Settlements

In late 2018, the ISO enacted new rules for all CRR bids effective for trade dates beginning Jan. 1, 2019 and beyond. These new policy rule changes were implemented to address CRR revenue adequacy and valuation concerns seen with the previous CRR market rules. Two of the major policy changes included the limitation on the number of CRR source/sink pair combinations that participants can bid on, and the implementation of an explicit sell feature, which simplified the process by which CRR owners can sell their CRRs. As a result of these changes, the billable volumes for the CRR services category have decreased. While an estimate of these decreases were accounted for in establishing the rates for 2019, the billable megawatts (MWs) have declined at a greater rate than forecast. Based on data through March 2019, the current ISO revenue collections forecasted for the year shows that the GMC for the CRR service category will differ by more than 2% or $1 million, whichever is greater.

The May 1 rate increase will attempt to align the forecasted actual revenue to the budgeted revenue and will alleviate the impacts of an under collection on future rates. The chart below outlines the GMC Category revenue collections forecast for the year.

Pursuant to Appendix F, Schedule 1, Part B of the ISO Tariff, the ISO will adjust this GMC rate component effective trade date May 1, 2019.

The ISO has posted a schedule showing the rates effective for the May 1, 2019 trade date on its website at http://www.caiso.com/Documents/GMCRatesfor2004-2019EffectiveMay12019041019.pdf.

Contact your client representative or ISO Customer Service at 916-608-7320.