Allocation of Disgorged Funds from Two FERC Enforcement Settlement Agreements

The California ISO is allocating funds provided to the ISO under two orders from the Federal Energy Regulatory Commission (FERC). Both orders approved stipulation and consent agreements between FERC’s Office of Enforcement and a different ISO market participant. Under the settlement agreements, the market participant agreed to disgorge funds to the ISO, with the ISO ordered to allocate the disgorged funds in ISO’s discretion for the benefit of ISO customers.

The two orders and disgorgement amounts are:

• Arlington Energy Center III, LLC, et al., , FERC Docket No. IN24-10-000
  • Disgorgement of $381,724 for sales of energy
• Vista Energy Storage, LLC, FERC Docket No. IN24-11-000
  • Disgorgement of $1,670,000, of which $1,450,000 is for bid cost recovery payments and $185,000 is for sales of regulation down

Because the two matters involve different periods of time and because Vista Energy Storage relates to two different types of market transactions, the ISO is allocating the three pools of funds on different pro rata bases.

The ISO is allocating the funds from Arlington Energy Center III pro rata based on measured demand excluding Transmission Ownership Right (TOR) self-schedules and net demand of load following Metered Subsystems (MSSs) during the 427 days on which the conduct occurred.

The ISO is allocating the Bid Cost Recovery (BCR) funds from Vista Energy Storage pro rata based on measured demand adjusting for Hour-Ahead Scheduling Process (HASP) reductions and Fifteen Minute Market (FMM) reductions during the 33 days on which the conduct occurred.

The ISO is allocating the regulation down funds from Vista Energy Storage pro rata based on positive regulation down obligation during the 33 days on which the conduct occurred.

The ISO will include the disbursement from each of the orders in Neutrality charge code 8989 on the Trade Date Sept. 5, 2024 T+9B initial settlement statement publishing on Sept. 18, 2024. Billing for this statement will be reflected on the weekly invoice issuing on Sept. 18, 2024. The disbursement will be made through two distinct pass through bill (PTB) transactions, corresponding to each of the two orders. The ISO will include information to identify which Pass Through Bill (PTB) corresponds to which matter in the PTB comments field in the Balancing Authority (BA) Bill Determinant file included with the settlement statement.

Contact information

Please contact ISO Customer Service at 916-608-7320 with any questions.