ATTACHMENT D

SEPARATE PRICING FOR REGULATION UP AND REGULATION DOWN

2.5.27.1	
Regulation.
Regulation Up and Regulation Down payments shall be calculated separately.  
Quantities.  The following quantity definitions shall be used for each Scheduling Coordinator in the settlement process:
AGCUpQDAxt = the Scheduling Coordinator’s total quantity of Regulation Up capacity in Zone X sold through the ISO auction, and scheduled Day-Ahead j for Settlement Period t.
AGCDownQDAxt = the Scheduling Coordinator’s total quantity of Regulation Down capacity in Zone X sold through the ISO auction, and scheduled Day-Ahead j for Settlement Period t.
EnQUnstxt = Uninstructed Imbalance Energy increase or decrease in Zone X in real time Dispatch for Settlement Period t, determined in accordance with the ISO Protocols.
Prices.  The prices in the Settlement process for Regulation Up and Regulation Down shall be those determined in Section 2.5.14.
Adjustment:  penalty described in Section 2.5.26.1.
PAGCUpDAxt = the market clearing price, PAGC, in Zone X for Regulation Up capacity in the Day-Ahead market for Settlement Period t.
PAGCDownDAxt = the market clearing price, PAGC, in Zone X for Regulation Down capacity in the Day-Ahead market for Settlement Period t.
Payments.  Scheduling Coordinators for Generating Units providing Regulation Up capacity through the ISO auction shall receive the following payments for Regulation Up:
AGCUpPayxt = AGCUpQDAxt *PAGCUpDAxt - Adjustment
Scheduling Coordinators for Generating Units providing Regulation Down capacity through the ISO auction shall receive the following payments for Regulation Down:
AGCDownPayxt = AGCDownQDAxt *PAGCDownDAxt - Adjustment
Scheduling Coordinators for Generating Units shall receive the following payment for Energy output from Regulation:
EnQUnstxt * Hourly Ex Post Price in Zone X

2.5.28.1	Regulation.  Regulation Up and Regulation Down charges shall be calculated separately. The user rate per unit of purchased Regulation service for each Settlement Period in the Day-Ahead Market for each Zone shall be calculated by dividing the total Regulation capacity payments by the ISO’s total MW purchases of Regulation for that Settlement Period for that Zone which has not been self provided by Scheduling Coordinators.  The ISO will calculate the user rate for Regulation Up in each Zone for each Settlement Period as:
RegRateUpDA ($/MW) = AGCUpPayDA /AGCUpPurchDA
where:
AGCUpPayDA = Total Regulation Up payments for the Settlement Period in the Day-Ahead Market for the Zone.  
AGCUpPurchDA = the total ISO Regulation Up MW purchases in the Day-Ahead Market for the Settlement Period for the Zone, excluding that which has been self provided by Scheduling Coordinators.
The ISO will calculate the user rate for Regulation Down in each Zone for each Settlement Period as:
RegRateDownDA ($/MW) = AGCDownPayDA /AGCDownPurchDA
where:
AGCDownPayDA = Total Regulation Down payments for the Settlement Period in the Day-Ahead Market for the Zone. 
AGCDownPurchDA = the total ISO Regulation Down MW purchases in the Day-Ahead Market for the Settlement Period for the Zone, excluding that which has been self provided by Scheduling Coordinators.
For each Settlement Period, each Scheduling Coordinator shall pay to the ISO a sum calculated as follows for each Zone:
RegRateUpDA * AGCUpOblig
where AGCUpOblig is the Scheduling Coordinator’s obligation for Regulation Up in the Zone in the Settlement Period for which it has not self provided.
RegRateDownDA * AGCDownOblig
where AGCDownOblig is the Scheduling Coordinator’s obligation for Regulation Down in the Zone in the Settlement Period for which it has not self provided.

SABP APPENDIX C
ANCILLARY SERVICES CHARGES COMPUTATION
C 2.1.1	Day-Ahead Market
	(a)	Regulation.  When the ISO purchases Regulation capacity in the Day-Ahead Market, Scheduling Coordinators for Generating Units that provide this capacity will receive payments for each Trading Interval of the Day-Ahead Market.  The payment for a given Generating Unit which provides Regulation capacity over a given Trading Interval will be the total quantity of Regulation capacity provided times the zonal Market Clearing Price for that Trading Interval in that Zone.  The required Regulation capacity is defined in the Ancillary Services Requirements Protocol.  Regulation Up and Regulation Down payments shall be calculated separately. This payment for Scheduling Coordinator j for providing Regulation Up capacity from a resource i in Zone x for Trading Interval t is calculated as follows:

		This payment for Scheduling Coordinator j for providing Regulation Down capacity from a resource i in Zone x for Trading Interval t is calculated as follows:

The total Regulation Up payment to each Scheduling Coordinator for a given Trading Interval in the Day-Ahead Market for all the resources that it represents in a given Zone is calculated by summing all the payments for the resources of the Scheduling Coordinator in the Zone for the Trading Interval.  This payment for Scheduling Coordinator j in Zone x for Trading Interval t is calculated as follows:

The total Regulation Down payment to each Scheduling Coordinator for a given Trading Interval in the Day-Ahead Market for all the resources that it represents in a given Zone is calculated by summing all the payments for the resources of the Scheduling Coordinator in the Zone for the Trading Interval.  This payment for Scheduling Coordinator j in Zone x for Trading Interval t is calculated as follows:

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C 2.1.2	Hour-Ahead Market
	(a)	Regulation.  When the ISO purchases Regulation capacity in the Hour-Ahead Market, Scheduling Coordinators for Generating Units that provide this capacity will receive payment for the Trading Interval of the Hour-Ahead Market.  The payment for a given Generating Unit which provides Regulation capacity over the Trading Interval will be the total quantity of Regulation capacity provided times the zonal Market Clearing Price for that Trading Interval in that Zone.  The required Regulation capacity is defined in the Ancillary Services Requirements Protocol.  Regulation Up and Regulation Down payments shall be calculated separately. This payment for Scheduling Coordinator j for providing Regulation Up capacity from a resource i in Zone x for Trading Interval t is calculated as follows:

AGCUpPayHAijxt = AGCUpQIHAijxt * PAGCUpHAxt
		This payment for Scheduling Coordinator j for providing Regulation Down capacity from a resource i in Zone x for Trading Interval t is calculated as follows:

AGCDownPayHAijxt = AGCDownQIHAijxt * PAGCDownHAxt

When a Scheduling Coordinator buys back, in the Hour-Ahead Market, Regulation capacity which it sold to the ISO in the Day-Ahead Market, the payment which the ISO receives will be the total quantity of Regulation capacity bought back times the zonal Hour-Ahead Market Clearing Price for that Trading Interval in that Zone.
This payment to the ISO from Scheduling Coordinator j to buy back Regulation Up capacity from a resource i in Zone x for Trading Interval t is calculated as follows:
AGCUpReceiveHAijxt = AGCUpQDHAijxt * PAGCUpHAxt

This payment to the ISO from Scheduling Coordinator j to buy back Regulation Down capacity from a resource i in Zone x for Trading Interval t is calculated as follows:
AGCDownReceiveHAijxt = AGCDownQDHAijxt * PAGCDownHAxt

The total Regulation payment for the Trading Interval of the Hour-Ahead Market to each Scheduling Coordinator for all the resources that it represents in a given Zone is calculated by summing all the payments for the resources of the Scheduling Coordinator in the Zone for the Trading Interval and then deducting therefrom any amount payable by the Scheduling Coordinator to the ISO for Regulation bought back by the Scheduling Coordinator from the ISO in the Hour-Ahead Market for the Trading Interval on behalf of resources located in the Zone.  This payment for Scheduling Coordinator j in Zone x for Trading Interval t is calculated as follows:

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C 2.2.1	Day-Ahead Market
	(a)	Regulation.  The ISO will charge the zonal cost of providing Regulation capacity that is not self provided by Scheduling Coordinators, in the Day-Ahead Market, through the application of a charge to each Scheduling Coordinator for each Trading Interval.  This charge will be computed by multiplying the Regulation user rate for the Trading Interval by the Scheduling Coordinator’s Regulation obligation, for which it has not self provided, for the same period.

The zonal Regulation user rate for the Day-Ahead Market is calculated by dividing the total cost to ISO of purchasing Regulation Capacity within the Zone, for the Trading Interval, by the total ISO Regulation MW purchases for the Trading Interval within the Zone.  Regulation Up and Regulation Down payments shall be calculated separately. The Day-Ahead Regulation Up user rate in Zone x for Trading Interval t is calculated as follows:

where,
AGCUpPayTotalDAjxt = Total Regulation Up payments for the Settlement Period t in the Day-Ahead Market for the Zone x.
The Day-Ahead Regulation Down user rate in Zone x for Trading Interval t is calculated as follows:

where,
AGCDownPayTotalDAjxt = Total Regulation Down payments for the Settlement Period t in the Day-Ahead Market for the Zone x.
The Regulation capacity charge for Scheduling Coordinator j in the Day-Ahead Market in Zone x for Trading Interval t is calculated as follows:

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C 2.2.2	Hour-Ahead Market
	(a)	Regulation.  The ISO will charge the zonal net cost of providing Regulation capacity that is not self provided by Scheduling Coordinators, in the Hour-Ahead Market through the application of a charge to each Scheduling Coordinator for the Trading Interval concerned.  This charge will be computed by multiplying the Regulation user rate for the Trading Interval by the Scheduling Coordinator’s Regulation obligation, for which it has not self provided, for the same period.

The zonal Regulation capacity user rate for the Hour-Ahead Market is calculated by dividing the total cost to the ISO of purchasing Regulation capacity within the Zone less any amounts payable to the ISO by Scheduling Coordinators for Regulation bought back from the ISO in the Hour-Ahead Market on behalf of resources located in the Zone, for the Trading Interval, by the total ISO Regulation capacity MW purchases for the Trading Interval within the Zone.  Regulation Up and Down payments shall be calculated separately. The Hour-Ahead Regulation Up capacity user rate in Zone x for Trading Interval t is calculated as follows:

where,
AGCUpPayTotalHAjxt = Total Regulation Up payments for the Settlement Period t in the Hour-Ahead Market for the Zone x.

The Hour-Ahead Regulation Down capacity user rate in Zone x for Trading Interval t is calculated as follows:

where,
AGCDownPayTotalHAjxt = Total Regulation Down payments for the Settlement Period t in the Hour-Ahead Market for the Zone x.
The Regulation capacity charge for Scheduling Coordinator j in the Hour-Ahead Market in Zone x for Trading Interval t is calculated as follows:
AGCUpChgHAjxt = (AGCUpObligjxt * AGCUpRateHAxt)

AGCDownChgHAjxt = (AGCDownObligjxt * AGCDownRateHAxt)

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SETTLEMENT AND BILLING PROTOCOL
APPENDIX C
ANCILLARY SERVICES CHARGES PROTOCOL

C 3	Meaning of terms of formulae
C 3.1	AGCUpPayDAijxt - $
The payment for Scheduling Coordinator j for providing Regulation Up capacity in the Day-Ahead Market from a resource i in Zone x for Trading Interval t.
AGCDownPayDAijxt - $
The payment for Scheduling Coordinator j for providing Regulation Down capacity in the Day-Ahead Market from a resource i in Zone x for Trading Interval t.

C 3.2	AGCUpQDAijxt – MW
The total quantity of Regulation Up capacity provided in the ISO Day-Ahead Market from resource i by Scheduling Coordinator j in Zone x for Trading Interval t.
AGCDownQDAijxt – MW
The total quantity of Regulation Down capacity provided in the ISO Day-Ahead Market from resource i by Scheduling Coordinator j in Zone x for Trading Interval t.

C 3.3	PAGCUpDAxt - $/MW
In the case of Capacity made available in accordance with the ISO's Final Day-Ahead Schedules, the Market Clearing Price for units exempt from FERC Ancillary Service rate caps or the bid price for those Units subject to the cap for Regulation Up Capacity in the Day-Ahead Market for Trading Interval t in Zone x.  In the case of Capacity not included in the ISO's Final Day-Ahead Schedules but made available in accordance with amended Ancillary Services supplier schedules issued in accordance with Section 2.5.21, the bid price for the unit for Regulation Up Capacity in Zone x for Trading Interval t.
PAGCDownDAxt - $/MW
In the case of Capacity made available in accordance with the ISO's Final Day-Ahead Schedules, the Market Clearing Price for units exempt from FERC Ancillary Service rate caps or the bid price for those Units subject to the cap for Regulation Down Capacity in the Day-Ahead Market for Trading Interval t in Zone x.  In the case of Capacity not included in the ISO's Final Day-Ahead Schedules but made available in accordance with amended Ancillary Services supplier schedules issued in accordance with Section 2.5.21, the bid price for the unit for Regulation Down Capacity in Zone x for Trading Interval t.
C 3.4	AGCUpPayTotalDAjxt - $
The total payment for Regulation Up capacity to Scheduling Coordinator j in the Day-Ahead Market in Zone x for Trading Interval t.
AGCDownPayTotalDAjxt - $
The total payment for Regulation Down capacity to Scheduling Coordinator j in the Day-Ahead Market in Zone x for Trading Interval t.

C 3.5		AGCUpPayHAijxt - $
The payment for Scheduling Coordinator j for providing incremental (additional to Day-Ahead) Regulation Up capacity in the Hour-Ahead Market from a resource i in Zone x for Trading Interval t.
AGCDownPayHAijxt - $
The payment for Scheduling Coordinator j for providing incremental (additional to Day-Ahead) Regulation Down capacity in the Hour-Ahead Market from a resource i in Zone x for Trading Interval t.

C 3.5.1	AGCUpReceiveHAijxt - $
The payment from Scheduling Coordinator j for buying back from the ISO in the Hour-Ahead Regulation Up capacity which the ISO had purchased from Scheduling Coordinator j in the Day-Ahead Market from a resource i in Zone x for Trading Interval t.
AGCDownReceiveHAijxt - $
The payment from Scheduling Coordinator j for buying back from the ISO in the Hour-Ahead Regulation Down capacity which the ISO had purchased from Scheduling Coordinator j in the Day-Ahead Market from a resource i in Zone x for Trading Interval t.

C 3.6	AGCUpQIHAijxt – MW
The total quantity of incremental (additional to Day-Ahead) Regulation Up capacity provided in the ISO Hour-Ahead Market from resource i by Scheduling Coordinator j in Zone x for Trading Interval t.
AGCDownQIHAijxt – MW
The total quantity of incremental (additional to Day-Ahead) Regulation Down capacity provided in the ISO Hour-Ahead Market from resource i by Scheduling Coordinator j in Zone x for Trading Interval t.

C 3.7	AGCUpQDHAijxt – MW
The total quantity of decremental (less than Day-Ahead) Regulation Up capacity provided in the ISO Hour-Ahead Market from resource i by Scheduling Coordinator j in Zone x for Trading Interval t.
AGCDownQDHAijxt – MW
The total quantity of decremental (less than Day-Ahead) Regulation Down capacity provided in the ISO Hour-Ahead Market from resource i by Scheduling Coordinator j in Zone x for Trading Interval t.

C 3.7.1	PAGCUpHAxt - $/MW
The Market Clearing Price for units exempt from FERC Ancillary Service rate caps or the bid price for those units subject to the cap for incremental (additional to Day-Ahead) Regulation Up capacity in the Hour-Ahead Market for Trading Interval t in Zone x.  On buyback condition, MCP applies.
PAGCDownHAxt - $/MW
The Market Clearing Price for units exempt from FERC Ancillary Service rate caps or the bid price for those units subject to the cap for incremental (additional to Day-Ahead) Regulation Down capacity in the Hour-Ahead Market for Trading Interval t in Zone x.  On buyback condition, MCP applies.

C 3.8	AGCUpPayTotalHAjxt - $
The total payment for incremental (additional to Day-Ahead) Regulation Up capacity to Scheduling Coordinator j in the Hour-Ahead Market in Zone x for Trading Interval t, after deduction of payments from Scheduling Coordinator j for buying back from the ISO in the Hour-Ahead, Regulation Up capacity which the ISO had purchased from Scheduling Coordinator j in the Day-Ahead Market in Zone x for Trading Interval t.
AGCDownPayTotalHAjxt - $
The total payment for incremental (additional to Day-Ahead) Regulation Down capacity to Scheduling Coordinator j in the Hour-Ahead Market in Zone x for Trading Interval t, after deduction of payments from Scheduling Coordinator j for buying back from the ISO in the Hour-Ahead, Regulation Down capacity which the ISO had purchased from Scheduling Coordinator j in the Day-Ahead Market in Zone x for Trading Interval t.

C 3.9	AGCUpRateDAxt - $/MW
The Day-Ahead Regulation Up capacity user rate charged to Scheduling Coordinators by the ISO in Zone x for Trading Interval t.
AGCDownRateDAxt - $/MW
The Day-Ahead Regulation Down capacity user rate charged to Scheduling Coordinators by the ISO in Zone x for Trading Interval t.

C 3.10	AGCUpObligTotalxt – MW
The net total Regulation Up obligation in Zone x for Trading Interval t as defined in the Ancillary Services Requirements Protocol.  This net total equals the total obligation minus that self-provided.

AGCDownObligTotalxt – MW
The net total Regulation Down obligation in Zone x for Trading Interval t as defined in the Ancillary Services Requirements Protocol.  This net total equals the total obligation minus that self-provided.

C 3.11	AGCUpChgDAjxt - $
The Regulation Up charge for Scheduling Coordinator j in the Day-Ahead Market in Zone x for Trading Interval t.
	AGCDownChgDAjxt - $
The Regulation Down charge for Scheduling Coordinator j in the Day-Ahead Market in Zone x for Trading Interval t.

C 3.12	AGCUpObligjxt – MW
The net Regulation Up obligation for Scheduling Coordinator j in Zone x for Trading Interval t as defined in the Ancillary Services Requirements Protocol.  This net obligation equals the obligation minus that self-provided.
AGCDownObligjxt – MW
The net Regulation Down obligation for Scheduling Coordinator j in Zone x for Trading Interval t as defined in the Ancillary Services Requirements Protocol.  This net obligation equals the obligation minus that self-provided.

C 3.13	AGCUpRateHAxt - $/MW
The Hour-Ahead incremental (additional to Day-Ahead) Regulation Up capacity user rate charged to Scheduling Coordinators by the ISO in Zone x for Trading Interval t.
	AGCDownRateHAxt - $/MW
The Hour-Ahead incremental (additional to Day-Ahead) Regulation Down capacity user rate charged to Scheduling Coordinators by the ISO in Zone x for Trading Interval t.

C 3.14	AGCUpChgHAjxt - $
The incremental (additional to Day-Ahead) Regulation Up charge for Scheduling Coordinator j in the Hour-Ahead Market in Zone x for Trading Interval t.
AGCDownChgHAjxt - $
The incremental (additional to Day-Ahead) Regulation Down charge for Scheduling Coordinator j in the Hour-Ahead Market in Zone x for Trading Interval t.
C 3.15	EnQPayijxt - $
The payment for Scheduling Coordinator j for Instructed Imbalance Energy output from a resource i in the Real Time Market in Zone x for Trading Interval t.
* * * * *

C 3.66	AGCUpPurchDAxt – MW
The total quantity of Regulation Up capacity provided in the Day-Ahead Market in Zone x for Trading Interval t, not including self-provided quantities.
AGCDownPurchDAxt – MW
The total quantity of Regulation Down capacity provided in the Day-Ahead Market in Zone x for Trading Interval t, not including self-provided quantities.

* * * * *
C 3.69	AGCUpPurchHAxt – MW
The net quantity of Regulation Up capacity provided in the Hour-Ahead Market in Zone x for Trading Interval t, not including self-provided quantities.

AGCDownPurchHAxt – MW
The net quantity of Regulation Down capacity provided in the Hour-Ahead Market in Zone x for Trading Interval t, not including self-provided quantities.

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