VCMRR009

    Summary

    Title: Calculation of the Minimum Requirements Fee
    Next Group:
    Next Step:
    Status: Approved on 05/26/2016
    Effective Date: 06/01/2016

    Action

    Date Gov Body Action Taken Next Steps
    05/26/2016 TAC Approved
    05/04/2016 WMS Recommended for Approval Impact Analysis Consideration
    07/08/2015 WMS Deferred/Tabled Language Consideration

    Voting Record

    Date Gov Body Motion Result
    05/26/2016 TAC To approve VCMRR009 as recommended by WMS in the 5/4/16 WMS Report as revised by TAC. Passed
    05/04/2016 WMS To recommend approval of VCMRR009 as amended by the 4/28/16 RCWG comments. Passed
    07/08/2015 WMS To table VCMRR009 and refer the issue to the Resource Cost Working Group (RCWG). Passed

    Vote tallies here reflect individual votes, not the weight of the votes by market segment. Affirmative votes are not recorded in these vote tallies. For additional details on the voting record, please consult the Recommendation or Action Report, or the official vote tally if available, as posted in the key documents.

    Background

    Status: Approved
    Date Posted: 06/03/2015
    Sponsor: Paul Vinson on behalf of Resource Cost Working Group (RCWG)
    Urgent: No
    Sections: 3
    Description: This Verifiable Cost Manual Revision Request (VCMRR) includes language to clarify the calculation of the minimum requirements fee based on Option 1, as endorsed by WMS at the May 6, 2015 meeting. Under Option 1, the minimum requirements costs would be allocated to Resource usage only, excluding third party and storage usage. The minimum requirements fee is a cost incurred by the Resource for not transporting the agreed upon volume of fuel, as stated in their contract terms. The minimum requirements fee is assessed to the Qualified Scheduling Entity (QSE) based on the total amount of fuel purchased and transported, including volumes burned by plants and volumes used for other business transactions. The calculation of the minimum requirements fee will be determined by taking the total fee incurred and allocating it only across the volumes of fuel that have been transported and burned at the plants. This expense will then be used in conjunction with the various eligible fuel costs incurred by the Resource in determining a Resource’s fuel adder for the period.
    Reason: Addresses current operational issues.

    Key Documents