Configuration Guide for: Default Invoice Interest Charge / Date: 04/01/09
Settlements & Billing
BPM Configuration Guide:Default Invoice Interest Charge
CC 3999
Version 5.0
CAISO, 2018 / Page 1 of 6Settlements & Billing / Version: 5.0
Configuration Guide for: Default Invoice Interest Charge / 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
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
Business Associates who default on amounts due to the CAISO are charged interest on those unpaid amounts. The interest is charged monthly at the FERC published quarterly interest rate. The Scheduling coordinator shall pay interest on the CASIO Clearing Account, together with any related transaction costs incurred by the CAISO. The CAISO shall apply all such interest payments on the Default Amount on a pro rata basis to CAISO Creditors in relation to amounts due in the order of the creation of such basis.
2.2Description
All Accounts Receivable (AR) Invoices that have open balances will be charged interest based on the FERC published quarterly interest rate that may change on a quarterly basis. The interest will be charged by Market Clearing on the daily open AR balances for all Invoices except RMR Invoices and bankrupt SC’s, and it will subsequently be passed to Settlements as a Pass Through Bill – Financial Adjustment on a monthly basis. The actual calculation of Default Interest Amount is determined by the ISO Market Clearing system such that the interest charges will appear on SC monthly statements as positive (due ISO) amountsvia Pass Through Bill as a direct assignment. The charge will also appear as a financial adjustment on the Invoice. The PTB entry will include details of the original unpaid Invoice including an Invoice reference number and associated Bill Period Start and End dates so that the Market Participant can correctly account for the interest.
3.Charge Code Requirements
3.1Business Rules
Bus Req ID / Business Rule1.0 / PTB Default Invoice Interest Charge Amount is updated by Market Clearing and is entered through a Pass Through Bill (PTB).
2.0 / PTB Default Invoice Interest Charge Amount and Default Invoice Interest FERC Rate appear on the Settlements Statement.
3.0 / PTB Default Invoice Interest Charge Amount contains Invoice reference number for informational purposes.
4.0 / PTB Default Invoice Interest Charge Amount specifies previous Bill Period Start and End dates for which default occurred.
5.0 / Default Interest Charge Settlement Amount is applied retroactively for unpaid market charges such that the assessment is reflected on the current monthly Settlements Statement.
6.0 / The Default Invoice Interest FERC Rate is displayed for informational purposes only.
6.1 / FERC published annual interest rate may change on a quarterly basis.
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 / PTBDefaultInvoiceInterestChargeAmount BJV’U’Um / Interest Amount to be charged as a PTB financial adjustment by Business Associate ID B, PTB ID J, Invoice Reference V’, Bill Period Start U’, and Bill Period End U where Bill Period Start and End represents previous Bill Period for which default occurred such that the interest charge is reflected on the current monthly Settlements Statement for Trading Month m.
2 / DefaultInvoiceInterestFERCRateU’Um / FERC published annual interest rate, included as price against each PTB transaction for Bill Period Start U’ and Bill Period End U such that the Interest charge is reflected on the current monthly Settlement Statement for Trading Month m.
3.5Inputs - Predecessor Charge Codes or Pre-calculations
Row # / Variable Name / Predecessor Charge Code/Pre-calc Configuration
None
3.6CAISO Formula
3.6.1DefaultInvoiceInterestChargeSettlementAmount BJV’U’Um
DefaultInvoiceInterestChargeSettlementAmount BJV’U’Um= PTBDefaultInvoiceInterestChargeAmount BJV’U’Um
3.6.2DefaultInvoiceInterestFERCRateU’Um
DefaultInvoiceInterestFERCRate U’Um = DefaultInvoiceInterestFERCRateU’Um
3.7Outputs
Output Req. ID / Name / DescriptionAll external inputs shall be included as outputs.
1 / DefaultInvoiceInterestChargeSettlementAmountBJV’U’Um / The amount in dollars charged to an SC for Default Invoice Interest by Trading Month m. This amount appears on the Statement/Invoice for Business Associate ID B, PTB ID J, Invoice Reference V’, Bill Period Start U’, and BillPeriodEndU.
2 / TheDefaultInvoiceInterestFERCRateU’Um / FERC published interest rate where Bill Period Start U’ and Bill Period End U represents previous Bill Period for which default occurred such that the interest charge is reflected on the current monthly Settlements Statement for Trading Month m.
4.Charge Code Effective Date
Charge Code/Pre-calc Name / Document Version / Effective Start Date / Effective End Date / Version Update Type
Default Invoice Interest Charge (CC 3999) / 5.0 / 04/01/09 / Open / Documentation Edits Only
CAISO, 2018 / Page 1 of 6