Ludington Clause Samples

Ludington. The Incremental Cost of generation from CECo’s portion of the Ludington Plant is determined by the cost of Resources used to pump water into the plant’s reservoir and the Pumping Efficiency Factor. For the purposes of determining the Hypothetical System Dispatch in the RCA, the Incremental Cost of the Ludington Plant during generating cycles shall be determined as follows: (a) The total MW pumped and generated in each hour of each day in the Hypothetical System Dispatch shall match those of the Actual Dispatch. (b) The Incremental Cost List (in one (1) MW blocks) of the Resources used to pump water into the reservoir during each hour of the pumping cycle is obtained from the IC List of the Hypothetical System Dispatch constructed pursuant to Step 2 of Attachment 1 to the RCA for said pumping cycle and removing the one (1) MW blocks of Resources used for sales from the top of this IC List. (c) The one (1) MW blocks of Resources used to pump water into the reservoir during each hour in the Hypothetical System Dispatch are identified by counting down from the top of the IC List in (b) above the number of one (1) MW blocks used to pump water into the reservoir during each hour in the Actual Dispatch. (d) An average Incremental Cost of all the one (1) MW blocks identified in (c) above for the pumping cycle is calculated. This average, divided by the Pumping Efficiency Factor, is the Incremental Cost to be used for the Ludington Plant during the generating cycle in the Hypothetical System Dispatch. (e) To the extent that there is remaining “energy” in the reservoir following the subsequent generating cycle (“First Generating Cycle”), the Incremental Cost of the Ludington Plant for the generating cycles after the First Generating Cycle shall be the weighted average of the Incremental Cost of the remaining “energy” and the Incremental Cost of the new (as determined in accordance with (a) through (d) above) “energy” placed in the reservoir.