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FIP Used in Verifiable Cost Calculations

FIP Used in Verifiable Cost Calculations. RCWG 6-28-2013 Paul Vinson. FIP Used in Verifiable Cost Calculations. Currently using two variations of FIP in verifiable cost calculations: FIP daily = FIP posted for the previous day (updated daily)

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FIP Used in Verifiable Cost Calculations

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  1. FIP Used in Verifiable Cost Calculations RCWG 6-28-2013 Paul Vinson

  2. FIP Used in Verifiable Cost Calculations • Currently using two variations of FIP in verifiable cost calculations: • FIPdaily = FIP posted for the previous day (updated daily) • FIPavg = average of daily FIP for the first two weeks of the prior month (i.e. FIPavg for July = average FIP for June 1-14) • The Fuel Adder is being skewed by the ratio of these two FIPs

  3. FIP used in Startup Offer Cap For example, Startup Offer Cap = AFCRS * FIPdaily + VOM AFCRS=(verified startup fuel – PHR fuel) * (1 + VOX) VOX=$0.50/FIPavg SOC = (verified startup-PHR fuel)*(1 + $0.50/FIPavg) * FIPdaily + VOM …reduces to SOC = (startup-PHR fuel)*(FIPdaily+ $0.50*FIPdaily/FIPavg) + VOM Fuel Adder is skewed by ratio of FIPdaily/FIPavg - Propose to use FIPdaily in VOX calculation instead of FIPavg

  4. Using FIPdaily in Startup Offer Cap Startup Offer Cap = AFCRS * FIPdaily + VOM AFCRS=(verified startup fuel – PHR fuel) * (1 + VOX) VOX=$0.50/FIPdaily [instead of FIPavg] SOC = (verified startup-PHR fuel)*(1 + $0.50/ FIPdaily) * FIPdaily + VOM …reduces to SOC = (startup-PHR fuel)*(FIPdaily+ $0.50) + VOM Fuel Adder - Using FIPdaily in the VOX instead of FIPavg eliminates any skew of the Fuel Adder

  5. Using FIPdaily in Min Energy Cost Min Energy Cap = AHR * FIPdaily + VOMLSL AHR=(verified FuelLSL/GenLSL) * (1 + VOX) VOX=0.50/FIPdaily [instead of FIPavg] Min Energy Cap = (FuelLSL/GenLSL) * (1 + $0.50/FIPdaily) * FIPdaily + VOMLSL Reduces to… Min Energy Cap = (FuelLSL/GenLSL) * (FIPdaily + $0.50) + VOMLSL

  6. Using FIPdaily in Mitigated Offer Cap MOC = [IHR * FIPdaily * (1+VOX) + VOM]*CFmultiplier VOX=$0.50/FIPdaily [instead of FIPavg] MOC = [IHR* FIPdaily * (1+$0.50/FIPdaily) + VOM]*CFmult …reduces to MOC = IHR * (FIPdaily +$0.50) + VOM*CFmultiplier Fuel Adder

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