SYSTEM MARGINAL PRICE METHODOLOGY Sample Clauses

SYSTEM MARGINAL PRICE METHODOLOGY. System Marginal Price is the hourly Unit Incremental Cost of the most expensive economic MWh of electricity generated by a Dispatchable Unit that is online and operating above its Economic Dispatch Minimum Capacity. The Unit Incremental Cost is the incremental fuel cost as observed at the unit’s hourly integrated generation, plus non-fuel variable operations and maintenance costs, and, if the unit is contracted by a Party under a Power Purchase, other incremental operating costs of a Party specified in the underlying Power Purchase contract. The incremental fuel cost is calculated from a Party- provided, second order polynomial curve and the applicable fuel price. The System Marginal Price shall not be set by a unit that is not a Dispatchable Unit.
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Related to SYSTEM MARGINAL PRICE METHODOLOGY

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