7 Cost Allocation Metrics
Bid Cost Recovery
Figure 14 shows the allocation of bid cost recovery payment in the IFM, residual unit commitment (RUC) and RTM markets. The total bid cost recovery for May increased to $17.98 million from $11.41 million in April. Out of the total monthly bid cost recovery payment for the three markets in May, the IFM market contributed 21 percent, RTM contributed 45 percent, and RUC contributed 34 percent of the total bid cost recovery payment.
Figure 14: Bid Cost Recovery Allocation
daily BCR allocation in the IFM, RUC and RTM markets by local capacity requirement area (LCR). Figure 16 shows monthly BCR allocation in the IFM, RUC and RTM markets by LCR. Figure 17 shows daily BCR allocation in the IFM, RUC and RTM markets by utility distribution company (UDC).
Figure 15: Bid Cost Recovery Allocation by LCR
Figure 16: Monthly Bid Cost Recovery Allocation by LCR
Figure 17 shows daily BCR allocation in the IFM, RUC and RTM markets by utility distribution company (UDC). Figure 18 shows monthly BCR allocation in the IFM, RUC and RTM markets by UDC.
Figure 17: Bid Cost Recovery Allocation by UDC
Figure 18: Monthly Bid Cost Recovery Allocation by UDC
Cost in Residual Unit Commitment
Figure 19 shows the bid cost recovery allocation in RUC by Bid Cost (Bid_COST), Minimum Load Cost (MLC), Startup Cost (SUC), and Transition Cost (TC). Figure 20 shows daily BCR allocation in RUC by cost components and LCR. Figure 21 shows monthly BCR allocation in RUC by cost components and LCR. Figure 22 shows daily BCR allocation in RUC by cost components and UDC. Figure 23 shows monthly BCR allocation in RUC by cost components and UDC.
Figure 19: Cost in RUC
Figure 20: Cost in RUC by LCR
Figure 21: Monthly Cost in RUC by LCR
Figure 22: Cost in RUC by UDC
Figure 23: Monthly Cost in RUC by UDC
Cost in Real-Time
Figure 24 shows the bid cost recovery allocation in Real-Time (RT) by Ancillary Service (AS), Energy, Minimum Load Cost (MLC), Startup cost (SUC), Pumping Cost (PUMP), ShutDown Cost (SDC) and Transition Cost (TC). Figure 25 shows daily BCR allocation in RT by cost components and LCR. Figure 26 shows monthly BCR allocation in RT by cost components and LCR. Figure 27 shows daily BCR allocation in RT by cost components and UDC. Figure 28 shows monthly BCR allocation in RT by cost components and UDC.
Figure 24: Cost in RT
Figure 25: Cost in RT by LCR
Figure 26: Monthly Cost in RT by LCR
Figure 27: Cost in RT by UDC
Figure 28: Monthly Cost in RT by UDC
Cost in Intergrated Forward Market
Figure 29 shows the bid cost recovery allocation in IFM by Ancillary Service Bid Cost, Energy, Minimum Load Cost (MLC), Startup cost (SUC), and Transition Cost (TC). Figure 30 shows daily BCR allocation in IFM by cost components and LCR. Figure 31 shows monthly BCR allocation in IFM by cost components and LCR. Figure 32 shows daily BCR allocation in IFM by cost components and UDC. Figure 33 shows monthly BCR allocation in IFM by cost components and UDC.
Figure 29: Cost in IFM
Figure 30: Cost in IFM by LCR
Figure 31: Monthly Cost in IFM by LCR
Figure 32: Cost in IFM by UDC
Figure 33: Monthly Cost in IFM by UDC
Imbalance Offset Costs
The imbalance offset consists of three elements, namely the real-time congestion offset, real-time loss offset and the real-time energy offset.
The real-time congestion offset is defined as the real-time congestion fund net of the real-time congestion credit calculated as provided in tariff section 11.5.7. 5 In other words, the real-time congestion offset amount is the difference between the total congestion revenue collected from the real-time market and the total congestion revenue paid out in the real-time market for both energy and ancillary services. The real-time market includes both the hour-ahead scheduling process (HASP) and RTD market. The real-time congestion offset (CC 6774) is allocated to all scheduling coordinators based on measured demand, excluding demand associated with existing transmission rights (ETC), transmission ownership rights (TOR) or converted rights (CVR) self-schedules for which IFM and RTM congestion credits were provided.
The real-time loss offset is the difference between loss revenue collected in the real-time market and the loss revenue paid out in the real-time market. This real-time loss offset is allocated to all scheduling coordinators based on measured demand, excluding demand associated with TOR self-schedules.
The real-time energy offset is a residual calculation. The settlement amounts for the instructed imbalance energy (IIE), uninstructed imbalance energy (UIE), and unaccounted for energy (UFE) are summed up; this value represents the real-time imbalance revenue. The real-time congestion offset and the real-time loss offset are both subtracted from the real-time imbalance revenue; and the resultant residual value is known as the real-time imbalance energy offset. The real-time imbalance energy offset is allocated to all scheduling coordinators based on a pro rata share of their measured demand excluding demand quantity for the valid and balanced portion of TOR contract and self-schedules in real-time. The real-time imbalance energy offset allocation is the same as the real-time loss offset allocation.
The imbalance offset amount can either be a net charge or a net payment to demand. Since the implementation of the new market, the imbalance offset amount has been a charge to measured demand. This settlement amount is mainly driven by the price divergence between the FMM and the RTD market and the use of average hourly price for the RT demand imbalance energy settlement.
Figure 34 shows the daily real-time congestion offset and real-time imbalance energy offset costs. A positive value indicates a charge to measured demand and a negative value indicates a payment to measured demand. Real-time energy offset cost in May skidded to $0.47 million from $12.23 million in April. Real-time congestion offset cost in May rose to $29.55 million from $15.27 million in April.
Figure 34: ISO RTCO And RTIEO
Exceptional Dispatch Uplift Costs
Figure 35 shows the daily exceptional dispatch payments which include the sum of the charge codes 6482, 6488, and 6470. The monthly uplift costs in May inched up to $0.56 million from $0.42 million in April.
Figure 35: Daily Exceptional Dispatch Uplift Costs
