Configuration Guide for: Enforcement Protocol Penalty Allocation Payment / Date: 04/01/09
Settlements & Billing
BPM Configuration Guide: Enforcement Protocol Penalty Allocation Payment
CC 1592
Version 5.0
ÓCAISO, 2009 / Page 2 of 6Settlements & Billing / Version: 5.0
Configuration Guide for: Enforcement Protocol Penalty Allocation Payment / Date: 04/01/09
Table of Contents
1. Purpose of Document 3
2. Introduction 3
2.1 Background 3
2.2 Description 4
3. Charge Code Requirements 4
3.1 Business Rules 4
3.2 Predecessor Charge Codes 5
3.3 Successor Charge Codes 5
3.4 Input – External Systems 5
3.5 Inputs –Predecessor Charge Codes to Pre-calculations 5
3.6 CAISO Formula 5
3.7 Outputs 6
4. Charge Code Effective Dates 6
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
2.1 Background
Defined in the California Independent System Operator (CAISO) FERC Electric Tariff is a set of guiding principles for participation in the markets administered by the CAISO. The intent of these guiding principles is twofold:
1. Provide clear Rules of Conduct specifying the behavior expected of Market Participants; and
2. Establish in advance the Sanctions and other potential consequences for violation of the specified Rules of Conduct.
These Rules of Conduct and Sanctions are detailed in the CAISO FERC Electric Tariff, and provide the background for the CAISO Enforcement Protocol (EP).
The CAISO Department of Market Monitoring (DMM) administers the CAISO EP; specifically, the potential for violation of the Rules of Conduct is continually monitored by the CAISO Department of Market Monitoring. If a Scheduling Coordinator violates one of the Rules of Conduct and the violation is discovered as a result of this continual monitoring, the violation is investigated internally by the DMM. As a result of the violation, and following an existing DMM/FERC investigation business process, the Scheduling Coordinator and/or Market Participant will sanctioned for the violation. The existing DMM/FERC process is defined in the DMM “Enforcement Protocol Administration Procedure”.
The following details are relevant to the Settlement methodology for Enforcement Protocol:
· The DMM assess penalties against Scheduling Coordinators and Market Participants based on the Rules of Conduct and Sanctions defined in the CAISO FERC Electric Tariff;
· The DMM monitors violations and assesses penalties for all Rules of Conduct on a daily basis;
· The DMM applies said penalties through Settlements Statements;
· Penalties assessed against Scheduling Coordinators and Market Participants are held in a trust account upon payment;
· All penalties assessed are applied through use of Settlements Charge Code 1591;
· At the end of the calendar year, the sum of all penalties assessed against Scheduling Coordinators and Market Participants are allocated to any Market Participants (via their Scheduling Coordinator) who were not assessed a financial penalty pursuant to the Enforcement Protocol during the calendar year; these Market Participants are deemed “eligible Market Participants”;
· At the end of the calendar year, the payment due each Scheduling Coordinator is calculated by the DMM based on the pro rata share of the total amount in the trust amount determined by the ratio of the Grid Management Charge (GMC) paid by the Scheduling Coordinator on behalf of eligible Market Participants to the total GMC paid by all Scheduling Coordinators;
· The payment due each Scheduling Coordinator shall not exceed the GMC actually paid by all eligible Market Participants represented by that Scheduling Coordinator; and
· All payments due to eligible Market Participants (via Scheduling Coordinators) are applied through use of Settlements Charge Code 1592.
2.2 Description
The Enforcement Protocol Penalty Allocation Payment (EP Penalty Allocation Payment) settlement (CC 1592) credits Scheduling Coordinators at the end of the calendar year for each eligible Market Participants that they represent. In short, this Charge Code is used to credit Scheduling Coordinators for all Market Representatives they represent that were not charged EP Penalties during the year.
The EP Penalty Allocation Payment will be applied on a yearly basis, as a Pass-Through Bill. At the end of the calendar year, when the DMM wishes to apply the EP Penalty Allocation Payment, the relevant information will be provided to the Settlements and Billing Department, who will include the charge on the Settlement Statement as CC 1592: EP Penalty Allocation Payment.
3. Charge Code Requirements
3.1 Business Rules
Bus Req. ID / Business Rule /1.0 / CAISO shall collect penalties pursuant to EP and deposit such amounts in an interest bearing trust account.
1.1 / Penalties are held throughout the year in an interest-bearing trust account.
1.2 / The Pass-Through Bill amount (as supplied by DMM) is applied at the time directed by DMM to Settlements. There is no requirement for the allocation of penalties to appear on the last invoice of the calendar year, despite the fact that penalty allocation Bill Period is for at the end of the calendar year.
1.3 / PTBEPPenaltyAllocCharge BJmd is supplied to SaMC by the CAISO DMM, and is calculated based on the charge schemes outlined in Section 37 of the CAISO FERC Electric Tariff.
3.2 Predecessor Charge Codes
Charge Code/Pre-calc Name /None
3.3 Successor Charge Codes
Charge Code/Pre-calc Name /None
3.4 Input – External Systems
Input Req. ID / Variable Name / Description1 / PTBEPPenaltyAllocCharge BJmd / PTB of CAISO DMM-determined allocation charge based on the Rules of Conduct and Sanctions defined in Section 37 of the CAISO FERC Electric Tariff by BA B, PTB ID J, Trading Month m, and Trading Day d.
3.5 Inputs –Predecessor Charge Codes to Pre-calculations
Input Req. ID / Variable Name / Predecessor Charge Code/ Pre-calc ConfigurationN/A
3.6 CAISO Formula
3.6.1 EPPenaltyAllocCharge By
EPPenaltyAllocCharge Bmd = PTB_EPPenaltyAllocCharge BJmd
3.7 Outputs
Output Req. ID / Name / DescriptionIn addition to any outputs listed below, all inputs shall be included as outputs.
1 / EPPenaltyAllocCharge Bmd / CAISO DMM-determined allocation charge based on the Rules of Conduct and Sanctions defined in Section 37 of the CAISO FERC Electric Tariff.
4. Charge Code Effective Dates
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type /
CC 1592 EP Penalty Allocation Payment / 5.0 / 04/01/09 / Open / Documentation Edits Only
ÓCAISO, 2009 / Page 2 of 6