Configuration Guide for: FERC Fee Over / Under Recovery / Date: 04/01/09
Settlements & Billing
BPM Configuration Guide: FERC Fee Over / Under Recovery
CC 525
Version 5.0
CAISO, 2018 / Page 1 of 7Settlements & Billing / Version: 5.0
Configuration Guide for: FERC Fee Over / Under Recovery / Date: 04/01/09
Table of Contents
1.Purpose of Document
2.Introduction
2.1Background
2.2Description
3.Charge Code Requirements
3.1Business Rules
3.2Predecessor Charge Codes
3.3Successor Charge Codes
3.4Inputs – External Systems
3.5Inputs - Predecessor Charge Codes or Pre-calculations
3.6CAISO Formula
3.7Outputs
4.Charge Code Effective Date
CAISO, 2018 / Page 1 of 7Settlements & Billing / Version: 5.0
Configuration Guide for: FERC Fee Over / Under Recovery / Date: 04/01/09
1.Purpose of Document
The purpose of this document is to capture the requirements and design specification for a SaMC Charge Code in one document.
2.Introduction
2.1Background
The FERC Annual Assessment is CAISO’s charge to recover estimated and actual annual FERC fees from Market Participants. This charge is collected by the CAISO on behalf of the FERC.
Each Scheduling Coordinator (considering exceptions) is obligated to pay for the FERC Annual Charges for its use of the CAISO Controlled Grid to transmit electricity, including any use of the CAISO Controlled Grid through Existing Contracts scheduled by the Scheduling Coordinator. Any FERC Annual Charges to be assessed by FERC against the CAISO for such use of the CAISO Controlled Grid is assessed against Scheduling Coordinators Measured Demand at the FERC Annual Charge Recovery Rate.
2.2Description
Scheduling Coordinators (SC’s) are initially assessed the FERC Annual charge based on Measured Demand initially using an estimated rate to cover FERC’s likely annual bill to CAISO. Pursuant to Section 11.19.3.4 of the CASIO Tariff, this fee may later be revised where FERC’s annual bill to CAISO is more than +/- 10% of the fees collected for a year. Though the FERC fee is an annual charge, it is calculated daily by Settlements and is billed and invoiced monthly.
Scheduling Coordinators may elect to pay the FERC Fee either on a monthly or annual basis. Entities that elect to pay on an annual basis must maintain appropriate collateral as set forth in Section 12 of the Tariff. Entities inform the CAISO prior to publication of the first Invoice for the first Trading Month of a year whether they wish to pay on an annual or monthly basis. Entities that meet Section 12 credit requirements are required by the CAISO to pay their FERC fees on a monthly basis.
Entities that elect to pay the charge on a monthly basis are assessed the Monthly Charge Code 550 FERC Fee, while those that elect to pay annually are assessed the Annual Charge Code 551 FERC Fee. The Billing process invoices both SC’s classes each month, with the only difference being the due date on the Invoices. FERC fees for SC’s that must pay monthly are combined with the Market and GMC Invoice and are due at the same time as these other charges.
FERC Fee Settlement Amounts are calculated daily for every Scheduling Coordinator, and are included in Daily Settlement Statement. These are summed to monthly amounts for invoicing by the billing process. FERC fees are also trued up on a daily basis in the event a Trading Day is recalculated. The annual true up shall use the most recent daily Measured Demand.
In the upcoming year, FERC issues an invoice to the CAISO for the previous trade year. If the FERC Annual Charges assessed by FERC against the CAISO for transactions on the CAISO Controlled Grid during any year exceed or fall short of funds collected by the CAISO for FERC Annual Charges with respect to that year by a range of 10% or less, the CAISO shall take such under or over recovery into account through an adjustment to the FERC Annual Charge Recovery Rate in accordance with Tariff Section 11.19.3.4. Any deficiency of available funds necessary to pay for any assessment of FERC Annual Charges payable by the CAISO may be covered by an advance of funds from the CAISO’s Grid Management Charge, provided any such advanced funds are repaid.
If the CAISO’s collection of funds for FERC Annual Charges with respect to any year results in an under- or over-recovery of greater than 10%, the CAISO shall either assess a surcharge against all active Scheduling Coordinators for the amount under-recovered or shall issue a credit to all active Scheduling Coordinators for the amount over recovered. Such surcharge or credit shall be allocated among all active Scheduling Coordinators based on the percentage of each active Scheduling Coordinators Measured Demand and exports during the relevant year. The CAISO will issue any surcharges or credits under this section within 60 days of receiving a FERC Annual Charge assessment from the FERC.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / If the CAISO’s collection of funds for FERC Annual Charges with respect to any year results in an under- or over-recovery of greater than 10%, the CAISO shall either assess a surcharge against all active Scheduling Coordinators for the amount under-recovered or shall issue a credit to all active Scheduling Coordinators for the amount over recovered
2.0 / Such surcharge or credit shall be allocated among all active Scheduling Coordinators based on the percentage of each active Scheduling Coordinators Measured Demand and exports during the relevant year
3.0 / The CAISO will issue any surcharges or credits under this section within 60 days of receiving a FERC Annual Charge assessment from the FERC.
3.2 / The YearlyFERCFeeUnderOverRecoveryAmount is calculated when the CAISOAdjustedFERCFeeRate is provided to Settlements and is equal to the product of the CAISOAdjustedFERCFeeRate and BAYearlyMeasuredDemandControlAreaQtyFERC
3.3 / The CAISOAdjustedFERCFeeRate can be either a positive or negative value
4.0 / The CC 525 Invoice due date will be the same for all BA’s regardless of an individual BA’s monthly or annual payment designation
5.0 / CC 525 should not be automatically included in recalculations
6.0 / For adjustments to the Charge Code that cannot be accomplished by correction of upstream data inputs/recalculation or operator override Pass Through Bill Charge Adjustment logic will be applied
3.2Predecessor Charge Codes
Charge Code/ Pre-calc NameCC 550 FERC Fee Settlement Due Monthly
CC 551 FERC Fee Settlement Due Annually
3.3Successor Charge Codes
Charge Code/ Pre-calc NameNone
3.4Inputs – External Systems
Row # / Variable Name / Description1 / CAISOAdjustedFERCFeeRate / Standing Data. CAISO Adjusted FERC Fee Rate
2 / PTBChargeAdjustment YearlyFERCFeeUnderOverRecoveryAmount BJ / Yearly FERC Fee Under/Over Recovery PTB Charge Adjustment Amount by Business Associate Bper PTM ID J
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc ConfigurationAll inputs shall be included as outputs
1 / BAYearlyMeasuredDemandControlAreaQtyFERCB / CC 550 FERC Fee Settlement Due Monthly
And
CC 551 FERC Fee Settlement Due Annually
The sum total quantity per BA for 12 months of the trade year derived from:
BA_MTH_FERC_FEE_STL@CURRENT_QUANTITY (CC550)
And
BA_ANNL_FERC_FEE_STL@CURRENT_QUANTITY (CC551)
3.6CAISO Formula
3.6.1The Yearly settlement for Yearly FERC Fee Under Over Recovery Amountby Business Associate B is as follows:
3.6.1.1YearlyFERCFeeUnderOverRecoveryAmount B =
(CAISOAdjustedFERCFeeRate * BAYearlyMeasuredDemandControlAreaQtyFERCB)* (-1)
3.7Outputs
Row # / Name / Description1 / YearlyFERCFeeUnderOverRecoveryAmount B / Yearly FERC Fee Under Over Recovery Amount By Business Associate B
4.Charge Code Effective Date
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
CG CC 525 Yearly FERC Fee Under/Over Recovery / 5.0 / 04/01/09 / Open / Documentation Update Only
CAISO, 2018 / Page 1 of 7