Forfeited financial assurance is the distribution or allocation of the loss of financial assurance one or more market participants provided for new generating capacity resources and new demand resources that cleared in a Forward Capacity Auction (FCA).
The forfeiture of financial assurance may occur if the ISO terminates a market participant's capacity supply obligation as a result of rules set forth in Market Rule 1, Section III.13.
It may also occur if a designated FCM market participant offering or awarded noncommercial capacity in any FCA is in default under the financial-assurance policy or billing policy and does not cure such a default within the noncommercial capacity cure period.
The forfeited financial-assurance allocation settlement information is provided under the standard settlement reporting structure.
On a monthly interval over the remaining capacity commitment period, forfeited financial assurance is allocated as a pro rata share of the total capacity requirement megawatts 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.
The monthly bill contains a single line item for credits associated with the allocation of forfeited financial assurance entitled "Forfeited Financial Assurance."
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 nonparticipant
SS_FORFEITEDFA Summary of a market participant's allocation of forfeited financial assurance credits, issued after the conclusion of the settlement month
The commencement of allocating forfeited financial assurance is based on the availability of the associated funds at the ISO. There may be lag time between the time of actual forfeiture and the receipt of funds at the ISO.