Business Requirements Specification
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1 Business Requirements Specification Commitment Cost Enhancements Date Created: 10/17/2014 Page 1 of 8
2 Disclaimer All information contained in this draft Business Requirements Specification (BRS) as provided by the California Independent System Operator Corporation (ISO) is prepared for discussion and information purposes only. The draft BRS is provided as is without representation or warranty of any kind, including, without limitation, a representation or warranty as to accuracy, completeness, or appropriateness for any particular purpose. The draft BRS shall be revised as the development and review of the business requirements progresses. The ISO assumes no responsibility for the consequences of any errors or omissions. The ISO may revise or withdraw all or part of this information at any time at its discretion without notice. Page 2 of 8
3 Table of Contents 1. INTRODUCTION PURPOSE DETAILS OF BUSINESS NEED/PROBLEM DESCRIPTION BUSINESS PROCESS IMPACTS HIGH LEVEL BUSINESS PROCESS Description JUSTIFICATION BUSINESS REQUIREMENTS BUSINESS PROCESS: MANAGE DAY-AHEAD MARKET AND REAL-TIME OPERATIONS SUPPORT Business Requirements Introduction 1.1 Purpose The purpose of this document is to capture and record a description of what the Users and Business Stakeholders of the project wish to obtain by providing high-level business requirements. This document establishes the basis for the agreement between the initiators and implementers of the project. The information in this document serves as input to determining the scope of Information Systems projects and to all Business Process Modeling and System Requirements Specifications efforts. These requirements will serve as the initial set of business unit requirements for the appropriate software application/systems development effort. It is understood that additional requirements and systems analysis may produce To Be Business Process Models, System Requirements Specifications, and Use Cases to serve as the set of requirements documents used by the development teams to buy, modify, or build the necessary software and hardware systems. The Business Unit(s) involved in the project will have an opportunity to review and approve all requirements documentation produced. Page 3 of 8
4 2. Details of Business Need/Problem 2.1 Description Commitment Cost enhancement is a policy related initiative that includes the following items: a) Increase the Proxy Cost option cap from 100% to 125% b) Elimination of the Registered Cost option for all resources except for use-limited resources c) Develop a process for revising gas prices used in various costs in the Day Ahead market in the event of a price spike. 3. Business Process Impacts 3.1 High Level Business Process Description Manage Day-Ahead Market and Real-Time Operations Support. 3.2 Justification This project is supporting the Commitment Cost Enhancement Policy. 4. Business Requirements The sections below describe the Business Processes and the associated Business Requirements involved in the project. These may represent high level functional, non-functional, reporting and/or infrastructure requirements. These business requirements directly relate to the high level scope items determined for the project. 4.1 Business Process: Manage Day-Ahead Market and Real-Time Operations Support Business Requirements Page 4 of 8
5 ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ001 Market Validation and Quality Analysis (MVQA) shall monitor for trends of price behavior that might lead to a price spike event. A Price Spike Event occurs if either of the daily gas prices reported by ICE on the morning of the Day-Ahead market for TD is greater than 125% of the corresponding last published TD-2 gas price index. The two gas prices indices are Socal-Citygate and PG&E-Citygate. BRQ002 MVQS shall notify the Day-Ahead Operators by 10 am if a Price Spike Event is anticipated at which point the ISO shall send one or more Market Notification System notices to notify Market Participants that a Price Spike Event is anticipated. Market Notification System BRQ003 MVQS shall notify the Day-Ahead Operators by 12:00 p.m. if a Price Spike Event has been triggered. BRQ004 Day-Ahead Operators shall put the Day-Ahead Market close on hold only if (a) MVQS sends a notification by 10 a.m. that a Price Spike Event is anticipated, or (b) MVQS sends a notification by 12 p.m. that a Price Spike Event has been triggered. BRQ005 If Day-Ahead Operators put the market on hold by 10 a.m. due to a notification that a Price Spike Event is anticipated, the hold shall be removed if (a) MVQS does not send notification by 12 p.m. that a Price Spike Event has been triggered, or (b) MVQS sends notification by 12 p.m. that a Price Spike Event will not be triggered. Page 5 of 8
6 ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ006 Potomac Economics shall monitor for Price Spike Event by identifying a change in either of the two ICE price indices on the morning of the Day-Ahead market that exceeds 125% of the corresponding last published TD-2 gas price index. The two gas prices indices are Socal- Citygate and PG&E-Citygate. BRQ007 In the event of a Price Spike, ISO shall notify Potomac Economics of such event and request that DAM file set and the GPI file set be sent, using newly published ICE prices to be used by the DARLCData Service. Potomac Economics shall have a support process (resource contact /alternative contact/ escalation path) in place, to receive and respond to ISO requests identifying a gas price spike event. BRQ008 In the event of a Price Spike, Potomac Economics shall recalculate the Default Energy Bids using the newly published ICE prices. BRQ009 In the event of a Price Spike, Potomac Economics shall send the entire DAM file set and the GPI file set using newly published ICE prices, no later than minutes after receiving request from ISO. The data received shall include: RLC 1) Day-Ahead Gas Price Index (new) 2) Day-Ahead Energy Price Index 3) Day-Ahead Green House Gas (GHG) Price Index 4) Day-Ahead Default Bids: a) Energy Bid curves for Generators b) Energy Bid curves for Interties / NRS- RA resources c) Min Load for RMR resources d) Startup Cost for RMR resources e) Day-Ahead MMAs f) Day-Ahead GHG Adders Page 6 of 8
7 ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ010 Critical Systems shall monitor for files to be received from Potomac Economics between 10 am and 12 pm and shall send notification to DAM Operators in the event that files are not received by 12 pm. BRQ021 In the event of a Price Spike, Critical Systems shall be capable of consuming the DARLCData Service and overriding existing Default Energy Bids and Gas Price Index used in and the market. IFM BRQ011 In the event of a Price Spike, shall change the bid status and force revalidation on already submitted and previously validated bids. BRQ012 In the event of a Price Spike, CMRI shall publish the updated Default Energy Bids. CMRI BRQ013 In the event of a Price Spike, MVQS shall receive a notification (i.e. ) from PSTD with the new prices to be used in the Day- Ahead Market as consumed by. BRQ014 In the event of a Price Spike, if the proxy price is higher than registered price, use-limited resources on the Registered Cost option shall be moved to Proxy Cost in. The resources shall continue to be switched to Proxy Cost until the registered price is higher than the proxy price. BRQ015 In the event of a Price Spike, the ISO shall send one or more Market Notification System notices to notify Market Participants of the Price Spike event and an update to the new Day- Ahead market timeline. Market Notification System Page 7 of 8
8 ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ016 In the event of a Price Spike, Market Participants shall be allowed to resubmit their Day-Ahead bids for impacted market day until DAM operators request bidding process to be closed by Critical Systems. BRQ017 Market Instruments section in BPM shall be updated to handle a gas price spike event for a given market day, as defined in BRQ001. BRQ018 A Desktop process shall be created to handle a gas price spike event for a given market day, as defined in BRQ001. BRQ019 rule and shall be updated to incorporate proxy price cap being increased to 125%. BRQ020 Non use-limited resources shall be forced to be on Proxy Cost and shall no longer be allowed to be on Registered Cost. Master File Page 8 of 8
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