount per Asset Owner per Operating Day - The amount for Pseudo-Tie losses on all paths for MP m for the Operating Day.
RtPseudoTieCongMpAmt m, d $ Operating Day
Real-Time Pseudo-Tie Congestion Amount per Market Participant per Operating Day - The value described under 4.5.9. 26 for MP m for the Operating Day.
RtCirAdjMpDlyAmt m, d $ Operating Day
Real-Time Adjustment Amount per Market Participant per Operating Day – The value calculated under Section 4.5.9.30.
GFARevInadqcSppAmt spp, d $ Operating Day
Grandfathered Agreement Carve-Out Revenue Inadequacy Daily Amount – The amount of charges and credits to GFA Carve-Out responsible entities on an SPP-wide basis from the settlement of Day-Ahead Asset & Non-Asset Energy, Day-Ahead Over-Collected Losses Distribution, Transmission Congestion Rights Funding & Uplift, Transmission Congestion Rights Auction and Auction Revenue Rights & Uplift amount for Operating Day d.
DaGFACarveOutDistMpDlyAmt m, d $ Operating Day
Day Ahead GFA Carve Out Distribution Daily Amount per MP per Operating Day – The value calculated under Section 4.5.8.25
DaGFACarveOutDistMpMnthlyAmt m, mn $ Month Day-Ahead GFA Carve Out Distribution Amount per MP per Month – The value calculated under Section 4.5.8.26.
DaGFACarveOutDistMpYrlyAmt m, yr $ Year Day-Ahead GFA Carve Out Distribution Amount per MP per Year – The value calculated under Section 4.5.8.27.
GFARevInadqcSppMnthlyAmt spp, mn $ Month Grandfather Agreement Carve-Out Revenue Inadequacy Monthly Amount – The value calculated under Section 4.5.8.26.
Commented [RR266.24]: Awaiting FERC and Implementation
Deleted: 6
Formatted: Comment Subject, Space After: 3 pt
Deleted: 7
Commented [RR273.25]: Awaiting FERC and Implementation
Formatted: Comment Subject, Space After: 3 pt
Deleted: 8
Commented [RR273.26]: Awaiting FERC and Implementation
Formatted: Comment Subject, Space After: 3 pt
Deleted: 7
Commented [RR273.27]: Awaiting FERC and Implementation
Page 75 of 156
Variable
Unit
Settlement Interval
Definition
GFARevInadqcSppYrlyAmt spp, yr $ Year Grandfather Agreement Carve-Out Revenue Inadequacy Yearly Amount – The value calculated under Section 4.5.8.27.
A none none An Asset Owner.
S none none A Resource Settlement Location.
h none none An Hour.
i none none A Dispatch Interval.
t none none A single tagged Interchange Transaction, a single virtual energy transaction, a single Bilateral Settlement Schedule, a single contracted Operating Reserve transaction, a single TCR instrument, a single ARR award or a single Reserve Sharing Event transaction.
f none none A flowgate identified in the applicable JOA.
d none none An Operating Day.
rnu none none A flag which instructs the settlement system to include the amount in Revenue Neutrality Uplift calculations (1 = Y, 0 = N).
m none none A Market Participant.
rsg none none An import or export resulting from a schedule created by a Reserve Sharing Event.
Formatted: Comment Subject, Space After: 3 pt
Deleted: 8
Commented [RR273.28]: Awaiting FERC and Implementation
The charges and credits to Asset Owners for Integrated Marketplace administration services as
described in Schedule 1-A3 and Schedule 1-A4 of the SPP Tariff. The charges and credits
resulting from Integrated Marketplace hourly activity and calculated on a daily basis will be
included on the Settlement Statements consistent with the timing of the DA Market settlement
and Real-Time Balancing Market settlement.
4.6.1 Integrated Marketplace Clearing Administration Service
(1) A charge or credit will be calculated at each Settlement Location for each Asset Owner
for each hour to recover the Transmission Providers Integrated Marketplace clearing
administration service charge as described in Schedule 1-A3 of the SPP Tariff. The
amount to each applicable Asset Owner is calculated as follows.
# RtSched1A3HrlyAmt a, s, h = RtSched1A3DlyRate d * RtSched1A3HrlyQty a, s, h
Where,
(a) #RtSched1A3HrlyQty a, s, h = (∑i
ABS (RtBillMtr5minQty a, s, i +
RtBillMtrCir5minQty a, s, i ) / 12) +
(∑i∑
t[ (ABS (RtImpExp5minQty a, s, i, t, rsg(null) )/12) ] ) + (∑
tABS
(DaClrdVHrlyQty a, s, h, t))
(1) For each Asset Owner, a daily amount is calculated at each Settlement Location. The
amount is calculated as follows:
RtSched1A3DlyAmt a, s, d = ∑h
RtSched1A3HrlyAmt a, s, h
(2) For each Asset Owner associated with Market Participant m, a daily amount is calculated.
The daily amount is calculated as follows:
Field Code Changed
Commented [RR266.29]: Awaiting FERC and Implementation
Field Code Changed
Field Code Changed
Field Code Changed
Field Code Changed
Page 77 of 156
RtSched1A3AoAmt a, m, d = ∑s
RtSched1A3DlyAmt a, s, d
(3) For each Market Participant, a daily amount is calculated representing the sum of Asset
Owner amounts associated with that Market Participant. The daily amount is calculated
as follows:
RtSched1A3MpAmt m, d = ∑a
RtSched1A3AoAmt a, m, d
Field Code Changed
Field Code Changed
Page 78 of 156
The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
DaClrdVHrlyQty a, s, h, t MWh Hour Day-Ahead Cleared Virtual Energy Quantity per AO per Transaction per Settlement Location per Hour – The value defined under Section 4.5.8.3.
RtBillMtr5minQty a, s, i MW Dispatch Interval
Real-Time Billing Meter Quantity per AO per Settlement Location per Dispatch Interval - The value described under Section 4.5.9.1.
RtBillMtrCir5minQty a, s, i MW Dispatch Interval
Real-Time Billing Meter Quantity per Asset Owner per Settlement Location share per Dispatch Interval – The value described under Section 4.5.9.30.
RtImpExp5minQty a, s, i, t MW Dispatch Interval
Real-Time Interchange Transaction Quantity per AO per Settlement Location per Dispatch Interval per Transaction – The value described under Section 4.5.9.2.
RtSched1A3AoAmt a, m, d $ Operating Day
Real-Time Schedule 1-A3 Amount per AO per Operating Day – The total amount of Schedule 1-A3 Integrated Marketplace clearing administration service charge to AO a associated with Market Participant m in Operating Day d.
RtSched1A3DlyAmt a, s, d $ Operating Day
Real-Time Schedule 1-A3 Amount per AO per Settlement Location per Operating Day– The total amount of Schedule 1-A3 Integrated Marketplace clearing administration service charge to AO a at Settlement Location s in Operating Day d.
RtSched1A3MpAmt m, d $ Operating Day
Real-Time Schedule 1-A3 Amount per MP per Operating Day – The total amount of Schedule 1-A3 Integrated Marketplace clearing administration service charge to MP m in Operating Day d.
RtSched1A3HrlyAmt a, s, h $ Hour Real-Time Schedule 1-A3 Amount per AO per Settlement Location per Hour – The amount for Schedule 1-A3 Integrated Marketplace clearing administrative service to AO a at Settlement Location s in Hour h.
Commented [RR266.30]: Awaiting FERC and Implementation
Page 79 of 156
Variable
Unit
Settlement Interval
Definition
RtSched1A3HrlyQty a, s, h MWh Hour Real-Time Schedule 1-A3 Quantity per AO per Hour per Settlement Location – The total MWh Schedule 1-A3 Integrated Marketplace clearing administrative service determinant for AO a at Settlement Location s for Hour h per Schedule 1-A3 of the Tariff.
RtSched1A3DlyRate d $/MW Operating Day
Real-Time Schedule 1-A3 Rate per Operating Day – The rate applied to AO a’s RtSched1A3HrlyQty a, s, h in each Hour h at Settlement Location s in Operating Day d per Schedule 1-A3 of the Tariff.
a none none An Asset Owner.
s none none A Resource Settlement Location.
h none none An Hour.
i none none A Dispatch Interval.
t none none A single tagged Interchange Transaction, a single virtual energy transaction, a single Bilateral Settlement Schedule, a single contracted Operating Reserve transaction, a single TCR instrument, a single ARR award or a single Reserve Sharing Event transaction.
d none none An Operating Day.
m none none A Market Participant.
rsg none none An import or export resulting from a schedule created by a Reserve Sharing Event.
Page 80 of 156
4.6.2 Integrated Marketplace Facilitation Administration Service
(1) A charge or credit will be calculated at each Settlement Location for each Asset Owner
for each hour to recover the Transmission Providers Integrated Marketplace facilitation
administration service charge as described in Schedule 1-A4 of the SPP Tariff. The
amount to each applicable Asset Owner is calculated as follows.
# RtSched1A4HrlyAmt a, s, h = RtSched1A4DlyRate d * RtSched1A4HrlyQty a, s, h
Where,
(a) #RtSched1A4HrlyQty a, s, h = (∑i
ABS (RtBillMtr5minQty a, s, i +
RtBillMtrCir5minQty a, s, i ) / 12) +
(∑i∑
t[ (ABS (RtImpExp5minQty a, s, i, t, rsg(null) )/12) ] )
(4) For each Asset Owner, a daily amount is calculated at each Settlement Location. The
amount is calculated as follows:
RtSched1A4DlyAmt a, s, d = ∑h
RtSched1A4HrlyAmt a, s, h
(5) For each Asset Owner associated with Market Participant m, a daily amount is calculated.
The daily amount is calculated as follows:
RtSched1A4AoAmt a, m, d = ∑s
RtSched1A4DlyAmt a, s, d
(6) For each Market Participant, a daily amount is calculated representing the sum of Asset
Owner amounts associated with that Market Participant. The daily amount is calculated
as follows:
RtSched1A4MpAmt m, d = ∑a
RtSched1A4AoAmt a, m, d
Field Code Changed
Commented [RR266.31]: Awaiting FERC and Implementation
Field Code Changed
Field Code Changed
Field Code Changed
Field Code Changed
Field Code Changed
Page 81 of 156
The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
RtBillMtr5minQty a, s, i MW Dispatch Interval
Real-Time Billing Meter Quantity per AO per Settlement Location per Dispatch Interval - The value described under Section 4.5.9.1.
RtBillMtrCir5minQty a, s, i MW Dispatch Interval
Real-Time Billing Meter Quantity per Asset Owner per Settlement Location share per Dispatch Interval – The value described under Section 4.5.9.30.
RtImpExp5minQty a, s, i, t MW Dispatch Interval
Real-Time Interchange Transaction Quantity per AO per Settlement Location per Dispatch Interval per Transaction – The value described under Section 4.5.9.2.
RtSched1A4AoAmt a, m, d $ Operating Day
Real-Time Schedule 1-A4 Amount per AO per Operating Day – The total amount of Schedule 1-A4 Integrated Marketplace facilitation administration service charge to AO a associated with Market Participant m in Operating Day d.
RtSched1A4DlyAmt a, s, d $ Operating Day
Real-Time Schedule 1-A4 Amount per AO per Settlement Location per Operating Day– The total amount of Schedule 1-A4 Integrated Marketplace facilitation administration service charge to AO a at Settlement Location s in Operating Day d.
RtSched1A4MpAmt m, d $ Operating Day
Real-Time Schedule 1-A4 Amount per MP per Operating Day – The total amount of Schedule 1-A4 Integrated Marketplace facilitation administration service charge to MP m in Operating Day d.
RtSched1A4HrlyAmt a, s, h $ Hour Real-Time Schedule 1-A4 Amount per AO per Settlement Location per Hour – The amount for Schedule 1-A4 Integrated Marketplace facilitation administrative service to AO a at Settlement Location s in Hour h.
RtSched1A4HrlyQty a, s, h MWh Hour Real-Time Schedule 1-A4 Quantity per AO per Hour per Settlement Location – The total MWh Schedule 1-A4 Integrated Marketplace facilitation administrative service determinant for AO a at Settlement Location s for Hour h per Schedule 1-A4 of the Tariff.
Commented [RR266.32]: Awaiting FERC and Implementation
Page 82 of 156
Variable
Unit
Settlement Interval
Definition
RtSched1A4DlyRate d $/MW Operating Day
Real-Time Schedule 1-A4 Rate per Operating Day – The rate applied to AO a’s RtSched1A4HrlyQty a, s, h in each Hour h at Settlement Location s in Operating Day d per Schedule 1-A4 of the Tariff.
a none none An Asset Owner.
s none none A Resource Settlement Location.
h none none An Hour.
i none none A Dispatch Interval.
t none none A single tagged Interchange Transaction, a single virtual energy transaction, a single Bilateral Settlement Schedule, a single contracted Operating Reserve transaction, a single TCR instrument, a single ARR award or a single Reserve Sharing Event transaction.
d none none An Operating Day.
m none none A Market Participant.
rsg none none An import or export resulting from a schedule created by a Reserve Sharing Event.
Page 83 of 156
5.9 Transmission Congestion Rights Administration Service
(1) A charge or credit will be calculated at each Settlement Location for each Asset Owner
for each hour to recover the Transmission Providers transmission congestion rights
administration service charge as described in Schedule 1-A2 of the SPP Tariff. The
amount to each applicable Asset Owner is calculated as follows.
# RtSched1A2HrlyAmt a, s, h = RtSched1A2DlyRate d * RtSched1A2HrlyQty a, s, h
Where,
(a) #RtSched1A2HrlyQty a, s, h = ∑t
(TcrHrlyQty a, h, t )
(7) For each Asset Owner, a daily amount is calculated at each Settlement Location. The
amount is calculated as follows:
RtSched1A2DlyAmt a, s, d = ∑h
RtSched1A2HrlyAmt a, s, h
(8) For each Asset Owner associated with Market Participant m, a daily amount is calculated.
The daily amount is calculated as follows:
RtSched1A2AoAmt a, m, d = ∑s
RtSched1A2DlyAmt a, s, d
(9) For each Market Participant, a daily amount is calculated representing the sum of Asset
Owner amounts associated with that Market Participant. The daily amount is calculated
as follows:
RtSched1A2MpAmt m, d = ∑a
RtSched1A2AoAmt a, m, d
Field Code Changed
Field Code Changed
Field Code Changed
Field Code Changed
The above variables are defined as follows:
Variable
Unit
Settlement Interval
Definition
RtSched1A2AoAmt a, m, d $ Operating Day
Real-Time Schedule 1-A2 Amount per AO per Operating Day – The total amount of Schedule 1-A2 transmission congestion rights administration service charge to AO a associated with Market Participant m in Operating Day d.
RtSched1A2DlyAmt a, s, d $ Operating Day
Real-Time Schedule 1-A2 Amount per AO per Settlement Location per Operating Day– The total amount of Schedule 1-A2 transmission congestion rights administration service charge to AO a at Settlement Location s in Operating Day d.
RtSched1A2MpAmt m, d $ Operating Day
Real-Time Schedule 1-A2 Amount per MP per Operating Day – The total amount of Schedule 1-A2 transmission congestion rights administration service charge to MP m in Operating Day d.
RtSched1A2HrlyAmt a, s, h $ Hour Real-Time Schedule 1-A2 Amount per AO per Settlement Location per Hour – The amount for Schedule 1-A2 transmission congestion rights administration service charge to AO a at Settlement Location s in Hour h.
RtSched1A2HrlyQty a, s, h MWh Hour Real-Time Schedule 1-A2 Quantity per AO per Hour per Settlement Location – The total MWh Schedule 1-A2 transmission congestion rights administration service determinant for AO a at Settlement Location s for Hour h per Schedule 1-A2 of the Tariff.
RtSched1A2DlyRate d $/MW Operating Day
Real-Time Schedule 1-A2 Rate per Operating Day – The rate applied to AO a’s RtSched1A2HrlyQty a, s, h in each Hour h at Settlement Location s in Operating Day d per Schedule 1-A2 of the Tariff.
TcrHrlyQty a, h, t MWh Hour Transmission Congestion Right Quantity - The value described under Section 4.5.8.14.
A none none An Asset Owner.
S none none A Resource Settlement Location.
h none none An Hour.
i none none A Dispatch Interval.
Page 85 of 156
Variable
Unit
Settlement Interval
Definition
t none none A single tagged Interchange Transaction, a single virtual energy transaction, a single Bilateral Settlement Schedule, a single contracted Operating Reserve transaction, a single TCR instrument, a single ARR award or a single Reserve Sharing Event transaction.
d none none An Operating Day.
m none none A Market Participant.
rsg none none An import or export resulting from a schedule created by a Reserve Sharing Event.
Appendix G Mitigated Offer Development Guidelines G.2.5 Mitigated Energy Offer Curve The Mitigated Energy Offer Curve is a set of up to ten price/quantity pairs (measured in
$/MWh and MW) describing the short-run marginal cost of providing energy based on the heat
rate curve, fuel cost, variable operations and maintenance costs and Schedules 1-A3 and 1-A4
The Schedule 1-A1 Service charge provides for the recovery of any costs incurred by the
Transmission Provider in providing this Schedule 1-A1 Service.
i. Costs
The costs to be recovered under this Schedule 1-A1 include without limitation, any costs of
direct resources, system maintenance, debt service for financing capital purchases associated
with providing Schedule 1-A1 Service, a proportionate allocation of corporate overhead
associated with providing Schedule 1-A1 Service, and other costs associated with providing
Schedule 1-A1 Service (“Schedule 1-A1 Costs”).
ii. Billing Determinants
Deleted: Tariff Administration Service
Deleted: The
Deleted: i
Deleted: i
Deleted: S
Deleted: to be
Deleted: Charge
Deleted: :
Page 93 of 156
For Network Integration Transmission Service, the billing determinants are the 12 month
average of the Transmission Customer’s coincident Zonal Demands used to determine the
Demand Charges under Schedule 9 multiplied by the number of all hours of the applicable
month. For Point-to-Point Transmission Service, the billing determinants are the MW of the
reservation multiplied by the number of hours reserved for the applicable month.
iii. Rate Formula
Annually, the Transmission Provider will determine the Schedule 1-A1 Service rate for each
calendar year as described in the Schedule 1-A1 template.
b. Schedule 1-A1 Charges to Transmission Customers
The Schedule 1-A1 charge is the product of the Schedule 1-A1 rate and the Transmission
Customer’s billing determinants.
2. Transmission Service Request Charges:
The Transmission Customer shall pay the Transmission Provider a charge for each new
Transmission Service Request as follows:
(a) For Firm Point-To-Point Transmission Service:
Reservations less than one month: $100
Reservations one month or longer: $200
(b) For Non-Firm Point-To-Point Transmission Service:
Each Reservation: $0.
However, the Transmission Customer shall have this fee rebated to it once the
Transmission Customer becomes legally obligated to pay the applicable Firm Point-To-Point
Transmission Service charges under this Tariff or if the requested Firm Point-To-Point
Transmission Service is denied by the Transmission Provider.
3. Schedule 1-A2 Transmission Congestion Rights Administration Service
Deleted: An administration charge shall be applied to all transmission service under this Tariff to cover the Transmission Provider’s expenses related to administration of this Tariff. For Point-To-Point Transmission Service this charge shall be up to $0.43 per MW per hour for all capacity reserved.
Deleted: this charge shall be up to $0.43 per MW per hour for
Deleted: The charge per MW per hour shall be the same for Point-To-Point Transmission Service as for Network Integration Transmission Service.
Deleted: For each calendar year, the Transmission Provider shall establish a rate for this administration charge by dividing projected expenses based on its budget for the calendar year divided by the projected annual Schedule 1-A billing units for the calendar year. The Transmission Provider shall reconcile actuals to budgeted figures and shall adjust charges for the following calendar year to reflect either over or under recoveries of its costs for the prior year to allow the Transmission Provider to recover its actual costs. In projecting and recovering its expenses, the Transmission Provider shall recover 100% of its total expenses through this charge up to the cap of $0.43 per MW per hour for all transmission service under the Tariff.¶
Deleted: i
Deleted: ii
Deleted: 3. Bad Debt Expense:¶The Transmission Provider shall include in its charges under this Schedule a component to cover estimated bad debts. The Transmission Provider shall reconcile actuals to estimates and shall adjust future monthly charges to reflect either over or under recoveries.¶
Page 94 of 156
Transmission Congestion Rights (“TCR”) administration service is provided by the
Transmission Provider to all Market Participants that hold TCRs issued and settled by the
Transmission Provider (“TCR Holder”). This service includes the provision of: (1) TCR
administration through allocation, assignment, auction or any other process under this Tariff; (2)
simultaneous feasibility tests and other applicable studies to determine the total TCRs that can be
accommodated by the Transmission System; (3) TCR tools; and, (4) a secondary market for
TCRs (“Schedule 1-A2 Service”).
a. Schedule 1-A2 Service Charge
The Schedule 1-A2 Service charge provides for the recovery of any costs incurred by
the Transmission Provider in providing this Schedule 1-A2 Service.
i. Costs
The costs to be recovered under this Schedule 1-A2 include without limitation, any direct
resources, system maintenance, debt service for financing capital purchases associated with
providing Schedule 1-A2 Service, a proportionate allocation of corporate overhead, and all other
costs associated with providing Schedule 1-A2 Service (“Schedule 1-A2 Costs”).
ii. Billing Determinants
The Schedule 1-A2 billing determinant is the total amount of TCR volume in MWh for
all TCR Holders for each billing period.
iii. Rate Formula
Annually, the Transmission Provider will determine the Schedule 1-A2 Service rate for
each calendar year as described in the Schedule 1-A2 template.
b. Charges To TCR Holders
The Schedule 1-A2 charge is the product of the Schedule 1-A2 rate and the TCR
Holder’s billing determinants.
Commented [MR37]: What is this?
Page 95 of 156
4. Schedule 1-A3 Integrated Marketplace Clearing Administration Service
Integrated Marketplace clearing administration service is provided by the Transmission
Provider to all Market Participants that participate in transactions pursuant to Attachment AE of
this Tariff or an applicable Market Participant Service Agreement as contained in Attachment
AH of this Tariff. This service includes the provision of: (1) market settlements; (2) credit
evaluation and risk mitigation services; (3) market monitoring functions; (4) information
technology support; and, (5) customer service (“Schedule 1-A3 Service”).
a. Integrated Marketplace Clearing Administration Service Charge
The Schedule 1-A3 Service charge provides for the recovery of any costs incurred by the
Transmission Provider in providing this Schedule 1-A3 Service.
i. Costs
The costs to be recovered under this Schedule 1-A3 include without limitation, any direct
resources, corporate overhead (including a proportionate allocation of indirect costs associated
with providing Schedule 1-A3 Service), and all other costs associated with providing Schedule 1-
A3 Service (“Schedule 1-A3 Costs”).
ii. Billing Determinants
The Schedule 1-A3 billing determinants as expressed in MWh are: 1) all Real-Time
Energy injected into and withdrawn from the Transmission System; 2) all Import Interchange
Transactions in Real-Time and all Export Interchange Transactions in Real-Time; and, (3) all
cleared Virtual Energy Bids and all cleared Virtual Energy Offers.
iii. Rate Formula
Annually, the Transmission Provider will determine the Schedule 1-A3 Service rate for
each calendar year as described in the Schedule 1-A3 template.
b. Charges To Market Participants
Page 96 of 156
The Schedule 1-A3 charge is the product of the Schedule 1-A3 rate and the Market
Participant’s billing determinants.
5. Schedule 1-A4 Integrated Marketplace Facilitation Administration Service
Integrated Marketplace facilitation administration service is provided by the
Transmission Provider to all Market Participants that participate in transactions, except for
cleared Virtual Energy Bids and cleared Virtual Energy Offers, pursuant to Attachment AE of
this Tariff or an applicable Market Participant Service Agreement as contained in Attachment
AH of this Tariff. This service includes the provision and operation of the: (1) Day-Ahead
a. Integrated Marketplace Facilitation Administration Service Charge
The Schedule 1-A4 Service charge provides for the recovery of any costs incurred by
the Transmission Provider in providing this Schedule 1-A4 Service.
i. Costs
The costs to be recovered under this Schedule 1-A4 include without limitation, any direct
resources, system maintenance, debt service (including costs of financing capital purchases
associated with providing Schedule 1-A4 Service), corporate overhead (including a proportionate
allocation of indirect costs associated with providing Schedule 1-A4 Service), and other costs
associated with providing Schedule 1-A4 Service (“Schedule 1-A4 Costs”).
ii. Billing Determinants
The Schedule 1-A4 billing determinants are: 1) all Real-Time Energy injected into and
withdrawn from the Transmission System; and, 2) all Import Interchange Transactions in Real-
Time and all Export Interchange Transactions in Real-Time.
iii. Rate Formula
Page 97 of 156
Annually, the Transmission Provider will determine the Schedule 1-A4 Service rate for
each calendar year as described in the Schedule 1-A4 template.
b. Charges To Market Participants
The Schedule 1-A4 charge is the product of the Schedule 1-A4 rate and the Market Participant’s billing determinants.
Page 98 of 156
Addendum 1 To Schedule 1-A
ANNUAL FORMULA RATE IMPLEMENTATION PROTOCOLS
SOUTHWEST POWER POOL
Section 1 Applicability
The formula rate template and these Annual Formula Rate Implementation
Protocols (collectively, the “Formula Rate”) comprise SPP’s filed Schedule 1-A
Tariff Administration Services rates. SPP shall follow the Formula Rate to
calculate annually its Transmission Administration Service Rate (“Schedule 1-A1
Rate”), Transmission Congetstion Rights Administration Service Rate (“Schedule
1-A2 Rate”), Integrated Marketplace Clearing Administration Service rate
(“Schedule 1-A3 Rate”), and Integrated Marketplace Facilitation Administration
Service rate (“Schedule 1-A4 Rate”); (collectively “Rates”). The Formula Rate
and the charges produced thereunder shall be effective for service on and after
January 1, 2021. The Formula Rate shall be applicable on and after January 1 of
each calendar year for service from January 1 – December 31 of each calendar
year (the “Rate Year”), subject to the true-up procedures of this Addendum 1.
Section 2 Annual Updates
a. During or before the fourth quarter of each calendar year, SPP, shall determine
and post, at a time to coincide with the SPP annual budget report to the SPP
Board of Directors being posted, its Annual Update to be effective during the next
Rate Year. The Annual Update shall consist of the following:
(i) a data-populated version of the Formula Rate template setting forth the
projected Rates for the next Rate Year (“Projected Rates”) plus any
applicable True-up Adjustment, as defined in Section 3.a., produced by
operation of the Formula Rate;
Page 99 of 156
(ii) supporting documentation, including, but not limited to, fully functioning
Excel files (or such other native format files), required to support,
demonstrate and explain information upon which the Annual Update is
based;
(vi) disclosure of the following changes to the extent any has taken effect since
January 1, 2021, and affects the Formula Rate or calculation of the Annual
Update or the allocation of costs or revenues to SPP’s Rates: changes in
(a) any FERC ratemaking orders applicable to the SPP Formula Rate and
(b) the accounting policies, practices or procedures of SPP, (changes in
items (a) and (b) collectively referred to as “Material Changes”);
b. SPP shall contemporaneously post and notify its customers via the SPP Board of
Director email exploder, of the availability of the Annual Update on SPP.org
website. The posting shall include fully functioning Excel file (or such other
native format file) of all materials contained in the Annual Update.
c. The Annual Update for the new Rate Year shall:
(i) be based upon SPP’s most recent budget and other information for the new
Rate Year, that reasonably projects costs properly recorded (or to be
recorded) on the books and records of SPP consistent with FERC’s orders
establishing generally applicable ratemaking policies, SPP’s policies, and
the SPP OATT; and
(ii) compute the Projected Rates.
Section 3 True-up Adjustment
Assuming an effective date of January 1, 2021, the true up process for the 2021
budget year would occur over two budget cycles. During the 2022 budget
process, we would calculate the estimated over/under recovery for 2021 using
forecasted data, consisting of actual data available for 2021 and forecasted data
for the remainder of 2021. Comparing the forecasted data available for both our
tariff administrative fee revenue and our net revenue requirement to the respective
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budgeted amounts, we would arrive at a projected over/under recovery for 2021 to
be included as a true-up adjustment in the 2022 budget assumptions. During the
2023 budget cycle, we would calculate the final over/under recovery for 2021
using actual results for both the tariff administrative fee revenue and net revenue
requirement in comparison to the 2021 approved budget. The final over/under
recovery for 2021 would then be compared against the estimated true-up
calculation included in the 2022 budget, and the difference would be included as a
true-up adjustment in the 2023 budget assumptions. Also included in the 2023
budget assumptions, would be the estimated over/recovery true-up adjustment for
2022.
An example is provided below, in Exhibit A, to illustrate the process that would
occur with each rate schedule as it relates to true up process.
Section 4 Changes to Formula Rate Initiated by SPP
Any changes to the Formula Rate initiated by SPP, including any changes
necessitated by Material Changes, may only be implemented as a result of a filing
with FERC under Section 205 or 206 of the FPA.
Section 5 Changes to the Stated Inputs in the Formula Rate
a. The following Formula Rate inputs shall be stated values to be used in the
Formula Rate (both for the Annual Update and True-up Adjustment) until
changed by a filing pursuant to Section 205 of the FPA or by a proceeding under
Section 206 of the FPA: (a) the allocation percentages to determine salary,
benefits and direct employee cost; and (b) the allocation percentages to determine
network and communication expenses.
EXHIBIT A
EXAMPLE OF 2021 TRUE-UP ADJUSTMENT:
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Example – RS X
Budget Year 2021, RS X assumed a Net Revenue Requirement (and Administrative Fee
Revenue) of $50.0MM.
During the 2022 budget cycle work in the summer of 2021, the forecasted Net Revenue Requirement and Administrative Fee Revenue for 2021 is $49.0MM and $52.0MM, respectively.
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Attachment F, Attachment 1 to the NITS Agreement ATTACHMENT 1 TO THE NETWORK INTEGRATION TRANSMISSION
SERVICEAGREEMENT
BETWEEN SOUTHWEST POWER POOL AND _______________ SPECIFICATIONS FOR NETWORK INTEGRATION TRANSMISSION SERVICE
1.0 Network Resources
The Network Resources are listed in Appendix 1.
2.0 Network Loads
The Network Load consists of the bundled native load or its equivalent for Network
Customer load in the _______________ Zone(s) as listed in Appendix 3.
The Network Customer’s Network Load shall be measured on an hourly integrated basis,
by suitable metering equipment located at each connection and delivery point, and each
generating facility. The meter owner shall cause to be provided to the Transmission
Provider, Network Customer and applicable Transmission Owner, on a monthly basis
such data as required by Transmission Provider for billing. The Network Customer’s
load shall be adjusted, for settlement purposes, to include applicable Transmission Owner
transmission and distribution losses, as applicable, as specified in Sections 8.5 and 8.6,
respectively. For a Network Customer providing retail electric service pursuant to a state
retail access program, profiled demand data, based upon revenue quality non-IDR meters
may be substituted for hourly integrated demand data. Measurements taken and all
metering equipment shall be in accordance with the Transmission Provider’s standards
and practices for similarly determining the Transmission Provider’s load. The actual
hourly Network Loads, by delivery point, internal generation site and point where power
may flow to and from the Network Customer, with separate readings for each direction of
flow, shall be provided.
3.0 Affected Zone(s) and Intervening Systems Providing Transmission Service
The affected Zone(s) is/are ______________. The intervening systems providing
transmission service are _______________.
4.0 Electrical Location of Initial Sources
Deleted: ¶
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See Appendix 1.
5.0 Electrical Location of the Ultimate Loads
The loads of _______________ identified in Section 2.0 hereof as the Network Load are
electrically located within the ________________ Zone(s).
6.0 Delivery Points
The delivery points are the interconnection points of _______________ identified in
Section 2.0 as the Network Load.
7.0 Receipt Points
The Points of Receipt are listed in Appendix 2.
8.0 Compensation
Service under this Service Agreement may be subject to some combination of the charges
detailed below. The appropriate charges for individual transactions will be determined in
accordance with the terms and conditions of the Tariff.
8.1 Transmission Charge
Monthly Demand Charge per Section 34 and Part V of the Tariff.
8.2 System Impact and/or Facility Study Charge
Studies may be required in the future to assess the need for system reinforcements in light
of the ten-year forecast data provided. Future charges, if required, shall be in accordance
with Section 32 of the Tariff.
8.3 Direct Assignment Facilities Charge
8.4 Ancillary Service Charges
8.4.1 The following Ancillary Services are required under this Service Agreement.
a) Scheduling, System Control and Dispatch Service per Schedule 1 of the
Tariff.
b) Tariff Administration Service per Schedule 1-A1 of the Tariff.
c) Reactive Supply and Voltage Control from Generation Sources Service
per Schedule 2 of the Tariff.
d) Regulation and Frequency Response Service per Schedule 3 of the Tariff.
e) Energy Imbalance Service per Schedule 4 of the Tariff.
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f) Operating Reserve - Spinning Reserve Service per Schedule 5 of the
Tariff.
g) Operating Reserve - Supplemental Reserve Service per Schedule 6 of the
Tariff.
The Ancillary Services may be self-supplied by the Network Customer or
provided by a third party in accordance with Sections 8.4.2 through 8.4.4, with the
exception of the Ancillary Services for Schedules 1, 1-A, and 2, which must be
purchased from the Transmission Provider.
8.4.2 In accordance with the Tariff, when the Network Customer elects to self-supply
or have a third party provide Ancillary Services, the Network Customer shall
indicate the source for its Ancillary Services to be in effect for the upcoming
calendar year in its annual forecasts. If the Network Customer fails to include this
information with its annual forecasts, Ancillary Services will be purchased from
the Transmission Provider in accordance with the Tariff.
8.4.3 When the Network Customer elects to self-supply or have third party provide
Ancillary Services and is unable to provide its Ancillary Services, the Network
Customer will pay the Transmission Provider for such services and associated
penalties in accordance with the Tariff as a result of the failure of the Network
Customer’s alternate sources for required Ancillary Services.
8.4.4 All costs for the Network Customer to supply its own Ancillary Services shall be
the responsibility of the Network Customer.
8.5 Real Power Losses - Transmission
The Network Customer shall be responsible for losses in accordance with Attachment M
of the Tariff.
8.6 Real Power Losses - Distribution
8.7 Power Factor Correction Charge
8.8 Redispatch Charge
Redispatch charges shall be in accordance with Section 33.3 of the Tariff.
8.9 Wholesale Distribution Service Charge
8.10 Network Upgrade Charges
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8.11 Meter Data Processing Charge
8.12 Other Charges
9.0 Credit for Network Customer-Owned Transmission Facilities
10.0 Designation of Parties Subject to Reciprocal Service Obligation
11.0 Other Terms and Conditions
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ATTACHMENT L, TREATMENT OF REVENUES … IV. Distribution of Other Revenues
1. Revenues associated with redispatch service will be paid to the Resource owner
providing the service for the Transmission Provider in accordance with the
settlement procedures specified in Attachment AE.
2. Revenues associated with Reactive Supply and Voltage Control from Generation
Sources Services under Schedule 2 of the Tariff will be paid to the generation
owner providing the service for the Transmission Provider consistent with the
development of the charges under Schedule 2.
3. Energy or revenues received as compensation for transmission losses shall be
distributed consistent with Attachment M to the Tariff.
4. Revenues associated with Scheduling, System Control and Dispatch Service
under Schedule 1 shall be allocated to the Transmission Owners within the
transmission system that provide such service as follows:
a. For Firm or Non-Firm Point-To-Point Transmission Service, for
through and out transactions, Schedule 1 charge revenues shall be
allocated to Transmission Owners in proportion to the respective
scheduling revenue requirement of each such Transmission Owner
associated with the provision of this service.
b. For Customers taking Firm or Non-Firm Point-To-Point Transmission
Service, for transactions into and within the Transmission System,
Schedule 1 charge revenues shall be allocated to Transmission Owner
whose Zone is the Point of Delivery.
c. For Customers taking Network Integration Transmission Service,
Schedule 1 charge revenues shall be allocated to Transmission Owner
in whose Zone the load is located.
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5. Revenues associated with Tariff Administration Service under Schedule 1-A1
will remain with the Transmission Provider to pay for the costs of providing that
service.
6. Payments associated with penalties imposed under this Tariff will be used to
reduce the Transmission Provider's Scheduling and Tariff Administration Service
costs (though the non-penalty portion of the charge will go back to the
Transmission Owner(s) that actually provided the service).
7. Transmission Owner costs associated with System Impact and Facilities Studies
compensated by the Transmission Customer shall go to the appropriate
Transmission Owner(s).
8. The revenues associated with Direct Assignment Facilities shall go directly to the
Transmission Owner(s) owning the facilities.
9. The revenues associated with Network Upgrades, not otherwise provided for in
Section III of this Attachment L, shall be first assigned to the Transmission
Owner building the Network Upgrades to meet the annual revenue requirements
of such facilities. If multiple Transmission Owners construct the facilities, the
revenues shall be shared in accordance with each Transmission Owner’s
respective revenue requirement for such facilities or as otherwise agreed by the
Transmission Owners. The remaining revenues shall be allocated in accordance
with Section II of this Attachment L.
10. The revenues associated with Wholesale Distribution Service shall go directly to
the Transmission Owner(s) owning the facilities consistent with Schedule 10.
11. Any additional revenues received under Section 22.1 of the Tariff shall be treated
in the same manner as revenues under Section II.B.2 for single-owner Zones, and
Section II.C.2 for multi-owner Zones, of this Attachment L.
12. All revenues received by the Transmission Provider to compensate a
Transmission Owner(s) not party to a generation interconnection agreement for
the construction of Network Upgrades and Distribution Upgrades (as defined in
Attachment V to the Tariff) associated with such generation interconnection
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agreement will be distributed by the Transmission Provider to the applicable
Transmission Owner(s).
ATTACHMENT O, TRANSMISSION PLANNING PROCESS
IV. Other Planning Studies
1) Sponsored Upgrade Studies
Any entity may request that a Sponsored Upgrade be built. SPP will evaluate the
impact of any proposed Sponsored Upgrade on Transmission System reliability
and identify any necessary mitigation of these impacts. The proposed Sponsored
Upgrade shall not be approved as a Sponsored Upgrade if it has been previously
identified and included in the current SPP Transmission Expansion Plan as either
1) an upgrade required to satisfy requests for transmission service; 2) an upgrade
required to satisfy a Generator Interconnection Request; 3) an approved ITP Upgrade;
4) an upgrade within approved Balanced Portfolios; or 5) an approved high priority
upgrade. Such entity must be willing to assume the cost of such Sponsored
Upgrade, study costs, and any cost associated with such necessary mitigation.
The proposed Sponsored Upgrade will be submitted to the proper stakeholder
working group for their review as a part of the transmission planning process.
2) 20-Year Assessments
a) The Transmission Provider shall perform a 20-Year Assessment at least
once every five years, or more frequently if approved by the SPP Board of
Directors.
b) The 20-Year Assessment shall review the system for a twenty-year
planning horizon and address, at a minimum, facilities 300 kV and above
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needed in year 20. This assessment is not intended to review each
consecutive year in the planning horizon.
c) The Transmission Provider, in consultation with the stakeholders, shall
develop the scope for each 20-Year Assessment and post the scope on the
SPP website.
d) For each 20-Year Assessment the Transmission Provider shall publish a
report summarizing the findings. The report and related studies and the
criteria, assumptions and data underlying the report shall be posted on the
SPP website.
3) High Priority Studies
a) The Transmission Provider shall perform high priority studies in
accordance with Attachment O of this Tariff and the Integrated
Transmission Planning Manual which shall be maintained on the SPP
website.
b) Potential Balanced Portfolios, as developed through the process specified
in Section IV.4 of this Attachment O, shall be considered to be high
priority studies.
c) The stakeholders may request high priority studies, including a request for
the Transmission Provider to study potential upgrades or other
investments necessary to integrate any combination of resources, whether
demand resources, transmission, or generation, identified by the
stakeholders. Annually, the costs of up to three high priority studies
requested by the stakeholders and performed by the Transmission Provider
shall be recovered pursuant to Schedule 1-A1 of this Tariff. A high
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priority study of a potential Balanced Portfolio initiated by the
Transmission Provider will not be considered a stakeholder request
pursuant to this Section IV.3.c of this Attachment O.
d) The Transmission Provider, in consultation with the stakeholders, shall
develop the scope for each high priority study and post the scope(s) on the
SPP website.
e) Each study shall include:
i) Quantification of benefits and costs in accordance with this
Attachment O and the Integrated Transmission Planning Manual;
and
ii) An analysis of the sensitivity of the economics of the upgrades
included in the high priority study to changes in assumptions.
f) The Transmission Provider shall solicit input from the stakeholders and
the Regional State Committee regarding the appropriate sensitivity
analyses to be performed.
g) For each high priority study the Transmission Provider shall publish a
report, including but not limited to, the study input assumptions, the
estimated cost of the upgrades, any third party impacts, the expected
economic benefits of the upgrades, and identify reliability impacts, if any,
of the upgrades. The report and related studies and the criteria,
assumptions and data underlying the report shall be posted on the SPP
website, with password protected access if required to preserve the
confidentiality of information in accordance with the provisions of the
Tariff and the SPP Membership Agreement and to address Critical Energy
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Infrastructure Information (CEII) requirements. The CEII compliant
redacted version of the report shall be posted on the SPP website. The
redacted version shall include instructions for acquiring the complete
version of the report.
h) The Transmission Provider may recommend, based on the results of a high
priority study, a high priority upgrade for inclusion in the SPP
Transmission Expansion Plan in accordance with the approval process set
forth in Section V of this Attachment O.
4) Evaluation of Potential Balanced Portfolios
a) The Transmission Provider shall solicit input from stakeholders on
combinations of potential economic upgrades to be evaluated as potential
Balanced Portfolios.
b) Each economic upgrade to be included in a potential Balanced Portfolio:
i) Must include a 345 kV or higher voltage facility;
ii) May include lower voltage transmission facilities needed to
integrate the 345 kV or higher facilities and achieve the benefits;
however, the cost of the lower voltage transmission facilities
cannot exceed the cost of the 345 kV or higher facilities included
in the economic upgrade; and
iii) An economic upgrade that includes lower voltage transmission
facilities for which the cost of such facilities exceeds the cost of
the 345 kV or higher facilities constituting the economic upgrade
may be included in the evaluation of a potential Balanced
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Portfolio, if a Project Sponsor agrees to bear the portion of the cost
of the lower voltage facilities that is in excess of the cost of the 345
kV or higher facilities.
iv) Will include an evaluation of the costs of the upgrades, including
any cost impacts potentially allocable to the Transmission Provider
or a Zone(s) from a third party upgrade(s) required to relieve
congestion on a neighboring system due to the construction of the
potential Balanced Portfolio.
c) The Transmission Provider shall determine for each Zone the net present
value of the revenue requirements of each potential Balanced Portfolio as
follows:
i) The revenue requirements for each potential Balanced Portfolio
shall be calculated as if all of the upgrades associated with the
potential Balanced Portfolio are simultaneously available to the
power system. This requirement is for evaluation purposes only
and shall not restrict the timing of the construction of individual
upgrades within a Balanced Portfolio approved by the SPP Board
of Directors.
ii) Based on input from the Transmission Owners and other pertinent
information, the Transmission Provider shall estimate the
construction costs of each upgrade in the potential Balanced
Portfolio.
iii) For each upgrade in the potential Balanced Portfolio, the
Transmission Provider shall use the transmission fixed charge
rate(s) for the appropriate Transmission Owner(s) to estimate the
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revenue requirements. In each annual planning cycle, the
Transmission Owner shall supply its fixed charge rate to the
Transmission Provider.
iv) The fixed charge rate(s) shall take account of all costs necessary to
support the upgrade in the potential Balanced Portfolio, including
but not limited to, operation and maintenance expenses,
depreciation, property and payroll taxes, income taxes, if
applicable, return on investment and any other factors affecting the
revenue requirement associated with the upgrade.
v) The revenue requirements also shall include any specific costs that
are projected to be incurred by the Transmission Provider or a
Zone(s) as a result of third-party impacts due to one or more
upgrades within a proposed Balanced Portfolio.
vi) The revenue requirements for the potential Balanced Portfolio shall
equal the sum of the revenue requirements of the upgrades that
comprise the potential Balanced Portfolio.
vii) The Transmission Provider shall estimate the cost for each Zone by
allocating the revenue requirements for the potential Balanced
Portfolio to each Zone based on its Region-wide Load Ratio Share
forecasted over the ten year period analyzed.
viii) If any costs of an upgrade in the potential Balanced Portfolio will
be borne by other funding mechanisms, such costs shall not be
included in the determination of the net present value of the
revenue requirements for the potential Balanced Portfolio.
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d) The Transmission Provider shall determine for each Zone the net present
value of the benefits of each potential Balanced Portfolio as follows:
i) The benefits from each potential Balanced Portfolio shall be
calculated as if all of the upgrades associated with the potential
Balanced Portfolio are simultaneously available to the power
system.
ii) The Transmission Provider shall use an adjusted production cost
metric to analyze the benefits of the potential Balanced Portfolio,
where adjusted production cost is the production cost minus
revenues from sales plus cost of purchases. As described in
Section IV.6 of this Attachment O, the Transmission Provider shall
continue to evaluate and explore with the stakeholders any
additional metrics and criteria which have quantifiable economic
effects.
iii) The adjusted production cost benefit for each Zone shall equal the
difference between the adjusted production cost with the potential
Balanced Portfolio modeled and without the potential Balanced
Portfolio modeled.
iv) The Transmission Provider shall estimate the annual benefits for
each Zone over the same ten-year period as used to determine the
costs by calculating the annual benefits for at least three specific
years in the ten-year time period and interpolating the annual
benefits for the remaining years.
e) A potential Balanced Portfolio shall meet the following conditions:
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i) Cost Beneficial: The sum of the benefits of the potential Balanced
Portfolio determined in Section IV.4.d of this Attachment O must
equal or exceed the sum of the costs determined in Section IV.4.c
of this Attachment O; and
ii) Balanced: For each Zone, the sum of the benefits of the potential
Balanced Portfolio determined in Section IV.4.d of this
Attachment O must equal or exceed the sum of the costs
determined in Section IV.4.c of this Attachment O. Additionally,
the balance may be achieved through the provisions set forth in
Section IV.5 of this Attachment O.
f) In developing a potential Balanced Portfolio, the Transmission Provider
shall timely publish a report, including but not limited to, the study input
assumptions, the estimated costs included in the potential Balanced
Portfolio, and the expected economic benefits of the potential Balanced
Portfolio. With regard to such report, the Transmission Provider shall
comply with the information sharing and reporting requirements in Part
VII (Information Exchange) and Section IV.3 (High Priority Studies) of
this Attachment O, including the requirements for treatment of
confidential information.
5) Options for Achieving a Balanced Portfolio
a) Section IV.4 of this Attachment O sets forth provisions to achieve a
Balanced Portfolio when there are deficient Zones. A deficient Zone is a
Zone where the costs allocated to the Zone in Section IV.4.c of this
Attachment O exceed the benefits allocated to the Zone in Section IV.4.d
of this Attachment O, including any additional costs or benefits derived
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from the application of the provisions in this Section IV.5 of this
Attachment O.
b) In order to achieve a Balanced Portfolio, the Transmission Provider may
include transmission upgrades that do not adhere to the voltage
requirements of Sections IV.4.b.i and ii of this Attachment O.
c) If including the lower voltage transmission facilities does not achieve a
Balanced Portfolio, the Transmission Provider may balance the portfolio
by transferring a portion of the Base Plan Zonal Annual Transmission
Revenue Requirement and/or the Zonal Annual Transmission Revenue
Requirement from the deficient Zone(s) to the Balanced Portfolio Region-
to the minimum amount that will balance the portfolio over the
ten-year period analyzed;
ii) Transfer from the Base Plan Zonal Annual Transmission Revenue
Requirement first, then, if necessary, transfer from the Zonal
Annual Transmission Revenue Requirement; and
iii) For each Zone, meet the conditions specified in Section IV.4.e.ii of
this Attachment O.
6) Development of Additional Benefit Metrics for Balanced Portfolios
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a) The Transmission Provider shall continue to evaluate and explore with the
stakeholders via the transmission planning process any additional metrics
and criteria which have quantifiable economic effects, such as:
i) Reduction in system losses;
ii) Differing environmental impacts;
iii) Improvement to capacity margin and operating reserve
requirements;
iv) Energy, capacity and ancillary service market facilitation;
v) Increased competition in wholesale markets;
vi) Reliability enhancement, including storm hardening and black start
capability; and
vii) Critical infrastructure and homeland security.
b) Any subsequent adjustment to the metrics and criteria for evaluating
potential Balanced Portfolios developed by the Transmission Provider,
with input from the stakeholders, shall be proposed through Tariff
amendments.
7) Evaluation of Proposed Interregional Projects
a) Proposed Interregional Projects shall be developed through the
Transmission Provider’s participation in an Interregional Planning Process
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with one or more Interregional Planning Regions in accordance with the
provisions of Section VIII of this Attachment O.
b) The Transmission Provider shall facilitate a regional review of the
proposed Interregional Projects identified in the Coordinated System Plan
(CSP) report developed and issued pursuant to the applicable Interregional
Planning Process. The regional review will be subject to the timelines
identified in the respective Interregional Planning Region procedures in
accordance with the applicable Addendum(s) to this Attachment O.
c) The Transmission Provider shall, in consultation with stakeholders,
develop the Regional Review Methodology which shall be posted on the
Transmission Provider’s website. The methodology will contain, at a
minimum, the specific procedures to:
i) Determine the assumptions and criteria necessary to complete the
regional review of proposed Interregional Projects.
ii) Determine the regional models to be used in the evaluation of
proposed Interregional Projects.
iii) Determine the appropriate updates to the regional models to be
used in the evaluation of proposed Interregional Projects.
iv) Quantify the benefits of each proposed Interregional Project using
the Transmission Provider’s regional benefit metrics consistent
with Section III.7 of this Attachment O.
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d) For an Interregional Project that is reviewed pursuant to the Regional
Review Methodology, the Transmission Provider shall perform the
following types of transmission planning studies:
i) Projects Addressing Reliability Issues Description of Analyses:
The study scope will determine what types of analyses will be
performed. These analyses will be based on the issue that is being
addressed by the interregional transmission project. At a minimum,
a steady state N-1 analysis will be performed. If needed, the scope
will also include directives to perform stability and/or dynamic
analyses. Additional analyses can be performed if determined to be
needed by the Transmission Provider, in consultation with the
stakeholder working group assigned to analyze transmission
reliability issues.
ii) Projects Addressing Economic Issues Description of Analyses:
The analyses that will be performed will be based on the benefit
metrics that will be used as determined by the Transmission
Provider, in consultation with the stakeholder working group
assigned to analyze economic issues. At a minimum, a security
constrained unit commitment/security constrained economic
dispatch analysis will be utilized for the calculation of adjusted
production cost. Additional analyses will be included in the scope
as determined by the Transmission Provider, in consultation with
the stakeholder working groups, on what metrics to utilize.
iii) Projects Addressing Public Policy Issues Description of Analyses:
Public policy projects will be evaluated to determine whether or
not the transmission project will aid in meeting the applicable
public policy requirement, and if so, is it more efficient or cost
effective than regional solutions. The analysis will use a security
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constrained economic dispatch and unit commitment model to
perform a curtailment and dispatch study. Additional analyses
performed in the latest ITP may also be utilized as determined by
the Transmission Provider, in consultation with the applicable
stakeholder working groups.
e) For each regional review of a proposed Interregional Project, the
Transmission Provider shall publish a report which includes, but is not
limited to, the following:
i) The results of the regional review analysis and a comparison to the
results contained in the CSP report;
ii) The study input assumptions and criteria used to assess the
proposed Interregional Project;
iii) The proposed Interregional Project’s reliability impacts on the
Transmission Provider’s system and impacts on third parties not
participating in the applicable Interregional Planning Process;
iv) Any expected benefits of the proposed Interregional Project; and
v) The Transmission Provider shall make a recommendation whether
to approve the proposed Interregional Project and the allocation of
proposed Interregional Project costs between the Interregional
Planning Regions.
f) The Transmission Provider’s report shall be posted on the Transmission
Provider’s website. If the Transmission Provider’s report contains
confidential information in accordance with the provisions of the Tariff,
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the SPP Membership Agreement, or CEII requirements, the report will be
password protected to preserve the confidentiality of information and a
redacted version of the report shall be posted on the Transmission
Provider’s website. The redacted version shall include instructions for
acquiring the complete version of the report.
g) The Transmission Provider’s report shall be reviewed by the appropriate
stakeholder group(s) in accordance with the provisions of Section II of this
Attachment O. The stakeholder group(s) and the Transmission Provider
will each provide a recommendation to the Markets and Operations Policy
Committee. The Markets and Operations Policy Committee shall make a
recommendation to the SPP Board of Directors regarding the approval of a
proposed Interregional Project.
h) The SPP Board of Directors shall review all reports and recommendations
related to the regional review of the proposed Interregional Project.
i) The SPP Board of Directors may approve a proposed Interregional
Project only where the benefits equal or exceed the costs for the
SPP Region.
ii) The Transmission Provider shall notify the applicable interregional
joint planning committee whether a proposed Interregional Project
has been approved by the SPP Board of Directors.
i) To qualify as an approved Interregional Project, the proposed Interregional
Project must be approved by the SPP Board of Directors and the
corresponding Interregional Planning Region in accordance with the
applicable Interregional Planning Process.
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j) Upon approval by the corresponding Interregional Planning Region and
the SPP Board of Directors, the Transmission Provider’s portion of the
approved Interregional Project will be constructed in accordance with
Section VI of this Attachment O.
IX. Recovering Costs Associated with the Planning Process
1) The Transmission Provider’s costs associated with the planning process and associated studies set forth in this Attachment O shall be recovered pursuant to Schedule 1-A1 of the Tariff.
2) The Transmission Provider’s costs associated with studies for potential Sponsored
Upgrades, shall be the responsibility of the entities requesting such studies. 3) The Transmission Provider’s costs for studies associated with requests for long-
term firm transmission service shall be recovered pursuant to Sections 19 and 32 of the Tariff.
4) The Transmission Provider’s costs for studies associated with requests for
interconnection service shall be recovered pursuant to Attachment V of the Tariff.
Deleted: ¶
ATTACHMENT AE INTEGRATED MARKETPLACE
Attachment AE
Table of Contents 1. Introduction 1.1 Definitions and Acronyms 1.1 Definitions A 1.1 Definitions B 1.1 Definitions C 1.1 Definitions D 1.1 Definitions E 1.1 Definitions F 1.1 Definitions G 1.1 Definitions H 1.1 Definitions I 1.1 Definitions J 1.1 Definitions L 1.1 Definitions M 1.1 Definitions N 1.1 Definitions O 1.1 Definitions P 1.1 Definitions Q 1.1 Definitions R 1.1 Definitions S 1.1 Definitions T 1.1 Definitions U 1.1 Definitions V 2. Market Participant Obligations 2.1 Service Agreement 2.2 Application and Asset Registration 2.3 Market Manipulation 2.4 Commitment and Dispatch 2.5 Provision of Load and Generation Data 2.6 Dispatchable Demand Response Resource 2.7 Block Demand Response Resource 2.8 Aggregators of Retail and Wholesale Customers 2.8.1 Aggregators of Retail Customers 2.8.2 Aggregators of Wholesale Customers 2.9 Combined Cycle Resource 2.10 Operating Reserve Certification 2.10.1 Spin Qualified Resources
2.10.2 Supplemental Qualified Resources 2.10.3 Regulation Qualified Resources 2.11 Must-Offer Requirement 2.11.1 Day-Ahead Market 2.11.2 Reliability Unit Commitment and the Real-Time Balancing Market 2.12 Non-Conforming Load 2.13 Market Protocols and SPP Criteria 2.14 External Dynamic Resource 2.15 Provision of Wind Forecast Data 2.16 Grandfathered Agreement Carve Out 3. Transmission Provider Rights and Obligations 3.1 Transmission Provider Scope of Services 3.1.1 Trading Hub Establishment and Modification 3.1.2 Forecasting 3.1.3 Reserve Zone Establishment 3.1.4 Operating Reserve and Instantaneous Load Capacity Requirements 3.1.5 Outage Scheduling and Reporting
3.8 Integrated Marketplace Counterparty 3.9 Calculation of Net Benefits Test for Compensation of Demand Response Load 3.10 Electronic Delivery of Data to the Commission 4. Pre-Day-Ahead Period Activities 4.1 Offer Submittal 4.1.1 Offer Caps and Floors 4.1.2 Additional Provisions for Non-Traditional Resources 4.2 Provisions for Non-Resource Related Offers 4.2.1 Virtual Energy Offers 4.2.2 Import Interchange Transaction Offers 4.3 Bid Submittal 4.3.1 Demand Bids 4.3.2 Virtual Energy Bids 4.3.3 Export Interchange Transaction Bids 4.4 Through Interchange Transactions 4.5 Multi-Day Reliability Assessment 4.5.1 Multi-Day Reliability Assessment Inputs 4.5.2 Multi-Day Reliability Assessment Analysis 4.5.3 Multi-Day Reliability Assessment Results 5. Day-Ahead Period Activities
5.1 Day-Ahead Market 5.1.1 Day-Ahead Market Inputs 5.1.2 Day-Ahead Market Execution 5.1.3 Day-Ahead Market Results 5.2 Day-Ahead Reliability Unit Commitment 5.2.1 Day-Ahead Reliability Unit Commitment Inputs 5.2.2 Day-Ahead Reliability Unit Commitment Execution 5.2.3 Day-Ahead Reliability Unit Commitment Results 6. Operating Day Activities 6.1 Intra-Day Reliability Unit Commitment 6.1.1 Intra-Day Reliability Unit Commitment Inputs 6.1.2 Intra-Day Reliability Unit Commitment Execution 6.1.3 Intra-Day Reliability Unit Commitment Results 6.2 Real-Time Balancing Market 6.2.1 Real-Time Balancing Market Inputs 6.2.2 Real-Time Balancing Market Execution 6.2.3 Real-Time Balancing Market Results 6.2.4 Out-of-Merit Energy Dispatch 6.3 Energy and Operating Reserve Deployment 6.3.1 Regulation Deployment 6.3.2 Contingency Reserve Deployment 6.3.3 Reserve Sharing Group Scheduling Procedures 6.3.4 Contingency Reserve Recovery 6.4 Energy and Operating Reserve Deployment Failure 6.4.1 Uninstructed Resource Deviation 6.4.2 Regulation Deployment Failure Charges 6.4.3 Contingency Reserve Deployment Failure Tests 6.5 Inadvertent Management 6.5.1 Inadvertent Payback Reporting 7. Transmission Congestion Rights Markets
7.1 Annual Long-Term Congestion Rights/Incremental Long-Term Congestion Rights/Auction Revenue Right Verification 7.1.1 Transmission Service and Incremental Long-Term Congestion Rights
Verification 7.1.2 Candidate Long-Term Congestion Rights/Auction Revenue Rights 7.1.3 Auction Revenue Right Nomination Cap 7.2 Annual Long-Term Congestion Right Allocation
7.2.1 Long-Term Congestion Right and Incremental Long-Term Congestion Right Surrender and Nomination
7.2.2 Available Long-Term Congestion Rights for Load Serving Entities and Incremental Long-Term Congestion Rights
7.2.3 Available Long-Term Congestion Rights for Non-Load Serving Entities 7.2.4 Long-Term Congestion Right and Incremental Long-Term Congestion
Right Awards
7.2.5 Initial Incremental Long-Term Congestion Right Awards 7.3 Annual Auction Revenue Right Allocation 7.3.1 Auction Revenue Right Nominations 7.3.2 Auction Revenue Right Allocation 7.3.3 Annual Auction Revenue Right Awards 7.4 Annual Transmission Congestion Right Auction 7.4.1 Transmission Congestion Right Offer and Bid Submittal 7.4.2 Annual Transmission Congestion Right Auction 7.4.3 Annual Transmission Congestion Right Auction Clearing and Simultaneous Feasibility 7.4.4 Annual Transmission Congestion Right Awards 7.5 Monthly Transmission Congestion Right Auctions 7.5.1 Monthly Transmission Congestion Right Offer and Bid Submittal 7.5.2 Monthly Transmission Congestion Right Auction 7.5.3 Monthly Transmission Congestion Right Auction Clearing and Simultaneous Feasibility 7.5.4 Monthly Transmission Congestion Right Awards 7.6 Monthly Auction Revenue Right Allocation 7.6.1 Monthly Auction Revenue Right Transmission Service Verification 7.6.2 Reserved for Future Use 7.6.3 Monthly Auction Revenue Right Nominations 7.6.4 Monthly Auction Revenue Right Awards 7.7 Auction Revenue Right Allocation and Transmission Congestion Right Auction Settlements 7.8 Transmission Congestion Right Secondary Market 7.9 Liquidation of Transmission Congestion Rights in the Event of Market Participant Default 7.10 Reserved for Future Use
7.11 Transitional ARR Allocation 8. Post Operating Day and Settlement Activities 8.1 Settlement Sign Conventions 8.2 Bilateral Settlement Schedules, GFA Carve Outs and FSE 8.2.1 Default Procedures for Pre-Existing Bilateral Contracts Transitioning to Integrated Marketplace 8.2.2 GFA Carve Out 8.2.3 FSE 8.3 Calculation of Locational Marginal Prices, Locational Marginal Price Components, and Market Clearing Prices 8.3.1 Locational Marginal Price Calculations and Components 8.3.2 Violation Relaxation Limit 8.3.3 Impact of Violation Relaxation Limits on Locational Marginal Prices 8.3.4 Market Clearing Price Calculations 8.4 Price Corrections 8.5 Day-Ahead Market Settlement
8.5.1 Day-Ahead Energy Amount 8.5.2 Day-Ahead Regulation Service Amount 8.5.3 Day-Ahead Spinning Reserve Amount 8.5.4 Day-Ahead Supplemental Reserve Amount 8.5.5 Day-Ahead Regulation-Up Service Distribution Amount 8.5.6 Day-Ahead Regulation-Down Service Distribution Amount 8.5.7 Day-Ahead Spinning Reserve Distribution Amount 8.5.8 Day-Ahead Supplemental Reserve Distribution Amount 8.5.9 Day-Ahead Make Whole Payment Amount 8.5.10 Day-Ahead Make Whole Payment Distribution Amount 8.5.11 Transmission Congestion Rights Funding Amount 8.5.12 Transmission Congestion Rights Daily Uplift Amount 8.5.13 Transmission Congestion Rights Monthly Payback Amount 8.5.14 Transmission Congestion Rights Annual Payback Amount 8.5.15 Transmission Congestion Rights Annual Closeout Amount 8.5.16 Day-Ahead Over-Collected Losses Distribution Amount 8.5.17 Reserved for Future Use 8.5.18 Day-Ahead GFA Carve Out and FSE Daily Amount 8.5.19 Day-Ahead GFA Carve Out and FSE Monthly Amount 8.5.20 Day-Ahead GFA Carve Out and FSE Yearly Amount 8.5.21 GFA Carve Out and FSE Distribution Daily Amount 8.5.22 GFA Carve Out and FSE Distribution Monthly Amount 8.5.23 GFA Carve Out and FSE Distribution Yearly Amount
8.5.24 Day-Ahead Demand Reduction Amount 8.5.25 Day-Ahead Demand Reduction Distribution Amount 8.6 Real-Time Balancing Market Settlement 8.6.1 Real-Time Energy Amount 8.6.2 Real-Time Regulation Service Amount 8.6.3 Real-Time Spinning Reserve Amount 8.6.4 Real-Time Supplemental Reserve Amount 8.6.5 Reliability Unit Commitment Make Whole Payment Amount 8.6.6 Real-Time Out-of-Merit Amount 8.6.7 Reliability Unit Commitment Make Whole Payment Distribution Amount 8.6.8 Real-Time Regulation Service Distribution Amount 8.6.9 Real-Time Spinning Reserve Distribution Amount 8.6.10 Real-Time Supplemental Reserve Distribution Amount 8.6.11 Real-Time Regulation Service Non-Performance Amount 8.6.12 Real-Time Regulation Service Non-Performance Distribution Amount 8.6.13 Real-Time Contingency Reserve Deployment Failure Amount 8.6.14 Real-Time Contingency Reserve Deployment Failure Distribution Amount 8.6.15 Real-Time Regulation Service Deployment Adjustment Amount 8.6.16 Over-Collected Losses Distribution Amount 8.6.17 Real-Time Reserve Sharing Group Amount 8.6.18 Real-Time Reserve Sharing Group Distribution Amount
Deleted: Day-Ahead Virtual Energy Transaction Fee Amount
8.6.19 Unused Regulation-Up Mileage Make Whole Payment 8.6.20 Unused Regulation-Down Mileage Make Whole Payment
8.6.23 Real-Time Pseudo-Tie Congestion Amount 8.6.24 Real-Time Pseudo-Tie Losses Amount 8.7 Auction Revenue Rights and Transmissions Congestion Rights Auction Settlement 8.7.1 Transmission Congestion Rights Auction Transaction Amount 8.7.2 Auction Revenue Rights Funding Amount 8.7.3 Auction Revenue Rights Uplift Amount 8.7.4 Auction Revenue Rights Monthly Payback Amount 8.7.5 Auction Revenue Rights Annual Payback Amount 8.7.6 Auction Revenue Rights Annual Closeout Amount 8.8 Revenue Neutrality Uplift Distribution Amount 8.9 GFA Carve Out or FSE Uplift 8.10 Market Administration Services Amount 9. Release of Offer Curve Data 10. Billing 10.1 Settlement Statements 10.2 Invoices 10.3 Invoice Disputes 10.4 Interest on Unpaid Balances 10.5 Market Participant Default
10.6 Further Clarification Regarding Right to Net 10.7 Integrated Marketplace Counterparty Limitation of Liability
11. Confidentiality Provisions 11.1 Restrictions on Confidential Information Provided to Receiving Party 11.1.1 Procedures for Confidential Information 11.1.2 Exceptions 11.1.3 Injunctive Relief and Specific Performance 11.1.4 Market Participant Access and Transmission Provider Use of Confidential Information 11.1.5 Required Disclosure 11.1.6 Limitations 11.2 Confidentiality Provisions Applicable to the Market Monitor Reporting to the Board of Directors 11.3 Disclosure to Commission or CFTC 11.4 Disclosure to Authorized Agencies 11.4.1 Basic Requirements for Disclosure 11.4.2 Schedule of Authorized Requestors 11.4.3 Use of Confidential Information 11.4.4 Limited Oral Disclosures 11.4.5 Information Requests
11.4.6 Limited Discussion of Confidential Information Among Authorized Requestors Sponsored By Different Authorized Agencies 11.4.7 Breach of Non-Disclosure Obligations 11.5 Preservation of Rights 11.6 Notice Addendum 1 Violation Relaxation Limit Values (“VRLs”) Addendum 2 Bilateral Settlement Schedule Example System Power Sale
4.2.1 Virtual Energy Offers
(1) Virtual Energy Offers are submitted in the Day-Ahead Market only.
(2) A Virtual Energy Offer consists of an Energy Offer Curve only.
(3) A Market Participant may submit no more than one Virtual Energy Offer for itself
at each Settlement Location for each Operating Hour. Where a Market
Participant represents multiple Asset Owners, the Market Participant may submit
no more than one Virtual Energy Offer for each Asset Owner it represents at each
Settlement Location for each Operating Hour.
4.3.2 Virtual Energy Bids
(1) Virtual Energy Bids may be submitted in the Day-Ahead Market only.
(2) Virtual Energy Bids only apply to Energy, are not associated with a physical load
asset and can be submitted at any Settlement Location in the form of a Virtual
Energy Bid Curve.
(3) A Market Participant may submit no more than one Virtual Energy Bid at each
Settlement Location for each Operating Hour. Where a Market Participant
represents multiple Asset Owners, the Market Participant may submit no more
than one Virtual Energy Bid for each Asset Owner it represents at each Settlement
Location for each Operating Hour.
8.10 Market Administration Services Amount
The Transmission Provider will perform calculations at each Settlement Location
for each Asset Owner for each hour consistent with Schedules 1-A2, 1-A3 and 1-A4 of
this Tariff.
Deleted: (4) Each Market Participant submitting Virtual Energy Offers shall be subject to a transaction fee for each Virtual Energy Offer submitted as described under Section 8.5.17 of this Attachment AE.¶
Deleted: (4) Each Market Participant submitting Virtual Energy Bids shall be subject to a transaction fee for each Virtual Energy Bid submitted as described under Section 8.5.17 of this Attachment AE.¶
Deleted: ¶8.5.17 Day-Ahead Virtual Energy Transaction Fee Amount¶
Deleted: A Day-Ahead Market charge for each submitted Virtual Energy Offer and Virtual Energy Bid will be calculated for each Asset Owner for each Operating Day. Charges collected by the Transmission Provider under this charge type are used by the Transmission Provider to reduce the Transmission Provider budgeted expenses used to calculate the rate specified under Schedule 1-A of the Tariff and are calculated as follows: ¶
Day-Ahead Virtual Energy Transaction Fee Amount = ¶[(Day-Ahead Virtual Energy Transaction Daily Count) * (Day-Ahead Virtual Energy Transaction Fee Rate)]¶(1) Day-Ahead Virtual Energy Transaction Daily Count is equal to the sum of Virtual Energy Bids and Virtual Energy Offers submitted as of the close of the Day-Ahead Market for all Settlement Locations and hours in the Operating Day.¶(2) Day-Ahead Virtual Energy Transaction Fee Rate is $0.05 for each Virtual Energy Offer or Virtual Energy Bid.¶
Deleted: ¶
Attachment AF – Market Mitigation Measures 3. Mitigation Measures for Economic Withholding – Market Power in Energy and Operating Reserve
This section sets forth the market power mitigation measures that are applied in the Day-
Ahead Market, Reliability Unit Commitment processes and the Real-Time Balancing
Energy Markets, collectively referred to as the Energy and Operating Reserve Markets.
3.1 Local Market Power Test
A Resource satisfying at least one of the following conditions is determined to
have local market power:
(1) The Resource is located in a Frequently Constrained Area, as described in
Section 3.1.1, and one or more of the transmission constraints that define
the Frequently Constrained Area is binding or the Reserve Zone that
defines the area is binding;
(2) The Resource is not in a Frequently Constrained Area and
(a) has a Resource-to-Load-Distribution factor less than or equal to
negative five percent (-5%) relative to a binding transmission
constraint; or
(b) is located in a binding Reserve Zone;
(3) The Resource is committed to address a Local Reliability Issue.
3.1.1 Frequently Constrained Areas
A Frequently Constrained Area is an electrical area identified by the
Market Monitor that is defined by one or more binding transmission
constraints or binding Reserve Zone constraints that are expected to be
binding for at least five-hundred (500) hours during a given twelve (12)-
month period and within which one (1) or more suppliers are pivotal. All
Frequently Constrained Area designations along with supporting analysis
shall be posted on the Transmission Provider’s website.
3.1.1.1 Pivotal Supplier Test
A supplier is pivotal when the energy output or provision of
operating reserves by any or some of its Resources jointly must be
increased or decreased to resolve the binding transmission
constraint or binding Reserve Zone constraint during some or all
hours. This will be determined utilizing transmission load flow
cases or RTBM market cases reflecting a variety of market
conditions.
These load flow or market cases will be used to estimate: (i) the
generation shift factors for all relevant Resources and relevant
resources outside the SPP Balancing Authority Area relative to
each potentially constrained flowgate; (ii) the capability of all
Resources to meet the requirements of each binding Reserve Zone
constraint; (iii) the base loadings of Resources; (iv) the base
allocation of Operating Reserves on Resources; and (v) the base
flows on each flowgate. A supplier is pivotal when a binding
transmission constraint or a binding Reserve Zone constraint
cannot be relieved by changing the base loadings for other
suppliers’ Resources.
3.1.1.2 Initial Designation of Frequently Constrained Areas
The Market Monitor will define and recommend the Frequently
Constrained Areas to the SPP Board of Directors prior to the start
of the Integrated Marketplace.
3.1.1.3 Changes to Frequently Constrained Area Designation
The Market Monitor shall reevaluate the Frequently Constrained
Areas at least annually. A reevaluation may be performed more
frequently if the Market Monitor believes that conditions have
changed with respect to the binding transmission constraints or
binding Reserve Zone constraints that define a Frequently
Constrained Area, or if congestion on constraints that are not
designated as a Frequently Constrained Area warrant a new
analysis. The Transmission Provider may also propose an area be
designated or undesignated as a Frequently Constrained Area to
the Market Monitor. The Market Monitor will post the updated
Frequently Constrained Area information along with the associated
analysis on the Transmission Provider’s website at least 14
calendar days prior to the Frequently Constrained Area updates
becoming effective and will notify Market Participants of the
posting. Market Participants may contact the MMU within the 14
day posting period if there are concerns with the Market Monitor’s
proposed updates. The Market Monitor will consider and respond
to Market Participant concerns and will make updates if needed.
The Market Monitor will notify Market Participant when updates
become effective.
3.2 Mitigation Measures for Energy Offer Curves
Mitigated Energy Offer Curves shall be submitted on a daily basis by the Market
Participant in accordance with the mitigated offer development guidelines in the
Market Protocols. For Multi-Configuration Resources (“MCR”), as defined in
Attachment AE, for which a single configuration allows physical units to be
swapped (e.g., Combustion Turbine 2 for Combustion Turbine 1), the costs used
in the mitigated offer development for that configuration shall be those of the
least cost physical unit that is available and can be swapped in such configuration.
The mitigated Energy Offer Curve may be updated up to the close of the Day-
Ahead Market as defined in Section 5.1 of Attachment AE of this Tariff for use in
the Day-Ahead Market. In the case a Resource is not committed by the Day-
Ahead Market, the mitigated Energy Offer Curve may be updated until the Day-
Ahead RUC begins. For Resources committed by the Day-Ahead Market, the
mitigated Energy Offer Curve submitted as of the close of the Day-Ahead Market
will apply to the Day-Ahead Market on the day before the Operating Day and the
RTBM on the Operating Day; for all other Resources the mitigated Energy Offer
Curve submitted at the time the Day-Ahead RUC begins will apply to the Day-
Ahead RUC on the day before the Operating Day, and the Intra-Day RUC
processes and the RTBM on the Operating Day.
A. The Energy Offer Curve conduct thresholds are as follows:
(1) For Resources located in a Frequently Constrained Area, the
conduct threshold is a 17.5% increase above the mitigated Energy
Offer Curve;
(2) For all other Resources the conduct threshold is a 25% increase
above the mitigated Energy Offer Curve.
B. The Transmission Provider shall apply mitigation measures by replacing
the Energy Offer Curve with the mitigated Energy Offer Curve if:
(1) The Resource’s Energy Offer Curve exceeds the mitigated Energy
Offer Curve by the applicable conduct threshold; and
(2) The Resource has local market power as determined in Section 3.1;
and
(3) The Resource either:
(a) Fails the Market Impact Test as described in Section 3.7, or
(b) Is manually committed by the Transmission Provider or by
a local transmission operator.
An Energy Offer Curve below $25/MWh will not be subject to mitigation
measures for economic withholding.
C. The Transmission Provider shall apply mitigation measures by placing a
cap on the Energy Offer Curve of 10% above the Mitigated Energy Offer
Curve if the Resource is committed to address a Local Reliability Issue.
An Energy Offer Curve below $25/MWh will not be subject to mitigation
measures.
D. The mitigated energy offer shall be the Resource’s short-run marginal cost
of producing energy as determined by the unit’s heat rate; fuel costs and
the costs related to fuel usage, such as transportation and emissions costs
(“total fuel related costs”); Energy Offer Curve (“EOC”) variable
operations and maintenance costs (“VOM”) as detailed in the Market
Protocols; and Schedules 1-A3 and 1-A4 of this Tariff.
E. Opportunity cost shall be an estimate of the Energy and Operating Reserve
Markets revenues net of short run marginal costs for the marginal forgone
run time during the timeframe when the Resource experiences the run-
time restrictions as detailed in the Market Protocols. The run-time
restrictions shall be updated as specified in the Market Protocols, with
more frequent updating to occur the fewer hours that remain available,
consistent with the Market Protocols. The Market Participant may include
in the calculation of its mitigated Energy Offer Curve an amount reflecting
the resource-specific opportunity costs expected to be incurred under the
following circumstances:
(1) Externally imposed environmental run-hour restrictions; or
(2) Physical equipment limitations on the number of starts or run-
hours, as verified by the Market Monitoring Unit and determined
by reference to the manufacturer’s recommendation or bulletin, or
a documented restriction imposed by the applicable insurance
carrier; or
(3) Fuel Supply Limitations.
Resource specific opportunity costs are calculated by forecasting
Locational Marginal Prices based on futures contract prices for natural gas
Deleted: and
and the historical relationship between the SPP system marginal Energy
component of LMP and the price of natural gas, as determined by the SPP
Market Monitoring Unit. The formulas and instructions in the price
forecast model shall be determined by the SPP Market Monitoring Unit
and published in the Market Protocols as part of the Mitigated Offer
Development Guidelines, updated, as needed, by the SPP Market
Monitoring Unit. Such forecasts of LMPs shall take into account
historical variability, and basis differentials affecting the Settlement
Location at which the Resource is located for the three-year period
immediately preceding the period of time in which the Resource is bound
by the referenced restrictions, and shall subtract therefrom the forecasted
costs to generate energy at the Settlement Location at which the Resource
is located, as specified in more detail in Appendix G of the Market
Protocols. If the difference between the forecasted Locational Marginal
Prices and forecasted costs to generate energy is negative, the resulting
opportunity cost shall be zero. The Market Monitoring Unit will verify all
Market Participants’ opportunity cost calculations for consistency and
accuracy. When the Market Monitoring Unit determines that the market
price for any period was not competitive, it will adjust the LMP
forecasting process used in the opportunity cost calculations to ensure that
forecasted LMPs do not reflect non-competitive market conditions.
The following formula shall apply to all mitigated Energy Offer Curves:
Mitigated Energy Offer ($/MWh) = HeatRate (mmBtu/MWh) *
Performance Factor * Total Fuel Related Costs ($/mmBtu) + EOC VOM
(Cost Increase due to Heat Rate Increase during non-steady state
operation + Cost Increase in VOM) * Regulation-Down Mileage
Factor
Further details associated with the development of the exact costs in the
formulas above are included in the Market Protocols.
G. Intra-day changes to the mitigated Operating Reserve Offers are allowed
under the following conditions:
1) In the event that the Transmission Provider requests that a
Resource that is supplying Operating Reserves remain online past
their commitment period by the Day-Ahead Market or a RUC
process, the Market Participant may submit an updated mitigated
Operating Reserve offer curve that reflects the procurement of
higher cost fuel;
2) A Resource must switch fuels due to unforeseen operating
conditions; or
3) Intra-day changes to the mitigated Regulation-Up and mitigated
Regulation-Down Offers are allowed after the Day-Ahead RUC
clears on the day before the Operating Day under the following
condition:
a. The Resource incurs the uncompensated cost in Section
3.4(E)(3) of this Attachment AF, for which the mitigated
offer calculation is described in Appendix G of the Market
Protocols.
Intra-day changes to the mitigated Operating Reserve Offer curve must
follow the mitigated offer development guidelines in Appendix G and
Section 8.2.2 of the Market Protocols. Any such changes will be validated
by the Market Monitor.
H. The Market Participant may include in the calculation of its mitigated
Operating Reserve Offer an amount reflecting the Resource-specific
opportunity costs if the Market Participant is able to demonstrate to the
satisfaction of the SPP Market Monitoring Unit that such costs are
legitimate and verifiable and not otherwise included in market outcomes.
To the extent such costs include run-time restrictions, such run-time
restrictions shall be updated as specified in the Market Protocols, with
more frequent updating to occur the fewer hours that remain available,
consistent with the Market Protocols. The formulas and instructions in the
price forecast model for any such opportunity costs shall be determined by
the SPP Market Monitoring Unit and published in the Market Protocols as
part of the Mitigated Offer Development Guidelines, updated, as needed,
by the SPP Market Monitoring Unit. Opportunity costs for mitigated
Operating Reserve Offers shall not include Energy and Operating Reserve
Markets revenues associated with forgone Energy or other types of
Operating Reserve production to the extent that such costs are included in
market outcomes.
I. All cost data and cost calculation descriptions are subject to the review
and approval of the SPP Market Monitoring Unit to ensure reasonableness
and consistency across Market Participants. The information will be
sufficient for replication of the mitigated Operating Reserve Offers and
shall include, among other data, the following information:
(1) For fuel costs, Market Participants shall provide the Market
Monitoring Unit with an explanation of the Market Participants’ fuel
cost policy, indicating whether fuel purchases are subject to a fixed
contract price and/or spot pricing and specifying the contract price
and/or referenced spot market prices. Any included fuel transportation
and handling costs must be short-run marginal costs only, exclusive of
fixed costs.
(2) For emissions costs, Market Participants shall report the emissions rate
of each of their units and indicate the applicable emissions allowance
cost.
(3) For VOM costs, Market Participants shall submit VOM costs,
calculated in adherence with the Appendix G of the Market Protocols,
reflecting short-run marginal costs, exclusive of fixed costs.
J. In all cases under this Section 3.4, cost data submitted for the development
of mitigated offers, including opportunity cost data, shall be subject to the
confidentiality provisions set forth in Section 11 of Attachment AE of this
Tariff.
3.5 Validation of Mitigated Resource Offer Parameters
The Market Monitor shall review the costs included in each mitigated Resource
Offer on an ex-post basis relative to the relevant Operating Day in order to ensure that the
Market Participant has correctly applied the formulas and definitions in Sections 3.2, 3.3,
3.3.1, and 3.4 of this Attachment AF and in the Market Protocols and that the level of the
mitigated offer is otherwise acceptable. If the mitigated offer determined by the Market
Monitor and the Market Participant differ, Market Participant shall use the mitigated
offer calculated by the Market Monitor going forward. If a Market Participant submits a
dispute over its mitigated offer, the previously approved mitigated offer shall be used
from the time the dispute is submitted until the dispute is resolved. The procedures for
submitting and processing disputes related to mitigated offers shall be those specified in
the Market Protocols. The Transmission Provider shall remedy mitigated offer disputes
resolved in favor of the Market Participant by providing make whole payments, as
necessary, to the Market Participant whose mitigated offer was improperly determined by
the Market Monitor.
Each Market Participant is obligated to provide to the Market Monitor any cost
data necessary to allow the Market Monitor to validate its mitigated Resource Offer.
The Market Monitor shall keep such data confidential, and all cost data submitted
under this Section 3.5, including any opportunity cost data, shall be subject to the
confidentiality provisions set forth in Section 11 of Attachment AE of this Tariff. The
Market Monitor shall develop and maintain on the Transmission Provider’s website the
mechanism and procedures to allow Market Participants to submit such cost data.
3.6 Additional Mitigation Measures for Resource Offer Parameters
The mitigation measures in this section apply to all Resource Offer parameters
expressed in units other than dollars and will only apply in the presence of local market
power as described in Section 3.1 of this Attachment AF. A reference level for each
applicable Resource Offer parameter that reflects the physical capability of the Resource
shall be determined prior to the start of the Energy and Operating Reserve Markets by
one or both of the following methods: (i) the reference levels will be determined through
consultation between the Market Participant and the Market Monitor; and/or (ii) the
reference levels will be based on averages of Resource Offer parameters from similar
Resources. This methodology for setting reference levels for Offer parameters shall
apply to all Resources at the start of the Energy and Operating Reserve Markets and to all
Resources that register subsequent to the start of the Energy and Operating Reserve
Markets. The Transmission Provider’s output forecast for a wind-powered Variable
Energy Resource shall be used as the reference maximum output limit for the wind-
powered Variable Energy Resource.
The following thresholds shall be used by the Transmission Provider to identify
Resource Offers that may warrant mitigation and shall be determined with respect to the
corresponding reference level:
Time-based Resource Offer parameters: An increase of three (3) hours, or an
increase of six (6) hours in total for multiple time-based Resource Offer parameters.
Resource Offer parameters expressed in units other than time or dollars: One
hundred percent (100%) increase for Resource Offer parameters that are minimum
values, or a fifty percent (50%) decrease for Resource Offer parameters that are
maximum values.
Minimum Economic Capacity Operating Limit threshold for Resources
committed to address a Local Reliability Issue: twenty-five percent (25%) increase.
In the case that a Resource Offer fails the thresholds described above, the Market
Monitor shall determine the impact on prices or make whole payments. If an impact
exceeds the LMP, MCP or make whole payment thresholds in Section 3.7, the Market
Monitor will initiate a discussion with the Market Participant concerning an explanation
of the parameter changes. The Market Monitor will inform the Transmission Provider of
any potential issue. If the Transmission Provider, in consultation with the Market
Monitor, concludes that the Market Participant has demonstrated the validity of the
submitted Resource Offer parameter, no further action will be taken. If not, the
Transmission Provider shall replace the Resource Offer parameter with the corresponding
reference level. Mitigation measures will remain in place until such time that the Market
Participant demonstrates the validity of the Resource Offer parameter or the Market
Participant notifies the Market Monitor that the Resource Offer parameter has been
changed to a value that is within the tolerance range as described above, and the Market
Monitor has verified that this change has occurred. In the event that the Market
Participant submits a dispute, the mitigation measure will remain in place until the
resolution of the dispute.
In all cases under this Section 3.6, cost data submitted for the development of
mitigated offers, including opportunity cost data, shall be subject to the confidentiality
provisions set forth in Section 11 of Attachment AE of this Tariff.
3.7 Market Impact Test
The Transmission Provider will apply the following market impact test in the
Day-Ahead Market, Day-Ahead RUC, Intra-Day RUC and Real-Time Balancing Market
in the event the conditions described in Section 3.1 are satisfied:
After an initial market solution is computed with no mitigation measures in place,
a second market solution, called the mitigated market solution, will be computed with the
appropriate mitigation measures applied. If an LMP or MCP at a Settlement Location
from the initial market solution exceeds the corresponding price from the mitigated
market solution by the applicable impact test threshold, or a make whole payment for any
Resource from the initial market solution exceeds the corresponding make whole
payment from the mitigated market solution by make whole payment impact test
threshold, then the mitigated market solution will be used for dispatch, commitment, and
settlement purposes.
The impact test thresholds are as follows: At market start, the LMP impact
threshold is five dollars ($5) per megawatt hour, the MCP impact threshold is five dollars
($5) per megawatt hour, and the make whole payment impact threshold is five dollars
($5) per megawatt hour. At the beginning of each six (6) month period after the market
start, the LMP and MCP impact thresholds will be increased ten dollars ($10) per
megawatt hour and the make whole payment impact threshold will be increased by ten
dollars ($10) per megawatt hour unless the Market Monitor finds market behavior that
warrants keeping the threshold constant for the next six (6) months. The periodic
increases will continue until the LMP impact threshold is twenty-five dollars ($25) per
megawatt hour, the MCP impact threshold is twenty-five dollars ($25) per megawatt
hour, and the make whole payment impact threshold is twenty-five dollars ($25) per
megawatt hour.
3.8 Mitigation Exceptions
A. The Market Monitor shall, as soon as practicable and if warranted in light
of the information available to the Market Monitor, contact a Market
Participant to request an explanation of its actions in cases when an impact
threshold in Section 3.7 of this Attachment AF is exceeded and the Market
Participant’s offer exceeded the mitigated offer by more than the relevant
conduct threshold, as specified in Section 3.2, 3.3, 3.3.1, or 3.4 of this
Attachment AF.
B. If a Market Participant anticipates submitting an offer that will exceed the
mitigated offer by more than the relevant conduct threshold, it may contact
the Market Monitor to provide an explanation of the changes in its offer. If
the Market Participant’s pre-offer explanation indicates to the Market
Monitor that the questioned behavior is consistent with competitive
behavior, the Transmission Provider will not impose mitigation with
respect to that offer unless and until circumstances are deemed to warrant
it, and the Transmission Provider or the Market Monitor so notifies the
Market Participant. In circumstances where, following a Market
Participant’s pre-offer explanation, both the conduct and impact thresholds
are violated but no mitigation is imposed, the Market Monitor will record
such instances and will report such instances to the Commission’s Office
of Enforcement, or its successor organization, every three months during
the first year of Integrated Marketplace operations, and yearly thereafter.
To the extent that the report contains sensitive data, the Market Monitor
should include any such data in a non-public version of the report.
3.9 Sanctions for Noncompliance with the Day-Ahead Market Must Offer Requirement
A. In the case that a Market Participant is found to be noncompliant for an
Asset Owner as determined by the conditions set forth in Section 2.11.1 of
Attachment AE, the Market Participant shall be assessed a penalty for that
Asset Owner by the Transmission Provider for each megawatt of withheld
capacity below the 10% tolerance band. The penalty amount shall be
equal to the Day-Ahead Market LMP associated with the withheld
capacity.
B. The Market Monitor will monitor for, and report to the Commission’s
Office of Enforcement, or its successor organization, manipulative
behavior associated with Day-Ahead Offers, including (but not limited to)
monitoring load-serving Market Participants who do not offer enough net
resource capacity to meet their maximum hourly Reported Load. The
Market Monitor will also report to the Commission’s Office of
Enforcement or its successor organization any locational problems, such
as deliverability issues, associated with load-serving Market Participants’
offers in the Day-Ahead Market, any identified efforts by Market
Participants to raise prices in the RTBM by limiting Day-Ahead Offers,
and the effects of any such efforts upon make whole payments.
DRAFTSummary Sch 1-A1 to 1-A4 Rates
LineNo.1 Total Schedule 1-A1 Rate/MWh (Schedule 1-A1 - Rate) $0.1912 Total Schedule 1-A2 Rate/MWh (Schedule 1-A2 - Rate) $0.0063 Total Schedule 1-A3 Rate/MWh (Schedule 1-A3 - Rate) $0.0224 Total Schedule 1-A4 Rate/MWh (Schedule 1-A4 - Rate) $0.057
These rates cannot be summed together to calculate a single rate
AMOUNTS IN TEMPLATE ARE FOR ILLUSTRATIVE PURPOSES ONLY
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Rate Schedule 1-A1 Rate
LineNo.
1 Scheduling, System Control, and Dispatch (Schedule 1-A1 - COST-1) 44,215,660$ 2 Reliability Planning & Standards Development (Schedule 1-A1 - COST-2) 27,221,109$ 3 Total Schedule 1-A1 Costs (ln 1 + ln 2) 71,436,769$
4 Prior Year Over or Under Recovery5 Projected (Budgeted) Schedule 1-A1 Revenue Income Statement from Financial Statements 15,000$ input6 Actual Schedule 1-A1 Revenue Income Statement from Financial Statements 12,000$ 7 Projected (Budgeted) Schedule 1-A1 Net Revenue Requirement ("NRR") Income Statement from Financial Statements 5,000$ 8 Actual Schedule 1-A1 NRR Income Statement from Financial Statements 6,000$ 9 Adjustment for Prior Year Over or (Under) Recovery ((ln 6 - ln 5)+(ln 7 - ln 8)) (4,000)$
Rate Schedule 1-A1 - Scheduling, System Control, & Dispatch Costs
LineNo.
1 Salary and Benefits & Employee Direct Expenses2 Total Salary & Benefits & Employee Direct Expenses (Salary Benefit EE Direct Alloc) 19,810,097$
3 Other Direct Costs4 System Maintenance Expense (Sys Maint Exp Alloc) 1,275,000$ 5 Network and Communications Expense (Network & Comm Alloc) 1,113,000$ 6 Outside Service Expenses (Outside Services Alloc) 2,757,000$ 7 Other Direct Expenses (Other Direct Alloc) 50,000$ 8 Debt Service (Debt Service Alloc) 5$ 9 Bad Debt (Bad Debt Alloc) 10$
10 Total Other Direct Costs (sum lns 4 to 9) 5,195,015$
13 Total Scheduling, System Control, & Dispatch Costs (ln 11 + ln 12) 44,215,660$
Note Letter
A
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A B C D E F
Rate Schedule 1-A1 - Planning & Standards Development Costs
LineNo.
1 Salary and Benefits & Employee Direct Expenses2 Total Salary & Benefits & Employee Direct Expenses (Salary Benefit EE Direct Alloc) 12,490,234$
3 Other Direct Costs4 System Maintenance Expense (Sys Maint Exp Alloc) 545,000$ 5 Network and Communications Expense (Network & Comm Alloc) -$ 6 Outside Service Expenses (Outside Services Alloc) 2,339,000$ 7 Other Direct Expenses (Other Direct Alloc) 20,000$ 8 Debt Service (Debt Service Alloc) 10$ 9 Bad Debt (Bad Debt Alloc) 5$
10 Total Other Direct Costs before Revenues (sum lns 4 to 9) 2,904,015$ 11 LESS: Revenues Associated with Engineering Studies (Rev Assoc with Eng Studies) -$ 12 Total Other Direct Costs (Net) (ln 10 - ln 11) 2,904,015$
15 Total Planning & Standards Development Costs (ln 13 + ln 14) 27,221,109$
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A B C D E F
Revenues Associated with Engineering Studies
Line SPP AccountNo. No.
1 Dept 0440- Acc Series 49100-49120 GI Studies Revenues -$ 2 Dept 0420- Acc Series 49100-49120 Transmission Service Studies Revenue -$ 3 Dept 0410- Acc Series 49100-49120 DPA Studies Revenues -$ 4 Various Dept - Acc Series 49100-49120 Miscellaneous Study Revenues -$
5 Revenues Associated with Engineering Studies (sum lns 1 to 4) -$
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A B C D E
Rate Schedule 1-A 1 DivisorLineNo. Actual
Average MWs1 August (YR-2) (Transmission Load) 4,005 2 September (YR-2) (Transmission Load) 3,842 3 October (YR-2) (Transmission Load) 3,453 4 November (YR-2) (Transmission Load) 3,149 5 December (YR-2) (Transmission Load) 3,173 6 January (YR-1) (Transmission Load) 3,705 7 February (YR-1) (Transmission Load) 3,325 8 March (YR-1) (Transmission Load) 2,853 9 April (YR-1) (Transmission Load) 2,881
10 May (YR-1) (Transmission Load) 3,784 11 June (YR-1) (Transmission Load) 4,184 12 July (YR-1) (Transmission Load) 4,446 13 Sum of Zonal Average 12 Coincident Peak (12CP) (sum lns 1 to 12) 42,802
14 Adjustment for Known Future Impacts to Load Source of data input -
15 Average 12CP Adjusted (ln 13 + ln 14) 42,802
NoteLetter
A YR-1 represents the year prior to budget yearB YR-2 represents 2 years prior to budget year
i.e. For Budget Year 2021, the YR-1 would be 2020 and YR-2 would 2019.i.e. For Budget Year 2020, the YR-1 would be 2019 and YR-2 would 2018.
3 Prior Year Over or Under Recovery4 Projected (Budgeted) Schedule 1-A2 Revenue Income Statement from Financia 5,000$ 5 Actual Schedule 1-A2 Revenue Income Statement from Financia 2,000$ 6 Projected (Budgeted) Schedule 1-A2 Net Revenue Requirement ("NRR") Income Statement from Financia 6,000$ 7 Actual Schedule 1-A2 NRR Income Statement from Financia 5,000$ 8 Adjustment for Prior Year Over or (Under) Recovery ((ln 5 - ln 4)+(ln 6 - ln 7)) (2,000)$
1 Salary and Benefits & Employee Direct Expenses2 Total Salary & Benefits & Employee Direct Expenses (Salary Benefit EE Direct Alloc) 1,116,075$
3 Other Direct Costs4 System Maintenance Expense (Sys Maint Exp Alloc) 745,000$ 5 Network and Communications Expense (Network & Comm Alloc) -$ 6 Outside Service Expenses (Outside Services Alloc) 10$ 7 Other Direct Expenses (Other Direct Alloc) 5$ 8 Debt Service (Debt Service Alloc) 5$ 9 Bad Debt (Bad Debt Alloc) 10$
10 Total Other Direct Costs (sum lns 4 to 9) 745,030$
MWhs1 August (YR-2) (Note B) 50,000,000 input2 September (YR-2) (Note B) 75,000,000 3 October (YR-2) (Note B) 70,000,000 4 November (YR-2) (Note B) 60,000,000 5 December (YR-2) (Note B) 50,000,000 6 January (YR-1) (Note A) 30,000,000 7 February (YR-1) (Note A) 30,000,000 8 March (YR-1) (Note A) 25,000,000 9 April (YR-1) (Note A) 24,000,000
10 May (YR-1) (Note A) 26,000,000 11 June (YR-1) (Note A) 50,000,000 12 July (YR-1) (Note A) 57,000,000
13 Volume of TCRs cleared for TCR Holders (sum lns 1 to 12) 547,000,000
14 Adjustment for Known Future Impacts to TCR Volume Source of data input -
3 Prior Year Over or Under Recovery4 Projected (Budgeted) Schedule 1-A3 Revenue Income Statement from Financial Statements 2,000$ 5 Actual Schedule 1-A3 Revenue Income Statement from Financial Statements 5,000$ 6 Projected (Budgeted) Schedule 1-A3 Net Revenue Requirement ("NRR") Income Statement from Financial Statements 5,000$ 7 Actual Schedule 1-A3 NRR Income Statement from Financial Statements 7,000$ 8 Adjustment for Prior Year Over or (Under) Recovery ((ln 5 - ln 4)+(ln 6 - ln 7)) 1,000$
10 Divisor11 Real Time Gen/Load, Import/Exports, and Virtuals MWh (Schedule 1-A3 - Divisor) 563,000,000
12 RATE/MWh (ln 9 / ln 11) 0.022$
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A B C D E
Rate Schedule 1-A3 - Market Clearing Costs
LineNo.
1 Salary and Benefits & Employee Direct Expenses2 Total Salary & Benefits & Employee Direct Expenses (Salary Benefit EE Direct Alloc) 7,106,668$
3 Other Direct Costs4 System Maintenance Expense (Sys Maint Exp Alloc) N/A5 Network and Communications Expense (Network & Comm Alloc) -$ 6 Outside Service Expenses (Outside Services Alloc) N/A7 Other Direct Expenses (Other Direct Alloc) 10$ 8 Debt Service (Debt Service Alloc) N/A9 Bad Debt (Bad Debt Alloc) N/A
3 Prior Year Over or Under Recovery4 Projected (Budgeted) Schedule 1-A4 Revenue Income Statement from Financial Statements 500$ 5 Actual Schedule 1-A4 Revenue Income Statement from Financial Statements 250$ 6 Projected (Budgeted) Schedule 1-A4 Net Revenue Requirement ("NRR") Income Statement from Financial Statements 700$ 7 Actual Schedule 1-A4 NRR Income Statement from Financial Statements 500$ 8 Adjustment for Prior Year Over or (Under) Recovery ((ln 5 - ln 4)+(ln 6 - ln 7)) (50)$
10 Divisor11 Real Time Gen/Load and Import/Exports MWh (Schedule 1-A4 - Divisor) 528,000,000
12 RATE/MWh (ln 9 / ln 11) 0.057$
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A B C D E
Rate Schedule 1-A4 - Market Facilitation Costs
LineNo.
1 Salary and Benefits & Employee Direct Expenses2 Total Salary & Benefits & Employee Direct Expenses (Salary Benefit EE Direct Alloc) 11,546,647$
3 Other Direct Costs4 System Maintenance Expense (Sys Maint Exp Alloc) 1,435,000$ 5 Network and Communications Expense (Network & Comm Alloc) 1,113,000$ 6 Outside Service Expenses (Outside Services Alloc) 373,000$ 7 Other Direct Expenses (Other Direct Alloc) 30,000$ 8 Debt Service (Debt Service Alloc) 2,500,000$ 9 Bad Debt (Bad Debt Alloc) 80,000$
10 Total Other Direct Costs (sum lns 4 to 9) 5,531,000$
1 August (YR-2) Notes letter 10,900,000 13,800,000 11,300,000 10,080,000 46,080,000 2 September (YR-2) Notes letter 10,900,000 13,800,000 11,300,000 10,800,000 46,800,000 3 October (YR-2) Notes letter 10,900,000 10,900,000 11,300,000 10,800,000 43,900,000 4 November (YR-2) Notes letter 10,900,000 10,900,000 10,700,000 10,800,000 43,300,000 5 December (YR-2) Notes letter 10,900,000 10,900,000 14,500,000 10,800,000 47,100,000 6 January (YR-1) Notes letter 10,900,000 10,900,000 10,900,000 8,000,000 40,700,000 7 February (YR-1) Notes letter 10,900,000 10,900,000 11,300,000 8,000,000 41,100,000 8 March (YR-1) Notes letter 10,800,000 10,900,000 11,300,000 8,000,000 41,000,000 9 April (YR-1) Notes letter 10,800,000 13,800,000 11,300,000 8,920,000 44,820,000
10 May (YR-1) Notes letter 11,000,000 11,500,000 11,000,000 10,800,000 44,300,000 11 June (YR-1) Notes letter 11,000,000 11,500,000 11,000,000 10,800,000 44,300,000 12 July (YR-1) Notes letter 10,700,000 12,600,000 10,500,000 10,800,000 44,600,000 13 Volume of Market Billing Determinants (sum lns 1 to 12, col E) 528,000,000
14 Adjustment for Known Future Impacts to Market Determinants Source of data input -
17 Total Salary & Benefits & Direct Employee Costs 84,887,000$ 19,810,097$ 12,490,234$ 1,116,075$ 7,106,668$ 11,546,647$ 32,817,279$ 84,887,000$ -$ Check Total
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A B C D E F G H
System Maintenance Expense Allocators
Line Account No. No. Amount
1 0500-67800-4020-9350-00 System Maintenance Expense for Rate Schedule 1-A1-1 (Note B) 1,275,000$ 2 0500-67700-4020-9350-00 System Maintenance Expense for Rate Schedule 1-A1-2 (Note B) 545,000$ 3 0500-67600-4020-9350-00 System Maintenance Expense for Rate Schedule 1-A2 (Note A) 745,000$ 4 System Maintenance Expense for Rate Schedule 1-A3 N/A5 0500-67600-4020-9350-00 System Maintenance Expense for Rate Schedule 1-A4 (Note A) 1,435,000$ 6 TOTAL 4,000,000$
7 0500-67000 segment Total System Maintenance Expense Budgeted Income Statement from Financial Statements 18,586,000$ input8 Total System Maintenance Expense Allocated Above (ln 6) 4,000,000$ 9 Total System Maintenance Expense Allocated to Corporate Overhead (ln 7 - ln 8) 14,586,000$
NoteA Carve out from Budget for RS #4 - Budget for G/L Acc# less TCR Carveout one vendor with one annual fee (RS 2)B Directly assignable budget costs
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A B C D E F G H I
Network and Communications Expense
Line SPP Acct.No. No. % Amount
1 Network and Communications Expense for Rate Schedule 1-A1-1 (Note A) (ln 6 * ln 1 %) 50% 1,113,000$ 2 Network and Communications Expense for Rate Schedule 1-A1-2 (ln 6 * ln 2 %) 0% -$ 3 Network and Communications Expense for Rate Schedule 1-A2 (ln 6 * ln 3 %) 0% -$ 4 Network and Communications Expense for Rate Schedule 1-A3 (ln 6 * ln 4 %) 0% -$ 5 Network and Communications Expense for Rate Schedule 1-A4 (Note A) (ln 6 * ln 5 %) 50% 1,113,000$ 6 TOTAL 100% 2,226,000$ input
7 0585-66000 segment Network and Communications Expense Budgeted Income Statement from Financial Statements 2,274,000$ 8 Network and Communications Expense Allocated Above (ln 6) 2,226,000$ 9 Network and Communications Expense Allocated to Corporate Overhead (ln 7 - ln 8) 48,000$
NoteA 50 % of Budget for 2 G/L Acc#s - 0585-66330-4010-5611-00 and 0585-66120-4010-5611-00
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A B C D E F G H I
Outside Service Expense Allocator
LineNo. Amount
1 Outside Service Expense for Rate Schedule 1-A1-1 (Note A) 2,757,000$ 2 Outside Service Expense for Rate Schedule 1-A1-2 (Note C) 1,839,000$ 3 Outside Service Expense for Rate Schedule 1-A1-2 (Note D) 500,000$ 4 Outside Service Expense for Rate Schedule 1-A2 (Note E) 10$ 5 Outside Service Expense for Rate Schedule 1-A3 N/A6 Outside Service Expense for Rate Schedule 1-A4 (Note B) 373,000$ 7 TOTAL 5,469,010$
8 Outside Service Expense Budgeted Income Statement from Financial Statements 8,420,000$ input9 Outside Service Expense Allocated Above (ln 7) 5,469,010$
10 Outside Service Expense Allocated to Corporate Overhe (ln 8 - ln 9) 2,950,990$
NoteA Directly assignable budget costs (OATI Wrap Agreement, wind forecasting, weather service from SPP Account No. 0500-68600-4010-9230-00 (Note that other costs in th B Directly assignable budget costs from departments 0840, 0895, 0700, 0720, 0710 main account segment 68000 plus 60% SOC 1 Expenses C Directly assignable budget costs from all Engineering departments (400 series plus 8000 plus 8200), All Outside Services Accts (68000 series)D Approved RSC Budget included in Department 1000 - 2 accounts (acc#s 1000-65000-4010-9302-00 and 1000-68930-4010-9280-00)E Directly assignable budget costs dept 450 account 68000 series
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A B C D E F G
Other Direct Expense Allocator
LineNo. Amount
1 Other Direct Expense for Rate Schedule 1-A1-1 (Note A) 50,000$ 2 Other Direct Expense for Rate Schedule 1-A1-2 (Note C) 20,000$ 3 Other Direct Expense for Rate Schedule 1-A2 (Note D) 5$ 4 Other Direct Expense for Rate Schedule 1-A3 (Note D) 10$ 5 Other Direct Expense for Rate Schedule 1-A4 (Note B) 30,000$ 6 TOTAL 100,015$
7 Other Expense Budgeted Income Statement from Financial Statements 200,000$ input8 Other Direct Expense Allocated Above (ln 6) 100,015$ 9 Other Expense Allocated to Corporate Overhead (ln 7 - ln 8) 99,985$
NoteA Directly assignable budget costs B Directly assignable budget costs C Directly assignable budget costs
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A B C D E F G
Debt Service Allocator
LineNo. Amount
1 Debt Service for Rate Schedule 1-A1-1 (Note A) 5$ input2 Debt Service for Rate Schedule 1-A1-2 (Note A) 10$ 3 Debt Service for Rate Schedule 1-A2 (Note A) 5$ 4 Debt Service for Rate Schedule 1-A3 N/A5 Debt Service for Rate Schedule 1-A4 (Note A) 2,500,000$ 6 TOTAL 2,500,020$
7 Debt Service Budgeted Debt Service from Financial Statements 3,000,000$ input8 Debt Service Interest Expense Budgeted Income Statement from Financial Statements 25,000$ 9 Debt Service Allocated Above (ln 7 + ln 8) 2,500,020$
10 Debt Service Allocated to Corporate Overhead (ln 7 + ln 8 - ln 9) 524,980$
NoteA Directly assignable budget costs and applicable interest expense
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A B C D E F G
Bad Debt Allocator
LineNo. Amount
1 Bad Debt for Rate Schedule 1-A1-1 (Note A) 10$ 2 Bad Debt for Rate Schedule 1-A1-2 (Note A) 5$ 3 Bad Debt for Rate Schedule 1-A2 (Note A) 10$ 4 Bad Debt for Rate Schedule 1-A3 N/A5 Bad Debt for Rate Schedule 1-A4 (Note A) 80,000$ 6 TOTAL 80,025$
7 Bad Debt Budgeted Income Statement from Financial Statements 100,000$ input8 Bad Debt Allocated Above (ln 6) 80,025$ 9 Bad Debt Allocated to Corporate Overhead (ln 7 - ln 8) 19,975$
Coporate Overhead CostsSalary and Benefits & Employee Direct Expenses
16 Total Salary & Benefits & Employee Direct Expenses (Salary Benefit EE Direct Alloc) 32,817,279$
17 Other18 System Maintenance Expense (Sys Maint Exp Alloc) 14,586,000$ 19 Network and Communications Expense (Network & Comm Alloc) 48,000$ 20 Outside Service Expenses (Outside Services Alloc) 2,950,990$ 21 Other Direct Expenses (Other Direct Alloc) 99,985$ 22 Debt Service (Debt Service Alloc) 524,980$ 23 Bad Debt (Bad Debt Alloc) 19,975$ 24 Total Other (sum lns 18 to 23) 18,229,930$
25 Total Corporate Overhead (ln 16 + ln 24) 51,047,209$
26 LESS: Revenues Other Than Admin Fees SPP Account No. 0100-45200 through 49999 15$ input
27 Corporate Overhead to be Allocated (Net) (ln 25 + ln 26) 51,047,194$
Costs Directly Assignable to Rate Schedules1 Salary and Benefits & Employee Direct Expenses2 Total Salary & Benefits & Employee Direct Expenses (Salary Benefit EE Direct Alloc) 52,069,721$
3 Other Direct Costs4 System Maintenance Expense (Sys Maint Exp Alloc) 4,000,000$ 5 Network and Communications Expense (Network & Comm Alloc) 2,226,000$ 6 Outside Service Expenses (Outside Services Alloc) 5,469,010$ 7 Other Direct Expenses (Other Direct Alloc) 100,015$ 8 Debt Service (Debt Service Alloc) 2,500,020$ 9 Bad Debt (Bad Debt Alloc) 80,025$
10 Total Other Direct Costs (sum lns 4 to 8) 14,375,070$
11 Total Costs Directly Assignable to Rate Schedules (ln 2 + ln 10) 66,444,791$
Corporate Overhead Costs12 Salary and Benefits & Employee Direct Expenses13 Total Salary & Benefits & Employee Direct Expenses (Salary Benefit EE Direct Alloc) 32,817,279$
14 Other Direct Costs15 System Maintenance Expense (Sys Maint Exp Alloc) 14,586,000$ 16 Network and Communications Expense (Network & Comm Alloc) 48,000$ 17 Outside Service Expenses (Outside Services Alloc) 2,950,990$ 18 Other Direct Expenses (Other Direct Alloc) 99,985$ 19 Debt Service (Debt Service Alloc) 524,980$ 20 Bad Debt (Bad Debt Alloc) 19,975$ 21 Total Other (sum lns 15 to 20) 18,229,930$
22 Corporate Overhead (ln 13 + ln 21) 51,047,209$
23 LESS: Revenues Other Than Admin Fees Corp OH Alloc) 15$
24 Corporate Overhead to be Allocated (Net) (ln 22 - ln 23) 51,047,194$
25 Total Directly Assignable Costs and Corp Overhead (ln 11+ ln 24) 117,491,985$
26 Total Schedule 1-A1 - Costs (Schedule 1-A1 - Rate) 71,436,769$ 27 Total Schedule 1-A2 - Costs (Schedule 1-A2 - Rate) 3,290,926$ 28 Total Schedule 1-A3 - Costs (Schedule 1-A3 - Rate) 12,566,488$ 29 Total Schedule 1-A4 - Costs (Schedule 1-A4 - Rate) 30,197,802$ 30 Total of Schedules 1-A1 to 1-A4 Costs (sum lns 26 to 29) 117,491,985$
SPP currently recovers the vast majority of its operating and capital costs from transmission customers who are taking service under the SPP tariff. This recovery approach was implemented when SPP solely provided transmission service under the SPP tariff. The SPP’s operating and capital costs increased with the addition of the Energy Imbalance Services market in 2007 and again in 2014 with the implementation of the Integrated Marketplace. These increases in services and costs warrant a review of SPP’s current cost recovery mechanism. There is a desire to have those who use and benefit from SPP’s services help pay for those services.
The Schedule 1A Task Force (the “Task Force”) was formed to develop a potential rate structure that would recover SPP’s costs from the various users of SPP’s services with the overarching principles of simplicity, better alignment of payer cost/benefit, and inclusion of energy transactions. The Task Force was comprised of the following members: John Olsen, Evergy (Chair) Joel Dagerman, Nebraska Public Power District David Mindham, ITC Holdings Corp. John Varnell, Tenaska Rob Janssen, Dogwood Energy Alfred Busbee, GDS Associates/ East Texas Electric Cooperatives R.J. Tallman, Oklahoma Gas & Electric Wes Berger, Southwestern Public Service Co. Ray Bergmeier, Sunflower Electric Power Corporation Greg Garst, Omaha Public Power District Heather Starnes, Missouri Joint Municipal EUC Tim Hall, Southern Power Jason Mazigian, Basin Electric Power Cooperative Jim Jacoby, American Electric Power-Public Service Company of Oklahoma
Before arriving at their final recommendation, the Task Force performed the following activities:
Reviewed extensively SPP’s cost in the FERC 668 reporting categories Examined RTO/ISO cost recovery methodologies for other regions Reviewed the current Schedule 1A billing processes Reviewed multiple iterations of strawman proposals (including staff whitepaper) Conducted multiple brain storming sessions on rate design Analyzed “cost shifts” between customer groups associated with proposed rate
structures Reviewed cash flow analysis to assess impact of the proposed rate structures on
SPP’s cash position Consulted with SPP’s market monitoring unit (MMU) to ascertain whether
proposed changes would be problematic from their perspective
Early in the process, the Task Force agreed to use the cost reporting framework that followed the FERC’s requirement under Order 668. In summary, all operating costs would be evaluated in the categories that include FERC accounts 575.7 - Market Facilitation, Monitoring & Compliance; 561.4 - Scheduling, System Control & Dispatch; and 561.8 – Reliability Planning & Standards Development. The Task Force quickly reached general agreement that the proposed structure should use a mix of demand and energy charges. The Task Force also reached general agreement that market costs should be recovered through energy charges and transmission planning costs should be recovered through demand charges. Additional discussions were necessary to determine the ultimate recommendation for 1) allocating Scheduling & Dispatch costs, 2) appropriate energy billing determinants, and 3) treatment of financial instruments (e.g. virtual transactions, TCRs).
After additional analyses and related discussions, the majority of the Task Force voted to 1) combine Scheduling & Dispatch costs with Reliability Planning under a demand based rate structure (similar to the current Schedule 1A billing practices); 2) include real time generation, load, and import/exports as energy billing determinants, 3) exclude day ahead market products; and 4) include TCRs and virtual transactions as billable transactions. Using these agreed upon concepts, the Task Force arrived at a four schedule cost recovery methodology summarized in the following section.
The market monitoring unit (MMU) was consulted by the Task Force on a couple specific issues, most notably was whether they (the MMU) would be receptive to market participants adding administrative service costs to mitigated offer curves. The MMU indicated they had no issue with the inclusion of these costs in the mitigated energy offer curves given administrative costs based on megawatt hours are considered short-run marginal costs and therefore could be included in the mitigated offers.
SouthwestPowerPool,Inc.
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SECTION 3: OVERVIEW OF RATE SCHEDULES
RATE SCHEDULE #1 (RS 1) - TRANSMISSION ADMINISTRATIVE SERVICE RS 1 provides for the recovery of costs incurred by the Transmission Provider in providing; 1) reliability coordination; 2) transmission scheduling, 3) system control, and 4) transmission planning services. The costs to be recovered under RS 1 include any costs of direct resources, system maintenance, debt service for financing capital purchases associated with providing these services, a proportionate allocation of corporate overhead, and other costs associated with administering this service. Please note that the total costs recovered through RS 1 equals those costs reported by the Transmission Provider as being associated with FERC accounts 561.4 – Scheduling, System Control & Dispatch and 561.8 – Reliability Planning & Standards Development. RS 1 costs will be recovered by assessing customers who use Point-to-Point Transmission Service and Network Integration Transmission Service under the SPP tariff. The billing determinant used for this rate schedule assessed to Point-To-Point Transmission Service is the MW of the reservation multiplied by the number of hours reserved for the applicable month made by the Transmission Customers. The billing determinant used for this rate schedule assessed to Network Integration Transmission Service is the 12-month average of the Transmission Customer’s coincident Zonal Demands used to determine the Demand Charges under Schedule 9 of the Tariff multiplied by the number of all hours of the applicable month. The charge per MW per hour shall be the same for Point-To-Point Transmission Service as for Network Integration Transmission Service.
Below is an illustration of the calculation for RS 1 utilizing 2017 data for costs and 12CP estimate from the 2018 budget.
SouthwestPowerPool,Inc.
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The majority of the Task Force also agreed that we should continue to charge the Transmission Customers for each transmission service request submitted as follows:
(i) For Firm Point-To-Point Transmission Service: Reservations less than one month: $100 Reservations one month or longer: $200
(ii) For Non-Firm Point-To-Point Transmission Service: Each Reservation: $0.
Additionally, the Task Force agreed that we should continue the practice of rebating the Transmission Customer this fee once the Transmission Customer becomes legally obligated to pay the applicable Firm Point-To-Point Transmission Service charges under this Tariff or if the requested Firm Point-To-Point Transmission Service is denied by the Transmission Provider.
RATE SCHEDULE #2 (RS 2) - TRANSMISSION CONGESTION RIGHTS ADMINISTRATIVE SERVICE
RS 2 provides for the recovery of costs incurred by the Transmission Provider to provide 1) TCR administration through allocation, assignment, auction, or any other process under this Tariff; 2) simultaneous feasibility tests and other applicable studies to determine the total TCRs that can be accommodated by the Transmission System; 3) TCR tools; and 4) a secondary market for TCRs. The costs to be recovered under RS 2 charges include any direct resources, system maintenance, debt service for financing capital purchases associated with providing these services, a proportionate allocation of corporate overhead, and all other costs associated with the Transmission Provider administering this service. The billing determinant used for RS 2 is the total amount of TCR volume for all TCR Holders expressed in MWh. The total TCR volume is the sum of the hourly TCR MWh for each billing period.
Below is an illustration of the calculation for RS 2 utilizing 2017 data for costs and billing determinants:
RS 3 provides for the recovery of costs incurred by the Transmission Provider in providing; 1) market settlements; 2) credit evaluation and risk mitigation services; 3) market monitoring functions; 4) information technology support; and 5) customer service. The costs to be recovered under RS 3 are any direct resources, a proportionate allocation of corporate overhead, and all other costs associated with administering this service.
The primary reason for creating RS 3 was to provide a mechanism to assess an appropriate charge to virtual energy market participants. Task force members believed these market participants should be charged something for the benefits they receive from participating in the market, but the charge should be based on a cost structure smaller than that of the fully loaded marketplace facilitation administrative service charge. As a result, the clearing administrative charge was developed based on only those costs associated with clearing the market. In concert with this change, the Task Force also voted to eliminate the $0.05 transaction fee amount on virtual bids/offers as currently referenced in Attachment AE, Section 8.5.17. The billing determinants used for RS 3, as expressed in MWh are: 1) all Real-Time energy injected into and withdrawn from the Transmission System by Market Participants; 2) all Import Interchange Transactions in Real-Time and all Export Interchange Transactions in Real-Time; and 3) all cleared Virtual Energy Bids and all cleared Virtual Energy Offers. Below is an illustration of the calculation for RS 3 utilizing 2017 data for costs and billing determinants:
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RATE SCHEDULE #4 (RS 4) - INTEGRATED MARKETPLACE FACILITATION ADMINISTRATIVE SERVICE RS 4 provides for the recovery of any costs incurred by the Transmission Provider in providing the 1) Day-Ahead Market; 2) Real-Time Balancing Market; and 3) Reliability Unit Commitment Processes. The costs to be recovered under RS 4 include any direct resources, system maintenance, debt service for financing capital purchases associated with providing these services, a proportionate allocation of corporate overhead, and all other costs associated with the Transmission Provider administering this service. Please note that the total costs recovered through RS 2, RS 3, and RS 4 equal those costs reported by the Transmission Provider as being associated with FERC account 575.7 - Market Facilitation, Monitoring & Compliance. The main objective in the design for Rate Schedules 2 through 4 was to assign those specific costs associated with Transmission Congestion Rights and Market Clearing Administrative Services to RS 2 and RS 3, respectively, and then use Rate Schedule 4 to recover all remaining costs under a Market Facilitation Administrative Service charge. The billing determinants used for RS 4, as expressed in MWh, are: 1) all Real-Time energy injected into and withdrawn from the Transmission System and 2) all Import Interchange Transactions in Real-Time and all Export Interchange Transactions in Real-Time.
Below is an illustration of the calculation for RS 4 utilizing 2017 data for costs and billing determinants -
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The following table provides an overview of the important elements for all proposed rate schedules.
SECTION 4: CASH FLOW AND BILLING DETERMINANT ANALYSIS
Once the proposed rate structure was in place, SPP staff performed a review of the impact that the new structure would have on the organizations cash flows, including a sensitivity analysis to contemplate the impacts that fluctuations in billing metrics could have on cash flows. An exhibit from that analysis is presented below for illustrative purposes.
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SPP Staff concluded their analysis of the cash flows with the following observations:
1) Seasonality in cash outflows exist today with notable spikes at quarter end (primarily due to debt payments)
2) Seasonal cash flow decreases noted in the periods examined are representative of historical trends
3) Cash flow position under proposed scenarios does not materially improve or worsen in comparison to actual results under current Schedule 1A methodology
4) Consistent with current practices, seasonal spikes can be managed with existing, short term financing arrangements
5) A net cumulative cash flow impact reaching negative $15.0 MM would create actionable concern and that it would take a 10% annual decrease in billing determinants to get close to that $15.0MM threshold in the periods examined in this analysis.
Recognizing that volatility of billing determinants could have an impact on over/under recovery, the Task Force also reviewed monthly billing determinant data for the market-based rate schedules (RS 2-4) using the following criteria:
1) 2015-2018 actual data 2) TCRs awarded and converted for RS 2 3) Real time generation, load, import/export, and virtual energy for RS 3 4) Real time generation, load, and import/export for RS 4
Exhibits from SPP staff’s analysis are presented below for illustrative purposes.
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Based on the analysis of monthly trending and the rolling 12-month average from 2015-18, SPP staff summarized their observations as follows:
1) Rolling average for Rate Schedules 3 and 4 billing determinants is relatively flat with only a modest rise over the 4-year period
2) Rolling average for Schedule 2 billing determinants is relatively flat with moderate rise beginning in late 2017 (likely due to increased congestion from wind, increase in financial only asset owners, etc.)
Taking into consideration both the cash flow analysis and billing determinant trend information, the Task Force ultimately decided on an annual rate setting process for rates that would be in effect for the following calendar year. Rates would be estimated based on actual billing determinants for the previous 12 months (August-July to coincide with the timing of the budget preparation for the following calendar year). The chart below illustrates the time period utilized for estimating the billing determinants in relationship to the timing of the rate setting process and actual billing period.
SPP’s current administrative fee structure was established when SPP first provided transmission service under its tariff in 1998 and obviously never contemplated the additional energy market services currently provided. The overarching principles guiding the Task Force since its inception was to develop a rate structure that was simple to implement/administer, provided
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better alignment of beneficiary with payer, and included energy transactions. The Task Force carefully researched and evaluated the costs comprising SPP’s administrative fee in relationship to our required reporting under FERC Order 668, considered the structure and methodology utilized by other RTO/ISOs, and deliberately examined the services provided by SPP through the lens of the beneficiary versus payer. Through much analysis and spirited debate, the Task Force has agreed upon a four-rate schedule cost recovery methodology described in detail in this document. This proposed methodology allocates a proportionate share of recoverable costs to our market participants including financial only entities. Additionally, staff believes that the current proposed structure will not translate to any material system or staffing costs to implement/administer. In conclusion, the Task Force recommends the four-rate schedule cost recovery methodology as described in this document for further consideration/approval by all relevant governing bodies to move forward with all activities necessary for full implementation.