Cost Development
PowerSpark is a market dependent generation cost development system. PowerSpark estimates a unit’s substantive energy production cost for marked bidding and unit dispatch based on historical and recent expenditure patterns. It maintains unit parameters that are related to the equipment efficiency and operating constraints that may affect the production outcome.
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Benefits
- Create Multiple Cost Types such as Replacement, Market Rules Cost, Weighted Avg.
- Calculate Margins using different cost types
- All Calculated cost output, input, and intermediate calculations are stored for auditing or review purposes
- Costs are calculated as inputs change so if fuel or other costs change hourly, costs are then automatically calculated hourly
- Automated interfaces with internal and external source systems where possible and mass data import or manual entry capabilities.
- Enhanced GUI (graphical user interface) providing single-screen access to multiple applications with drill down searching capability allowing fast and easy access to specific information.
- On-line history of historical records that can be accessed for immediate query, reporting and analysis.
- Cost formulas can be edited/updated as required
Features
- Ability to capture and maintain all components used to calculate fuel related costs across all ISO markets (currently PJM, SPP, ERCOT, & MISO).
- Ability to define and maintain Cost Development Policies for each market based on: Weighted Average Fuel Costs, Replacement Fuel Costs, True Fuel Costs, User Defined Costs and CDTF Fuel Costs.
- Ability to define and update costing methodology for each market as changes occurs.
- Ability to define existing standard reports as well as have ad hoc reporting capabilities.
- Ability to perform “What If” Scenarios by retrieving & modifying data from one of the standard policy dataset.
- Ability to define and maintain Cost Development Policies for each market.
FREQUENTLY ASKED QUESTION ABOUT COST DEVELOPMENT
Cost development systems provide precise estimates of production costs, which allows for more competitive and profitable bidding in energy markets.
Expenditure patterns, both historical and recent, provide insights into the costs associated with energy production. These patterns are essential for accurately estimating future production costs.
Operating constraints limit a unit’s operational flexibility and can increase production costs. These constraints are considered in cost development for accurate cost estimation.
Equipment efficiency directly impacts energy production costs. More efficient equipment consumes less energy, resulting in lower production costs.
Cost development systems improve financial management by enhancing the accuracy of production cost forecasting. This aids in better budget planning and cost control.
