PJM would dictate grid expansion, even if not needed for reliability, and then push the cost of the upgrades on those who use them the most.
Chairman Pat Wood and his...
Benchmark Adjustment for Outages. In practice, EBCC for each zone will be 10 percent less than the nominal EBCC total, reflecting a benchmark standard forced outage rate.
3. Calculate the LICAP prices as set through the monthly auction
Graph. Construct an x-y coordinate graph, with price on the y-axis expressed as a function of EBCC, and capacity quantity on the x-axis, as a function of OC. Demand Curve. Draw a sloping demand curve (see figure). This curve represents an administrative determination of how much that LSE should be willing to pay to capacity suppliers, rather than a summation of actual bids submitted by LSEs. Capacity Quantity. At each monthly auction, calculate the quantity of existing installed capacity for each zone on the x-axis. (This amount is a different value from the actual number and quantity of capacity supply bids submitted by suppliers - more on that later). Corresponding Price. At that value of x (quantity), move up in vertical direction to find intersection with the demand curve. The corresponding value for y (a function of EBCC) will represent the nominal price of LICAP.- B.W.R.
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