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Local Congestion Issues

Local Congestion Issues. Is the competitive solution a reasonable approach? Are OOMC and OOME payments reasonable? 150% of RRMCP Energy at 18 x fuel index What is the most correct base point (MW) on which to pay for OOME Incs and Decs on an individual unit?

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Local Congestion Issues

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  1. Local Congestion Issues • Is the competitive solution a reasonable approach? • Are OOMC and OOME payments reasonable? • 150% of RRMCP • Energy at 18 x fuel index • What is the most correct base point (MW) on which to pay for OOME Incs and Decs on an individual unit? • Are the OOME Inc and Dec payments correct and therefore do not create incentives to poor behavior?

  2. Local Congestion Solutions to Issues 1) Competitive solution was long discussed and compromised resolution was agreed upon by parties, including PUCT staff. 2) a. OOMC payment was set up with a declining payment based on usage per PUCT staff request. b. Energy payment to cover all costs of least-efficient units -- no further discussion has been done to date. 3) Base point of OOME dispatch order set by resource plan as defined in PIP 126. 4) Analysis of OOME Inc and Dec payment as currently in protocols follows.

  3. Settlement of OOME Incs

  4. Settlement of OOME Decs

  5. Issues with Settlement of OOME 1) Is 18  fuel index too much for Incs? 2) Shouldn’t Decs when MCPE<0 also get 0 net settlement as when MCPE>0? 3) Should Decs have to provide some fuel savings back to the ISO? Example -- x% fuel saving determined by incremental H.R.  fuel index

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