26.13Retention 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 uUpon the a Customer’s withdrawal from the LBMP Market(s) and/or all of the ISO-Administered Markets to secure any the Customer’s estimated remaining financial obligations, including, but not limited to, true-up payments or other invoice adjustments, the Customer shall be required to provide secured credit .  The amount retained by the ISO shall be determined according to the following formula:

RCC = [∑N4 (Avg 4TrueUp *Initial 4 Month)] + [∑NF (AvgFinalTrueUp * Initial Final)](AFA x F) + (ASA x S)

Wwhere:  

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

N4=              Each month with an initial settlement without an associated 4 month settlement

NF=              Each month with an initial settlement without an associated final bill close-out

Avg4TrueUp =              Most recent six month rolling average percentage credit exposure of 4 month settlements to associated initial settlements, not to exceed a market-wide maximum percentage reasonably determined by the ISO

AvgFinalTrueUp=              Most recent six month rolling average percentage credit exposure of final bill close-outs to associated 4 month settlements, not to exceed a market-wide maximum percentage reasonably determined by the ISO

Initial 4 Month=              Initial settlement for the month N4

Initial Final=              Initial settlement for the month NF

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.