FERC Filing - Petition for Approval to Distribute Penalty Proceeds and Non-Refundable Interconnection Financial Security
On Nov. 8, 2018, the California ISO filed a petition with the Federal Energy Regulatory Commission (FERC) requesting approval for the ISO to distribute proceeds of (1) penalties collected for violations of the ISO Rules of Conduct for the calendar year 2017; and (2) funds associated with non-refundable deposits for interconnection studies.
Section 37.9.4 of the ISO tariff requires that the ISO place all proceeds of penalties collected under section 37.9 into a trust account. After the end of the year, the ISO must allocate those proceeds, together with interest, to scheduling coordinators for eligible market participants. Eligible market participants are those that were not assessed a financial penalty under section 37 during the relevant calendar year.
In distributing the funds, the ISO pays eligible market participants based on the product of: (a) the amount in the trust account, including interest; and (b) the ratio of grid management charge payments by the scheduling coordinator on behalf of eligible market participants to the total of such amounts paid by all scheduling coordinators. The payment cannot be more than the amount of grid management charge paid by the scheduling coordinator on behalf of all eligible market participants that it represents.
Subsequent to the disposition, the scheduling coordinator is responsible for distributing the amounts to the eligible market participants in proportion to their share of the grid management charge paid by the scheduling coordinator on their behalf.
In addition, pursuant to those same provisions, as well as former provisions of Appendix Y of the ISO tariff and the current provisions of the Wholesale Distribution Access Tariff (WDAT) of Southern California Edison Company (SCE), the ISO also will distribute non-refundable study deposits for projects interconnecting to SCE's distribution system for the 2017 calendar year.
The ISO will distribute these funds once it receives approval from FERC.