Opportunity Costs. The market power mitigation tool can replace submitted bids with CAISO calculated default energy bids in the day-ahead and real-time market process. In the event that these bids are lower than the true cost to operate a resource, the tool may force an inefficient dispatch. Storage resources can only generate until stored energy is depleted before needing to be recharged. To avoid being discharged before the optimal time, a resource with limited availability should have an opportunity cost included in its default energy bid. These opportunity costs include the value to the resource owner from not running during a particular interval and saving stored energy until a later time when prices are higher. If the resource is fully charged and has a default energy bid of $60/MWh, and the current market price is $75/MWh, it would be profitable for the resource to discharge and receive this revenue. However, this may be sub-optimal as prices in the successive four hours rise to $100/MWh. In this example, the resource would optimally wait to discharge stored energy, until the later hours when prices are higher. This example is highly simplified, but illustrates the need for inclusion of an opportunity cost component in the default energy bid for storage resources. In this simple example, an opportunity cost increasing the total default energy bid to $100/MWh is appropriate for this resource. The inclusion of opportunity costs in the default energy bid is further complicated when a resource is capable of buying and selling energy for multiple hours, and buys or sells energy in the real-time market and experiences economic losses. CAISO proposes including the highest price, corresponding to the storage duration of the resource in the default energy bids for storage resources. For example, if a specific storage resource is capable of storing 4 hours of energy, the opportunity cost included in the default energy bid will be equal to estimated prices in the 4th highest hours of the day.28 The process used to estimate these costs in the day-ahead market will use previous day prices from the day-ahead market scaled by a bilateral index prices. The methodology is outlined in the Equation 2. Equation 2: Opportunity Costs 𝐷𝐴𝐵𝑡 where: 𝑂𝐶𝛿,𝑡 = 𝑂𝐶𝛿,𝑡−1 ∗ 𝑀𝑎𝑥 ( 𝐷𝐴𝐵𝑡−1 , 1) OC: Opportunity cost DAB: Day-ahead bilateral hub t: Interval (day) 𝛿: Storage duration for the resource (i.e. 4 hours) 28 For example, if prices are $45, $35, $32, $30, $27, $31, $40; the fou...

Related to Opportunity Costs

Expenses All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.
Fees Registry Operator must pay, or have paid on its behalf, fees to the Escrow Agent directly. If Registry Operator fails to pay any fee by the due date(s), the Escrow Agent will give ICANN written notice of such non-‐payment and ICANN may pay the past-‐due fee(s) within fifteen (15) calendar days after receipt of the written notice from Escrow Agent. Upon payment of the past-‐due fees by ICANN, ICANN shall have a claim for such amount against Registry Operator, which Registry Operator shall be required to submit to ICANN together with the next fee payment due under the Registry Agreement.
Evaluation 1. The purposes of evaluation provisions include providing employees with feedback, and employers and employees with the opportunity and responsibility to address concerns. Where a grievance proceeds to arbitration, the arbitrator must consider these purposes, and may relieve on just and reasonable terms against breaches of time limits or other procedural requirements.
Taxes The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes.
Payments From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.
Vacation During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the most favorable plans, policies, programs and practices of the Company and its affiliated companies as in effect for the Executive at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and its affiliated companies.
Parties This Agreement shall each inure to the benefit of and be binding upon the Underwriters and the Company and their respective successors. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other than the Underwriters and the Company and their respective successors and the controlling persons and officers and directors referred to in Sections 6 and 7 and their heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained. This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the Underwriters and the Company and their respective successors, and said controlling persons and officers and directors and their heirs and legal representatives, and for the benefit of no other person, firm or corporation. No purchaser of Securities from any Underwriter shall be deemed to be a successor by reason merely of such purchase.
Liability 1. The parties agree that any data subject, who has suffered damage as a result of any breach of the obligations referred to in Clause 3 or in Clause 11 by any party or subprocessor is entitled to receive compensation from the data exporter for the damage suffered.
Wages A transferring employee will be paid in accordance with the collective agreement of the designated employer.
Overtime Overtime will begin to accrue after sixty (60) hours in a two (2) week period averaged over the scheduling period determined by the local parties. Overtime will apply if the employee works in excess of the normal daily hours. Payment for overtime is as in Article 16.01.

Opportunity Costs Sample Clauses

Filter & Search

Parent Clauses

Related Clauses

Related to Opportunity Costs