Exhibit 412: Price Location and Aggregation Relationships Trading Hubs Trading Hubs are defined in the CAISO Tariff Attachment A as follows: aggregation of network Pricing Nodes maintained and calculated by the CAISO for “An settlement and trading purposes posted by the CAISO on its CAISO website.” Trading Hubs, which are a form of an Aggregated Pricing Node, are aggregation points that include all Generation Points of Receipt connected to the associated network nodes. The Trading Hub GDFs describe the distribution pattern of the entire Generation output within the Trading Hub, for each season and time-of-use period (on-peak or off-peak). The CAISO builds the model of Trading Hubs and the associated Hub GDFs. Initially, the Trading Hubs are set up to be the same as the existing congestion zones (e.g., NP15, SP15 and ZP26). CAISO’s In any of the CAISO Markets, Trading Hub prices are weighted averages calculated using the individual Trading Hub member nodal prices weighted by Trading Hub GDFs. The Trading Hubs and the Trading Hub Generation Distribution Factors are maintained in the CAISO software applications. The Trading Hubs and the Trading Hub Generation Distribution Factors will be published to market participants from these sources. Metered Sub-Systems The discussion of MSSs in this BPM is intended to address only issues pertinent to modeling of MSSs in the FNM. Details of other aspects of MSS operation are contained in Section 4.9.1 of the CAISO Tariff and in the BPM for Market Operations. The following principles apply to modeling of Metered Sub-System (MSSs): MSSs, their detailed transmission systems, Generators and Loads are modeled in the FNM. CAISO State Estimator solves for the state of the grid within the MSSs. CAISO forecasts the Load of MSSs. Load forecast of MSS is distributed using Load Distribution Factors (LDFs). MSSs may have multiple interchange points with CAISO (e.g., Silicon Valley Clara).
Exhibit 412: Price Location and Aggregation Relationships Trading Hubs Trading Hubs are defined in the CAISO Tariff Attachment A as follows: “An aggregation of network Pricing Nodes maintained and calculated by the CAISO for settlement and trading purposes posted by the CAISO on its CAISO website.” Trading Hubs, which are a form of an Aggregated Pricing Node, are aggregation points that include all Generation Points of Receipt connected to the associated network nodes. The Trading Hub GDFs describe the distribution pattern of the entire Generation output within the Trading Hub, for each season and time-of-use period (on-peak or off-peak). The CAISO builds the model of Trading Hubs and the associated Hub GDFs. Initially, the Trading Hubs are set up to be the same as the CAISO’s existing congestion zones (e.g., NP15, SP15 and ZP26). In any of the CAISO Markets, Trading Hub prices are weighted averages calculated using the individual Trading Hub member nodal prices weighted by Trading Hub GDFs. The Trading Hubs and the Trading Hub Generation Distribution Factors are maintained in the CAISO software applications. The Trading Hubs and the Trading Hub Generation Distribution Factors will be published to market participants from these sources. Metered Sub-Systems The discussion of MSSs in this BPM is intended to address only issues pertinent to modeling of MSSs in the FNM. Details of other aspects of MSS operation are contained in Section 4.9.1 of the CAISO Tariff and in the BPM for Market Operations. The following principles apply to modeling of Metered Sub-System (MSSs): MSSs, their detailed transmission systems, Generators and Loads are modeled in the FNM. CAISO State Estimator solves for the state of the grid within the MSSs. CAISO forecasts the Load of MSSs. Load forecast of MSS is distributed using Load Distribution Factors (LDFs). MSSs may have multiple interchange points with CAISO (e.g., Silicon Valley Clara).