26.132Retention of a Withdrawing Customer’s Collateral

To the extent that a Customer’s credit requirements are met with a cash deposit or a letter of credit, the ISO shall retain a portion of that collateral upon the Customer’s withdrawal from the ISO-Administered Markets to secure any remaining financial obligations, including true-up payments or other invoice adjustments.  The amount retained by the ISO shall be determined according to the following formula:

RCC = (AFA x F) + (ASA x S)

where:  

RCC =  Retained Customer Collateral.  The amount of a Customer’s cash deposit or letter of credit to be retained following the Customer’s withdrawal from the ISO-Administered Markets.

AFA = Average adjustment to the Customer’s initial invoices in its four-month true-ups calculated over the prior six months.

F =Number of four-month true-ups remaining until all of the Customer’s monthly invoices are finalized by the ISO.

ASA = Average adjustment to the Customer’s initial invoices in its six-month true-ups calculated over the prior six months.

S =Number of six-month true-ups remaining until all of the Customer’s monthly invoices are finalized by the ISO.