In March 2019 the California ISO notified market participants during the Market Settlement User Group Call that it would estimate Resource Adequacy Availability Incentive Mechanism (RAAIM) Annual Unallocated Funds at zero until the T+33M recalculation settlement cycle for 2018. That process completed on the December 2018 monthly T+33M final recalculation settlement, which was published on Sept. 29, 2021.

Upon completing the T+33M statement for December 2018, there are remaining unallocated charges for Flexible Resource Adequacy (RA) Capacity.

The ISO will distribute those unallocated RAAIM funds through charge code 8835 on the daily T+33M recalculation settlement statement for the Feb. 18, 2019, trade date, which publishes on Nov. 12, 2021.

The final amount paid out will be $859,523.45, which includes principal and interest. The principal is $1,016, 054.22, which is the amount accumulated in the RAAIM Holding Account for past three years for RAAIM Flex unallocated funds for year 2018. The ISO has deducted from this principal deficit Interest of $156,230.77, resulting in a final distribution amount of $859,523.45.

The deficit interest was caused by the ISO needing to pay invoice deviation interest at the Federal Energy Regulatory Commission (FERC) rate while the account earned interest at the prevailing bank rate, which is lower than the FERC rate. The result was deficit interest of $156,230.77 as of the Feb. 18, 2019, trade date. Deficit interest was assessed through the Feb. 18, 2019, trade date to ensure no additional invoice deviation interest will be assessed when the Feb. 18, 2019, trade date invoice publishes on Nov. 24, 2021.

We have an administrative issue in finalizing the question of 2018 generic and there is a possibility that there are some generic funds to distribute. If there are, we will issue another notice.