20VAC5-313-40: Methodology to determine market-based costs

The following elements shall be considered to determine the appropriate market-based costs applied to certain customers electing to exempt the minimum stay requirements or wires charges:

1. Actual energy expenses of procuring such electric energy based on real-time or day ahead hourly prices calculated and published by the respective RTO for the appropriate price zone of the local distribution company;

2. Actual capacity expenses of procuring such electric capacity based on prices calculated and published by the respective RTO for the currently defined capacity market;

3. Incremental administrative and incremental transaction costs associated with procuring such energy, including but not limited to:

a. Costs of transmission line losses; and

b. Costs of ancillary services; and

4. A reasonable margin to provide the service deemed justifiable by the State Corporation Commission.