Common use of Determining RMR Avoidable Costs Clause in Contracts

Determining RMR Avoidable Costs. 38.8.1 Determinations pursuant to this section are solely for purposes of determining the RMR Avoidable Cost of Initiating Generators and Generators that are determined to be a Viable and Sufficient Generator Deactivation Solution to a Generator Deactivation Reliability Need. The ISO shall determine the cost (net of estimated revenues, as applicable) of each Initiating Generator and of each Viable and Sufficient Generator Deactivation Solution to a Generator Deactivation Reliability Need that responds to the ISO’s request for Generator Deactivation Solutions in accordance with Sections 38.4 and 38.5. The ISO may also determine the costs of Viable and Sufficient Generator Deactivation Solutions that do not respond to the ISO’s request for Generator Deactivation Solutions. The ISO’s determination for a Generator shall be its “RMR Avoidable Costs.” The ISO shall use the costs, revenues, and other information submitted in accordance with Sections 38.3, 38.4, 38.5, 38.7, 38.8 and Appendix B of this Attachment FF that it verifies and/or validates, as applicable. If the ISO cannot verify and/or validate, as applicable, a cost or revenue submitted by a Market Party, the ISO shall substitute an estimated value. The ISO’s cost determinations pursuant to this Section shall be for the shorter of (i) the duration of the Generator Deactivation Reliability Need identified by the ISO in its request for Generator Deactivation Solutions, and (ii) the period identified by the ISO that an Initiating Generator or Viable and Sufficient Generator Deactivation Solution can satisfy the Generator Deactivation Reliability Need. 38.8.1.1 Cost savings due to an Initiating Generator’s continuation of service. Costs submitted in accordance with Sections 38.3, 38.4, 38.5, 38.7, 38.8, or Appendix B of this Attachment FF that arise out of an agreement that contains a cost, premium, or fee to terminate the agreement in whole or in part prior to the anticipated RMR Start Date, or commencement of service as a Generator Deactivation Solution, shall be reduced by the cost, premium or fee that would have been incurred had the Generator ceased operations on a date identified in the Generator Deactivation Notice, or such other date associated with performing service as a Generator Deactivation Solution. 38.8.1.2 For each transmission project that is proposed in accordance with this Attachment FF, the ISO shall calculate the net costs that would be incurred to provide the service identified in the Developer’s response to the ISO’s request for Generator Deactivation Solutions, considering any costs the Developer otherwise had a contractual or regulatory obligation to incur. 38.8.1.3 The ISO shall identify as “Capital Expenditures” the purchase or non- operational lease of, or modification to real property or assets (including, but not limited to, land, buildings, and equipment) that (a) are necessary to permit an Initiating Generator or Viable and Sufficient Generator Deactivation Solution to provide service to satisfy, in whole or in part, the Generator Deactivation Reliability Need identified in the ISO’s request for Generator Deactivation Solutions, (b) have a useful life greater than one year, and (c) are not otherwise included in the ISO’s calculation of RMR Avoidable Costs. The ISO shall also identify the reasonably anticipated date the Capital Expenditure will be placed into service, or otherwise integrated into the Generator Deactivation Solution.

Determining RMR Avoidable Costs. 38.8.1 Determinations pursuant to this section are solely for purposes of determining the RMR Avoidable Cost of Initiating Generators and Generators that are determined to be a Viable and Sufficient Generator Deactivation Solution to a Generator Deactivation Reliability Need. The ISO shall determine the cost (net of estimated revenues, as applicable) of each Initiating Generator and of each Viable and Sufficient Generator Deactivation Solution to a Generator Deactivation Reliability Need that responds to the ISO’s request for Generator Deactivation Solutions in accordance with Sections 38.4 and 38.5. The ISO may also determine the costs of Viable and Sufficient Generator Deactivation Solutions that do not respond to the ISO’s request for Generator Deactivation Solutions. The ISO’s determination for a Generator shall be its “RMR Avoidable Costs.” The ISO shall use the costs, revenues, and other information submitted in accordance with Sections 38.3, 38.4, 38.5, 38.7, 38.8 and Appendix B of this Attachment FF that it verifies and/or validates, as applicable. If the ISO cannot verify and/or validate, as applicable, a cost or revenue submitted by a Market Party, the ISO shall substitute an estimated value. The ISO’s cost determinations pursuant to this Section shall be for the shorter of (i) the duration of the Generator Deactivation Reliability Need identified by the ISO in its request for Generator Deactivation Solutions, and (ii) the period identified by the ISO that an Initiating Generator or Viable and Sufficient Generator Deactivation Solution can satisfy the Generator Deactivation Reliability Need. 38.8.1.1 Cost savings due to an Initiating Generator’s continuation of service. Costs submitted in accordance with Sections 38.3, 38.4, 38.5, 38.7, 38.8, or Appendix B of this Attachment FF that arise out of an agreement that contains a cost, premium, or fee to terminate the agreement in whole or in part prior to the anticipated RMR Start Date, or commencement of service as a Generator Deactivation Solution, shall be reduced by the cost, premium or fee that would have been incurred had the Generator ceased operations on a date identified in the Generator Deactivation Notice, or such other date associated with performing service as a Generator Deactivation Solution. 38.8.1.2 For each transmission project that is proposed in accordance with this Attachment FF, the ISO shall calculate the net costs that would be incurred to provide the service identified in the Developer’s response to the ISO’s request for Generator Deactivation Solutions, considering any costs the Developer otherwise had a contractual or regulatory obligation to incur. 38.8.1.3 The ISO shall identify as “Capital Expenditures” the purchase or non- non-operational lease of, or modification to real property or assets (including, but not limited to, land, buildings, and equipment) that (a) are necessary to permit an Initiating Generator or Viable and Sufficient Generator Deactivation Solution to provide service to satisfy, in whole or in part, the Generator Deactivation Reliability Need identified in the ISO’s request for Generator Deactivation Solutions, (b) have a useful life greater than one year, and (c) are not otherwise included in the ISO’s calculation of RMR Avoidable Costs. The ISO shall also identify the reasonably anticipated date the Capital Expenditure will be placed into service, or otherwise integrated into the Generator Deactivation Solution.

Determining RMR Avoidable Costs. 38.8.1 Determinations pursuant to this section are solely for purposes of determining the RMR Avoidable Cost of Initiating Generators and Generators that are determined to be a Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solution to a Generator Deactivation Short-Term Reliability Process Need. The ISO shall determine the cost (net of estimated revenues, as applicable) of each Initiating Generator and of each Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solution to a Generator Deactivation Short- Term Reliability Process Need that responds to the ISO’s request for Generator Deactivation Short-Term Reliability Process Solutions in accordance with Sections 38.4 and 38.5. The ISO may also determine the costs of Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solutions that do not respond to the ISO’s request for Generator Deactivation Short-Term Reliability Process Solutions. The ISO’s determination for a Generator shall be its “RMR Avoidable Costs.” The ISO shall use the costs, revenues, and other information submitted in accordance with Sections 38.3, 38.4, 38.5, 38.7, 38.8 and Appendix B of this Attachment FF that it verifies and/or validates, as applicable. If the ISO cannot verify and/or validate, as applicable, a cost or revenue submitted by a Market PartyParty or Generator Owner, the ISO shall substitute an estimated value. The ISO’s cost determinations pursuant to this Section shall be for the shorter of (i) the duration of the Generator Deactivation Short-Term Reliability Process Need identified by the ISO in its request for Generator Deactivation Short-Term Reliability Process Solutions, and (ii) the period identified by the ISO that an Initiating Generator or Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solution can satisfy the Generator Deactivation Short-Term Reliability Process Need. 38.8.1.1 Cost savings due to an Initiating Generator’s continuation of service. Costs submitted in accordance with Sections 38.3, 38.4, 38.5, 38.7, 38.8, or Appendix B of this Attachment FF that arise out of an agreement that contains a cost, premium, or fee to terminate the agreement in whole or in part prior to the anticipated RMR Start Date, or commencement of service as a Generator Deactivation Short-Term Reliability Process Solution, shall be reduced by the cost, premium or fee that would have been incurred had the Generator ceased operations on a date identified in the Generator Deactivation Notice, or such other date associated with performing service as a Generator Deactivation Short-Term Reliability Process Solution. 38.8.1.2 For each transmission project that is proposed in accordance with this Attachment FF, the ISO shall calculate the net costs that would be incurred to provide the service identified in the Developer’s response to the ISO’s request for Generator Deactivation Short-Term Reliability Process Solutions, considering any costs the Developer otherwise had a contractual or regulatory obligation to incur. 38.8.1.3 The ISO shall identify as “Capital Expenditures” the purchase or non- operational lease of, or modification to real property or assets (including, but not limited to, land, buildings, and equipment) that (a) are necessary to permit an Initiating Generator or Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solution to provide service to satisfy, in whole or in part, the Generator Deactivation Short-Term Reliability Process Need identified in the ISO’s request for Generator Deactivation Short-Term Reliability Process Solutions, (b) have a useful life greater than one year, and (c) are not otherwise included in the ISO’s calculation of RMR Avoidable Costs. The ISO shall also identify the reasonably anticipated date the Capital Expenditure will be placed into service, or otherwise integrated into the Generator Deactivation Short-Term Reliability Process Solution.

Determining RMR Avoidable Costs. 38.8.1 Determinations pursuant to this section are solely for purposes of determining the RMR Avoidable Cost of Initiating Generators and Generators that are determined to be a Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solution to a Generator Deactivation Short-Term Reliability Process Need. The ISO shall determine the cost (net of estimated revenues, as applicable) of each Initiating Generator and of each Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solution to a Generator Deactivation Short-Term Reliability Process Need that responds to the ISO’s request for Generator Deactivation Short-Term Reliability Process Solutions in accordance with Sections 38.4 and 38.5. The ISO may also determine the costs of Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solutions that do not respond to the ISO’s request for Generator Deactivation Short-Term Reliability Process Solutions. The ISO’s determination for a Generator shall be its “RMR Avoidable Costs.” The ISO shall use the costs, revenues, and other information submitted in accordance with Sections 38.3, 38.4, 38.5, 38.7, 38.8 and Appendix B of this Attachment FF that it verifies and/or validates, as applicable. If the ISO cannot verify and/or validate, as applicable, a cost or revenue submitted by a Market PartyParty or Generator Owner, the ISO shall substitute an estimated value. The ISO’s cost determinations pursuant to this Section shall be for the shorter of (i) the duration of the Generator Deactivation Short-Term Reliability Process Need identified by the ISO in its request for Generator Deactivation Short-Term Reliability Process Solutions, and (ii) the period identified by the ISO that an Initiating Generator or Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solution can satisfy the Generator Deactivation Short-Term Reliability Process Need. 38.8.1.1 Cost savings due to an Initiating Generator’s continuation of service. Costs submitted in accordance with Sections 38.3, 38.4, 38.5, 38.7, 38.8, or Appendix B of this Attachment FF that arise out of an agreement that contains a cost, premium, or fee to terminate the agreement in whole or in part prior to the anticipated RMR Start Date, or commencement of service as a Generator Deactivation Short-Term Reliability Process Solution, shall be reduced by the cost, premium or fee that would have been incurred had the Generator ceased operations on a date identified in the Generator Deactivation Notice, or such other date associated with performing service as a Generator Deactivation Short-Term Reliability Process Solution. 38.8.1.2 For each transmission project that is proposed in accordance with this Attachment FF, the ISO shall calculate the net costs that would be incurred to provide the service identified in the Developer’s response to the ISO’s request for Generator Deactivation Short-Term Reliability Process Solutions, considering any costs the Developer otherwise had a contractual or regulatory obligation to incur. 38.8.1.3 The ISO shall identify as “Capital Expenditures” the purchase or non- non-operational lease of, or modification to real property or assets (including, but not limited to, land, buildings, and equipment) that (a) are necessary to permit an Initiating Generator or Viable and Sufficient Generator Deactivation Short-Term Reliability Process Solution to provide service to satisfy, in whole or in part, the Generator Deactivation Short-Term Reliability Process Need identified in the ISO’s request for Generator Deactivation Short-Term Reliability Process Solutions, (b) have a useful life greater than one year, and (c) are not otherwise included in the ISO’s calculation of RMR Avoidable Costs. The ISO shall also identify the reasonably anticipated date the Capital Expenditure will be placed into service, or otherwise integrated into the Generator Deactivation Short-Term Reliability Process Solution.