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LOAD RESPONSE PROGRAM. Robert Burke February 13, 2001. Agenda. Why Simplification was necessary complexity of original proposal proposed modifications Example After the summer “Seeding” the program. Why Simplification?.
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LOAD RESPONSE PROGRAM Robert Burke February 13, 2001
Agenda • Why Simplification was necessary • complexity of original proposal • proposed modifications • Example • After the summer • “Seeding” the program
Why Simplification? • Original proposal included reallocation of the interrupted load to multiple suppliers • Determination of individual monthly peak load effected • Within Market Settlement System, this reallocation results in changes to “Load” • Lost revenue calculation and debits/credits • Lost revenue verification and auditability
Proposed Modifications • Processed outside of the Market Settlement System • Eliminate reallocation • Eliminate lost revenue • Payments for interruption made to Participant that signed up customer • Cost allocated to Electric Load
ExamplePrior to Interruption New Type 6 1 MW L.A.F.I. Signed by Comp. X Load Asset 10 MW Comp. A 50% - 5MW Comp. B 30% - 3MW Comp. C 20% - 2MW
ExampleAfter Interruption New Type 6 1 MW L.A.F.I. Signed by Comp. X Load Asset 9 MW Comp. A 50% - 4.5MW Comp. B 30% - 2.7MW Comp. C 20% - 1.8MW 1MW interruption determined by ISO
Seeding the Program • ISO proposed that the installation costs for the first 1,000 sites be socialized • Consistent with the installation of RIGs