PCI Real-Time Pricing Improving trading efficiency & accuracy - PowerPoint PPT Presentation

PCI Real-Time Pricing Improving trading efficiency & accuracy

Energy Imbalance Markets Power Costs, Inc. PCI, Power Costs Inc, is a one stop supplier for energy software across North America. PCI has clients in all Graph or photo regions and has been in business as a private, debt-free company since 1992. ?

PCI Application Platform PCI Product Suite 3

Calculating Pricing For Trades Calculating pricing for energy trading can be difficult and time consuming. There are just a few inputs that must be considered: • Changing fuel prices especially when Natural Gas begins to undercut the cost of coal generation • Changing variable energy resource forecasts • Varying heat-rate across a resource’s dispatch • Resource derates, limit changes and outages • Changing load forecasts. • Prior executed trades. If traders are not incorporating these influential components into their costs as they evaluate trades, they may be generalizing costs too much and missing out on margin opportunities. 4

Calculating Pricing For Trades PCI’s Real-Time Pricing solution streamlines the calculation process for traders reducing errors and speeding up the pricing process for capturing margins.  Provides instant pricing for evaluating one or more multiple purchases and/or sales.  Captures all pricing assumptions in evaluated and executed trades.  Allows traders the ability to evaluate multiple trades consecutively, or simultaneously as needed.  Shows by trade which resources inc or dec along with their incremental price per MWh.  Shows when resources are started  Shows the fuel consumption changes by trade 5

Calculating Pricing For Trades How does PCI’s Real-Time Pricing work: • Starts with your resource plan • Uses your resource availability (i.e. limits, outages, heat rate curves) • Calculates incremental costs by resource base on fuel and O&M. • Determines and incorporates startup & minimum load costs. • Identifies current committed resources 6

Real-Time Pricing Dashboard Enter proposed trades here. View Unit MWh contributions here. View Unit Cost contributions here. View Fuel Burn details here. 7

RTP process – Control Buttons • Save/Compute: saves all edits and re-evaluates prices for all proposed trades. • Add: Puts a new trade at the bottom of the grid with some default values. • Copy: Copies the selected trade to a new trade, or behaves just like Add if no trade is selected. • Delete: Removes selected trade from this screen (will still be visible on audit screen) • Print: Brings up a print dialog for the top part of the screen • Excel: Exports trades to csv format

RTP process – Column Details • #: Line number, just for identifying trades more easily • Trades can be reordered by dragging with the mouse • B/S: Buy or Sell • Use dropdown or just click to toggle • Counterparty: Dropdown or free text entry • Executed: either check box or execution date • Check + Save/Compute will execute a trade • External Trade ID: only editable on executed trades. Dropdown box populated from deals or free text entry

RTP process – Column Details • GRP: group number. distinct groups are priced independently. • Run ID: not editable. combination of study name and result key. • Trader: name of current user. • Delivery Point: dropdown box plus free text entry • Comment: arbitrary text up to 300 characters • Hover allows full view of comment.

RTP process – Column Details • Evaluation Method: Dropdown box or free text entry • Free text entry must be unit or pre-defined resource group • Trade Price: Not computed. User-entry only. • Adder: More details later. • Total Cost: Break-even price plus or minus adder • Volume: sum of all MW hour entries for trade • HE01-HE24: enter MW details of trade • Hover to see full date

RTP process – Error Codes Red background: infeasible. The system or evaluation method cannot serve the given MW value in the given hour. Total Cost = INF Orange background: out of bounds. The resource plan does not have data for the given hour. Re-run the study process. Total Cost = ERR.

RTP process – Adder Entry Click on adder button to bring up adder dialog. Add and remove named adders in dialog (i.e. ISO charges/credits). Hover over adder button to see individual named adders

RTP process – Unit MWh contributions Select trade to see contribution details. Selection row will be highlighted blue. Only Hours with data are shown: HE19 is skipped in above example

RTP process – Unit Cost contributions Startup periods are highlighted in yellow. Hovering over any number shows more details.

RTP process – Fuel Burn Grid Hours are displayed the same as other detail grids. Fuel burn is totaled per fuel contract name.

RTP Audit • OPT audit screen will show trades from OPT trade-entry screen. • Each shows all trades for all study runs. Executed trades, proposed trades, deleted trades. • User can change start date of screen. Screen will show 48 hours from start hour of start date. • User can filter by Valid/Invalid, Buy/Sell, Counterparty, External Trade Id, Result Key, Trader, Delivery Point, and Evaluation Method.

RTP Audit Color Codes Yellow: executed deleted (invalid) Green: executed not deleted (valid) Red: proposed deleted (invalid) White/Gray: proposed not deleted (valid)

Deal Completion The PCI Real-Time Pricing solution supports either the Trader filling in the deal details such as location and counterparty, or once executed, the deal can be filled out in Deal Capture screens. Multiple Deal Completion workflows are supported that will fit into any existing processes.

Follow-Up If there are questions or would like a more detail demonstration of this product, please contact either: Tony Delacluyse Stu Wright tony@powercosts.com swright@powercosts.com 405-326-1496 303-917-3565