Archives

Capacity-4: I understand that there could be a payment adjustment on delivered ZRCs under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Is this payment adjustment based on distance from the Compliance Zone (LRZ 4)?

The payment adjustment is based on the difference between the Auction Clearing Price from the MISO Planning Resource Auction (“PRA”) for the Source Zone associated with the ZRCs and the Compliance Zone (LRZ 4). Please see FAQ-Capacity-1 and FAQ-Capacity-2 for examples of the payment adjustment.

Capacity-2: I understand that there could be a payment adjustment on delivered ZRCs under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Can you provide an example where the adjustment will add to the payment to Seller?

Under the terms of the (AIC) Capacity Agreement, payments to Seller will only be adjusted to reflect an increased payment if the Source Zone ACP in a season is greater than the Compliance Zone ACP in that season where the Compliance Zone is LRZ4. For purposes of the below example, the “ACP” refers to the … Continue reading I understand that there could be a payment adjustment on delivered ZRCs under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Can you provide an example where the adjustment will add to the payment to Seller?

Capacity-1: I understand that there could be a payment adjustment on delivered ZRCs under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Can you provide an example where the adjustment will result in a reduced payment to Seller?

Under the terms of the (AIC) Capacity Agreement, payments to Seller will be reduced if the Compliance Zone ACP in a season is greater than the Source Zone ACP in that season where the Compliance Zone is LRZ4. If the amount of the payment reduction is greater than the unadjusted payment, then Seller (not Buyer) … Continue reading I understand that there could be a payment adjustment on delivered ZRCs under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Can you provide an example where the adjustment will result in a reduced payment to Seller?