CAISO
                     Settlements & Billing
     BPM Configuration Guide: BPM - CG CC 7999 Invoice
            Deviation Interest AllocationAllocation
                           CC 7999
                          Version 5.0
                    Settlements & Billing                                                                     Version:  5.0
                    Configuration Guide for: BPM - CG CC 7999 Invoice Deviation Interest                      Date:  05/19/09
                    AllocationAllocation
                                                                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                                                                                         6
                          3.3     Successor Charge Codes                                                                                           6
                          3.4     Inputs – External Systems                                                                                        6
                          3.5     Inputs - Predecessor Charge Codes or Pre-calculations                                                            7
                          3.6     CAISO Formula                                                                                                    7
                          3.7     Outputs                                                                                                          7
                    4.    Charge Code Effective Date                                                                                               8
                                                                            ÓCAISO, 2022                                                Page 2 of 8
                    Settlements & Billing                                                                     Version:  5.0
                    Configuration Guide for: BPM - CG CC 7999 Invoice Deviation Interest                      Date:  05/19/09
                    AllocationAllocation
                    1.        Purpose of Document
                                    The purpose of this document is to capture the requirements and design 
                                    specification for Charge Code 7999 to assess and apply interest, by Scheduling 
                                    Coordinator, CRR Holder, Black Start Generator or Participating TO, to deviations 
                                    for each Trading Month between:  (i) each Initial Settlement Statement T+7B 
                                    (invoiced semi-monthly) and Recalculation Settlement Statement T+ 38B (invoiced 
                                    monthly); and (ii)  Recalculation Settlement Statement T+38B (invoiced monthly) 
                                    and Recalculation Settlement Statement T+76B (invoiced monthly).1
                    2.        Introduction
                    2.1       Background
                                   The CAISO’s payment acceleration program significantly shortens 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 is reduced from 38 to 7 Business Days and the 
                                   payment timeline is reduced from 38 Business Days after the last Trading Day of the 
                                   month through semi-monthly invoicing.  As a result, the average cash clearing 
                                   schedule is shortened 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.  
                                   Under the payment acceleration program, the CAISO charges or pays interest, by 
                                   Scheduling Coordinator, CRR Holder, Black Start Generator or Participating TO, for 
                                   each Trading Month based on deviations between:  (i) each Initial Settlement 
                                   Statement T+7B and Recalculation Settlement Statement T+ 38B; and (ii) 
                                   Recalculation Settlement Statement T+38B and Recalculation Settlement Statement 
                                   T+76B. 
                                   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 semi-monthly at T+7B.  The interest provision is also intended
                                   to eliminate financial incentive to submit unreasonable estimates of Meter Data for 
                                   the Initial Settlement Statement T+7B.
                    1         Capitalized terms in this Configuration Guide have the same meaning as set forth in (i) CAISO Tariff, 
                         Appendix A, Master Definitions Supplement, (ii) the BPM for Settlements and Billing, Section 8.2, Sign & 
                         Subscript Conventions, or (ii) this Configuration Guide. 
                                                                            ÓCAISO, 2022                                                Page 3 of 8
                    Settlements & Billing                                                                     Version:  5.0
                    Configuration Guide for: BPM - CG CC 7999 Invoice Deviation Interest                      Date:  05/19/09
                    AllocationAllocation
                    2.2       Description
                                   Interest will be charged or paid through new separate Charge Codes (6999 and 
                                   7999) in the CAISO Settlements system.  These Charge Codes will be based on 
                                   deviations for each Trading Month, by Scheduling Coordinator, CRR Holder, Black 
                                   Start Generator or Participating TO, between:  (i) each Initial Settlement Statement 
                                   T+7B and Recalculation Settlement Statement T+ 38B; and Recalculation Settlement
                                   Statement T+38B and Recalculation Settlement Statement T+76B. 
                                   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 semi-monthly and is based on statements ranging in date 
                                   from the 1st to the 15th of the month and from the 16th to the end of the month, the 
                                   deviation for each Trading Month between the Recalculated Settlement Statement 
                                   and each semi-monthly initial Invoice must be determined.
                                   Four bill determinants are required to record total amounts of the Initial Settlement 
                                                                         st            th              th
                                   Statements T+7B from the 1  to the 15  and the 16  to the end of the month, as well 
                                   as total amounts of the Recalculation Settlement Statement T+38B and 
                                   Recalculation Settlement Statement T+76B for the same Trading Month. For 
                                   clarification, the following terms are used to identify these amounts.
                                            Initial_1 is the total amount for the Initial Settlement Statements T+7B from 
                                                    st            th.
                                             the 1  to the 15  
                                            Initial_2 is the total amount for the Initial Settlement Statements T+7B from 
                                                     th
                                             the 16  to the end of the month. 
                                            TrueUp_1 is the total amount for Recalculation Settlement Statement T+38B 
                                             for the Trading Month that corresponds with Initial_1 and Initial_2.
                                            TrueUp_2 is the total amount for Recalculation Settlement Statement T+76B 
                                             for the Trading Month that corresponds with Initial_1 and Initial_2.
                                   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.
                                   If the due dates between the initial Invoice containing Initial Settlement Statements 
                                   T+7B and the initial Invoice containing Recalculation Settlement Statement T+38B or
                                   Recalculation Settlement Statement T+76B span calendar quarters, then interest is 
                                   compounded quarterly.  Since the due dates between an initial Invoice containing 
                                   Initial Settlement Statements T+7B and Recalculation Settlement Statement T+76B 
                                   can span at most three calendar quarters, 3 bill determinants are defined to record 
                                   the FERC interest rate for each of those quarters. 
                                                                            ÓCAISO, 2022                                                Page 4 of 8