RATES FOR INTERCHANGE ENERGY Sample Clauses
RATES FOR INTERCHANGE ENERGY. Section 3.1 - Procedure for Economic Dispatch: Centralized economic dispatch is accomplished by dispatching system generating resources to meet the requirements of the OPERATING COMPANIES and to supply energy for sales to OTHERS. System resources are dispatched based on variable dispatch costs, which include the marginal replacement fuel cost (as defined in Section 3.6 of the Manual), variable operation and maintenance expenses, in-plant fuel handling costs, emission allowance replacement cost, compensation for Southern Company Services, Inc. Original Sheet No. 38 First Revised Rate Schedule FERC Number 138 transmission losses, and other such energy related costs that would otherwise not have been incurred.
RATES FOR INTERCHANGE ENERGY. Section 3.1 Procedure for Economic Dispatch: Centralized economic dispatch is accomplished by dispatching system generating resources and purchases to meet the obligations of the OPERATING COMPANIES and to supply energy for sales to OTHERS. System generating resources are dispatched based on marginal replacement fuel cost, variable operation and maintenance expenses, in-plant fuel handling costs, emission allowance replacement costs, compensation for transmission losses, and other such energy related costs that would otherwise not have been incurred. A purchase is recognized in economic dispatch on the basis of its energy cost. The above-referenced cost components are collectively referred to as the “variable dispatch cost.”
RATES FOR INTERCHANGE ENERGY. Section 3.1 Procedure for Economic Dispatch: Centralized economic dispatch is accomplished by dispatching system generating resources and purchases to meet the obligations of the OPERATING COMPANIES and to supply energy for sales to OTHERS. System generating resources are dispatched based on marginal replacement fuel cost, variable operation and maintenance expenses, in-plant fuel handling costs, emission allowance replacement costs, compensation for transmission losses, and other such energy related costs that would otherwise not have been incurred. A purchase is recognized in economic dispatch on the basis of its energy cost. The above-referenced cost components are collectively referred to as the “variable dispatch cost.”
Section 3.2 Associated Interchange Energy Rate: The Associated Interchange Energy Rate, as determined for each hour, is based on the variable dispatch cost of the incremental resource(s) that serve the collective obligations of the OPERATING COMPANIES. For each hour, an OPERATING COMPANY supplying Associated Interchange Energy to the Pool will receive a payment determined by multiplying the applicable Associated Interchange Energy Rate by the quantity of kilowatt-hours sold to the Pool. For each hour, an OPERATING COMPANY purchasing Associated Interchange Energy from the Pool will be charged an amount determined by multiplying the Associated Interchange Energy Rate by the quantity of kilowatt-hours purchased from the Pool.