1 / 4

Minimum Price Cap Proposal

Minimum Price Cap Proposal. Michelle C. Gardner NextEra Energy Resources. Markets Committee March 12-13, 2014. NextEra’s Amendment to increase the minimum price cap will make the demand curve fairly resilient to E&AS offset uncertainty and errors in forecasting Net CONE.

patience-casey
Download Presentation

Minimum Price Cap Proposal

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Minimum Price Cap Proposal Michelle C. Gardner NextEra Energy Resources Markets Committee March 12-13, 2014

  2. NextEra’s Amendment to increase the minimum price cap will make the demand curve fairly resilient to E&AS offset uncertainty and errors in forecasting Net CONE Minimum Price Cap Proposal • NextEra will offer an amendment to use 1.25 times Gross CONE as the minimum, as compared to the current ISO-NE proposal of 1 times Gross CONE • Gross CONE is $14.04/kW-month for FCA-9 using the selected reference technology • The current 1.65 times Net CONE price cap proposed by ISO-NE equals $18.27/kW-month • NextEra’s minimum price cap is equal to $17.55/kW-month • ISO-NE’s minimum price cap is equal to $14.04/kW-month

  3. NextEra Tariff Amendment in Red Below NextEra Minimum Price Cap Amendment III.13.2.2. Amount of Capacity Cleared in Each Forward Capacity Auction. • The total amount of capacity cleared in each Forward Capacity Auction shall be determined using the System-Wide Capacity Demand Curve pursuant to Section III.13.2.3.3. • The System-Wide Capacity Demand Curve is defined as follows: • For quantities (net of HQICCs) less than 0.143 LOLE, the price is max [1.65 multiplied by Net CONE, 1.25 timesCONE]; • For quantities (net of HQICCs) equal to or greater than 0.143 LOLE, but less than 0.063 LOLE, the price will be determined by a straight line between the price at 0.143 LOLE (which shall be max [1.65 multiplied by Net CONE, 1.25 times CONE] and the price at 0.063 LOLE (which shall be 0.7 multiplied by Net CONE);

  4. NextEra Tariff Amendment in Red Below NextEra Minimum Price Cap Amendment III.13.2.4. Forward Capacity Auction Starting Price and the Cost of New Entry. • The Forward Capacity Auction Starting Price is max [1.65 multiplied by Net CONE, 1.25 timesCONE].

More Related