Subject: CAISO Communication: FERC Fee implementation - Modification to ISO Billing Procedure
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 12 Jul 2001 16:24:09 -0700 (PDT)

IMPORTANT NOTICE - Modification to ISO Billing Procedure 

Attention:  Scheduling Coordinator (SC) Settlements Contacts and/or Accounts
Payable;

	The current process for issuing the FERC Fee invoices has changed.
There may be additional changes in the future which would require tariff
revisions.  

	For now, the process changes are as follows:

*	Instead of sending one preliminary invoice per month for FERC Fees,
ISO will issue one preliminary and one final invoice for every trade month.
*	The monthly FERC Fee invoices will be issued one business day after
the Market and GMC invoices are generated.
*	FERC Fee invoices will be somewhat similar to the GMC invoice and
they will be EDI'd (instead of being faxed) to the Market Participants.
*	A charge type has been created for the FERC fee (CT 550).  The
settlement statements for the last trade day of the month will include the
FERC Fee charges as manual line item entries.  

	If you have any questions about FERC Fees, please contact Mike
McGuffin, 916-608-5753 or Masoud Shafa, 916-351-2216, of ISO Settlements.  

	Thank you.

	FERC Fee - Market Notice

	Introduction

	FERC has authorized the ISO to collect FERC's annual charges from
the Scheduling Coordinators (SCs) that use the ISO grid starting January 1,
2001.  The annual fee is based on the product of the FERC fee and SCs'
metered demand (load and export MWhs).  The fee is currently estimated at
$0.021/MWh and is subject to change. Load associated with transactions that
do not use the ISO Controlled Grid will not be assessed the FERC fee.

	In accordance with FERC's March 14, 2001 Order on Amendment No. 35
to the ISO Tariff, 94 FERC ? 61,266, the California ISO has developed a
procedure for invoicing and collecting the FERC Fee from Market
Participants.  

	Process

	The FERC Fee invoices will be issued to each market participant one
business day after the market and GMC invoices are distributed. The last
statement of the trade month will include the FERC Fee charges under CT 550.
A daily GMC Details file is already issued to SCs and can be used to verify
metered load and export quantities.  

	To claim an exemption from the FERC Fee, an entity must provide data
showing that applicable load and export data was not associated with
transmission transactions over the ISO controlled grid. SCs requesting
exemption from the FERC Fee need to provide their ISO Client Representative
with the BAID, location, interchange ID, and quantities of load and export
that are to be exempted. Any disputes concerning requested exemptions should
be raised in the ISO's settlement dispute process. The ISO will inform the
FERC of the total quantity of transmission transactions over the ISO
Controlled Grid and the MWh exemptions requested by each Market Participants
for the FERC Fees.

	DUE DATES
	Payment of the FERC Fee is not required on a monthly basis for 
	a) entities with a current Approved Credit Rating or; 
	b) who maintain at the ISO a financial security posting at a level
sufficient to cover the outstanding obligation and 
	c) who are current on all obligations to ISO:
	For those entities that elect to pay the FERC Fee on an annual basis
and meet the requirements to make annual payments, the payment due date is
in accordance with tariff section 7.5.1.2.   

	For entities who do not meet the criteria set forth above, payment
is due 5 business days from the date of issuance of the monthly FERC Fee
invoice.

	Any SC payments received by the ISO will be held in an interest
bearing account.  Interest earnings will not be separately identified to the
benefit of individual Scheduling Coordinators.

	If you have any comments please contact your Account Manager.

Client Relations Communication
[email-masked]