Configuration Guide for: Invoice Deviation Interest Distribution and Allocation / Date: 049/2612/121
Settlements & Billing
BPM Configuration Guide: Invoice Deviation Interest Distribution (CC 7989) and Allocation (CC 7999)
CC 7989 and CC 7999
Version 5.2a
ÓCAISO, 2017 / Page 20 of 20Settlements & Billing / Version: 5.2a
Configuration Guide for: Invoice Deviation Interest Distribution and Allocation / Date: 049/2612/121
Table of Contents
1. Purpose of Document 3
2. Introduction 3
2.1 Background 3
2.2 Description 4
3. Charge Code Requirements 5
3.1 Business Rules 5
3.2 Predecessor Charge Codes 8
3.3 Successor Charge Codes 8
3.4 Inputs – External Systems 8
3.5 Inputs - Predecessor Charge Codes or Pre-calculations 17
3.6 CAISO Formula 18
3.7 Outputs 18
4. Charge Code Effective Date 20
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.[1]
2. Introduction
2.1 Background
The CAISO’s payment acceleration program significantly shortened the time period in which the CAISO invoices and settles market transactions. Under payment acceleration, the timeframe for the CAISO’s release of its Initial Settlement Statement for each Trading Day and the payment timeline are reduced, which shortens the average cash clearing schedule from approximately 80 to 25 calendar days. The shorter cash clearing schedule reduces the amount of outstanding market charges and payments, and exposes Market Participants to less credit risk.
FERC Order No. 741 given last October 2010, required CAISO to further shorten the cash clearing schedule within 14 days. This FERC Order shall be implemented by CAISO under the Credit Reform initiative. Effective October 1, 2011, CAISO will replace the semi-monthly invoicing with weekly invoicing and will also publish Initial Statement at T+3B.
Since the implementation of payment acceleration in November 2009, the California ISO and market participants have identified opportunities for improvement to the timing between statement publications, meter data submittal and settlement dispute resolution process. The timeline change shall be covered under the initiative Settlements Process Timeline Changes (SPTC). The timing of statement publications shall be adjusted without compromising the fundamental concepts behind the payment acceleration timeline implemented November 1, 2009 as well as the FERC Order 741 requirement that is to be implemented October 1, 2011.
The application of interest ensures that the time value of money is properly accounted for when Market Participants initially are overcharged or undercharged due to estimated Meter Data, updates to SQMD Meter Data, and price adjustments on Invoices generated weekly at T+3B. The interest provision is also intended to eliminate financial incentive to submit unreasonable estimates of Meter Data for the Initial Settlement Statement T+3B.
2.2 Description
Interest will be charged or paid to Market Participants receiving Invoice or Payment Advice through Charge Codes (7989 and 7999) in the CAISO Settlements system.
There are three variables used to calculate the interest applicable to the deviations:
· FERC annual rate of interest
· Number of interest days; and
· The amount of each deviation.
Because invoicing occurs weekly and the days of a month can be included in six different weeks, Initial Statement invoices are designated by up to six different weekly invoices sequenced as follows: Invoice1, Invoice2, Invoice3, Invoice4, Invoice5, and Invoice6. The first day of each Trading Month will always be designated as part of Invoice1. The last Trading Day of the month and the monthly charge codes for that same Trade Month are always bundled together. Invoice5, and/or Invoice6 may not be needed if the last Trade Date of the month is already included in an earlier invoice number sequence. Six bill determinants are required to record total amounts for the six weekly Initial Settlement Statements T+3B.
With Credit Reform and SPTC, there will be eight Recalculation statements:
a) at T+12B
b) at T+ 55B
c) at T+9M – this is optional
d) an unscheduled Recalculation statement after T+9M but before T+18M – this is optional
e) at T+18M – this is optional
f) an unscheduled Recalculation statement after T+18M but before T+35M – this is optional
g) at T+35M – this is optional
h) at T+36M – this is optional
Eight bill determinants will be needed to identify the true up amount between T+3B and T+12B, between T+12B and T+55B, and so on.
Interest charged or paid will be calculated back to the due date of the initial Invoices; therefore, bill determinants are required to determine the number of days of interest between these due dates.
In order to account for potentially different interest rates per calendar quarter, the number of interest days between the due dates might need to be split into different calendar quarters depending on the calendar quarters spanned by the due dates.
If the due dates between the Invoice containing Initial Settlement Statements T+3B and any of the succeeding Recalculation Settlement Statements span calendar quarters, then interest is compounded quarterly. Since the due dates between an initial Invoice containing Initial Settlement Statements T+3B and Rerun Settlement Statement T+36M can span several calendar quarters, 15 bill determinants are defined to record the applicable FERC interest rate for each of those quarters.
Finally, if the interest calculated results in a payment to a Scheduling Coordinator, CRR Holder, Black Start Generator or Participating TO, the Charge Code to be used is 7989. If the interest calculated results in payment to the CAISO by the Scheduling Coordinator, CRR Holder, Black Start Generator or Participating TO, the Charge Code to be used is 7999.
3. Charge Code Requirements
3.1 Business Rules
Bus Req ID / Business Rule /1.0 / Invoice deviation interest distribution or allocation is provided by Market Clearing to Settlements.
1.1 / If the invoice deviation interest calculated results in a payment to a Scheduling Coordinator, CRR Holder, Black Start Generator or Participating TO, the charge code to be used shall be CC 7989.
1.2 / If the invoice deviation interest calculated results in a payment to a Scheduling Coordinator, CRR Holder, Black Start Generator or Participating TO, the charge code to be used shall be CC 7999.
2.0 / A business requirement exists that invoice deviation interest distribution or allocation appears on the first available initial Invoice.
2.1 / The invoice deviation interest shall have a settlement trading day corresponding to the nearest Sunday following the publication date of the calendar date on which the ISO issued the market invoice that includes the recalculation settlement statements that triggered assessment of deviation interest.
For example,a market invoicepublishing on Wednesday, May 02, 2012November 16, 2011, contains the T+3B billing period for trading days 4/23-4/29/201211/7-11/13/11 and the T+12B billing period for trading days 4/09-4/15/201210/24-10/30/2011. The deviation interest, which is based upon the settlement difference between the T+3B and for T+12B statements for trading days 4/09-4/15/201210/24-10/30/11, will be reflected on the T+3B initial statement for trading day 5/06/2012, which is the nearest Sunday following the invoice publication date11/16/11. The 5/06/201211/16/2011 T+3B initial statement is subsequently published on (calendar date) Wednesday, May 09, 2012Monday, November 21, 2011 and invoiced on Wednesday, May 09, 2012November 23, 2011.
3.0 / Settlements receives from Market Clearing supporting data which is provided to the Market Participants for validation purposes.
4.0 / FERC published annual interest rate may change on a quarterly basis.
5.0 / ‘From Date’ is defined as the due date for initial Invoice or beginning of quarter date.
5.1 / ‘From Date Type’ is defined as a set of enumerations that indicate what type the ‘From Date’ represents and the set of values are: ‘Invoice1_Due_Date’, ‘Invoice2_Due_Date’, ‘Invoice3_Due_Date’, ‘Invoice4_Due_Date’, ‘Invoice5_Due_Date’, ‘Invoice6_Due_Date’, ‘BOQ1_Date’, ‘BOQ2_Date’, ‘BOQ3_Date’, ‘BOQ4_Date’, ‘BOQ5_Date’, ‘BOQ6_Date’, ‘BOQ7_Date’, ‘BOQ8_Date’, ‘BOQ9_Date’, ‘BOQ10_Date’, ‘BOQ11_Date’, ‘BOQ12_Date’, ‘BOQ13_Date’, ‘BOQ14_Date’ and ‘BOQ15_Date’.
6.0 / ‘To Date’ is defined as the due date of true up adjustment Invoice or end of quarter date.
6.1 / ‘To Date Type’ is defined as a set of enumerations that indicate what type the ‘To Date’ represents and the set of values are: ‘TrueUp1_Due_Date’, ‘TrueUp2_Due_Date’, ‘TrueUp3_Due_Date’, ‘TrueUp3a_Due_Date’, ‘TrueUp4_Due_Date’, ‘TrueUp4a_Due_Date’, ‘TrueUp5_Due_Date’, ‘TrueUp6_Due_Date’, ‘EOQ1_Date’, ‘EOQ2_Date’, ‘EOQ3_Date’, ‘EOQ4_Date’, ‘EOQ5_Date’, ‘EOQ6_Date’, ‘EOQ7_Date’, ‘EOQ8_Date’, ‘EOQ9_Date’, ‘EOQ10_Date’, ‘EOQ11_Date’, ‘EOQ12_Date’, ‘EOQ13_Date’, ‘EOQ14_Date’ and ‘EOQ15_Date’.
7.0 / The difference between ‘From Date’ and ‘To Date’ determines the number of days used in the interest calculation formula
8.0 / FROM_DATE_TYPE VALUE DESCRIPTION
Invoice1_Due_Date 1st weekly Invoice due date
Invoice2_Due_Date 2nd weekly Invoice due date
Invoice3_Due_Date 3rd weekly Invoice due date
Invoice4_Due_Date 4th weekly Invoice due date
Invoice5_Due_Date 5th weekly Invoice due date
Invoice6_Due_Date 6th weekly Invoice due date
BOQ1_Date Beginning of 1st quarter date
BOQ2_Date Beginning of 2nd quarter date
BOQ3_Date Beginning of 3rd quarter date
BOQ4_Date Beginning of 4th quarter date
BOQ5_Date Beginning of 5th quarter date
BOQ6_Date Beginning of 6th quarter date
BOQ7_Date Beginning of 7th quarter date
BOQ8_Date Beginning of 8th quarter date
BOQ9_Date Beginning of 9th quarter date
BOQ10_Date Beginning of 10th quarter date
BOQ11_Date Beginning of 11th quarter date
BOQ12_Date Beginning of 12th quarter date
BOQ13_Date Beginning of 13th quarter date
BOQ14_Date Beginning of 14th quarter date
BOQ15_Date Beginning of 15th quarter date
TO_DATE_TYPE VALUE DESCRIPTION
TrueUp1_Due_Date True-up adjustment
Invoice due date for T+12B
TrueUp2_Due_Date True-up adjustment
Invoice due date for T+55B
TrueUp3_Due_Date True-up adjustment
Invoice due date for T+9M
TrueUp3a_Due_Date True-up adjustment Invoice due
date for unscheduled Recalc.
Statement after T+9M
TrueUp4_Due_Date True-up adjustment
Invoice due date for T+18M
TrueUp4a_Due_Date True-up adjustment Invoice due
date for unscheduled Recalc.
Statement after T+18M
TrueUp5_Due_Date True-up adjustment
Invoice due date for T+35M
TrueUp6_Due_Date True-up adjustment
Invoice due date for T+36M
EOQ1_Date End of 1st quarter date
EOQ2_Date End of 2nd quarter date
EOQ3_Date End of 3rd quarter date
EOQ4_Date End of 4th quarter date
EOQ5_Date End of 5th quarter date
EOQ6_Date End of 6th quarter date
EOQ7_Date End of 7th quarter date
EOQ8_Date End of 8th quarter date
EOQ9_Date End of 9th quarter date
EOQ10_Date End of 10th quarter date
EOQ11_Date End of 11th quarter date
EOQ12_Date End of 12th quarter date
EOQ13_Date End of 13th quarter date
EOQ14_Date End of 14th quarter date
EOQ15_Date End of 15th quarter date
3.2 Predecessor Charge Codes
Charge Code/ Pre-calc Name /None
3.3 Successor Charge Codes
Charge Code/ Pre-calc Name /None
3.4 Inputs – External Systems
Row # / Variable Name / Description /1 / BADayInvoiceDeviationInterestDistribution BU’Umd / Interest amount to be paid to the Market Participant due to negative invoice deviation as a financial adjustment by Business Associate ID (B), Bill Period Start (U’), Bill Period End (U), Trading Month (m) and Trading Day (d).
2 / BADayInvoiceDeviationInterestAllocation BU’Umd / Interest amount to be charged to the Market Participant due to positive invoice deviation as a financial adjustment by Business Associate ID (B), Bill Period Start (U’), Bill Period End (U), Trading Month (m) and Trading Day (d).
3 / BADayInitialInvoice1OfTheMonthAmount BV’U’UFF”md / Amount of the first initial Invoice issued to the Market Participant for the first weekly invoice of the month by Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice From Date (F), Invoice From Date Type (F”), Trading Month (m) and Trading Day (d).
4 / BADayInitialInvoice2OfTheMonthAmount BV’U’UFF”md / Amount of the second initial Invoice issued to the Market Participant for the second weekly invoice of the month by Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice From Date (F), Invoice From Date Type (F”), Trading Month (m) and Trading Day (d).
5 / BADayInitialInvoice3OfTheMonthAmount BV’U’UFF”md / Amount of the third initial Invoice issued to the Market Participant for the third weekly invoice of the month by Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice From Date (F), Invoice From Date Type (F”), Trading Month (m) and Trading Day (d).
6 / BADayInitialInvoice4OfTheMonthAmount BV’U’UFF”md / Amount of the fourth initial Invoice issued to the Market Participant for the fourth weekly invoice of the month by Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice From Date (F), Invoice From Date Type (F”), Trading Month (m) and Trading Day (d).
7 / BADayInitialInvoice5OfTheMonthAmount BV’U’UFF”md / Amount of the fifth initial Invoice issued to the Market Participant for the fifth weekly invoice of the month by Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice From Date (F), Invoice From Date Type (F”), Trading Month (m) and Trading Day (d).
8 / BADayInitialInvoice6OfTheMonthAmount BV’U’UFF”md / Amount of the sixth initial Invoice issued to the Market Participant for the sixth weekly invoice of the month by Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice From Date (F), Invoice From Date Type (F”), Trading Month (m) and Trading Day (d).
9 / BADayTrueUp1InvoiceAmount BV’U’UTT”md / Amount of the true-up adjustment issued to the Market Participant at T+12B for Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice To Date (T) Invoice To Date Type (T”), Trading Month (m), and Trading Day (d).
10 / BADayTrueUp2InvoiceAmount BV’U’UTT”md / Amount of the true-up adjustment issued to the Market Participant at T+55B for Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice To Date (T) Invoice To Date Type (T”), Trading Month (m), and Trading Day (d).
11 / BADayTrueUp3InvoiceAmount BV’U’UTT”md / Amount of the true-up adjustment issued to the Market Participant at T+9M for Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice To Date (T) Invoice To Date Type (T”), Trading Month (m), and Trading Day (d).
12 / BADayTrueUp3aInvoiceAmount BV’U’UTT”md / Amount of the true-up adjustment issued to the Market Participant at unscheduled Recalculation Statement after T+9M but before T+18M for Business Associate ID (B), Invoice Reference Number (V’), Bill Period Start (U’), Bill Period End (U), Invoice To Date (T) Invoice To Date Type (T”), Trading Month (m), and Trading Day (d).