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 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.
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.
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 Non-Participant.
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.