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Enron Mail |
Here is what we use in our contracts. Please recognize that using this index
understates the value of energy to industrial clients as it does not consider 1) Transmission & Distribution 2) Higher costs for less than 25 MW blocks 3) Higher costs as industrials use a different quantity each hour rather than a constant amount during peak and off peak periods 4) ISO charges for retail load (there are 4 or 5 charge codes such as Ancillary Services, Grid Management Charges, etc.) that are assessed Scheduling Coordinators that serve retail load represents the value of 25 MW blocks 5) Load forecasting risk 6) Credit Risk The sum of these would add at least 25% to the index price and I would not be at all surprised if the adder would be more like 50%. C
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