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Proposed Revision Request Detail Help
PRR Life Cycle*********Closed
PRR Details
PRR #
1555
Title Rules of Conduct Enhancements - Phase 1
Date Submitted 2/22/2024 5:25 PM
PRR Category C
Priority Normal
Owner Stahl, Angelica (CAISO)
Status Closed
Status End Date 5/14/2024 11:59 PM
Related BPM Rules of Conduct Administration
BPM Section 3.4.1 - Determination of Sanctions (pg 18)
3.4.3 - Settlement (pg 19)
Footnote Tariff Reference (pg 19)
3.4.3.1 - Settlement Statements (pg 20, 3rd bullet)
3.4.4 - Disposition of Sanction Proceeds (pg 22)
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Existing Language
​3.4.1 - Violations of 37.5.2, Accurate and Timely SQMD, may involve a “market adjustment”, which is a charge separate from any financial penalty amount that approximates the value of inaccurately reported Meter Data.  (See CAISO Tariff Sections 37.5.2 and 37.11).

3.4.3 - Penalties for Rules of Conduct violations, as well as market adjustments for inaccurate meter data, are invoiced through the CAISO Settlement Process and will appear on the next relevant Settlement Statement.  Market Participants may appeal penalties assessed by the CAISO to FERC.  The CAISO holds the proceeds of penalties collected in a trust account, allocating them after the completion of the calendar year during which they were assessed to Market Participants that have not incurred a penalty during that calendar year under CAISO Tariff Section 37, in proportion to GMC paid.
Violations of CAISO Tariff Section 37.5.2, Accurate and Timely SQMD, may include a market adjustment, which is a charge under CAISO Tariff Section 37 to provide an approximate settlement for the value of the inaccurate Meter Data.  The market adjustment is calculated based on the MWh value of the inaccurate Meter Data in each hour of the applicable period and the applicable LMP.  The CAISO allocates market adjustment proceeds to Scheduling Coordinators, in proportion to average UFE charges for the corresponding UDC territory during the period of the inaccurate Meter Data.2   The allocation is included on the Settlement Statements for the same Trading Day that the CAISO includes the market adjustment charge on the Settlement Statement.

Footnote Tariff Reference - 37.11

3.4.3.1 - CC 1593 CAISO Tariff Section 37 Charge/Allocation for Inaccurate Meter Data (i.e. inaccurate Meter Data “market adjustment” charge, as described in Section 3.4.4.)

3.4.4 - 3) The CAISO requests and obtains FERC approval of its determination of eligible Market Participants and their respective shares of the trust account proceeds.
4) Upon FERC’s approval, the CAISO includes the payment on Settlement Statements, as Charge Code 1592.  Each Scheduling Coordinator is responsible for distributing payments to the eligible Market Participants it represents in accordance with the FERC approved determination of eligible Market Participants and their respective shares of the trust account proceeds.

Proposed Language
 

3.4.1 - ​Violations of 37.5.2, Accurate and Timely SQMD, may involve a “market adjustment”, which is a charge separate from any financial penalty amount that approximates the value of inaccurate, late, or missing Meter Data..  (See CAISO Tariff Sections 37.5.2.2.4).  Note that not every violation of section 37.5.2 necessarily triggers a market adjustment.

3.4.3 - Penalties for Rules of Conduct violations, as well as market adjustments for inaccurate, late, or missing Meter Data meter data, are invoiced through the CAISO Settlement Process and will appear on the next relevant Settlement Statement.  Market Participants may appeal penalties assessed by the CAISO to FERC.  The CAISO holds the proceeds of penalties collected in a trust account, allocating them after the completion of the calendar year during which they were assessed to Market Participants that have not incurred a penalty during that calendar year under CAISO Tariff Section 37, in proportion to GMC paid.
Violations of CAISO Tariff Section 37.5.2, Accurate and Timely SQMD, may include a market adjustment, which is a charge under CAISO Tariff Section 37 to provide an approximate settlement for the value of the inaccurate, late, or missing Meter Data Meter Data.  The market adjustment is calculated based on the MWh value of the inaccurate, late, or missing Meter Data in each hour of the applicable period that was not processed in the CAISO’s regular market settlements process.  The market adjustment charge is calculated on an hourly basis.  The charge is the product of the applicable MWh value in the hour and the average RTD LMP during the hour, subject to a minimum price for the hour of $10/MWh.Note that the CAISO does not assess a market adjustment when the initial error was to the Scheduling Coordinator’s detriment or if the Scheduling Coordinator, under a single SCID, is the only Scheduling Coordinator in the utility service area during the meter data event.  The CAISO allocates market adjustment proceeds to Scheduling Coordinators, in proportion to average UFE charges for the corresponding UDC territory during the period of the inaccurate Meter Data.2   The allocation is included on the Settlement Statements for the same Trading Day that the CAISO includes the market adjustment charge on the Settlement Statement.

Footnote Tariff Reference - 37.5.2.2.4

3.4.3.1 - CC 1593 CAISO Tariff Section 37 Charge/Allocation for Inaccurate, Late, or Missing Meter Data (i.e. “market adjustment” charge, as described in Section 3.4.4.)

3.4.4 - 3) The CAISO includes the payment on Settlement Statements, as Charge Code 1592.  Each Scheduling Coordinator is responsible for distributing payments to the eligible Market Participants it represents in accordance with the FERC approved determination of eligible Market Participants and their respective shares of the trust account proceeds.
4) After allocating the penalty proceeds, the CAISO posts an informational report to the CAISO Website providing information about the financial Sanctions assessed for the calendar year, including the number of violations and total financial Sanctions assessed for each category of violation, and issues a Market Notice informing Scheduling Coordinators and Market Participants of the availability of the report.

Reason For Revision
 

​BPM changes are in support of Tariff changes related to Rules of Conduct Enhancement (ROCE) Phase 1 effort.

Click here to view the Recommendation Details for this PRR
BPM PRR Submitter

Stahl, Angelica (CAISO)
Modified BPM language proposed by the PBM Chnage Management Coordinator

​Approve BPM as submitted

Identification of the authorship of comments

N/A
Action

Approve the BPM PRR as submitted

Recommendation based on original submission
Statement of apparent requirements of the BPM PRR

N/A
Priority and rank for any BPM PRR requiring a CAISO system change

N/A
Proposed effective date(s) of the BPM PRR

4/1/2024
Other recommended actions

N/A
Click here to view the Final Decision for this PRR
Final Decision

Accept as originally submitted
Stakeholder Comment

N/A

Effective Date

4/1/2024
Action

Adopt the recommendation as originally issued

N/A
Announcements
No Announcements has been posted for this PRR.
Impact Analysis
Initial Comments
No Initial Comments available for this PRR.
Recommendation Comments
No Recommendation Comments available for this PRR.
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