Message-ID: <26230406.1075858511623.JavaMail.evans@thyme> Date: Thu, 26 Jul 2001 17:41:37 -0700 (PDT) From: crcommunications@caiso.com To: scsettlecontacts@caiso.com Subject: CAISO Notification: CT 1120 "Estimated Allocation of the June Summer Reliability Agreement Invoice Amounts" Market Notice Cc: isoclientrelations@caiso.com, shafa@enron.com, mshafa@caiso.com, morgan@enron.com, emorgan@caiso.com, evans@enron.com, jmevans@caiso.com, ahmadi@enron.com, mahmadi@caiso.com, mcguffin@enron.com, mmcguffin@caiso.com, almeida@enron.com, kalmeida@caiso.com, le.vine@enron.com, dlevine@caiso.com, bouillon@enron.com, bbouillon@caiso.com, hunt@enron.com, phunt@caiso.com, estrada@enron.com, destrada@caiso.com, deluca@enron.com, tdeluca@caiso.com, gerber@enron.com, sgerber@caiso.com, ng@enron.com, cng@caiso.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: isoclientrelations@caiso.com, shafa@enron.com, mshafa@caiso.com, morgan@enron.com, emorgan@caiso.com, evans@enron.com, jmevans@caiso.com, ahmadi@enron.com, mahmadi@caiso.com, mcguffin@enron.com, mmcguffin@caiso.com, almeida@enron.com, kalmeida@caiso.com, le.vine@enron.com, dlevine@caiso.com, bouillon@enron.com, bbouillon@caiso.com, hunt@enron.com, phunt@caiso.com, estrada@enron.com, destrada@caiso.com, deluca@enron.com, tdeluca@caiso.com, gerber@enron.com, sgerber@caiso.com, ng@enron.com, cng@caiso.com X-From: CRCommunications <CRCommunications@caiso.com> X-To: SC Settlements Contacts <IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=SCSETTLECONTACTS@caiso.com> X-cc: ISO Client Relations <ISOClientRelations@caiso.com>, Shafa, Masoud <MShafa@caiso.com>, Morgan, Elizabeth <EMorgan@caiso.com>, Evans, Jeffrey M <JMEvans@caiso.com>, Ahmadi, Massih <MAhmadi@caiso.com>, McGuffin, Mike <MMcGuffin@caiso.com>, Almeida, Keoni <KAlmeida@caiso.com>, Le Vine, Debi <DLeVine@caiso.com>, Bouillon, Brad <BBouillon@caiso.com>, Hunt, Pam <PHunt@caiso.com>, Estrada, Dennis <DEstrada@caiso.com>, Deluca, Tony <TDeluca@caiso.com>, Gerber, Spence <SGerber@caiso.com>, Ng, Chi-Pui <CNg@caiso.com> X-bcc: X-Folder: \Stokley, Chris (Non-Privileged)\Chris Stokley\ISO\MRKT INFO X-Origin: Stokley-C X-FileName: Stokley, Chris (Non-Privileged).pst SC Settlement Contacts: IMPORTANT NOTICE Due to ISO system difficulties with setting up charge type 1120, the estimated allocation of the June Summer Reliability Agreement (SRA) Invoice amounts did not appear on the 5/31/01 Preliminary Statement as planned. The difficulties have been corrected and the CT 1120 estimated allocation will appear on the 5/31/01 Final Statement which will publish on 8/13/01, instead based on final May load and export data. Future SRA Allocations will remain as originally planned. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX REVISED MARKET NOTICE from July 6, 2001 @ 11:16AM Summer Reliability Contract Capacity Payment/Charge Charge Type 1120 (Estimate) and Charge Type 1121 (Actual) ISO Market Participants: SC Settlement Contacts: The California Independent System Operator has contracted for peaking generation through the Summer Reliability Agreements (SRA) to assist in meeting reliability needs this summer. On March 30th, 2001 the ISO Governing Board directed Management to recover costs incurred under the Summer Reliability Agreements as provided in the ISO Tariff Section 2.3.5.1.8. (i.e.: "all costs incurred by the ISO ... shall be charged to each Scheduling Coordinator pro rata based upon the same proportion as the Scheduling Coordinator's metered hourly Demand (including exports) bears to the total metered hourly Demand (including exports) served in that hour.") The SRAs require the ISO to make the monthly fixed capacity payments in each summer month (June through October) and then true-up the penalties and offsets in the last month. Two facilities with SRAs reached Commercial Operation by June 15th, 2001and therefore became eligible to extend their SRA, day for day, into November 2001. The ISO will allocate these charges in two phases based on two new Charge Types, "Estimated Summer Reliability Contract Capacity Payment/Charge (CT 1120)," and "Actual Summer Reliability Contract Capacity Payment/Charge (CT 1121)". To accomplish this, the ISO will allocate an estimated charge, based on the previous month's metered Demand and exports (CT1120). Then, in the following month, the entire estimated charge (CT1120) will be reversed and the Scheduling Coordinator will be charged the actual amount based on actual metered Demand (including exports) (CT1121). An example of the allocation process is as follows: 1. The ISO will allocate the SRA amounts to the Market by applying CT 1120 (Estimated Summer Reliability Contract Capacity Payment/Charge) on the Preliminary statement for the last day of the Trade Month preceding the Trade Month for which payment is due. The estimated charges for SRA costs (CT 1120) applicable to Trade Month June 2001 will be applied to the Preliminary Statement for Trade Day May 31, 2001. The ISO estimate will be based on the Market Participant's metered hourly Demand and exports from the prior month (in this example, the metered hourly Demand and exports for May, 2001). Charges for CT 1120 will also show up on the Final Statement for Trade Date 5/31/01. 2. The ISO will then recalculate the allocation of the SRA amounts through Charge Type 1121 (Actual Summer Reliability Contract Capacity Payment/Charge) based on the Market Participant's actual metered hourly Demand and exports for the appropriate Trade Month. Actual (CT 1121) charges will appear on the Final Statement for the last day of each actual billing month. (In the foregoing example, the charges would appear on the Final Statement for Trade Date 6/30/01.) As CT 1121 appears on the Final Statement, CT1120 will be reversed in its entirety (e.g., the 6/30/01 Final Statement will include a reversal of the 5/31/01 estimate) The reversal can be identified by the Trade Date for the previous month and it will have the opposite dollar value as the previous month. 3. Additionally, at the end of each SRA Summer Period, the SRA amounts are recalculated to include penalties and offsets. The Actual Summer Reliability Contract Capacity Payment/Charge (CT 1121) will be adjusted after the owner of the facility with the SRA has received the final market settlement for the Summer Period. The first SRA charge (CT 1120, estimated charge) will be for the June 2001 SRA payment and will appear on the Preliminary Statement for Trade Date May 31, 2001. This Preliminary Statement will publish on July 25, 2001. Adjustments for June 2001 through CT 1121 (based on Actual metered hourly Demand and exports in June) will appear on the Final Statement for Trade Date 6/30/01, which will be published on September 12, 2001. CT 1120 and CT 1121 will be manual charge types within the Manual Line Item Records. Thus, no structural changes will occur in the Specification for Settlement Statement Files, Version 13.1 and you should not need to make any changes in your own systems. Finally, as this is a new process it will remain under review and may be subject to refinement. Should you have questions, please contact your ISO Client Relations Account Manager. Client Relations Communication CRCommunications@caiso.com