Fuel Cost Policy definition

Fuel Cost Policy means the document provided by a Market Seller to PJM and the Market Monitoring Unit in accordance with PJM Manual 15 and Operating Agreement, Schedule 2, which documents the Market Seller’s method used to price fuel for calculation of the Market Seller’s cost-based offer(s) for a generation resource.

Fuel Cost Policy means the document provided by a Market Seller to PJM and the Market Monitoring Unit in accordance with PJM Manual 15 and Operating Agreement, Schedule 2, which documents the Market Seller’s method used to price fuel for calculation of the Market

Fuel Cost Policy means the document provided by a Market Seller to PJM and the Market Monitoring Unit in accordance with PJM Manual 15 which reflects the Market Seller’s methodologies used to price fuel and compute the Market Seller’s total fuel-related costs applicable to cost-based offers for a generation resource.

Examples of Fuel Cost Policy in a sentence

• If PJM rejects a Market Seller’s updated Fuel Cost Policy, in its written notification, PJM shall provide an explanation for why the Fuel Cost Policy was rejected.

• PJM shall consult with the Market Monitoring Unit, and consider any input timely received from the Market Monitoring Unit, in its determination of whether to approve a Market Seller’s updated Fuel Cost Policy.

• If PJM rejects a Market Seller’s updated Fuel Cost Policy, PJM must include an explanation for why the Fuel Cost Policy was rejected in its written notification.

• When fuel is supplied by both leased and common carrier fuel transportation systems, the common carrier rate should be included in the Fuel On Board (FOB) delivered cost or included in the calculation of the Operating Costs as per the documented Fuel Cost Policy of each Market Seller.

• The Market Seller shall notify PJM and the MMU that an update to an existing Fuel Cost Policy or the need for a Fuel Cost Policy for a new resource is required at the earliest possible opportunity.

• A Market Seller may only submit a non-zero cost-based offer into the PJM Interchange Energy Market for a generation resource if it has a PJM-approved Fuel Cost Policy, or follows the temporary cost offer methodology set forth in Operating Agreement, Schedule 2, section 6.3, consistent with each fuel type for such generation resource.

• Market Sellers who have a Fuel Cost Policy that has been immediately expired by PJM will be provided a three (3) Business Day rebuttal period, starting from the date of expiration, to submit supporting documentation to PJM demonstrating that the expired Fuel Cost Policy accurately reflects the fuel pricing and/or cost estimation method documented in the previously approved Fuel Cost Policy that was expired.

• After it has completed its evaluation of the request, PJM shall notify the Market Seller in writing, with a copy to the Market Monitoring Unit, of its determination whether the updated Fuel Cost Policy is approved or rejected.

• Each Market Seller must account for situations where applicable indices or other objective market measures are not sufficiently liquid by documenting in the Fuel Cost Policy the alternative means actually utilized by the Market Seller to price the applicable fuel used in the determination of its cost-based offers, such as specifing alternative pricing points or documented quotes for the procurement of natural gas.

• Should the terms of the lease agreement be such that there is a fixed charge plus a charge for every unit of fuel delivered, the "charge per unit of fuel delivered" should be included in the Fuel on Board (FOB) delivered cost or in the calculation of the Operating Costs as per the documented Fuel Cost Policy.