Configuration Guide for: Shortfall Allocation Reversal / Date: 10/13/2011
Settlements & Billing
BPM Configuration Guide: Shortfall Allocation Reversal
5901
Version 5.0
CAISO, 2018 / Page 1 of 7Settlements & Billing / Version: 5.0
Configuration Guide for: Shortfall Allocation Reversal / Date: 10/13/2011
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
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
Each Scheduling Coordinator (SC) must remit to the CAISO Clearing Account the amount shown on an Invoice as payable by that SC no later than 10:00am on the relevant payment date for that Invoice. If all payments are not received, and the ISO has determined there are ISO debtors in default, the ISO will identify the SC(s) that has failed to pay, and begin to take the appropriate steps to recover the overdue amount so that payments to ISO creditors can be made.
In the event of a default, the ISO must take the following steps to process the shortfall and ensure the CAISO Clearing Account clears on the payment date:
- First, use the defaulting SC’s financial security (if any) to the extent necessary to cover the default amount and allow ISO creditors to be paid.
- If Financial Security is not available, and there are funds standing to the credit of a reserve account, the ISO shall debit the reserve account for the default amount and apply that amount to the clearing account in order to pay creditors. However, the ISO will exercise all its options to fully collect the defaulted amount from the ISO debtor in order to make the reserve account whole.
If the ISO is unable to collect the defaulted amount, the ISO will allocate, on the next available invoice, the unpaid amount via Charge Code 5912 Default Loss Allocation to all Default-Invoice SCs to which the percentages shares calculated for the current calendar quarter apply, excluding the ISO debtor that has not paid the payment default amount.
- If neither SC financial security amounts nor reserve account credits are sufficient to cover the default, the ISO shall reduce payments to all ISO creditors proportionally to the net amounts payment to them on the relevant Payment Date to the extent necessary to clear the CAISO Clearing Account. This amount will be netted with any offsets used to clear a past billing shortfall. Collections of defaulted receivables (other than Interest) will be distributed pro rata to ISO creditors in the bill period(s) of the default.
The first two steps are processes facilitated outside of Settlement calculations. The third step is covered by settlement calculations associated with Shortfall Allocation and Shortfall Receipt Distribution configurations covered under Charge Codes 5910 and 5900 respectively.
In the event that a shortfall gets declared a default and that default occurs for a Trading Day on or after April 1, 2009, then each payment default amount allocated to ISO creditors through a shortfall allocation that remains unpaid by the defaulting SC or CRR Holder will be first reversed via Charge Code 5901 Shortfall Allocation Reversal and then allocated via Charge Code 5912 Default Loss Allocation. This will occur on the next available Invoice to the Default-Invoiced SCs to which the percentage shares calculated for the current calendar quarter apply, excluding the ISO debtor that has not paid the payment default amount.
2.2Description
Charge Code 5901 Shortfall Allocation Reversal reverses out each payment default amount that is allocated to ISO creditors through Charge Code 5910 Shortfall Allocation and remains unpaid by the defaulting SC or CRR Holder. The subsequent allocation of these amounts will then occur in Charge Code 5912 Default Loss Allocation. This process is only used if a market participant is bankrupt or will default on the invoice on a long term basis.
These provisions will not apply to the allocation of payment default amounts and interest accrued thereon that are associated with Trading Days that occurred prior to April 1, 2009.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / PTB amounts shall be derived to release Shortfall holds and clear the market.
2.0 / PTB amounts input to CC 5901 will reverse the CC 5910 Shortfall Allocation charges associated with the market charges that are in default.
3.2Predecessor Charge Codes
Charge Code/ Pre-calc NameNone
3.3Successor Charge Codes
Charge Code/ Pre-calc NameNone
3.4Inputs – External Systems
Row # / Variable Name / Description1 / PTBBusinessAssociateShortfallAllocationReversalAmount BJUU’L / Reversal of the original Shortfall Allocation amounts for a given Business Associate Default Loss ID(B) Bill Period Start(U) Bill Period End (U’)Invoice Run (L) and PTB ID (J).
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/ Pre-calc Configuration3.6CAISO Formula
3.6.1BusinessAssociateShortfallAllocationReversalAmount BUU’L= PTBBusinessAssociateShortfallAllocationReversalAmount BJUU’L
3.7Outputs
Output ID / Name / DescriptionIn addition to any outputs listed below, all inputs shall be included as outputs.
1 / BusinessAssociateShortfallAllocationReversalAmountBUU’L / Reversal of the original Shortfall Allocation amounts for a given Business Associate Default Loss ID (B’)Bill Period Start (U) Bill Period End (U’)andInvoice Run (L)
4.Charge Code Effective Date
Charge Code/Pre-calc Name / Document
Version / Effective Start Date / Effective End Date / Version Update Type
CC 5901 –Shortfall Allocation Reversal / 5.0 / 04/01/2011 / Open / Configuration Impacted
CAISO, 2018 / Page 1 of 7