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Executive Summary of Future Market Settlement Charge Types.

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Presentation on theme: "Executive Summary of Future Market Settlement Charge Types."— Presentation transcript:

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2 Executive Summary of Future Market Settlement Charge Types

3 SPP.org 3 Future Market Settlement Charge Types Future Market Settlements are classified by 51 individual Charge Types, which can be categorized into 3 groups, though there is some crossover of input Bill Determinants between categories 15 Day-Ahead Market 7 Energy & Operating Reserves 1 Make Whole Payment 7 Cost Allocation & Fees 11 Transmission Congestion Rights 2 Daily Transmission Congestion Rights Funding 3 Transmission Congestion Rights Monthly & Yearly True-Up 3 Daily TCR / ARR auction settlement 3 TCR Auction Revenue Monthly & Yearly True-Up 25 Real-Time Balancing Market 7 Energy & Operating Reserves 5 Penalty & Make Whole Payment 10 Cost Allocation & Penalty Distribution 3 Miscellaneous

4 SPP.org 4 Day-Ahead Market Charge Types Energy & Operating Reserves DaEnergyHrlyAmtDay-Ahead Asset Energy DaNEnergyHrlyAmtDay-Ahead Non-Asset Energy DaVEnergyHrlyAmtDay-Ahead Virtual Energy DaRegUpHrlyAmtDay-Ahead Regulation-Up DaRegDnHrlyAmtDay-Ahead Regulation-Down DaSpinHrlyAmtDay-Ahead Spinning Reserve DaSuppHrlyAmtDay-Ahead Supplemental Reserve Operating Reserve Cost Allocation DaRegUpDistHrlyAmtDay-Ahead Regulation-Up Distribution DaRegDnDistHrlyAmtDay-Ahead Regulation-Down Distribution DaSpinDistHrlyAmtDay-Ahead Spinning Reserve Distribution DaSuppDistHrlyAmtDay-Ahead Supplemental Reserve Distribution Make Whole Payment DaMwpCpAmtDay-Ahead Make-Whole-Payment DaMwpDistHrlyAmtDay-Ahead Make-Whole-Payment Distribution Over-Collected Losses and Virtual Transaction Fee DaOclDistHrlyAmtDay-Ahead Over-Collected Losses Distribution DaVTxnFeeAoAmtDay-Ahead Virtual Energy Transaction Fee

5 SPP.org 5 Day-Ahead Asset Energy DaEnergyHrlyAmt a, s, h = DaLmpHrlyPrc s, h * ( DaClrdHrlyQty a, s, h -  t DaEnFinHrlyQty a, s, h, t ) Settlement of the net DA Market energy position at an Asset Owner’s Resources and loads Calculated hourly at each Resource or load Settlement Location Input Bill Determinants DaLmpHrlyPrc s, h – hourly DA Market Locational Marginal Price at Settlement Location s DaClrdHrlyQty a, s, h – hourly DA Market Cleared Quantity at Settlement Location s for Asset Owner a DaEnFinHrlyQty a, s, h, t – hourly DA Market bilateral transaction t at Settlement Location s for Asset Owner a represented by Financial Schedules which resolve to Resource or load assets

6 SPP.org 6 Day-Ahead Non-Asset Energy DaNEnergyHrlyAmt a, s, h = DaLmpHrlyPrc s, h * ( (  i  t DaImpExp5minQty a, s, i, t / 12) -  t DaNEnFinHrlyQty a, s, h, t ) Settlement of the net DA Market energy position at locations other than an Asset Owner’s Resources and load (i.e. interfaces) Calculated hourly at each Settlement Location where an Asset Owner has Determinants Input Bill Determinants DaLmpHrlyPrc s, h – hourly DA Market Locational Marginal Price at Settlement Location s DaImpExp5minQty a, s, i, t – 5-minute DA Market Cleared Import / Export transaction t Quantity at Settlement Location s for Asset Owner a DaNEnFinHrlyQty a, s, h, t – hourly DA Market bilateral transaction t at Settlement Location s for Asset Owner a represented by Financial Schedules which do not resolve to Resource or load assets

7 SPP.org 7 Day-Ahead Virtual Energy DaVEnergyHrlyAmt a, s, h = DaLmpHrlyPrc s, h *  t DaClrdVHrlyQty a, s, h, t Settlement of the net DA Market energy position of an Asset Owner’s Cleared Virtual Bids and Offers Calculated hourly at each Settlement Location where an Asset Owner Clears a Virtual Bid or Offer Input Bill Determinants DaLmpHrlyPrc s, h – hourly DA Market Locational Marginal Price at Settlement Location s DaClrdVHrlyQty a, s, h, t – hourly DA Market Cleared Virtual Bid / Offer transaction t Quantity at Settlement Location s for Asset Owner a

8 SPP.org 8 Day-Ahead Regulation-Up DaRegUpHrlyAmt a, s, h = (DaRegUpMcpHrlyPrc z, s, h * DaRegUpHrlyQty a, s, h ) * (-1) Settlement of DA Market Cleared Regulation-Up at an Asset Owner’s Resources Calculated hourly at each Resource Settlement Location Clearing Regulation-Up Input Bill Determinants DaRegUpMcpHrlyPrc z, s, h – hourly DA Market Clearing Price for Regulation-Up in Reserve Zone z at Settlement Location s DaRegUpHrlyQty a, s, h – hourly DA Market Cleared Regulation-Up capacity at Settlement Location s for Asset Owner a

9 SPP.org 9 Day-Ahead Regulation-Down DaRegDnHrlyAmt a, s, h = (DaRegDnMcpHrlyPrc z, s, h * DaRegDnHrlyQty a, s, h ) * (-1) Settlement of DA Market Cleared Regulation-Down at an Asset Owner’s Resources Calculated hourly at each Resource Settlement Location Clearing Regulation-Down Input Bill Determinants DaRegDnMcpHrlyPrc z, s, h – hourly DA Market Clearing Price for Regulation-Down in Reserve Zone z at Settlement Location s DaRegDnHrlyQty a, s, h – hourly DA Market Cleared Regulation-Down capacity at Settlement Location s for Asset Owner a

10 SPP.org 10 Day-Ahead Spinning Reserve DaSpinHrlyAmt a, s, h = (DaSpinMcpHrlyPrc z, s, h * DaSpinHrlyQty a, s, h ) * (-1) Settlement of DA Market Cleared Spinning Reserve at an Asset Owner’s Resources Calculated hourly at each Resource Settlement Location Clearing Spinning Reserve Input Bill Determinants DaSpinMcpHrlyPrc z, s, h – hourly DA Market Clearing Price for Spinning Reserve in Reserve Zone z at Settlement Location s DaSpinHrlyQty a, s, h – hourly DA Market Cleared Spinning Reserve capacity at Settlement Location s for Asset Owner a

11 SPP.org 11 Day-Ahead Supplemental Reserve DaSuppHrlyAmt a, s, h = (DaSuppMcpHrlyPrc z, s, h * DaSuppHrlyQty a, s, h ) * (-1) Settlement of DA Market Cleared Supplemental Reserve at an Asset Owner’s Resources Calculated hourly at each Resource Settlement Location Clearing Supplemental Reserve Input Bill Determinants DaSuppMcpHrlyPrc z, s, h – hourly DA Market Clearing Price for Supplemental Reserve in Reserve Zone z at Settlement Location s DaSuppHrlyQty a, s, h – hourly DA Market Cleared Supplemental Reserve capacity at Settlement Location s for Asset Owner a

12 SPP.org 12 Day-Ahead Regulation-Up Distribution DaRegUpDistHrlyAmt a, z, h = DaRegUpDistHrlyRate z, h * DaRegUpAoObligHrlyQty a, z, h Cost Allocation of DA Market Cleared Regulation-Up to an Asset Owner’s zonal Obligation Calculated hourly for each Reserve Zone into which an Asset Owner’s load or Exports fall Input Bill Determinants DaRegUpDistHrlyRate z, h – hourly DA Market Cost Allocation Rate for Regulation-Up in Reserve Zone z Rate is determined as a weighted average of the Obligation served at the local MCP and that served from other zones at the exchange rate DaRegUpAoObligHrlyQty a, z, h – hourly DA Market Regulation-Up Obligation for Asset Owner a in Reserve Zone z Asset Owner Obligation is zonal load and Exports scaled by the ratio of total zonal load to zonal Obligation Total zonal Obligation is simply a zonal LRS of the footprint total Obligation can be shifted with bilateral Financial Schedules or Contacts For Supply

13 SPP.org 13 Day-Ahead Regulation-Down Distribution DaRegDnDistHrlyAmt a, z, h = DaRegDnDistHrlyRate z, h * DaRegDnAoObligHrlyQty a, z, h Cost Allocation of DA Market Cleared Regulation-Down to an Asset Owner’s zonal Obligation Calculated hourly for each Reserve Zone into which an Asset Owner’s load or Exports fall Input Bill Determinants DaRegDnDistHrlyRate z, h – hourly DA Market Cost Allocation Rate for Regulation-Down in Reserve Zone z Rate is determined as a weighted average of the Obligation served at the local MCP and that served from other zones at the exchange rate DaRegDnAoObligHrlyQty a, z, h – hourly DA Market Regulation-Down Obligation for Asset Owner a in Reserve Zone z Asset Owner Obligation is zonal load and Exports scaled by the ratio of total zonal load to zonal Obligation Total zonal Obligation is simply a zonal LRS of the footprint total Obligation can be shifted with bilateral Financial Schedules or Contacts For Supply

14 SPP.org 14 Day-Ahead Spinning Reserve Distribution DaSpinDistHrlyAmt a, z, h = DaSpinDistHrlyRate z, h * DaSpinAoObligHrlyQty a, z, h Cost Allocation of DA Market Cleared Spinning Reserve to an Asset Owner’s zonal Obligation Calculated hourly for each Reserve Zone into which an Asset Owner’s load or Exports fall Input Bill Determinants DaSpinDistHrlyRate z, h – hourly DA Market Cost Allocation Rate for Spinning Reserve in Reserve Zone z Rate is determined as a weighted average of the Obligation served at the local MCP and that served from other zones at the exchange rate DaSpinAoObligHrlyQty a, z, h – hourly DA Market Spinning Reserve Obligation for Asset Owner a in Reserve Zone z Asset Owner Obligation is zonal load and Exports scaled by the ratio of total zonal load to zonal Obligation Total zonal Obligation is simply a zonal LRS of the footprint total Obligation can be shifted with bilateral Financial Schedules or Contacts For Supply

15 SPP.org 15 Day-Ahead Supplemental Reserve Distribution DaSuppDistHrlyAmt a, z, h = DaSuppDistHrlyRate z, h * DaSuppAoObligHrlyQty a, z, h Cost Allocation of DA Market Cleared Supplemental Reserve to an Asset Owner’s zonal Obligation Calculated hourly for each Reserve Zone into which an Asset Owner’s load or Exports fall Input Bill Determinants DaSuppDistHrlyRate z, h – hourly DA Market Cost Allocation Rate for Supplemental Reserve in Reserve Zone z Rate is determined as a weighted average of the Obligation served at the local MCP and that served from other zones at the exchange rate DaSuppAoObligHrlyQty a, z, h – hourly DA Market Supplemental Reserve Obligation for Asset Owner a in Reserve Zone z Asset Owner Obligation is zonal load and Exports scaled by the ratio of total zonal load to zonal Obligation Total zonal Obligation is simply a zonal LRS of the footprint total Obligation can be shifted with bilateral Financial Schedules or Contacts For Supply

16 SPP.org 16 Day-Ahead Make-Whole-Payment DaMwpCpAmt a, s, c = Max (0,  h ( DaMwpCostHrlyAmt a, h, s, c + DaMwpRevHrlyAmt a, h, s, c ) ) * (-1) Revenue Guarantee to Resources Committed economically in the DA Market Calculated for the contiguous “Market” status hours of a Commitment Period within a single Operating Day for Resources committed by SPP in the DA Market Input Bill Determinants DaMwpCostHrlyAmt a, h, s, c – hourly production cost for Asset Owner a’s Resource at Settlement Location s based on the Offer parameters effective at the time of the DA Market Commitment c Start-Up (subject to eligibility), No-Load & Incremental Energy (area under the Offer curve) Availability Cost for each of the Operating Reserve products Cleared Transition Cost (for Combined Cycle Resources moving to higher configurations during the Commitment Period) RUC Start-Up Remainder (for DA Commitment Periods adjacent to a RUC Commitment Period in which the Start-Up was not fully recovered) DaMwpRevHrlyAmt a, h, s, c – hourly revenue for Asset Owner a’s Resource at Settlement Location s during DA Market Commitment c DA Market Energy (absent Financial Schedules) & the value of each of the Operating Reserve products Cleared in the DA Market

17 SPP.org 17 Day-Ahead Make-Whole-Payment Distribution DaMwpDistHrlyAmt a, s, h = DaMwpSppDistRate d * DaMwpDistHrlyQty a, s, h Cost Allocation of Make Whole Payment for Resources Committed in the DA Market to an Asset Owner’s DA Market Cleared load & Exports Calculated hourly for each Settlement Location where an Asset Owner has DA Market load or Exports Input Bill Determinants DaMwpSppDistRate d – daily rate achieved by dividing the total of all DA Market Make Whole Payments for the Operating Day by the sum of all hourly Cost Allocation Determinants over the Operating day DaMwpDistHrlyQty a, s, h – hourly Cost Allocation Determinants at each Settlement Location s where Asset Owner a has DA Market Cleared load or Exports

18 SPP.org 18 Day-Ahead Over-Collected Losses Distribution DaOclDistHrlyAmt a, s, lp, h = DaNormLossRbtHrlyFct a, s, lp, h * DaOclHrlyAmt h * (-1) Rebate of surplus collected as a result of the marginal pricing of losses Calculated hourly for each Settlement Location where an Asset Owner has a DA Market withdrawal position due to the net of all Resource or load activity, Financial Schedules and Interchange Transactions – excludes Virtual Bids and Offers Approach groups Settlement Locations into Loss Pools, which are dynamically defined as all of each AO’s transactional activity regardless of the SL. Transactions by multiple AO’s at a common SL will be included in separate Loss Pools Input Bill Determinants DaNormLossRbtHrlyFct a, s, lp, h – hourly factor for Asset Owner a’s net withdrawal at Settlement Location s in Loss Pool lp valued by the difference between the local MLC and that of the “source” of the service Positive loss factors (payment for losses) are normalized “source” of the service is determined by assuming that generation in a Loss Pool first serves withdrawal in the Loss Pool, then is used to satisfy withdrawal outside the Loss Pool to the extent available DaOclHrlyAmt h – hourly over collection for the footprint Achieved by summing the product of the (MEC and MLC) with (DA Market injection & withdrawal) over all Settlement Locations

19 SPP.org 19 Day-Ahead Virtual Energy Transaction Fee DaVTxnFeeAoAmt a, m, d = DaVTxnDlyCnt a, d * DaVTxnFeeDlyRt d Fee for Virtual Bids and Offers The total count of all Virtual Bids and Offers an AO makes, regardless of whether they Clear or not, is charged a flat rate fee as an incentive to be sensible about how much Virtual activity an MP undertakes. Structuring Virtual Bids and Offers as curves rather than a stack of price points is thought to largely manage the data SPP must process to solve the DA Market. This charge type would encourage MP’s to be selective about the Settlement Locations at which they choose to make Virtual Bids and Offers. Input Bill Determinants DaVTxnDlyCnt a, d – total count of Virtual Bids and Offers placed for Asset Owner a DaVTxnFeeDlyRt d – tariff filed rate, open to change with up to daily frequency

20 SPP.org 20 Transmission Congestion Rights Charge Types Daily Settlement of TCRs TcrFundHrlyAmtTransmission Congestion Rights Funding TcrUpliftDlyAmtTransmission Congestion Rights Daily Uplift Monthly & Yearly True-Up of TCRs TcrPaybackMnthlyAmtTransmission Congestion Rights Monthly Payback TcrPaybackYrlyAmtTransmission Congestion Rights Annual Payback TcrCloseoutYrlyAmtTransmission Congestion Rights Annual Closeout Daily TCR Auction Settlement TcrAucTxnDlyAmtTransmission Congestion Rights Auction Transaction ArrAucTxnDlyAmtTCR Auction Revenue Rights Funding ArrUpliftDlyAmtTCR Auction Revenue Rights Uplift Monthly & Yearly True-Up of ARRs ArrPaybackMnthlyAmt Auction Revenue Rights Monthly Payback ArrPaybackYrlyAmt Auction Revenue Rights Annual Payback ArrCloseoutYrlyAmt Auction Revenue Rights Annual Closeout

21 SPP.org 21 Transmission Congestion Rights Funding TcrFundHrlyAmt a, h =  t (TcrHrlyQty a, h, t * (DaMccHrlyPrc source, h - DaMccHrlyPrc sink, h ) ) Hedge against congestion incurred by load Bid into the DA Market Traditionally the MCC at the sink of a TCR would be higher than at the source, which results in credits to TCR holders, but it is possible that the reverse is true in some hours and at least some TCRs held by an AO would create a charge. The settlement result is a sum of the value of all TCRs. TCRs are fully funded. Input Bill Determinants TcrHrlyQty a, h, t – hourly quantity for TCR t owned by Asset Owner a DaMccHrlyPrc source, h – hourly DA Market congestion component on LMP at the source of TCR t DaMccHrlyPrc sink, h – hourly DA Market congestion component on LMP at the sink of TCR t

22 SPP.org 22 Transmission Congestion Rights Daily Uplift TcrUpliftDlyAmt a, d = ShortFallDlyAmt d * [ TcrUpliftRatioAoDlyAmt a, d / TcrUpliftRatioSppDlyAmt d ] Allocation of the deficit between congestion collections and TCR funding When fully funded TCRs result in a greater amount of credits paid than funds collected through the DA Market MCC, the difference is uplifted to TCR holders pro rata by the absolute value of TCRs. Excess is carried forward to use in month and year end processes. Input Bill Determinants ShortfallDlyAmt d – daily total of the deficit between TCR value and DA Market congestion collections TcrUpliftRatioAoDlyAmt a, d – daily absolute value of TCRs owned by Asset Owner a TcrUpliftRatioSppDlyAmt a, d – daily total absolute value of TCRs owned by all Asset Owners

23 SPP.org 23 Transmission Congestion Rights Monthly Payback TcrPaybackMnthlyAmt a, mn = (-1) * Min { TcrUpliftAoMnthlyAmt a, mn, ECFMnthlyAmt mn * [ TcrUpliftAoMnthlyAmt a, mn / TcrUpliftSppMnthlyAmt a, mn ] } Use of Excess Congestion in a month to payback uplift in that month On the last day of the month, to the extent funds were carried forward and uplift was paid during that month, the total is used to pay back the uplift. The payback is limited to the total uplift paid in the month. Funds remaining carry forward to the end of the year. Input Bill Determinants TcrUpliftAoMnthlyAmt a, mn – monthly uplift paid by Asset Owner a ECFMnthlyAmt mn – total excess congestion available at the end of the month TcrUpliftSppMnthlyAmt mn – total monthly uplift paid by all Asset Owners

24 SPP.org 24 Transmission Congestion Rights Annual Payback TcrPaybackYrlyAmt a, yr = (-1) * Min { TcrNetUpliftAoYrlyAmt a, yr, ECFYrlyAmt yr * [ TcrNetUpliftAoYrlyAmt a, yr / TcrNetUpliftSppYrlyAmt yr ] } Use of Excess Congestion in a year to payback remaining uplift in that year On the last day of the year to the extent funds were carried forward and uplift was paid during that year and not paid back in the monthly process the remaining total is used to payback the uplift. The payback is limited to the total uplift paid in the year less monthly payback already made. Funds remaining are allocated to ARR holders – the fund is closed out. Input Bill Determinants TcrNetUpliftAoYrlyAmt a, yr – yearly uplift, less monthly payback, paid by Asset Owner a ECFYrlyAmt yr – total excess congestion available at the end of the year TcrNetUpliftSppYrlyAmt yr – total yearly uplift, less monthly payback, paid by all Asset Owners

25 SPP.org 25 Transmission Congestion Rights Annual Closeout TcrCloseoutYrlyAmt a, yr = (-1) * [ ECFYrlyAmt yr + TcrPaybackSppYrlyAmt yr ] * [ ArrNominationCapAoYrlyQty a, yr / ArrNominationCapSppYrlyQty yr ] Allocation of the Excess Congestion remaining after Monthly and Yearly Payback processes have eliminated all payback for the year On the last day of the year, to the extent funds in excess of payback during the year exist, the remaining total is allocated to ARR holders – the fund is closed out. The remaining amount is distributed among ARR holders pro rata by sum of the Nomination Cap in effect on each day in the year. Input Bill Determinants TcrPaybackSppYrlyAmt yr – total yearly payback paid to all Asset Owners ECFYrlyAmt yr – total excess congestion available at the end of the year ArrNominationCapAoYrlyQty a, yr – sum of daily Nomination Cap of Asset Owner a ArrNominationCapSppYrlyQty yr – total sum of daily Nomination Cap of all Asset Owners

26 SPP.org 26 Transmission Congestion Rights Auction Transaction TcrAucTxnDlyAmt a, aid, d =  t { ( TcrAucQty a, t, aid, source, sink * TcrAucPrc aid, source, sink ) * TcrAucBuySellFlg a, t / NumDaysInPeriod aid } Settlement of the purchase or sale of a TCR instrument at auction On each day during the life of the instrument the transacting party is settled a fraction of the total auction value of the instrument based on the difference in price between the source and sink of the instrument from the auction to which it corresponds Separate results are maintained for each auction Input Bill Determinants TcrAucQty a, t, aid, source, sink – quantity of TCR purchased or sold by Asset Owner a in TCR Auction aid TcrAucPrc aid, source, sink – difference in price between source and sink in TCR Auction aid TcrAucBuySellFlg a, t – 1 for a buyer / -1 for a seller of TCR t by Asset Owner a NumDaysInPeriod aid – number of days in the month or season TCR Auction aid

27 SPP.org 27 Auction Revenue Rights Funding ArrAucTxnDlyAmt a, aid, d =  source-sink {((ArrQty a, aid, source, sink * TcrAucPrc aid, source, sink ) / NumDaysInPeriod aid ) * (-1)} Settlement of an ARR instrument by the TCR auction price On each day during the life of the instrument the holder is settled a fraction of the total auction value of the instrument based on the difference in price between the source and sink of the instrument from the auction to which it corresponds Separate results are maintained for each auction Input Bill Determinants ArrQty a, aid, source, sink – quantity of ARR held by Asset Owner a on path source to sink associated with TCR Auction aid The portion of an AO’s ARR total Award on a path settled at each auction price is determined by a combination of Self-Conversion, static minimum percentages and the declined quantity remaining TcrAucPrc aid, source, sink – difference in price between source and sink in TCR Auction aid NumDaysInPeriod aid – number of days in the month or season of TCR Auction aid

28 SPP.org 28 Auction Revenue Rights Uplift ArrUpliftDlyAmt a, aid, d = TcrArrUnderDlyAmt aid, d * [ ABS (ArrAucTxnDlyAmt a, aid, d ) / ArrAucTxnSppDlyAmt aid, d ] Allocation of the net difference between ARR value and the daily settlement of TCR auctions TCR auction may result in a net deficit or excess when compared to the payments to ARR holders. The net deficit amount is distributed among ARR holders pro rata by the daily absolute value of ARR settlement amount, while excess is carried forward to the end of the year Separate results are maintained for each auction Input Bill Determinants TcrArrUnderDlyAmt aid, d – daily net deficit between ARR funding and TCR auction settlement for TCR Auction aid ArrAucTxnDlyAmt a, aid, d – ARR settlement amount of Asset Owner a for TCR Auction aid ArrAucTxnSppDlyAmt aid, d – absolute value of ARR settlement amount of all Asset Owners for TCR Auction aid

29 SPP.org 29 Auction Revenue Rights Monthly Payback ArrPaybackMnthlyAmt a, mn = (-1) * Min { ArrUpliftAoMnthlyAmt a, mn, ARFMnthlyAmt yr * [ ArrUpliftAoMnthlyAmt a, mn / ArrUpliftSppMnthlyAmt mn ] } Use of Excess Auction Revenue in a year to payback uplift in that year On the last day of the month, to the extent funds were carried forward and uplift was paid during that month, the total is used to pay back the uplift. The payback is limited to the total uplift paid in the month. Funds remaining carry forward to the end of the year Excess and Uplift from all TCR auctions contribute to a single pay back calculation Input Bill Determinants ArrUpliftAoMnthlyAmt a, mn – monthly uplift paid by Asset Owner a ARFMnthlyAmt yr – total revenue excess, from all TCR Auctions, available at the end of the month ArrUpliftSppMnthlyAmt mn – monthly uplift paid by all Asset Owners

30 SPP.org 30 Auction Revenue Rights Annual Payback ArrPaybackYrlyAmt a, yr = (-1) * Min { ArrNetUpliftAoYrlyAmt a, yr, ARFYrlyAmt yr * [ ArrNetUpliftAoYrlyAmt a, yr / ArrNetUpliftSppYrlyAmt a, yr ] } Use of Excess Auction Revenue in a year to payback uplift in that year On the last day of the year to the extent funds were carried forward and uplift was paid during that year and not paid back in the monthly process the remaining total is used to payback the uplift. The payback is limited to the total uplift paid in the year less monthly payback already made. Funds remaining are allocated to ARR holders – the fund is closed out. Excess and Uplift from all TCR auctions contribute to a single pay back calculation Input Bill Determinants ArrNetUpliftAoYrlyAmt a, yr – yearly uplift, less monthly payback, paid by Asset Owner a ARFYrlyAmt yr – total revenue excess, from all TCR Auctions, available at the end of the year ArrNetUpliftSppYrlyAmt a, yr – yearly uplift, less monthly payback, paid by all Asset Owners

31 SPP.org 31 Auction Revenue Rights Annual Closeout ArrCloseoutYrlyAmt a, yr = (-1) * [ ARFYrlyAmt yr + ArrPaybackSppYrlyAmt yr ] * [ ArrNominationCapAoYrlyQty a, yr / ArrNominationCapSppYrlyQty yr ] Allocation of the net difference between ARR value and the daily settlement of TCR auctions On the last day of the year to the extent funds in excess of payback during the year exist the remaining total is allocated to ARR holders – the fund is closed out. The remaining amount is distributed among ARR holders pro rata by sum of the Nomination Cap in effect on each day in the year Input Bill Determinants ArrPaybackSppYrlyAmt yr – total yearly payback paid to all Asset Owners ARFYrlyAmt yr – total revenue excess, from all TCR Auctions, available at the end of the year ArrNominationCapAoYrlyQty a, yr – sum of daily Nomination Cap of Asset Owner a ArrNominationCapSppYrlyQty yr – total sum of daily Nomination Cap of all Asset Owners

32 SPP.org 32 Real-Time Market Charge Types Energy & Operating Reserves RtEnergy5minAmtReal-Time Asset Energy RtNEnergy5minAmtReal-Time Non-Asset Energy RtVEnergy5minAmtReal-Time Virtual Energy RtRegUp5minAmtReal-Time Regulation-Up RtRegDn5minAmtReal-Time Regulation-Down RtSpin5minAmtReal-Time Spinning Reserve RtSupp5minAmtReal-Time Supplemental Reserve Operating Reserve Cost Allocation RtRegUpDistHrlyAmtReal-Time Regulation-Up Distribution RtRegDnDistHrlyAmtReal-Time Regulation-Down Distribution RtSpinDistHrlyAmtReal-Time Spinning Reserve Distribution RtSuppDistHrlyAmtReal-Time Supplemental Reserve Distribution Make Whole Payment RtMwpCpAmtRUC Make-Whole-Payment RtMwpDistHrlyAmtRUC Make-Whole-Payment Distribution Over-Collected Losses and Revenue Neutrality RtOclDistHrlyAmtReal-Time Over-Collected Losses Distribution RtRnuHrlyAmtReal-Time Revenue Neutrality Uplift Distribution

33 SPP.org 33 Real-Time Market Charge Types (cont’d) Performance Penalties RtRegNonPerf5minAmtReal-Time Regulation Non-Performance RtCRDeplFailAmtReal-Time Contingency Reserve Deployment Failure Regulation Adjustment & Out-Of-Merit adjustments RtRegAdj5minAmtReal-Time Regulation Deployment Adjustment RtOom5minAmtReal-Time Out-Of-Merit Joint Operating and Reserve Sharing Group Agreements RtJoaHrlyAmtReal-Time Joint Operating Agreement RtRsg5minAmtReal-Time Reserve Sharing Group Cost Allocation RtRegNonPerfDistHrlyAmtReal-Time Regulation Non-Performance Distribution RtCRDeplFailDistHrlyAmtReal-Time Contingency Reserve Deployment Failure Distribution RtRsgDistHrlyAmtReal-Time Reserve Sharing Group Distribution Miscellaneous MiscDlyAmtMiscellaneous

34 SPP.org 34 Real-Time Asset Energy RtEnergy5minAmt a, s, i = RtLmp5minPrc s, i * [ (RtBillMtr5minQty a, s, i - DaClrdHrlyQty a, s, h ) -  t RtEnFinHrlyQty a, s, t, h ] / 12 Settlement of the net RTBM incremental energy position at an Asset Owner’s Resources and loads Calculated in 5-minute intervals at each Resource or load Settlement Location Input Bill Determinants RtLmp5minPrc s, i – 5-minute RTBM Locational Marginal Price at Settlement Location s RtBillMtr5minQty a, s, i – 5-minute Billable Meter Quantity at Settlement Location s for Asset Owner a DaClrdHrlyQty a, s, h – hourly DA Market Cleared Quantity at Settlement Location s for Asset Owner a RtEnFinHrlyQty a, s, h, t – hourly RTBM bilateral transaction t at Settlement Location s for Asset Owner a represented by Financial Schedules which resolve to Resource or load assets

35 SPP.org 35 Real-Time Non-Asset Energy RtNEnergy5minAmt a, s, i = RtLmp5minPrc s, i * [  t RtImpExp5minQty a, s, i, t -  t DaImpExp5minQty a, s, i, t -  t RtNEnFinHrlyQty a, s, h, t ] / 12 Settlement of the net RTBM incremental energy position at locations other than an Asset Owner’s Resources and load (i.e. interfaces) Calculated in 5-minute intervals at each Settlement Location where an Asset Owner has Determinants Input Bill Determinants RtLmp5minPrc s, i – 5-minute RTBM Locational Marginal Price at Settlement Location s RtImpExp5minQty a, s, I, t – 5-minute RTBM Cleared Import / Export transaction t Quantity at Settlement Location s for Asset Owner a DaImpExp5minQty a, s, I, t – 5-minute DA Market Cleared Import / Export transaction t Quantity at Settlement Location s for Asset Owner a RtNEnFinHrlyQty a, s, h, t – hourly RTBM bilateral transaction t at Settlement Location s for Asset Owner a represented by Financial Schedules which do not resolve to Resource or load assets

36 SPP.org 36 Real-Time Virtual Energy RtVEnergy5minAmt a, s, i = RtLmp5minPrc s, i *  t DaClrdVHrlyQty a, s, h, t /12 * (-1) Settlement of the net RTBM energy position of an Asset Owner’s Cleared Virtual Bids and Offers Calculated in 5-minute intervals at each Settlement Location where an Asset Owner Clears a Virtual Bid or Offer Input Bill Determinants RtLmp5minPrc s, i – 5-minute RTBM Locational Marginal Price at Settlement Location s DaClrdVHrlyQty a, s, h, t – hourly DA Market Cleared Virtual Bid / Offer transaction t Quantity at Settlement Location s for Asset Owner a

37 SPP.org 37 Real-Time Regulation-Up RtRegUp5minAmt a, s, i = RtRegUpMcp5minPrc z, s, i * ( RtRegUp5minQty a, s, i - DaRegUpHrlyQty a, s, h ) / 12 * (-1) Settlement of RTBM incremental Cleared Regulation-Up at an Asset Owner’s Resources Calculated hourly at each Resource Settlement Location Clearing Regulation-Up Input Bill Determinants RtRegUpMcp5minPrc z, s, i – 5-minute RTBM Clearing Price for Regulation-Up in Reserve Zone z at Settlement Location s RtRegUp5minQty a, s, i – 5-minute RTBM Cleared Regulation-Up capacity at Settlement Location s for Asset Owner a DaRegUpHrlyQty a, s, h – hourly DA Market Cleared Regulation-Up capacity at Settlement Location s for Asset Owner a

38 SPP.org 38 Real-Time Regulation-Down RtRegDn5minAmt a, s, i = RtRegDnMcp5minPrc z, s, i * ( RtRegDn5minQty a, s, i - DaRegDnHrlyQty a, s, h ) / 12 * (-1) Settlement of RTBM incremental Cleared Regulation-Down at an Asset Owner’s Resources Calculated hourly at each Resource Settlement Location Clearing Regulation-Down Input Bill Determinants RtRegDnMcp5minPrc z, s, i – 5-minute RTBM Clearing Price for Regulation-Down in Reserve Zone z at Settlement Location s RtRegDn5minQty a, s, i – 5-minute RTBM Cleared Regulation-Down capacity at Settlement Location s for Asset Owner a DaRegDnHrlyQty a, s, h – hourly DA Market Cleared Regulation-Down capacity at Settlement Location s for Asset Owner a

39 SPP.org 39 Real-Time Spinning Reserve RtSpin5minAmt a, s, i = RtSpinMcp5minPrc z, s, i * ( RtSpin5minQty a, s, i - DaSpinHrlyQty a, s, h ) / 12 * (-1) Settlement of RTBM incremental Cleared Spinning Reserve at an Asset Owner’s Resources Calculated hourly at each Resource Settlement Location Clearing Spinning Reserve Input Bill Determinants RtSpinMcp5minPrc z, s, i – 5-minute RTBM Clearing Price for Spinning Reserve in Reserve Zone z at Settlement Location s RtSpin5minQty a, s, i – 5-minute RTBM Cleared Spinning Reserve capacity at Settlement Location s for Asset Owner a DaSpinHrlyQty a, s, h – hourly DA Market Cleared Spinning Reserve capacity at Settlement Location s for Asset Owner a

40 SPP.org 40 Real-Time Supplemental Reserve RtRegUp5minAmt a, s, i = RtSuppMcp5minPrc z, s, i * ( RtSupp5minQty a, s, i - DaSuppHrlyQty a, s, h ) / 12 * (-1) Settlement of RTBM incremental Cleared Supplemental Reserve at an Asset Owner’s Resources Calculated hourly at each Resource Settlement Location Clearing Supplemental Reserve Input Bill Determinants RtSuppMcp5minPrc z, s, i – 5-minute RTBM Clearing Price for Supplemental Reserve in Reserve Zone z at Settlement Location s RtSupp5minQty a, s, i – 5-minute RTBM Cleared Supplemental Reserve capacity at Settlement Location s for Asset Owner a DaSuppHrlyQty a, s, h – hourly DA Market Cleared Supplemental Reserve capacity at Settlement Location s for Asset Owner a

41 SPP.org 41 Real-Time Regulation-Up Distribution RtRegUpDistHrlyAmt a, s, h = RtRegUpSppHrlyAmt h * RtLoadRatioShareHrlyFct a, s, h * (-1) Cost Allocation of RTBM incremental settlement of Regulation-Up by Load Ratio Share Calculated hourly for each Settlement Location with positive Billable Meter data (load) or Exports Input Bill Determinants RtRegUpSppHrlyAmt h – hourly aggregation of 5-minute RTBM incremental settlement of Regulation-Up for all Asset Owners RtLoadRatioShareHrlyFct a, s, h – hourly positive value of the aggregation 5-minute Billable Meter data and Exports for Asset Owner a in Reserve Zone z divided by the footprint total + & - values within the hour net before aggregation Exports for Reserve Sharing Events are excluded

42 SPP.org 42 Real-Time Regulation-Down Distribution RtRegDnDistHrlyAmt a, s, h = RtRegDnSppHrlyAmt h * RtLoadRatioShareHrlyFct a, s, h * (-1) Cost Allocation of RTBM incremental settlement of Regulation-Down by Load Ratio Share Calculated hourly for each Settlement Location with positive Billable Meter data (load) or Exports Input Bill Determinants RtRegDnSppHrlyAmt h – hourly aggregation of 5-minute RTBM incremental settlement of Regulation-Down for all Asset Owners RtLoadRatioShareHrlyFct a, s, h – hourly positive value of the aggregation 5-minute Billable Meter data and Exports for Asset Owner a in Reserve Zone z divided by the footprint total + & - values within the hour net before aggregation Exports for Reserve Sharing Events are excluded

43 SPP.org 43 Real-Time Spinning Reserve Distribution RtSpinDistHrlyAmt a, s, h = RtSpinSppHrlyAmt h * RtLoadRatioShareHrlyFct a, s, h * (-1) Cost Allocation of RTBM incremental settlement of Spinning Reserve by Load Ratio Share Calculated hourly for each Settlement Location with positive Billable Meter data (load) or Exports Input Bill Determinants RtSpinSppHrlyAmt h – hourly aggregation of 5-minute RTBM incremental settlement of Spinning Reserve for all Asset Owners RtLoadRatioShareHrlyFct a, s, h – hourly positive value of the aggregation 5-minute Billable Meter data and Exports for Asset Owner a in Reserve Zone z divided by the footprint total + & - values within the hour net before aggregation Exports for Reserve Sharing Events are excluded

44 SPP.org 44 Real-Time Supplemental Reserve Distribution RtSuppDistHrlyAmt a, s, h = RtSuppSppHrlyAmt h * RtLoadRatioShareHrlyFct a, s, h * (-1) Cost Allocation of RTBM incremental settlement of Supplemental Reserve by Load Ratio Share Calculated hourly for each Settlement Location with positive Billable Meter data (load) or Exports Input Bill Determinants RtSuppSppHrlyAmt h – hourly aggregation of 5-minute RTBM incremental settlement of Supplemental Reserve for all Asset Owners RtLoadRatioShareHrlyFct a, s, h – hourly positive value of the aggregation 5-minute Billable Meter data and Exports for Asset Owner a in Reserve Zone z divided by the footprint total + & - values within the hour net before aggregation Exports for Reserve Sharing Events are excluded

45 SPP.org 45 RUC Make-Whole-Payment RtMwpCpAmt a, s, c = ( CncldStartAmt a, s, c + Max (0, (  i ( { ( IF ( CncldStartRatio a, s, c = 0, THEN 1, ELSE 0) } * { RtStartUpElig5minFlg a, s, i, c * RtStartUp5minAmt a, s, i, c + RtRucComStat5minFlg a, s, i, c * [ RtMwpCost5minAmt a, s, i, c + RtTransition5minAmt a, s, i, c + RtMwpRev5minAmt a, s, i, c + RtOom5minAmt a, s, i + RtRegAdj5minAmt a, s, i – RtURDAdj5minAmt a, s, i, c – RtStatusAdj5minAmt a, s, i, c – RtLimitAdj5minAmt a, s, i, c ] } ) ) ) * (-1) Revenue Guarantee to Resources Committed economically in the RTBM Calculated for the contiguous “Market” status intervals of a Commitment Period within a single Operating Day for Resources committed by SPP in the RTBM

46 SPP.org 46 RUC Make-Whole-Payment (cont’d) Input Bill Determinants CncldStartAmt a, s, c – prorated start-up due to cancellation, subject to eligibility RtStartUp5minAmt a, s, i, c – subject to eligibility (RtStartUpElig5minFlg) RtMwpCost5minAmt a, s, i, c – 5-minute interval recurring production cost for Asset Owner a’s Resource at Settlement Location s based on the Offer parameters effective at the time of the DA Market Commitment c No-Load Minimum Energy Cost (area under the As-Offered Offer curve between 0 & the applicable minimum limit) Incremental Energy (area under the as dispatched Offer curve between the applicable minimum limit and metered output) Availability Cost for each of the Operating Reserve products Cleared RtTransition5minAmt a, s, i, c – Cost associated with a Combined Cycle Resource moving into a higher configuration RtMwpRev5minAmt a, s, i, c – 5-minute interval revenue for Asset Owner a’s Resource at Settlement Location s during RUC Commitment c RTBM incremental Energy (absent Financial Schedules) & the value of each of the incremental Operating Reserve product capacities cleared in the RTBM RtOom5minAmt a, s, i & RtRegAdj5minAmt a, s, i – adjustments to Resource revenue for Out-of-Merit dispatch and Regulation deployment RtURDAdj5minAmt a, s, i, c, RtStatusAdj5minAmt a, s, i, c & RtLimitAdj5minAmt a, s, i, c – clawback of cost components to prevent recovery during periods of ‘deviant’ behavior

47 SPP.org 47 RUC Make-Whole-Payment Distribution RtMwpDistHrlyAmt a, s, h = RtMwpSppDistRate d * RtDevHrlyQty a, s, h Cost Allocation of Make Whole Payment for Resources Committed in RUC to an Asset Owner’s RTBM ‘deviations’ Calculated hourly for each Settlement Location where an Asset Owner has deviation quantities Input Bill Determinants RtMwpSppDistRate d – daily rate achieved by dividing the total of all RUC Make Whole Payments for the Operating Day by the sum of all hourly Cost Allocation Determinants over the Operating day RtDevHrlyQty a, s, h – hourly ‘deviations’ at each Settlement Location s for Asset Owner a 1.Incremental load, Virtual Bid / Offer and Import / Export & through transaction quantities 2.The quantity change when a Resource raises it minimum limit 3.The quantity change when a Resource lowers it maximum limit 4.The quantity cleared in DA Market when a Resource cleared DA, but is off-line in RTBM 5.The difference between metered output and the optimal output based on LMP when a Resource is on Manual status 6.The difference between metered output and the DA market cleared quantity when a Resource self commits in RTBM 7.The optimal output based on LMP when a Resource is committed in RUC but are off-line in RTBM 8.The URD quantity when the Resource is beyond it operating tolerance

48 SPP.org 48 Real-Time Over-Collected Losses Distribution RtOclDistHrlyAmt a, s, lp, h = RtNormLossRbtHrlyFct a, s, lp, h * RtIncrOclHrlyAmt h * (-1) Rebate of surplus collected as a result of the marginal pricing of losses Calculated hourly for each Settlement Location where an Asset Owner has an incremental RTBM energy position due to the net of all Resource or load activity, Financial Schedules and Interchange Transactions – excludes Virtual Bids and Offers Approach groups Settlement Locations into Loss Pools, which are dynamically defined as all of each AO’s transactional activity regardless of the SL. Transactions by multiple AO’s at a common SL will be included in separate Loss Pools Input Bill Determinants RtNormLossRbtHrlyFct a, s, lp, h – hourly factor for Asset Owner a’s net withdrawal at Settlement Location s in Loss Pool lp valued by the difference between the local MLC and that of the “source” of the service Positive loss factors (payment for losses) are normalized “source” of the service is determined by assuming that generation in a Loss Pool first serves withdrawal in the Loss Pool, then is used to satisfy withdrawal outside the Loss Pool to the extent available RtOclHrlyAmt h – hourly over collection for the footprint Achieved by summing the product of the (MEC and MLC) with (RTBM incremental injection & withdrawal) over all Settlement Locations and netting off the value of SPP net Inadvertent

49 SPP.org 49 Revenue Neutrality Uplift Distribution RtRnuHrlyAmt a, s, h = RtRnuSppDistRate d * RtRnuDistHrlyQty a, s, h * (-1) Uplift of the imbalance from all other settlement charge types Calculated hourly for each Settlement Location where an Asset Owner has a RTBM load or generation, Interchange or Virtual Bids & Offers. Imbalance is categorized as: Day Ahead Market Revenue Inadequacy RTBM Revenue Inadequacy Out-of-Merit Energy settlement Regulation Deployment Adjustment settlement Joint Operating Agreement settlement Net Inadvertent RTBM Congestion Input Bill Determinants RtRnuSppDistRate d – daily rate = the sum of all imbalance divided by the sum of all uplift determinants RtRnuDistHrlyQty a, s, h – hourly uplift determinants for Asset Owner a at Settlement Location s

50 SPP.org 50 Real-Time Regulation Non-Performance RtRegNonPerf5minAmt a, s, i = Max ( 0, ( DaRegUpHrlyQty a, s, h * DaRegUpMcpHrlyPrc z, s, h + ( RtRegUp5minQty a, s, i - DaRegUpHrlyQty a, s, h ) * RtRegUpMcp5minPrc z, s, i ) / 12 + ( DaRegDnHrlyQty a, s, h * DaRegDnMcpHrlyPrc z, s, h + ( RtRegDn5minQty a, s, i - DaRegDnHrlyQty a, s, h ) * RtRegDnMcp5minPrc z, s, i ) / 12) Clawback of Regulation Revenue Calculated hourly for each Resource outside its Operating Tolerance when it has cleared Regulation-Up or Regulation-Down in RTBM Input Bill Determinants DaRegUpHrlyQty a, s, h, DaRegDnHrlyQty a, s, h, RtRegUp5minQty a, s, i, RtRegDn5minQty a, s, i – hourly and 5- minute cleared Regulation quantities for Asset Owner a at Settlement Location s DaRegUpMcpHrlyPrc z, s, h, DaRegDnMcpHrlyPrc z, s, h, RtRegUpMcp5minPrc z, s, i, RtRegDnMcp5minPrc a, s, i – hourly and 5-minute Regulation clearing prices for Reserve Zone z at Settlement Location s

51 SPP.org 51 Real-Time Contingency Reserve Deployment Failure RtCRDeplFailAmt a, s, i = RtCRSLShortfallQty a, s, i * ABS ( RtLmp5minPrc s, i ) Penalty for failing to provide Contingency Reserve when deployed Calculated for each Resource not meeting the deployment instruction during a Contingency Reserve Event The criteria for ‘meeting’ the deployment instruction is a 4 step evaluation Was the Resource above its ramped Set Point at the end of the deployment period? Was the Resource above its stepped Set Point at the end of the deployment period? Did the Resource move more than the change between its ramped Set Point at the beginning and end of the deployment period? Did the Resource move more than the change between its stepped Set Point at the beginning and end of the deployment period? If the Resource is modeled as a part of a Common Bus its performance is evaluated in aggregate with the other resources in the group The penalty is the LMP at the end of the event - not scaled to the duration of the event Input Bill Determinants RtLmp5minPrc s, i – 5-minute LMP at Settlement Location s RtCRSLShortfallQty a, s, i – 5-minute shortfall (the minimum as evaluated by the 4 tests) for Asset Owner a at Settlement Location s

52 SPP.org 52 Real-Time Regulation Deployment Adjustment RtRegAdj5minAmt a, s, i = RtRegUpAdj5minAmt a, s, i + RtRegDnAdj5minAmt a, s, i Adjustment to Resource revenue for the combined impact of Energy and Regulation deployment Calculated in each 5-minute interval a Resource has “Regulating” control status Input Bill Determinants RtRegUpAdj5minAmt a, s, i – 5-minute Regulation Up adjustment for Asset Owner a at Settlement Location s The deployed quantity * the difference (+ or -) between LMP and offer cost rate RtRegDnAdj5minAmt a, s, i - 5-minute Regulation Down adjustment for Asset Owner a at Settlement Location s The deployed quantity * the difference (+ or -) between LMP and offer cost rate

53 SPP.org 53 Real-Time Regulation Out-Of-Merit RtOom5minAmt a, s, i = RtOom5minFlg a, s, i * ( RtOomeIncr5minAmt a, s, i + RtOomeDecr5minAmt a, s, i + RtOomor5minAmt ) * (-1) Adjustment to compensate Resources for additional cost incurred as a result of being manually dispatched away from the optimal point Calculated in each interval for each Resource receiving an OOM instruction Input Bill Determinants RtOom5minFlg a, s, i – 5-minute Out-Of-Merit flag for asset Owner a at Settlement Location s RtOomeIncr5minAmt a, s, i – 5-minute upward instruction credit for Asset Owner a at Settlement Location s Resource compensated for additional cost incurred RtOomeDeccr5minAmt a, s, i - 5-minute downward instruction credit for Asset Owner a at Settlement Location s Resource made whole to its DA Market position RtOomor5minAmt a, s, i - 5-minute downward Operating Reserve clearing credit for Asset Owner a at Settlement Location s Resource made whole to its DA Market position for Operating Reserve Products

54 SPP.org 54 Real-Time Joint Operating Agreement RtJoaHrlyAmt a, h, f = Payment for price coordination of a co-managed reciprocal flowgate Calculated hourly for each flowgate as a function of its shadow price and the relief provided for the constraint. Payments to and from other RTOs Input Bill Determinants Not yet defined

55 SPP.org 55 Real-Time Reserve Sharing Group RtRsg5minAmt a, i, t = Settlement for response to a Contingency Reserve Event A charge to an RSG member and payment to SPP when SPP responds to an event outside the footprint A credit to an RSG member and payment from SPP for outside response to an event in SPP Input Bill Determinants Not yet defined

56 SPP.org 56 Real-Time Regulation Non-Performance Distribution RtRegNonPerfDistHrlyAmt a, s, h = RtRegNonPerfSppHrlyAmt h * RtLoadRatioShareHrlyFct a, s, h * (-1) Cost Allocation of penalties collected for Regulation Non-Performance Calculated hourly for each Settlement Location with positive Billable Meter data (load) or Exports Input Bill Determinants RtRegNonPerfSppHrlyAmt h – total hourly regulation Non-Performance penalty for all Asset Owners RtLoadRatioShareHrlyFct a, s, h – hourly Load Ratio Share for Asset Owner a at Settlement Location s

57 SPP.org 57 Real-Time Contingency Reserve Deployment Failure Distribution RtCRDeplFailDistHrlyAmt a, s, h = RtCRDeplFailSppHrlyAmt h * RtLoadRatioShareHrlyFct a, s, h * (-1) Cost Allocation of penalties collected for Contingency Reserve Failure Calculated hourly for each Settlement Location with positive Billable Meter data (load) or Exports Input Bill Determinants RtCRDeplFailSppHrlyAmt h – total hourly Contingency Reserve Deployment Failure penalty for all Asset Owners RtLoadRatioShareHrlyFct a, s, h – hourly Load Ratio Share for Asset Owner a at Settlement Location s

58 SPP.org 58 Real-Time Reserve Sharing Group Distribution RtRsgDistHrlyAmt a, s, h = RtRsgSppHrlyAmt h * RtLoadRatioShareHrlyFct a, s, h * (-1) Cost Allocation of settlement for Reserve Sharing Group events Calculated hourly for each Settlement Location with positive Billable Meter data (load) or Exports Input Bill Determinants RtRsgSppHrlyAmt h – total hourly Reserve Sharing Group settlement for all Asset Owners RtLoadRatioShareHrlyFct a, s, h – hourly Load Ratio Share for Asset Owner a at Settlement Location s

59 SPP.org 59 Miscellaneous MiscDlyAmt a, c, s, rnu, d Assignment of an amount calculated outside the system Utilized primarily for dispute resolution when the magnitude or quantity does not warrant a Resettlement of the Operating Day – threshold defined in the protocols Carries attribute which specify the charge type & settlement location associated with the adjustment Input Bill Determinants none

60 SPP.org 60 Documentation available Future Market Protocols Settlement formulae written as pseudo-code Exceptions and conditional rules described in language Appendix F provides settlement examples Charge Type examples workbook Based on a mini-market model Live calculations which respond to changing input End to end formulae Settlement User Group training Detailed examples in a variety of scenarios Quizzes and tests with answer keys


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