Forfeited Financial Assurance

What is Forfeited Financial Assurance?

Forfeited Financial Assurance is the distribution or allocation of the loss of financial assurance which was provided by a Market Participant(s) as part of the Forward Capacity Market for New Generating Capacity Resources and New Demand Resources cleared in the Forward Capacity Auction.

The forfeiture of financial assurance may occur if a Market Participant's Capacity Supply Obligation is terminated by the ISO as a result of rules set forth in Market Rule 1, Section III.13.

It may also occur if a Designated Forward Capacity Market Participant offering or awarded Non-Commercial Capacity in any Forward Capacity Auction or Reconfiguration Auction or entering into a Capacity Supply Obligation Bilateral to provide Non-Commercial Capacity is in default under the Financial Assurance Policy or the Billing Policy and does not cure such default within the Non-Commercial Capacity cure period.

The forfeited financial assurance allocation settlement information is provided under the Standard Settlement reporting structure.

In what document(s) do I find details about Forfeited Financial Assurance?

Primary provisions for the forfeiture of financial assurance are included in, but not limited to, Market Rule 1, Section III.13 and the ISO New England Financial Assurance Policy and the Billing Policy.

Who can expect to incur a Forfeited Financial Assurance Credit or Charge?


Market Participants with Capacity Requirement

Forfeited financial assurance is allocated on a monthly interval, over the remaining months of the Capacity Commitment Period, as a pro rata share of the total capacity requirement MW, to any Market Participant with a capacity requirement in the Capacity Zone(s) where the Capacity Supply Obligation was terminated.


There are no associated charges.

Related Standard Settlements


Related Billing Adjustments


Bill Detail

The monthly bill contains a single line item for credits associated with the allocation of forfeited financial assurance entitled "Forfeited Financial Assurance".


Daily Financial Position Report

BL_DAILYPOSITION Daily financial position including all market service settlements and miscellaneous billing adjustments generated on a daily basis; and, issued to all active customers registered as a Participant or Non-Participant.

Forfeited Financial Assurance

SS_FORFEITEDFA Summary of a Market Participant's allocation of forfeited financial assurance credits, issued after the conclusion of the settlement month.

Commencement of allocating forfeited financial assurance is based upon the availability of the associated funds at the ISO. There may be lag time between the time of actual forfeiture and receipt of funds at the ISO.

Related Calculation Summary

FCM Forfeited Financial Assurance Calculation Summary



Additional Related Materials

Accelerated Settlement, Standard Settlement and Billing Changes Effective 1st Quarter 2008

ISO News Issue 191 - ISO New England to Release New Daily Financial Position Report

ISO News Issue 191 - New Standard Settlement for Forfeited Financial Assurance

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