Examples of Deactivation Avoidable Cost Credit in a sentence
The Market Monitoring Unit and the generating unit owner shall attempt to come to agreement on the level of each component included in the Deactivation Avoidable Cost Credit.
All inquiries regarding avoidable expenses are to be directed to the PJM Market Monitor If the Generation Owner, or designated agent, chooses the compensation according to the Deactivation Avoidable Cost Credit in Part V of the PJM Tariff, compensation to the generator will begin as of the day following the filing, and will be net of revenues from the PJM markets.
While no other ISO has a provision that directly matches the assessments and needs addressed by the ISO’s Flexible Capacity Risk of Retirement provisions, PJM’s Deactivation Avoidable Cost Credit (DACC) reasonably establishes costs that should be included in a resource’s going forward costs.30Therefore, the ISO proposes to use the formula used in PJM’s DACC as the foundation for compensation for going forward costs under the Flexible Capacity Risk of Retirement provisions.
In the alternative, the Generation Owner, or its designated agent, may choose to receive avoided cost compensation according to the Deactivation Avoidable Cost Credit in Part V of the PJM Tariff.
While no other ISO has a provision that directly matches the assessments and needs addressed by the ISO’s Flexible Capacity Risk of Retirement provisions, PJM’s Deactivation Avoidable Cost Credit (DACC) reasonably establishes costs that should be included in a resource’s going forward costs.25Therefore, the ISO proposes to use the formula used in PJM’s DACC as the foundation for compensation for going forward costs under the Flexible Capacity Risk of Retirement provisions.
Should a generation owner elect to continue to operate a generation unit beyond its planned deactivation date in order to maintain system reliability pending the completion of necessary transmission system upgrades, the generation owner can elect to either (i) pursue a cost of service recovery rate or (ii) receive the Deactivation Avoidable Cost Credit (as defined in Part V of the PJM Tariff).
Part V [of the PJM Tariff]”or (ii) “receive the Deactivation Avoidable Cost Credit provided under…Part V [of the PJM Tariff].” Id. at section 113.2.
In the alternative, the Generation Owner may elect to receive the Deactivation Avoidable Cost Credit provided under this Part V.
PJM notes that the Part V provisions are “somewhat similar” to the proposed new section 5.14(b)(1).4Part V, section 113.2 of the PJM tariff (“Notice of Reliability Impact”) provides two compensation options for owners of these resources: a Deactivation Avoidable Cost Credit or a Cost of Service Recovery Rate.5 The Deactivation Avoidable Cost Credit is based on a detailed formula specified in Section 115 of PJM’s tariff.
While no other ISO has a provision that directly matches the assessments and needs addressed by the ISO’s Flexible Capacity Risk of Retirement provisions, PJM’s Deactivation Avoidable Cost Credit (DACC) reasonably establishes costs that should be included in a resource’s going forward costs.27Therefore, the ISO proposes to use the formula used in PJM’s DACC as the foundation for compensation for going forward costs under the Flexible Capacity Risk of Retirement provisions.