Is your utility company ensuring continued compliance with the CAISO SQMD requirements during non-reporting years?
With the California Independent System Operator (CAISO) reducing the required scheduling coordinator audit and testing requirements to every two years, maintaining compliance with the fifth replacement Federal Energy Regulatory Commission Electric Tariff on non-reporting years should still be considered a priority. This testing is performed to ensure compliance with the scheduling coordinator metered entity’s Settlement Quality Meter Data (SQMD) plan. Although the reporting is only required every other year, some companies elect to continue to perform audit procedures to ensure compliance.
Continued monitoring of the company’s CAISO requirement status ensures no surprises in reporting years. This approach is especially beneficial for companies that have higher employee turnover, system changes, previous compliance issues or those that value the comfort of knowing that they’re still in compliance. The largest risk to clients that Schneider Downs has identified is a change in key personnel, key systems or key procedures. This can unknowingly create a lapse in compliance if appropriate transition procedures are not performed. Electing to perform testing in non-reporting years can identify and resolve these issues.
Some companies have elected to perform full audit procedures, while other have chosen to perform limited procedures on high-risk functions. Both are good choices, but the ultimate decision should be made based on the company’s risk appetite. The greatest benefit to monitoring requirement status in non-reporting years is the ability to identify and remediate errors in a timely fashion. Contact us today to discuss how Schneider Downs can help your company with CAISO SQMD compliance and monitoring.
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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.