Configuration Guide for: FERC Fee - Monthly & Annual Settlement / Date: 04/01/200905/21/2010
Settlements & Billing
BPM Configuration Guide: FERC Fee - Monthly & Annual Settlement
CC 550 & 551
Version 5.01
CAISO, 2018 / Page 1 of 8Settlements & Billing / Version: 5.01
Configuration Guide for: FERC Fee - Monthly & Annual Settlement / Date: 04/01/200905/21/2010
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
4.1
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. The FERC Monthly and Annual Fee Settlement Charge Codes (CC 550 and 551) determine these fees for collection by CAISO on behalf of the FERC.
Each SC (with exceptions) is obligated to pay for the FERC Annual Charges for its use of CAISO Controlled Grid to transmit electricity, including any use of CAISO Controlled Grid through Existing Contracts scheduled by the SC. Any FERC Annual Charges to be assessed by FERC against CAISO for such use of CAISO Controlled Grid is assessed against SCs Measured Demand at the FERC Annual Charge Recovery Rate.
2.2Description
SC’s are charged based on Measured Demand initially using an estimated rate to cover FERC’s likely annual bill to CAISO. 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.
SCs 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 CAISO 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 do not comply with Section 12 credit requirements may be converted by the CAISO from an annual basis to a monthly basis payer.
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 SC, and are included in Daily Settlement Statement and Billing Quantity Detail files. 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 final Measured Demand used by the FERC fee calculation is saved as an output for use in the annual true up.
FERC issues an Invoice to CAISO for the previous trade year. If the revenue requirement FERC submits to CAISO is not within 10% of what CAISO billed for the previous year, the Finance Department determines a new rate and recalculated Invoices are issued and the under/over recovery is settled. These recalculation Invoices must use both the Measured Demand quantity and the new FERC fee rate to generate a true up for the year as a whole. Interest does not need to be calculated for overpayments, as any interest earned on funds is credited to reduce the overall fee, before the revised or final rate is calculated. The Settlement FERC fee calculation outputs a final FERC Measured Demand amount as part of the Settlements system’s outputs to provide the billable quantity as of the recalculation cut off date, to be used in this annual true up. Settlement recalculations in a subsequent year do not include recalculated FERC Fees as they are excluded from reruns at this point.
This Charge Code will be implemented pursuant to a configuration enhancement procedure that allows for gains in performance, thereby reducing the volume of calculations executed during the monthly Settlement Run. The outcome of this feature is not published on the monthly Settlements Statements issued to participants. However, this enhancement procedure has no impact on the actual calculation of the settlement amounts determined by this Charge code. The performance enhancement is achieved through the availability of a feature that makes the results of (previously calculated) daily Settlement Runs available during to the CAISO operator for the monthly run in lieu of the operator having to re-execute daily calculations within the monthly Settlement Run. Additionally, this feature will provide the CAISO operator monthly totals of (previously calculated) daily outputs as well as monthly totals of primary bill determinants as needed. The CAISO will notify participants of which Charge Code uses this feature by including this statement in the description of the affected Charge Codes. In addition, the CAISO will indicate in the applicable CAISO Formula sections which of the individual calculations within the monthly run utilize this feature.Participants can verify the Settlement Amounts resulting from this Charge Code in their monthly calculations by utilizing the daily input data as defined in the input sections of each Charge Code, the amounts and/or quantities of which are published on the relevant, daily Settlement Statements.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / Each Scheduling Coordinator shall be 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
1.1 / FERC Fees shall accrue on a monthly basis
2.0 / Any FERC Annual Charges to be assessed by FERC against the CAISO shall be assessed against Scheduling Coordinators at the FERC Annual Charge Recovery Rate
3.0 / FERC Fee’s shall be levied monthly against all Scheduling Coordinators based upon each Scheduling Coordinators CG PC Measured Demand Over Control Area
3.1 / An Exception Flag will determine whether or not an SC’s FERC Fee’s are paid annually as opposed to monthly
3.2 / If a Business Associates Exception Flag status changes in the course of a Trade Year from the Annual designation to the Monthly payment designation, all FERC Fees calculated up to the point of the eligibility change shall be due in the next Invoicing Cycle
4.0 / Monthly FERC Fee Settlement Amounts must be calculated on a daily basis for each BA at the Trading Day level
4.1 / The Monthly FERC Fee is calculated by multiplying the FERC mandated Rate by Measured Demand Over Control Area for a given SC
5.0 / Annual FERC Fee Settlement Amounts must be calculated on a daily basis for each BA at the Trading Day level
5.1 / The Annual FERC Fee is calculated by multiplying the FERC mandated Rate by the Measured Demand Over Control Area for a given SC
5.2 / All funds collected by the CAISO for FERC Annual Charges shall be deposited in the FERC Annual Charge Trust Account for payment to FERC
5.3 / For those SC’s paying on an annual basis, the FERC fee will appear on a separate Invoice with a due date of the 2nd week of July of the following year
6.0 / Settlement recalculations in a subsequent year should not include recalculated FERC Fees as they are excluded from reruns
7.0 / For adjustments to the Charge Code that cannot be accomplished by correction of upstream data inputs/recalculation or operator override Pass Through Bill Charge logic will be applied
3.2Predecessor Charge Codes
Charge Code/ Pre-calc NameCG PC Measured Demand Over Control Area
3.3Successor Charge Codes
Charge Code/ Pre-calc NameCG CC 525 FERC Fee Under/Over Recovery
3.4Inputs – External Systems
Row # / Variable Name / Description1 / CAISOFERCFeeRate / Rate applied (utilizing correct Start and End Dates) on behalf of FERC against market participants MD
2 / AnnualFERCPayerExceptionFlag B / ExceptionFlag that determines whether an SC pays FERC Fee’s annually as opposed to monthly
3 / PTBChargeAdjustmentFERCFeeSettlementAmountBJm / PTB Charge Adjustment to FERC Fee Settlement Amount
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration1 / BADailyMeasuredDemandControlAreaQty_FERCBmd / CG PC Measured Demand Over Control Area
3.6CAISO Formula
3.6.1Where
If AnnualFERCPayerExceptionFlag B 1
Then
MonthlyFERCFeeSettlementAmount Bm =
DailyFERCFeeSettlementAmount Bmd
Note: DailyFERCFeeSettlementAmount Bmd is provided by the configuration enhancement procedure that returns the monthly quantity as a summation of daily FERC Fee Settlement Amounts generated previously from daily settlement calculation results for the applicable Trading Month.
ELSE
AnnualFERCFeeSettlementAmount Bm =
DailyFERCFeeSettlementAmount Bmd*AnnualFERCPayerExceptionFlag B
Note: DailyFERCFeeSettlementAmount Bmd is provided by the configuration enhancement procedure that returns the monthly quantities as a summation of daily FERC Fee Settlement Amounts generated previously from daily settlement calculation results for the applicable Trading Month.
3.6.2Where
DailyFERCFeeSettlementAmount Bmd =
(BADailyMeasuredDemandControlAreaQty_FERCBmd* CAISOFERCFeeRate) *(-1)
3.6.3PTBBusinessAssociateMonthlyFERCFeeSettlementAmount BJm =
PTBChargeAdjustmentFERCFeeSettlementAmount BJm
WHERE
AnnualFERCPayerExceptionFlag B > 1
3.6.4PTBBusinessAssociateAnnualFERCFeeSettlementAmount BJm =
PTBChargeAdjustment FERCFeeSettlementAmount BJm *
AnnualFERCPayerExceptionFlag B
3.7Outputs
Row # / Name / Description1 / MonthlyFERCFeeSettlementAmountBm / MonthlyFERCFee by Business Associate.
2 / DailyFERCFeeSettlementAmount Bmd / DailyFERCFee by Business Associate.
3 / PTBBusinessAssociateMonthlyFERCFeeSettlementAmount BJm / PTB Business Associate Monthly FERC Fee Settlement Amount by Business Associate and PTB ID.
4 / PTBBusinessAssociateAnnualFERCFeeSettlementAmount BJm / PTB Business Associate Annual FERC Fee Settlement Amount by Business Associate and PTB ID.
5 / AnnualFERCFeeSettlementAmount Bm / Annual FERC Fee by Business Associate
4.Charge Code Effective Date
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
CG CC 550 551 FERC FEE – Monthly & Annual Settlement / 5.0 / 04/01/09 / 03/31/09 / Documentation Edits only
CG CC 550 551 FERC FEE – Monthly & Annual Settlement / 5.1 / 04/01/09 / Open / Configuration impacted
CAISO, 2018 / Page 1 of 8