The Gist
If a resource’s fuel costs go more than $1/MMBTU over the Fuel Index Price(FIP), a resource can submit “Exceptional Fuel Costs” that get included in the Mitigated Offer Cap calculation (rather than FIP). If this happens ERCOT has to post a market notice within five business days notifying market participants that this has happened. The Exceptional Fuel Costs are calculated with the intra day, same day, and spot fuel bought for that hour (and doesn’t include any pre-purchased fuel, even if it was burned for that hour. The intra day, same day, and spot fuel needs to make up at least 10% of the fuel used. At the 1/28/22 WMWG meeting Vistra/Luminant stated that they are the company that has been filing exceptional fuel costs
Important Actions
- 4/5/2019 NPRR847 is implemented
- 2/11-20/21 Exceptional Fuel Charges filed by multiple resources during Winter Storm Uri
- 12/1/21 Vistra starts submitting Exceptional Fuel Costs as a result of its dispute with its gas supplier
Reference
Market Notices for submitted Exceptional Fuel Costs
Meeting Notes
Feedback?
Send any corrections/clarifications to notes@cimview.com
