The ongoing COVID-19 pandemic has significantly changed the energy consumption pattern across all regions of the country as businesses scaled-down their operations or are temporarily shutting down. The impact of the disruption on the energy markets is reflected on the year-to-date under-recovery of the grid management charge (GMC), specifically in the market and system operations service categories.
Based on data through April 2020, the current California ISO revenue collections forecasted for the year show that the Grid Management Charge (GMC) for the Market and System Operations services categories will differ by more than the greater of, 2 percent or $1 million. Accordingly, the ISO Tariff requires that the associated GMC rates be adjusted along with the corresponding EIM Administrative Fees.
The adjustments will be effective on trade date June 1, 2020. The June 1st proposed rate increases will attempt to align the forecasted actual revenue to the budgeted revenue and will alleviate the impacts of under collections on future rates. Changes to these rates will also cause the corresponding EIM Administrative Fees to change, which have also been impacted by declining volumes. The chart below outlines the GMC Category revenue collections forecast for the year.
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Budgeted versus Forecast Revenues by GMC Service Category
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Service Category
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Net Budgeted Amount
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Revenue Forecast
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Difference
|
Percent
|
|
Market Services
|
$52,393,422
|
$50,739,620
|
$(1,653,802)
|
(3.2)%
|
|
System Operations
|
$122,356,259
|
$118,063,043
|
$(4,293,216)
|
(3.5)%
|
Pursuant to Appendix F, Schedule 1, Part B of the ISO Tariff, the ISO will adjust these GMC rate components effective trade date June 1, 2020.
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Summary of Proposed Rate Changes
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|
Charge Code
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Current Rate
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Proposed New Rate
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Difference
|
|
4560 Market Services
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$0.0994
|
$0.1044
|
$0.0050
|
|
4561 System Operations
|
$0.2788
|
$0.2938
|
$0.0150
|
|
4564 EIM Market Services
|
$0.0785
|
$0.0825
|
$0.0040
|
|
4564 EIM System Operations
|
$0.1087
|
$0.1146
|
$0.0059
|
The reliability coordinator service charge remains unchanged. The ISO will continually monitor and assess its revenue collections and will make recommendations of any rate adjustments, up or down, if necessary.
The ISO has posted a schedule showing the rates effective for the June 1, 2020 trade date on its website at http://www.caiso.com/Documents/GridManagementChargeRates-2004-2020EffectiveJun1-2020.pdf.
The ISO will host a public stakeholder web conference on May 27, 2020 to discuss the GMC rate adjustment and its Summer Loads and Resources Assessment. Details of the web conference will be provided in a forthcoming notice.
