What is Peak Energy Rent?
Peak Eneargy Rent (PER) is a value used to calculate the PER Adjustment which reflects revenues during high priced hours in the Energy markets.
PER is calculated at an hourly and monthly level for each Capacity Zone as determined by the Forward Capacity Auction (FCA). The Locational Marginal Price (LMP) is the Hub price for the Rest-of-Pool Capacity Zone and for all other Capacity Zones the LMP is the LMP of the Load Zone associated with the Capacity Zone(s).
Hourly PER is calculated as the maximum of the difference between the LMP and a strike price or zero.
The strike price is based on fuel cost (ultra low-sulfur No. 2 oil measured at New York Harbor or day-ahead gas measured at the Algonquin City Gate) and the heat rate of a proxy unit.
Monthly PER is the sum of all Hourly PER values in the month.
In what document(s) do I find details about the Peak Energy Rent?
Primary provisions for the settlement of PER are included in, but not limited to Market Rule 1, Section III.13.7.2.7.1.1, 13.7.2.7.1.1.1 and 13.7.2.7.1.1.2.
Related Standard Settlements
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Related Billing Adjustments
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Bill Detail
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Reports
Forward Capacity Market Hourly Peak Energy Rent
WW_FCMHOURLYPER Detailed in the monthly World-wide Web (WW) report issued during the beginning of the applicable settlement obligation month after Real-Time Energy settlements are distributed.
Forward Capacity Market Monthly Peak Energy Rent
WW_FCMMONTHLYPER Summarized in the monthly World-wide Web (WW) report issued during the beginning of the applicable settlement obligation month after Real-Time Energy settlements are distributed coincident with the distribution of the Hourly PER WW report.
Related Calculation Summary
FCM Credits and PER Adjustment Calculation Summary
FERC EQR
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Additional Related Materials
ISO News Issue 183 - Publication of Peak Energy Rent Data Reports
Assumptions and Other Information for the Calculation of Peak Energy Rent - provides information in support of the calculation of Peak Energy Rent (PER) specific to 50/50 Predicted Peak System Load