Payment default allocation (completed)

Outcome: On Feb. 2, 2016, FERC approved the ISO’s request to maintain the effectiveness of existing tariff provisions in allocating financial default losses across all market participants in accordance with a settlement agreement approved by FERC in Docket No. EL09-62. This is the ISO methodology for calculating a market participant’s percentage share of a payment default. The existing tariff provisions became effective on Feb 11, 2016. — Implemented: Feb 11, 2016; FERC approval: Feb 02, 2016; Tariff amendment filing: Nov 10, 2015 (ER16-305)

This initiative is to review with stakeholders whether current tariff provisions regarding payment default allocations should remain in effect, be modified or replaced. This is the ISO methodology for calculating market participant's percentage share of a payment default. The ISO is undertaking this initiative as agreed to by FERC settlement agreement Docket No. EL09-62 signed in 2011.