SETTLEMENTS & CLEARING BACKGROUND
The California Public Utility Commission, in its Decision 97-12-090, dated
December 16th, 1997, recognizes the need for creation of services and processes
to improve the quality and integrity of retail data needed for a restructured
electric marketplace to function.
This Decision RECOGNIZES THE NEED FOR:
o Full and enhanced access and information exchange of customer information
between market participants
o THE ABILITY TO TRACK VARIOUS ELECTRICITY SERVICE TRANSACTIONS (PHYSICAL
AND FINANCIAL) COVERING THE ISO CONTROLLED GRID.
o Standards to identify each meter instrument and all associated
characteristics plus events related to that meter, plus ensuring the
retention and survivability of metering information.
This Decision CALLS FOR:
o The adoption and implementation of a common customer data identifier seen
as a "Universal Node Identifier System" (UNI) unique to every node or
service delivery point (SDP) on the distribution wires systems of the
Utility Distribution Companies (UDC's) thereby creating a unique number to
each billable energy path (associating
o The adoption and implementation of a Universal Identifiers Supplement for
unique identification of each meter
o THE POSSIBILITY OF CREATING A CENTRAL REPOSITORY FOR THE MANAGEMENT OF
INFORMATION PERTAINING TO METER IDENTIFICATION, ACCURACY TESTING,
MAINTENANCE, AND METER DATA USAGE.
And, the Decision SUGGESTS that the market may be best served if:
o AN INDEPENDENT THIRD PARTY DEVELOPS THE UNI SYSTEM AND OPERATES THIS
SERVICE ON AN OUT-SOURCE BASIS TO THE MARKET
o AN INDEPENDENT THIRD PARTY COULD COMPARE ALL SCHEDULED TRANSACTIONS AT EACH
SDP TO ENSURE TRANSACTIONS ARE ATTRIBUTED TO THE CORRECT SC, ESP AND UDC.
o AN INDEPENDENT THIRD PARTY SERVE AS THE CLEARINGHOUSE OF METERING DATA AND
USAGE INFORMATION FOR THE MARKET
PEROTSYSTEMS(TM)
SETTLEMENTS & CLEARING AGENCY
(UNDER DEVELOPMENT)
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Overview of Market Process Relationships
& Scheduling Information Flows
(Figure 1 Hierarchy Market Entities)
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MARKET & SERVICE OVERVIEW
CALIFORNIA BUSINESS TIMELINE
"ISO SETTLEMENTS & CLEARING"
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EU CHAIN
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SETTLEMENTS & CLEARING
CONCEPT
APRIL 98
OVERVIEW
PEROTSYSTEMS(TM)
SETTLEMENTS & CLEARING BACKGROUND
The California Public Utility Commission, in its Decision 97-12-090, dated
December 16th, 1997, recognizes the need for creation of services and processes
to improve the quality and integrity of retail data needed for a restructured
electric marketplace to function.
This Decision RECOGNIZES THE NEED FOR:
o Full and enhanced access and information exchange of customer information
between market participants
o THE ABILITY TO TRACK VARIOUS ELECTRICITY SERVICE TRANSACTIONS (PHYSICAL
AND FINANCIAL) COVERING THE ISO CONTROLLED GRID.
o Standards to identify each meter instrument and all associated
characteristics plus events related to that meter, plus ensuring the
retention and survivability of metering information
This Decision CALLS FOR:
o The adoption and implementation of a common customer data identifier seen
as a "Universal Node Identifier System" (UNI) unique to every node or
service delivery point (SDP) on the distribution wires systems of the
Utility Distribution Companies (UDC's) thereby creating a unique number to
each billable energy path (associating
o The adoption and implementation of a Universal Identifiers Supplement for
unique identification of each meter
o THE POSSIBILITY OF CREATING A CENTRAL RESPOSITORY FOR THE MANAGEMENT OF
INFORMATION PERTAINING TO METER IDENTIFICATION, ACCURACY TESTING,
MAINTENANCE, AND METER DATA USAGE.
And, the Decision SUGGESTS that the market may be best served if:
o AN INDEPENDENT THIRD PARTY DEVELOPS THE UNI SYSTEM AND OPERATES THIS
SERVICE ON AN OUT-SOURCE BASIS TO THE MARKET
o AN INDEPENDENT THIRD PARTY COULD COMPARE ALL SCHEDULED TRANSACTIONS AT EACH
SDP TO ENSURE TRANSACTIONS ARE ATTRIBUTED TO THE CORRECT SC, ESP AND UDC.
o AN INDEPENDENT THIRD PARTY SERVE AS THE CLEARINGHOUSE OF METERING DATA AND
USAGE INFORMATION FOR THE MARKET
PEROTSYSTEMS(TM)
MARKET AND SERVICE OVERVIEW - Market Structure
Manufacture Product - Manage Purchase & Sale of Product -
Manage Grid Ops & Delivery
Manage Distribution Ops & Delivery - Admin & Management
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PEROTSYSTEMS(TM)
Overview of Market Process Relationships
& Scheduling Information Flows
(Figure 1 Hierarchy Market Entities)
[GRAPHIC OMITTED]
PEROTSYSTEMS(TM)
Overview of Market Process Relationships
& Scheduling Information Flows
(Figure 2 Scheduling Information Flows Overview)
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PEROTSYSTEMS(TM)
MARKET & SERVICE OVERVIEW
CALIFORNIA BUSINESS TIMELINE
"ISO SETTLEMENTS & CLEARING"
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CALIF ELECTRICITY MARKET OVERVIEW
CURRENT PROCESS & GAPS
(WORK-IN-PROGRESS)
FIGURE NO 1
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CALIF ELECTRICITY MARKET OVERVIEW
CURRENT PROCESS & GAPS
(WORK-IN-PROGRESS)
FIGURE NO 2
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CALIF ELECTRICITY MARKET OVERVIEW
CURRENT PROCESS & GAPS
(WORK-IN-PROGRESS)
FIGURE NO 3
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CALIF ELECTRICITY MARKET OVERVIEW
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CURRENT PROCESS & GAPS
(WORK-IN-PROGRESS)
FIGURE NO3
There are multiple physical and financial layers of settlements & reconciliation
ISO begins initial settlements with posting of actuals to the PX, the SC's
&GenCos
energy used
transmission costs
imbalances created and costs
ancillary costs
congestion costs
PX and SC's begin initial settlements with decomposing and announcing
allocations to their customers- e.g. UDC's and ESP's respectively on basis on
aggregate scheds
ESP's must decompose charges received to their respective customer schedules &
then must review these charges against any bilateral agreements, and/or customer
contracts
UDC's must compare to expected forecasts
ESP's and UDC's must settle on exchange of distribution, metering and billing
charges
A similar process of settlements & reconciliation occurs thruout to address
payments
Settlements must exist between parties to balance the actual or adjusted energy
usage of an individual customer to the scheduled and non-scheduled usage of this
customer over the same period of time
Settlements must also exist to balance the exchange of payments for energy and
services for an individual customer between the parties to include MSP's;
MDMA's, and billing services.
A further layer of settlements and payments exists between secondary contracts &
agreements between other parties to these transactions such as contracts for
differences on energy prices
And, yet a further layer of settlement, credits and payments exists between the
creditors and banks through which the financial instruments and payments
covering these transactions are being made
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Settlements & Clearing Agency Construct &
Underlying Concepts
o Overall service design is driven by overarching goal for INDUSTRY-WIDE
process integration for physical balancing and financial settlements &
clearing. Underlying this concept is the design and deployment of a DIGITAL
COMMERCE CLEARINGHOUSE to electronically tag, track and, balance
electricity transactions covered by the ISO controlled grid.
o Approach is one to create a DIGITAL COMMERCE MARKETPLACE offering the means
for:
o Setting business-to-business processes, relationships and,
transactions to occur electronically
o Ensuring seamless integration of current and future business processes
o "Self healing" analysis and intervention to improve results through
modification or refinement of business practices, targeted education
and/or training and, other actions.
o Concepts align with creation of a VALUE WEB linking together businesses to:
produce efficiencies; ensure collaboration between processes and
technology; and, to deliver simplicity to the participants through
integration with legacy and 3rd party systems.
o Create a KNOWLEDGE BASED SYSTEM serving as a platform for products &
services innovation.
PEROTSYSTEMS(TM)
SETTLEMENTS & CLEARING AGENCY
(UNDER DEVELOPMENT)
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CALIF SETTLEMENTS & CLEARING AGENCY:
FUTURE PROCESS OVERVIEW
(WORK-IN-PROGRESS)
FIGURE NO 1
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CALIF SETTLEMENTS & CLEARING AGENCY:
FUTURE PROCESS OVERVIEW
(WORK-IN-PROGRESS)
FIGURE NO 2
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