SECTION OVERVIEW AND POLICIES

This section advises Business Units how to process payments to the New York Independent Systems Operator (NYISO).

NYISO provides electricity to Business Units throughout New York State and has historically billed Business Units on a monthly basis. This monthly billing practice gave Business Units about five business days to audit and process the invoices. However, starting October 1, 2011 the Federal Energy Regulatory Commission requires market participants, including Business Units, to settle with NYISO on a weekly basis. The weekly billing practice reduces the time Business Units have to process and audit the invoices. As a result, the Office of the State Comptroller will allow Business Units to create advance accounts to ensure timely payments to the NYISO.

Process and Transaction Preparation

After the Business Unit establishes the advance account, the Business Unit will use this account to process payments to NYISO. For more information on establishing an advance account, see the Guide to Financial Operations, Chapter VII, Section 10.B – Establishing and Increasing a Cash Advance.

Subsequently, the Business Unit will follow the procedures below to replenish an advance account.

1. Create a regular voucher using the Special Use Vendor ID assigned to the advance account.
   • Refer to the Guide to Financial Operations, Section 6.L – Replenishing an Advance Account of this Chapter for more information on replenishing an advance account.
2. Business Units must use the account code that correlates to the commodity or services that it spent the monies on in order to record spending for the items in question. For example, if the Business Unit purchased electricity with funds from an advance or sole custody account, the Business Unit should process a voucher to replenish the account using the appropriate account code for electricity utilities. A complete list of account codes for electricity utilities can be found in the Guide to Financial Operations, Chapter IV, Section 4.B – Department Operations – Non-Personal Services. Business Units should not use the account code used to set up the advance or sole custody account.
3. Submit the voucher for payment through the Statewide Financial System.

For questions regarding the processing or payment of vouchers for the replenishment of an advance account, please contact the Bureau of State Expenditures’ Customer Service Help Desk at (518) 474-4868, or by email addressed to [email protected].

Guide to Financial Operations

REV. 01/26/2015