The California ISO is experiencing year-to-date over-recovery of the Grid Management Charge (GMC), specifically in the Market Services and System Operations categories. The May 1, 2023 proposed rate decreases will attempt to align the respective categories’ forecasted collected revenue to the budgeted revenue and will minimize the impact of over collections on future rates. Changes to the Market Services and System Operations rates will also cause the corresponding Western Energy Imbalance Market (WEIM) rate to change. The chart below outlines the GMC category revenue collections forecast for the year.
Budgeted versus Forecast Revenues by GMC Service Category
|
Service Category
|
Budgeted Amount
|
Revenue
Forecast
|
Difference
|
Percent
|
Market Services
|
$97,520,356
|
$107,695,711
|
$10,175,355
|
10.43%
|
System Operations
|
$98,035,776
|
$102,348,529
|
$ 4,312,753
|
4.40%
|
Pursuant to Appendix F, Schedule 1, Part B of the ISO Tariff, the ISO will adjust these GMC rate components effective trade date May 1, 2023.
Summary of Proposed Rate Changes
|
Charge Code
|
Current Rate
|
Proposed New Rate
|
Difference
|
4560 Market Services
|
$0.1513
|
$0.1320
|
$0.0193
|
4561 System Operations
|
$0.2167
|
$0.2070
|
$0.0097
|
4564 WEIM System Operations
|
$0.2037
|
$0.1867
|
$0.0170
|
The Congestion Revenue Rights (CRR) Services and Reliability Coordinator service charges remain unchanged. The ISO will continue to monitor and assess its revenue collections throughout the year and will make rate adjustment recommendations, up or down, as necessary pursuant to the ISO tariff.
An updated GMC rates sheet with the new rates effective as of the May 1, 2023 trade date is available on the Settlements page of the ISO website. |