Msg transition Costs For Discussion Purposes Only Draft Tariff Language

Within any eligible IFM CAISO Commitment Period determined pursuant to the rules specified in Section 11.8.1.3, the CAISO shall apply the IFM Transitions Costs for the Settlement Intervals in which the Multi-Stage Generating Resources reaches the Minimum Load amount of the MSG Configuration to which the Multi-Stage Generating Resource is transitioning, subject to a tolerance band of the greater of three (3) percent of the delivered metered Generation or 5 MW for the Multi-Stage Generating Resource.

Within any eligible RUC CAISO Commitment Period determined pursuant to the rules specified in Section 11.8.1.3, the CAISO shall apply the RUC Transitions Costs for the Settlement Intervals in which the Multi-Stage Generating Resources reaches the Minimum Load amount of the MSG Configuration to which the Multi-Stage Generating Resource is transitioning, subject to a tolerance band of the greater of three (3) percent of the delivered metered Generation or 5 MW for the Multi-Stage Generating Resource.

Within any eligible RTM CAISO Commitment Period determined pursuant to the rules specified in Section 11.8.1.3, the CAISO shall apply the RTM Transitions Costs for the Settlement Intervals in which the Multi-Stage Generating Resources reaches the Minimum Load amount of the MSG Configuration to which the Multi-Stage Generating Resource is transitioning, subject to a tolerance band of the greater of three (3) percent of the delivered metered Generation or 5 MW for the Multi-Stage Generating Resource.

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30.4 Election For Start-Up Costs, And Minimum Load Costs, and Transition Costs

Scheduling Coordinators for Generating Units and Resource-Specific System Resources may elect on a thirty (30)-day basis either of the two options provided below (the Proxy Cost option or the Registered Cost option) for specifying their Start-Up Costs and Minimum Load Costs to be used for those resources in the CAISO Markets Processes. Unless the Scheduling Coordinator has registered Start-Up Costs and Minimum Load Costs in the Master File in accordance with the Registered Cost option, the CAISO will assume the Proxy Cost option as the default option. Scheduling Coordinators for Multi-Stage Generating Resources may register with the CAISO their Transition Costs on a thirty (30)-day basis.

For natural gas fired resources, the Proxy Cost option uses fuel-cost adjusted formulas for Start-Up Costs and Minimum Load Costs based on the resource’s actual unit-specific performance parameters. The Start-Up Costs and Minimum Load Costs values utilized in the CAISO Markets Processes will be these formulaic values adjusted for fuel-cost variation on a daily basis as calculated pursuant to a Business Practice Manual. Start-Up Costs also include the cost of auxiliary power calculated using the unit-specific MWh quantity of auxiliary power used for Start-Up multiplied by a resource specific electricity price. Minimum Load Costs also includes operations and maintenance costs as provided in Section 39.7.1.1.2. For all other resources, this option shall be based on the relevant cost information of the particular resource, which will be provided to the CAISO by the Scheduling Coordinator and maintained in the Master File. In the event that the Scheduling Coordinator for a unit does not provide sufficient data for the CAISO to determine the unit’s Proxy Costs, the CAISO will assume that the unit’s Start-Up Costs and Minimum Load Costs are zero. If a Multi-Stage Generating Resource elects the Proxy Cost option, that election will apply to all the MSG Configurations for that resource. The Proxy Cost values for Multi-Stage Generating Resources will be calculated for each specific MSG Configuration.

Under the Registered Cost option, the Scheduling Coordinator may register values of its choosing for Start-Up Costs and Minimum Load Costs in the Master File subject to the maximum limit specified in Section 39.6.1.6. For a resource to be eligible for the Registered Cost option there must be sufficient information in the Master File to calculate the Proxy Cost option. The Start-Up Cost and Minimum Load Cost values utilized in the CAISO Markets Processes will be these pre-specified values and will be fixed for a minimum of 30 days in the Master File unless (a) the resource’s costs, as calculated pursuant to the Proxy Cost option, exceed the Registered Cost option, in which case the Scheduling Coordinator may elect to switch to the Proxy Cost option for the balance of any 30-day period, or (b) the Start-Up Costs and Minimum Load Costs in the Master File exceed the maximum limit specified in Section 39.6.1.6 after this minimum 30-day period, in which case they will be lowered to the maximum limit specified in Section 39.6.1.6. If a Multi-Stage Generating Resource elects the Registered Cost option, that election will apply to all the MSG Configurations for that resource. The cap for the Registered Cost values for each MSG Configuration will be based on the Proxy Cost values calculated for each MSG Configuration.

Scheduling Coordinators may register Transition Costs for Multi-Stage Generating Resources. Such Transition Costs will apply until modified and will apply for a minimum of thirty (30) days. Scheduling Coordinators may change their Transition Costs pursuant to the time line that applies to changes to the Master File. During the registration process, the Scheduling Coordinator shall submit a dollar value for each upward Transition Costs, including a Transition Costs index which consists of the Transition Costs dollar value divided by the applicable monthly Thousand British Thermal Units (MMBtu) Gas Price Index on the day that the Scheduling Coordinator is registering the Transition costs value with the CAISO. At the time of registration, the CAISO will validate that the upward Transition Costs dollar value and the Transitions Costs index are consistent. The CAISO will further validate the Transition Costs dollar value using the two rules described below, and will include the validated values in the Master File. The Scheduling Coordinator shall also submit a fuel input value, which consists of a quantity of natural gas in MMBtu, for each downward MSG Transition such that the fuel input value accurately reflects the operating characteristics of the Multi-Stage Generating Resource, which the CAISO may reject if perceived to be inconsistent with such characteristics. Through the Bid validation process in the CAISO Markets, the CAISO will adjust both the downward and upward Transition Costs by the daily Gas Price Index when Scheduling Coordinators submit Bids into the CAISO Markets for Multi-Stage Generating Resources to calculate the Transitions Costs per transaction.

Rule 1: The CAISO will constrain the Transition Costs along each of the feasible, unidirectional MSG Transition paths from Off to each MSG Configuration such that their sum is between one-hundred (100) percent and one-hundred twenty five (125) percent of the MSG Configuration’s proxy Start-Up Cost value calculated using the monthly Gas Price Index and the MSG Configuration heat input value submitted by the Scheduling Coordinator plus ten (10) percent. If the Scheduling Coordinator flags an MSG Configuration as able to Start-Up as part of its registration requirements in Section 27.8, the CAISO will use a value of $0 as the lower bound for the MSG Transition paths up to the MSG Configuration flagged as able to Start-Up.

Rule 2: The CAISO will validate that the sum of Transition Costs for incremental MSG Transitions along a feasible, unidirectional path between two MSG Configurations is between one-hundred (100) percent and one-hundred twenty five (125) percent of the Transition Cost associated with the direct transition to the target MSG Configuration.