Comment Submission

I’m trying to decipher and breakdown the following paragraph from page 6, of BPM 206

Application of Pricing and Quantities to Determine Amounts Paid by Buyers and Amounts Received by Sellers for Holdback Requirements and Energy Deployments

A Participant assigned a Holdback Requirement on a Preschedule Day for any hour of an Operating Day shall be paid the Holdback Settlement Price times the MW quantity of the Holdback Requirement. A Participant that provides energy to another Participant pursuant to an Energy Deployment shall be paid the Energy Declined Settlement Price times the MWhs of energy provided to such other Participant, and its total payments shall be reduced by the Energy Declined Settlement Price times the MWhs of energy that would have been provided under a Holdback Requirement but were declined by the other Participant. A Participant assigned a Holdback Requirement also shall be paid, when applicable, a Make Whole Adjustment.

As I understand it, the following would be the settlement:

Participant A:  Holdback of 100mw (+100)

Participant B:  Deficit of 100mw (-100)

Participant B Opt-in to receive 50mw

Participant A receives:

1. Holdback Settlement Price (Total Settlement Price minus Energy Declined Settlement Price) x 100 (for total holdback)

(+) PLUS

2. Energy Declined Settlement price (lesser of 0.80 times Total Settlement Price, or Real-Time Applicable Index Price for the hour) x 50 (for delivered MW)

(-) MINUS

3. Energy Declined Settlement price (lesser of 0.80 times Total Settlement Price, or Real-Time Applicable Index Price for the hour) x 50 (for energy not opt-in)

Therefore, items 2 and 3 above cancel each other out, correct?

Participant B pays:

1. Holdback Settlement Price (Total Settlement Price minus Energy Declined Settlement Price) x 100 (for total holdback)

(+) PLUS

2. Energy Declined Settlement price (lesser of 0.80 times Total Settlement Price, or Real-Time Applicable Index Price for the hour) x 50 (for delivered MW)

(-) MINUS

3. Energy Declined Settlement price (lesser of 0.80 times Total Settlement Price, or Real-Time Applicable Index Price for the hour) x 50 (for energy not opt-in)
4. Contribution to the payment of Make Whole Adjustment, based on its negative Sharing Calculation.

Why aren’t there two separate calculated prices for:

Energy Declined Settlement Price (for holdback energy not opt-in)

Energy Deployment Price (for holdback energy opt-in & delivered)

In the scenario above, because 50% of the holdback was opt-in, the delivered and declined energy offset.  Participant A is only receiving Holdback Settlement and potential Make Whole Adjustment.  Is that the intention here?