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Power Plant BI

Power Plant BI. POWER GENERATION Evolution of Plant Ownership From Regulated Era Regulated Utility Monopolies To “Partially” Deregulated Era Independent Power Producers (IPP) Unregulated “Arms” of Utilities. Power Plant BI.

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Power Plant BI

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  1. Power Plant BI POWER GENERATION Evolution of Plant Ownership From Regulated Era Regulated Utility Monopolies To “Partially” Deregulated Era Independent Power Producers (IPP) Unregulated “Arms” of Utilities

  2. Power Plant BI NERC develops and enforces reliability standards; monitors the bulk power system; assesses future adequacy

  3. Power Plant BI Advent of ISOs and RTOs (Independent System Operator) (Regional Transmission Operator) A federally regulated regional organization which coordinates, controls and monitors the operation of the electric power system. • Acts as a marketplace • Monitors reliability of the system • Coordinates supply of power

  4. Power Plant BI Currently Eight ISOs and RTOs • California ISO (CAISO) • Electric Reliability Council of Texas (ERCOT) • ISO New England (ISO-NE) • Midwest Independent Transmission System Operator (MISO) • New York ISO (NYISO) • PJM Interconnection (PJM) • Southwest Power Pool (SPP) • Florida Reliability Coordinating Council (FRCC)

  5. Power Plant BI ISO Overview Wholesale Brokers Retail Brokers Generators Transmission/ Distribution Consumers

  6. Power Plant BI Generation Plant Sales • Contracted Power Purchase Agreements (PPA) Fixed pricing over term • Merchant No long term contract Market price based sales

  7. Power Plant BI Power Purchase Agreements • Pricing Components Capacity ($/MW) Energy ($/MWh) - Tolling, Efficiency Variable O&M ($/MWh) Start Charge ($/start) • Other Terms/Conditions Availability (Bonus/Penalty)

  8. Power Plant BI Merchant Plants Market Pricing Components • Day Ahead • Ancillary • Balancing (15 min.) • Spinning Reserve (Actual) Day Ahead Balancing

  9. Peaker Combined Cycle Demand (MW) Coal Nuclear Time of Day Power Plant BI Generation “Stack”

  10. Power Plant BI IF PPA BI claim is fairly straightforward Develop model to predict sales Test against operating history BUT IF MERCHANT More difficult Examine how does Assured sell his power Is there history?

  11. Power Plant BI Expected Claim Process “But for” Case (model) - Actual Case (supported by financial documentation) Claim But sometimes….. “But for” Case (model) - Actual Case (model, to identify pricing) Claim

  12. Power Plant BI If the model must be utilized for both: “But For” and “Actual” cases Then the claim can be developed as a “differential” product within the model [ “Normal” Capacity - Loss Period Capacity ] x Actual Price ($/MWh) = Claim Single Model Ensures Consistency of Logic

  13. Power Plant BI Business Interruption Claim Analysis • Gather Assumptions - performance data • Develop Generating Logic • Model Differential Results with Independent Data

  14. Power Plant BI BI Claim Analysis - Assumptions • Plant Performance • Fuel In & Power Out = Heat Rate (Efficiency) • Variable O&M costs Note: Care must be taken on “partial” outages to examine incremental plant performance data.

  15. Power Plant BI Simplified Example

  16. Power Plant BI BI Claim Analysis - Generating Logic DAY AHEAD IF : (Fuel Price x HR) + Vari. O&M < Power Price THEN: Plant unit would run BALANCING IF: Capacity is available AND (Fuel Price x HR) + Vari. O&M < Power Price THEN: Additional energy would be generated

  17. Power Plant BI BI Claim Analysis - Example Results

  18. Power Plant BI BI Claim Analysis - Example Results cont

  19. Power Plant BI SUMMARY • Must be aware of type of market • Analysis can be complex • Look for incremental capacity loss • Verify fuel and power prices • Verify plant performance assumption • Apply applicable logic

  20. Power Plant BI

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