Charge Type Overview

April 2015

• Energy Charge Types

• Operating Reserves Charge Types

• Over-Collected Losses (OCL) Charge Types

• Make Whole Payment Charge Types

• Demand Response Charge Types

• Other Charge Types

• ARR / TCR Charge Types

• Revenue Neutrality Uplift

• Grandfathered Agreement Charge Types

• Pseudo-Tie Charge Types

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Contents

ENERGY CHARGE TYPES

Section 1

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Day-Ahead Charge Types

Energy calculations 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.

Real-Time Charge Types

Energy calculations are performed on a dispatch interval basis for each operating day and are based upon the difference between the results of the RTBM process and the DA Market clearing for that Operating Day.

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Energy Charge Types

• Day-Ahead Asset Energy• Day-Ahead Non-Asset Energy• Day-Ahead Virtual Energy

• Real-Time Asset Energy• Real-Time Non-Asset Energy• Real-Time Virtual Energy

Energy Charge Types

Credit or charge for net physical Energy activity associated with Load and Resources, adjusted for Bilateral Settlement Schedules for Energy

Day-Ahead Asset Energy: DaEnergyHrlyAmt a,s,h

Real-Time Asset Energy: RtEnergy5minAmt a,s,i

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Energy Charge Types: Asset Energy

DA LMP DA Cleared Qty DA Bilaterals

RT LMP DA Cleared Qty RT BilateralsRT Meter Qty

Credit or charge for net physical Energy activity associated with Interchange Transactions, adjusted for Bilateral Settlement Schedules for Energy

Day-Ahead Non-Asset Energy: DaNEnergyHrlyAmt a,s,h

Real-Time Non-Asset Energy: RtNEnergy5minAmt a,s,i

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Energy Charge Types: Non-Asset Energy

DA LMP DA Imp/Exp Qty DA Bilaterals

RT LMP DA Imp/Exp Qty RT BilateralsRT Imp/Exp Qty

Credit or charge for net virtual Energy activity associated with cleared virtual transactions

Day-Ahead Virtual Energy: DaVEnergyHrlyAmt a,s,h

Real-Time Virtual Energy: RtVEnergy5minAmt a,s,i

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Energy Charge Types: Virtual Energy

DA LMP DA Cleared Virtual Qty

RT LMP DA Cleared Virtual Qty

OPERATING RESERVE CHARGE TYPES

Section 2

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Operating Reserves Charge Types

• Day-Ahead Regulation-Up• Day-Ahead Regulation-Down• Day-Ahead Spinning Reserves• Day-Ahead Supplemental Reserves

• Real-Time Regulation-Up• Real-Time Regulation-Down• Real-Time Spinning Reserves• Real-Time Supplemental Reserves

Operating Reserves Charge Types

• Day-Ahead Regulation-Up Distribution• Day-Ahead Regulation-Down Distribution• Day-Ahead Spinning Reserves Distribution• Day-Ahead Supplemental Reserves Distribution

• Real-Time Regulation-Up Distribution• Real-Time Regulation-Down Distribution• Real-Time Spinning Reserves Distribution• Real-Time Supplemental Reserves Distribution

Operating Reserves help to ensure reliability within the market.• Regulation-Up/Down maintain the balance between load and generation• Spinning/Supplemental must be available in the event of an outage

The Operating Reserve Charge Types include the payments for procurement of Operating Reserves as well as the distribution of those costs.

Credit (or charge) for cleared operating reserve products (RegUp, RegDn, Spin, Supp) in the DA Market or RTBM

Day-Ahead Operating Reserves: DaProductHrlyAmt a,s,h

Real-Time Operating Reserves: RtProduct5minAmt a,s,i

Real-Time Regulation Up/Dn also subtracts deviations between Expected Regulation Up/Dn Mileage and the Actual Regulation Up/Dn Mileage.

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Operating Reserves: Procurement

DA MCPDA ProductCleared Qty

-1

-1RT MCPRT Product Cleared Qty

DA Product Cleared Qty

SRZN

SRZN

Charge (or credit) representing an Asset Owners share of the total cost to procure operating reserve products (RegUp, RegDn, Spin, Supp) in a reserve zone in the DA Market or RTBM

DA Operating Reserve Distribution: DaProductDistHrlyAmt a,z,h

RT Operating Reserve Distribution: RtProductDistHrlyAmt a,s,h

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Operating Reserves: Distribution

DA Product Zonal Distribution Rate

AO’s DA ProductZonal Obligation

RT SPP ProductHourly Amount

RT Load Ratio Share Hourly Factor

-1

OVER-COLLECTED LOSSES (OCL)CHARGE TYPES

Section 3

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Over-Collected Losses (OCL) Charge Type

• Day-Ahead Asset Energy• Day-Ahead Non-Asset Energy• Day-Ahead Virtual Energy

• Real-Time Asset Energy• Real-Time Non-Asset Energy• Real-Time Virtual Energy

Energy Charge Types

OCL Distribution Charge Type

• Real-Time Over-CollectedLosses Distribution

Over-Collected Losses

The Marginal Losses Component (MLC) of the DA and RT LMP paid for Energy results from the economic market solution which considers the cost of marginal losses, congestion costs and incremental Energy costs. This creates an over collection related to payment for losses that must be refunded via the OCL Distribution Charge Type.

Credit (or charge) at Settlement Locations where an Asset Owner has a DA Market Energy or Net RTBM Energy withdrawal that contributed positively to the over collection

Real-Time OCL Distribution: RtOclDistHrlyAmt a,s,lp,h

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OCL Distribution Charge Types

RT Normalized Loss Rebate Factor

DA OCL and RT Incremental OCLAmounts

-1RT Loss Pool Load Ratio Share

MAKE WHOLE PAYMENT CHARGE TYPES

Section 4

15

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Make Whole Payment Charge Types

• Day-Ahead Make Whole Payment

• RUC Make Whole Payment

Make Whole Payment Charge Types

• Day-Ahead Make Whole Payment Distribution

• Real-Time Make Whole Payment Distribution

Day-Ahead and Real-Time Charge Types

Make Whole Payments (MWP) are needed to ensure revenue sufficiency for Resources to cover their eligible costs associated with a Commitment Period. Any Resource that is economically committed by SPP during the DA Market or RTBM is eligible for a MWP.

Credit (or charge) to ensure revenue sufficiency for Resources to cover their eligible costs associated with a DA Commitment Period.

Day-Ahead Make Whole Payment: DaMwpCpAmt a,s,c

DA Make Whole Payment Distribution: DaMwpDistHrlyAmt a,s,h

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Day-Ahead Make Whole Payment

DA MWP Revenue Hourly AmountMax 0,

DA MWP Cost Hourly Amount

-1

DA MWP Distribution Hourly Quantity

DA MWP SPP Distribution Rate

Credit (or charge) to ensure revenue sufficiency for Resources to cover their eligible costs associated with a RUC Commitment Period.

RUC Make Whole Payment: RtMwpCpAmt a,s,c

Production Costs Revenue Adjustments

RUC Make Whole Payment Distribution: RtMwpDistHrlyAmt a,s,h

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RUC Make Whole Payment

RT DeviationHourly Quantity

RT MWP SPPDistribution Rate

RT Cancelled Start Amount or Rt Start-Up Cost

RUC MWP Cost

RUC MWP Revenue

RT Out-of-Merit

RT Regulation Deployment Adjustment

URD Adjustment

Status Change Adjustment

Limit Change Adjustment

-1

Credit (or charge) will be calculated at each Settlement Location for each Asset Owner for each Dispatch Interval when that Asset Owner is charged for Unused Regulation-Up/Dn Mileage at a rate that is in excess of the Asset Owner’s Regulation-Up/Dn Mileage Offer to the extent the Resource’s Regulation-Up/DnService margin is not sufficient to offset the charge induced by the difference of the two rates.

Unused Reg-Up Mileage MWP: RegUpUnusedMileMwp5minAmt a,s,i

Unused Reg-Down Mileage MWP: RegDnUnusedMileMwp5minAmt a,s,i

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Unused Regulation Mileage MWP

Day-Ahead Regulation Unused Mile MWP Amount

Real Time Regulation Unused Mile MWP Amount

Unused Regulation Mileage MWP Charges

Unused Regulation Mileage MWP Amount

DEMAND RESPONSECHARGE TYPES

Section 5

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Demand Response Charge Types (MPRR 77)

• Day-Ahead DemandReduction

• Real-Time DemandReduction

Demand Response Charge Types

• Day-Ahead DemandReduction Distribution

• Real-Time DemandReduction Distribution

Day-Ahead and Real-Time Charge Types

The Demand Response Charge Types were added as a result of FERC Order 745. The purpose of these charge types is to provide host load demand reduction credits and to allocate the costs associated with payment to Demand Response Resources to those MPs that benefited from the DRR output.

Credit (or charge) required in order to remove the settlement impact of grossing up the host load by the amount of associated Demand Response Resource output.

Day-Ahead Demand Reduction: DaDRHrlyAmt a,s,h

Real-Time Demand Reduction: RtDR5minAmt a,s,i

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Demand Response: Credits

DA Load Gross-Up Qty

DA LMP -1

-1RT Load Gross-Up Qty

DA Load Gross-Up Qty

RT LMP

Charge (or credit) calculated for each AO for each hour for each RZN in which a Demand Response Resource was cleared in order to fund the credits paid for Demand Response Reduction.

Day-Ahead Demand Reduction Distribution: DaDRDistHrlyAmt a,z,h

Real-Time Demand Reduction Distribution: RtDRDistHrlyAmt a,z,h

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Demand Response: Distribution

DA Demand Response RZN Load Qty

DA Demand Response RZN Distribution Rate

RT Demand Response RZN Load Qty

RT Demand Response RZN Distribution Rate

OTHERCHARGE TYPES

Section 6

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Other Charge Types

• Real-Time Regulation Non-Performance• Real-Time Contingency Reserve

Deployment Failure• Real-Time Reserve Sharing Group (TBD)

Other Charge Types (w/ Distribution)

Grouping of various charge types related to deployment, reserves, fees and other miscellaneous charges:

• Real-Time Regulation Non-Performance Distribution• Real-Time Contingency Reserve Deployment Failure

Distribution• Real-Time Reserve Sharing Group Distribution (TBD)

• Real-Time Regulation Deployment Adjustment• Real-Time Out-Of-Merit• Real-Time Joint Operating Agreement (TBD)• Miscellaneous

Other Charge Types

• Day-Ahead Virtual Transaction Fee

Charge (or credit) for each Dispatch Interval when a Resource with cleared RTBM Reg-Up, Reg-Down, or both operates outside of its Operating Tolerance.

Real-Time Regulation Non-Performance: RtRegNonPerf5minAmt a,s,i

If URD Qty > Operating Tolerance; Reg-Up or Reg-Dn Qty > 0; Deviation Exempt Flag = 0

RT Regulation Non-Performance Distribution: RtRegNonPerfDistHrlyAmt a,s,h

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Real-Time Regulation Non-Performance

RT Regulation Non-Performance SPP Hourly Amount

RT Load Ratio Share Hourly Factor

-1

DA Reg-Up Qty

DA Reg-Up MCP

DA Reg-Up Qty

RT Reg-Up MCP

RT Reg-Up QtyMax 0,

DA Reg-DnQty

DA Reg-DnMCP

DA Reg-DnQty

RT Reg-DnMCP

RT Reg-DnQty

Charge (or credit) assessed following deployment of Contingency Reserve (CR) if the amount specified in the Contingency Reserve Deployment Instruction fails to be provided.

Real-Time Contingency Reserve Deployment Failure: RtCRDDeplFailAmt a,s,i

RT Contingency Reserve Deployment Failure Distribution: RtCRDDeplFailDistHrlyAmt a,s,h

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Real-Time Contingency Reserve Deploy Failure

RT CR Deployment Failure SPP Hourly Amount

RT Load Ratio Share Hourly Factor

-1

RT CR ShortFall Qty ABS RT LMP

Credit or charge for requested assistance provided between Reserve Sharing Groups following a Resource contingency

Real-Time Reserve Sharing Group: RtRsg5minAmt a,i,t

Real-Time Reserve Sharing Group Distribution: RtRsgDistHrlyAmt a,s,h

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Real-Time Reserve Sharing Group

RSG Agreement Calculated Charge or Credit (TBD)

RT RSG SPPHourly Amount

RT Load Ratio Share Hourly Factor

-1

Charge (or credit) for each submitted Virtual Energy Offer and Virtual Energy Bid in the DA Market

Day-Ahead Virtual Energy Transaction Fee: DaVTxnFeeAoAmt a,m,d

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Day-Ahead Virtual Transaction Fee

DA Virtual Transaction Daily Count

DA Virtual Transaction Daily Rate (TBD)

Charge or credit for each Dispatch Interval when a Resource with cleared RTBM Regulation-Up or Regulation-Down is deployed.

Real-Time Regulation Deployment Adjustment: RtRegAdj5minAmt a,s,i

IF = “Regulating”,

THEN WHERE,

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Real-Time Regulation Deployment Adjustment

RT Reg-Up Adjustment

RT Reg-DnAdjustment

Control Status Flag

RT Reg-Up/DnAdjustment

RT Reg-Up/DnDeploy. Qty

RT LMPRT Reg-Up/DnDeploy. Cost Rate

Credit (or charge) to compensate Resources that receive an SPP Manual Dispatch Instruction that cause the Resource to move away from their optimal point.

Real-Time Out-Of-Merit: RtOom5minAmt a,s,i

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Real-Time Out-Of-Merit

RT Out-Of-Merit Incremental Energy

RT Out-Of-Merit Decremental Energy

-1RT Out-Of-Merit Operating Reserve

Credit or charge for RTBM congestion management coordination between SPP and JOA counterparties

Real-Time Joint Operating Agreement: RtJoaHrlyAmt a,h,f

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Real-Time Joint Operating Agreement (TBD)

JOA Calculated Charge or Credit (TBD)

Charge or credit that cannot be handled through standard settlement billing. SPP will post supporting documentation on the Portal no later than the Settlement Statement posting date that includes a Miscellaneous Amount.

Miscellaneous Amount: MiscDlyAmt a,s,h

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Miscellaneous

Miscellaneous Daily Amount

ARR / TCRCHARGE TYPES

Section 7

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ARR / TCR Charge Types

• TCR Auction Transaction• Auction Revenue Rights

(ARR) Funding

ARR / TCR Charge Types

• ARR Uplift

• ARR MonthlyPayback

• ARR Yearly Payback

• ARR YearlyCloseout

• Transmission CongestionRights (TCR) Funding

• TCRUplift

• TCR MonthlyPayback

• TCR Yearly Payback

• TCR YearlyCloseout

Auction and Day-Ahead Charge Types

The ARR/TCR Charge Types include the charges and credits to ARR (Auction Revenue Rights) holders and TCR (Transmission Congestion Right) holders resulting from the annual and monthly TCR auctions.

TCR Auction charge or credit is calculated for each AO for each TCR instrument purchased or sold in the TCR auctions.

ARR Funding charge or credit is calculated for each AO for each auction and round. ARRs are valued at the price from the annual and monthly TCR auctions during the lifetime of the instrument.

TCR Auction Transaction: TcrAucTxnDlyAmt a,aid,d

ARR Funding: ArrAucTxnDlyAmt a,aid,d

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Auction Charge Types: Funding

TCR Auction Qty

TCR Auction Price

Number of Days in Auction

ARR Auction Qty

TCR Auction Price

Number of Days in Auction

-1

Charge calculated for each AO holding ARRs for each auction and round to the extent that TCR auction revenues collected in each auction and round are not sufficient to fund the ARRs.

Auction Revenue Rights Uplift: ArrUpliftDlyAmt a,aid,d

ABS

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Auction Charge Types: Uplift

ARR Funding per AO

ARR SPP Daily Funding

ARR Under Funding Amount

Credit (or charge) calculated for each AO receiving an ARR Daily Uplift over the month (or year) in order to ensure full funding of ARRs.

ARR Monthly Payback: ArrPaybackMnthlyAmt a,mn

Min ,

ARR Yearly Payback: ArrPaybackYrlyAmt a,yr

Min ,

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Auction Charge Types: Payback

ARF (Auction Revenue Fund)

Monthly Amount

ARR Monthly

Uplift ARR SPP Monthly Uplift

-1

ARR Monthly Uplift

ARF (Auction Revenue Fund) Yearly Amount

ARR Net Yearly Uplift ARR SPP Net Yearly Uplift

-1

ARR Net Yearly Uplift

Annual credit (or charge) calculated for each AO with ARR Nomination Caps to the extent that there are any funds remaining once all credits are paid out.

ARR Yearly Closeout: ArrCloseoutYrlyAmt a,yr

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Auction Charge Types: Closeout

ARF (Auction Revenue Fund) Yearly Amount

ARR SPPYearly Payback-1

ARR SPP Yearly Nomination Cap

ARR Yearly Nomination Cap

TCR Funding is a credit or charge calculated for each TCR instrument held by an AO. TCR instruments are fully funded in each hour.

TCR Uplift is calculated for each AO holding TCRs to the extent that congestion revenues collected are not sufficient to fund the TCRs.

TCR Funding: TcrFundHrlyAmt a,h

TCR Uplift: TcrUpliftDlyAmt a,d

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TCR Charge Types: Funding and Uplift

DA MCC (Source)

TCR Hourly QtyDA MCC

(Sink)

TCR Uplift Ratio per AO

TCR SPP Uplift Ratio

ShortFall Daily Amount

Credit (or charge) calculated for each AO receiving a TCR Daily Uplift over the month (or year) in order to ensure full funding of TCRs.

TCR Monthly Payback: TcrPaybackMnthlyAmt a,mn

Min ,

TCR Yearly Payback: TcrPaybackYrlyAmt a,yr

Min ,

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TCR Charge Types: Payback

ECF (Excess Congestion Fund) Monthly Amount

TCR Monthly Uplift

TCR SPP Monthly Uplift

-1

TCR Monthly Uplift

ECF (Excess Congestion Fund)

Yearly Amount

TCR Net Yearly Uplift TCR SPP Net Yearly Uplift

-1

TCR Net Yearly Uplift

Annual credit (or charge) calculated for each AO with ARR Nomination Caps to the extent that there are any funds remaining once all credits are paid out.

TCR Yearly Closeout: TcrCloseoutYrlyAmt a,yr

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TCR Charge Types: Closeout

ECF (Excess Congestion Fund)

Yearly Amount

TCR SPPYearly Payback-1

ARR SPP Yearly Nomination Cap

ARR Yearly Nomination Cap

REVENUE NEUTRALITYUPLIFT

Section 8

43

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Revenue Neutrality Uplift•

Rea

l-Ti

me

Rev

enu

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eutr

alit

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plif

t D

istr

ibu

tio

nCharge or credit calculated at each SL/AO for each hour in order for SPP to remain revenue neutral.

Real-Time RNU Distribution: RtRnuHrlyAmt a,s,h

RT RNU Distribution Quantity is the sum of the AO’s actual generation, actual load, actual Interchange, DA Market cleared Virtual Offer/Bid for the each hour.

RT RNU SPP Distribution Rate represents the total SPP amount to be uplifted for the day – taking into account all charges and credits in the DA Market, RTBM, and TCR/ARR – divided by the total RT RNU Distribution Quantity for all AOs for the day.

RT RNU SPPDistribution Rate

per Day

RT RNU Distribution Qty

per AO

-1

GRANDFATHERED AGREEMENT CHARGE TYPES

Section 9

45

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Grandfathered Agreement Charges - UpliftExcludes transaction with Grandfathered Agreements from Market Settlement of congestion, losses, and hedging instruments. These charges create uplift to the market.

Day Ahead GFA Carve Out Daily Amount: DaGFAAoAmt a,m,d

Day Ahead GFA Carve Out Monthly Amount: DaGFAAoMnthlyAmt a,m,mn

Day Ahead GFA Carve Out Yearly Amount: DaGFAAoYrlyAmt a,m,mn

DA Energy Cost -1TCR/ARR Credit OCL

-1TCR Monthly

PaybackARR Monthly

Payback

-1TCR Yearly Payback

ARR Yearly Payback

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Grandfathered Agreement Charges - DistributionA RT charge or credit calculated for each Resource or Load, internal to the SPP footprint, that has pseudo-tied out of the SPP Balancing Authority to cover Congestion Charges.

Day Ahead Pseudo-tie Congestion: DaGFACarveOutDistDlyAmt a,s,d

Day Ahead GFA Carve Out Monthly Amount: DaGFACarveOutDistMnthlyAmt a,s,mn

Day Ahead GFA Carve Out Yearly Amount: DaGFACarveOutDistYrlyAmt a,s,yr

GFA Daily Amount

-1GFA RT Load Ratio Share

-1GFA Monthly

AmountGFA RT Load Ratio Share

-1GFA Yearly

AmountGFA RT Load Ratio Share

PSEUDO-TIE CHARGESSection 10

48

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Real-Time Pseudo-Tie CongestionA RT charge or credit will be calculated for each Resource or Load, internal to SPP footprint, that has pseudo-tied out of the SPP Balancing Authority for congestion costs.

RT Pseudo-Tie Congestion Amount: RtPseudoTieCong5minQty a,source,sink,i

RT Meter Quantity

Congestion Price @ Sink

Congestion Price @ Source

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Real-Time Pseudo-Tie LossesA RT charge or credit will be calculated for each Resource or Load, internal to SPP footprint, that has pseudo-tied out of the SPP Balancing Authority for losses.

RT Pseudo-Tie Loss Amount: RtPseudoTieLoss5minQty a,source,sink,i

RT Meter Quantity

Loss Price @ Sink

Loss Price @ Source

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Helpful Links

Settlements Reference Tools – Folder containing helpful Settlements Tools, including Charge Type by Transaction Chart and Integrated Marketplace Dictionary.

LMS Information (Type SUG in search box) –Link to LMS Learning Center for training.

Questions?

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