Allocation of Uplift Costs to Load Associated with Virtual Trading

Allocation of Uplift Costs to Load Associated with Virtual Trading

The allocation of uplift costs interrelated with Virtual Trading to load is based on ratios between Day-Ahead net energy purchases and forecast for four New York Control Area locations.

For the allocation of the incremental uplift costs interrelated with virtual trading equally among NYISO (New York Independent System Operator) Customers, an uplift allocation methodology has been developed to reflect the impact of these transactions.

Allocation of Incremental Uplift Costs Based Upon NYISO Forecast Load:

The allocation of Uplift costs with the virtual trading is mentioned below:

• To the extent that the NYISO forecast remains down from the actual load, these costs are allocated to bid entities of short time. These loads consume more than they have obtained in the DAM. This includes physical loads that have under bid their Day-Ahead needs and virtual suppliers (where virtual supply is treated as negative load). It doesn’t include virtual load.

• To physical loads by load-weighted share, forecast the excess of actual load.

Consideration of Locations Relating To Uplift Costs:

For the allocation of uplift costs, there are four locations of The New York Control Area (NYCA), which were selected to reflect the major restraints in the NYCA transmission system. Each location contains one or more LBMP zones.

The determination of uplift resulting is based upon the total daily shortage of each location and this shortage is measured by hoarding the hourly deficiencies of the location within a day. A surplus within a location will balance a shortage within a given hour in a given location but will not balance a shortage in a different hour. The ratio of a location’s total daily shortage serves to allocate the suitable share of uplift costs to each of the four locations.

After it, uplift costs are further allocated to individual bidders within that location based upon the...