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AEP » Topics » 5.1.5 Operating Margin Customer Calculation.

This excerpt taken from the AEP 10-K filed Mar 1, 2005.

5.1.5 Operating Margin Customer Calculation.

 

Each Control Area purchasing Operating Margin shall be assessed Transmission Congestion Charges for any increase in the cost of energy resulting from the provision of Operating Margin. The Transmission Congestion Charge shall be the amount of Operating Margin purchased in an hour multiplied by the difference in the Real-time Price at what would be the delivery interface and the Real-time Price at what would be the source interface, if the operating contingency that was the basis for the purchase of Operating Margin had occurred in that hour. Operating Margin may be allocated among multiple source and delivery interfaces in accordance with an applicable load flow study.

 

Issued By:

   

Craig Glazer

    Effective:   

May 1, 2004

    

Vice President, Government Policy

          

Issued On:

   

April 30, 2004

          

PJM Interconnection, L.L.C.

    Second Revised Sheet No. 125

Third Revised Rate Schedule FERC No. 24

    Superseding Original Sheet No. 125

 

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